National Atomic Company Kazatomprom JSC (KZAP) H2 2023 earnings summary

Executive summary

• FY2023 consolidated revenue rose to KZT 1,434 billion from KZT 1,001 billion; operating profit was KZT 829 billion, while net profit was KZT 631 billion vs KZT 639 billion.

• Strategy remained value over volume: production cuts against subsoil-use agreements removed ~42,800 tU from global supply through 2023.

Financial highlights

• Consolidated revenue KZT 1,434 billion vs KZT 1,001 billion; operating profit KZT 829 billion vs KZT 681 billion; net profit KZT 631 billion vs KZT 639 billion.

• Total mining-entity CAPEX on a 100% basis was KZT 201 billion vs KZT 146 billion; excludes liquidation funds and closure costs.

• Uranium sales revenue was KZT 1,181 billion; consolidated revenue was KZT 1,434 billion.

Outlook and guidance

• 2024 production guidance: 21,000–22,500 tU on a 100% basis and 10,900–11,900 tU attributable, vs FY2023 actuals of 21,112 tU and 11,169 tU.

• 2024 sales guidance: consolidated 18,000–18,500 tU and external sales 14,650–15,150 tU, vs FY2023 actuals of 18,069 tU and 14,915 tU.

• 2024 revenue guidance: KZT 1,700–1,800 billion consolidated and KZT 1,300–1,400 billion from uranium sales.

• 2024 attributable C1 cash cost guidance is $16.50–$18.00/lb; all-in sustaining cost is $26.00–$27.50/lb; mining-entity CAPEX is KZT 250–270 billion.

• Guidance assumes USD/KZT 460; production outcomes remain exposed to sanctions pressure and limited access to key materials.