National Atomic Company Kazatomprom JSC (KZAP) Q4 2024 earnings summary

Executive summary

• 2024 results were outstanding, with revenue up 26% to over KZT 1.8 trillion, driven by strong uranium prices, robust demand, and global leadership in uranium production amid a nuclear renaissance and net-zero goals.

• Net profit surged 95% to KZT 1,132 billion, reflecting strong operational performance and a significant one-time gain from the consolidation of JV Budenovskoye LLP.

• The company maintains a value-over-volume strategy, focusing on disciplined production, long-term market stability, and expansion into rare and rare-earth metals.

• ESG achievements include a higher S&P Global CSA score, inclusion in TIME's Top 500 "World's Best Companies – Sustainable Growth," and improved safety metrics.

• Kazakhstan's plans for new nuclear power plants may increase domestic uranium demand and impact exportable supply.

Financial highlights

• FY2024 consolidated revenue reached KZT 1,813 billion (+26% year-over-year), with operating profit at KZT 1,132 billion and net profit at KZT 1,132 billion (+95%).

• Adjusted net profit rose 44% to almost KZT 820 billion, with adjusted EBITDA at KZT 836 billion.

• Average realized uranium price was $69.48/lb, up 26% from 2023.

• Capital expenditures increased by 58% to KZT 318 billion, mainly for new wells and infrastructure.

• Cash and equivalents at year-end reached KZT 294 billion (+39%).

Outlook and guidance

• 2025 uranium production guidance: 25,000–26,500 tU (100% basis), 13,000–14,000 tU (attributable), with group sales volume of 17,500–18,500 tU.

• Revenue forecast for 2025 is KZT 1,600–1,700 billion, reflecting a conservative outlook.

• C1 cash cost guidance: $16.50–$18.00/lb; AISC: $29.00–$30.50/lb.

• Capital expenditures for mining entities projected at KZT 385–415 billion, up from KZT 318 billion in 2024.

• No significant increase in C1 and all-in sustaining cash costs expected for 2025, but CapEx for mining entities to rise over 30%.