National Atomic Company Kazatomprom JSC (KZAP) H1 2023 earnings summary

Executive summary

• 1H2023 net profit was KZT 167.4bn and adjusted EBITDA KZT 278.3bn; production and sales volumes were lower YoY, while realized uranium prices increased.

• Production discipline remains in place through 2024, with updated 2023 guidance lifting sales and revenue ranges while keeping production ranges unchanged.

Financial highlights

• Consolidated revenue was KZT 493.7bn vs KZT 618.7bn in 1H2022; operating profit was KZT 222.3bn vs KZT 252.5bn.

• Net profit was KZT 167.4bn vs KZT 172.8bn; adjusted EBITDA was KZT 278.3bn vs KZT 331.2bn.

• Attributable EBITDA was KZT 182.8bn vs KZT 224.5bn; mining-entity capex on a 100% basis was KZT 56.3bn vs KZT 76.8bn.

Outlook and guidance

• Updated 2023 production guidance remains 20,500–21,500 tonnes U3O8 on a 100% basis and 10,600–11,200 tonnes attributable; initial ranges were unchanged.

• Updated group sales guidance rose to 17,500–18,000 tonnes from 15,400–15,900; KAP sales guidance rose to 14,500–15,000 tonnes from 12,100–12,600.

• Updated revenue guidance: KZT 1,270–1,310bn consolidated and KZT 1,020–1,060bn from group U3O8 sales; initial ranges were KZT 1,080–1,090bn and KZT 820–840bn.

• Updated attributable C1 cash cost guidance is $13.00–$14.50/lb and all-in sustaining cash cost $21.00–$22.50/lb; mining-entity capex guidance is KZT 220–230bn.