KAP announces its updated Strategy for 2025-2034

JSC National Atomic Co. Kazatomprom

15 January 2025

 

AIX: KAP, KAP.Y (GDR)

LSE: KAP (GDR)

Currency: KZT (₸), unless otherwise specified

15 January 2025, Astana, Kazakhstan

Kazatomprom announces the approval of its updated Development Strategy for 2025-2034

National Atomic Company "Kazatomprom" JSC ("Kazatomprom" or the "Company") announces that its Board of Directors has approved the Company's updated Development Strategy for the years 2025-2034 (the "Strategy"). The Strategy is a logical continuation of the 2018's strategy implemented prior to IPO and maintains a commitment to creating long-term value. The update of the development strategy was necessitated by the early achievement of key strategic goals set for 2018-2028 and fundamental changes in the nuclear industry. The Strategy defines the Company's mission, vision, and strategic objectives for the next 10 years, aiming to sustainably strengthen the Company's position and utilise arising opportunities amid new nuclear renaissance.

"The updated Strategy focuses on continuous development in a changing industry, optimising processes and exploring potential opportunities for strategic participation in other stages of the nuclear fuel cycle. Such approach is expected to enable us to significantly replenish our resource base amidst growing demand, diversify long term revenue streams, mitigate geopolitical risks, and strengthen the Company's position in the global market, ensuring stable and sustainable growth," emphasised Arman Argingazin, Chairman of Kazatomprom's Board of Directors.

Since the implementation of the 2018-2028 Development Strategy, Kazatomprom has achieved the following:

·      Removed over 48,000 tonnes of uranium from primary global production, contributing to the recovery of the uranium market and to achieving a balance between supply and demand, while preserving uranium reserves for future needs and fostering sustainable long-term value.

·      Transformed its uranium sales strategy by limited sales to intermediaries and establishing its own trading arm. The Company significantly expanded its geographical reach and sales portfolio, adding six new countries to its client base since 2018, including Brazil (2018), Sweden (2018), Spain (2019), Argentina (2020), Romania (2021), and the UAE (2024). Furthermore, Kazatomprom enhanced its regional diversification by increasing the share of sales to the Americas from 16% in 2018 to 26% in 2023. The Company's sales portfolio demonstrates significant correlation with spot prices. Additionally, Kazatomprom has successfully diversified its transportation routes, with the share of deliveries to Western facilities via the Trans-Caspian International Transport Route reaching 64% in 2023.

·      Significantly improved its corporate governance. The Company consistently strives to adhere to the best practices in HSE, corporate governance, compliance, disclosure and transparency. Investment community and other stakeholders' trust has significantly increased. Kazatomprom received a Corporate Sustainability Assessment (CSA) score of 48/100 from S&P Global Ratings, exceeding industry average.

Kazatomprom's 2025-2034 Strategy remains committed to the "Value over Volume" principle, further reflecting changes in the nuclear fuel market and addressing the growing demand for both uranium products and rare and rare-earth metals. The Company's mission and vision are to support global transition to clean energy through sustainable development and to be an international leader in the nuclear industry.

"Growing importance of nuclear energy has become an integral part of global green energy policies, significantly strengthening fundamental dynamics of the uranium market, which are now stronger than ever. As the world's leading uranium producer and supplier, Kazatomprom plays a vital role in advancing global efforts towards clean energy transition. Our commitment to the strategy of creating long-term value for our shareholders remains steadfast. Successfully achieving Kazatomprom's updated strategic goals will not only reinforce the Company's position in the global uranium market, nuclear fuel cycle, and rare and rare-earth metals but also ensure the creation of long-term value for all stakeholders," highlighted Meirzhan Yussupov, Kazatomprom's Chief Executive Officer.

The Company's Board of Directors has identified the following strategic objectives for 2025-2034:

·      Enhance focus on uranium mining as our core business, with efforts concentrated on replenishment and efficient use of resource base;

·      Expand our footprint in the nuclear fuel cycle, given the arising opportunities, substantiated by economic value;

·      Develop and expand rare and rare-earth metals segment under the critical minerals agenda;

·      Continue to diversify sales and further enhance trading function;

·      Improve and strengthen leading business and ESG practices in order to ensure and uphold integrity of business.

These strategic goals are interdependent and complementary, serving as a fundamental guideline for the Company's comprehensive development over the next 10 years.

Kazatomprom remains committed to its core principles of creating sustainable value, solidifying its reputation and credibility among investors, customers, and partners. Concurrently, the Company significantly contributes to the economic and social development of local communities, as well as the country as a whole.

Acknowledging the importance of the Strategy update for 2025-2034 and the need to effectively communicate it to the investment community, the Company plans to host a dedicated series of events to present and discuss its strategic goals for the next decade with investors and analysts. A corresponding public announcement will follow.

For more details, please visit our updated Strategy section on the Company's website: www.kazatomprom.kz.

Investor Relations Inquiries

Botagoz Muldagaliyeva, Director, Investor Relations

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Public Relations and Media Inquiries

Altynay Karibzhanova, Chief Expert, Public Relations

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About Kazatomprom

Kazatomprom is the world's largest producer of uranium with the Company's attributable production representing approximately 20% of global primary uranium production in 2023. The Group benefits from the largest reserve base in the industry and operates, through its subsidiaries, JVs and Associates, 27 deposits grouped into 14 mining assets. All of the Company's mining operations are located in Kazakhstan and extract uranium using ISR technology with a focus on maintaining industry-leading health, safety and environment standards (ISO 45001 and ISO 14001 certified).

Kazatomprom securities are listed on the London Stock Exchange and the Astana International Exchange. Kazatomprom is the national atomic company in the Republic of Kazakhstan, the Group's primary customers are operators of nuclear generation capacity, the principal export markets for the Group's products are China, South and Eastern Asia, Europe and North America. The Group sells uranium and uranium products under long-term contracts, short-term contracts as well as in the spot market, directly from its headquarters in Astana, Kazakhstan, and through its Switzerland-based trading subsidiary, Trade House KazakAtom AG (THK).

For more information, please see the Company website at www.kazatomprom.kz.

Forward-looking statements

All statements other than statements of historical fact included in this communication or document are forward-looking statements. Forward-looking statements give the Company's current expectations and projections relating to its financial condition, results of operations, plans, objectives, future performance and business. These statements may include, without limitation, any statements preceded by, followed by or including words such as "target," "believe," "expect," "aim," "intend," "may," "anticipate," "estimate," "plan," "project," "will," "can have," "likely," "should," "would," "could" and other words and terms of similar meaning or the negative thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the Company's control that could cause the Company's actual results, performance or achievements to be materially different from the expected results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which it will operate in the future.

THE INFORMATION WITH RESPECT TO ANY PROJECTIONS PRESENTED HEREIN IS BASED ON A NUMBER OF ASSUMPTIONS ABOUT FUTURE EVENTS AND IS SUBJECT TO SIGNIFICANT ECONOMIC AND COMPETITIVE UNCERTAINTY AND OTHER CONTINGENCIES, NONE OF WHICH CAN BE PREDICTED WITH ANY CERTAINTY AND SOME OF WHICH ARE BEYOND THE CONTROL OF THE COMPANY. THERE CAN BE NO ASSURANCES THAT THE PROJECTIONS WILL BE REALISED, AND ACTUAL RESULTS MAY BE HIGHER OR LOWER THAN THOSE INDICATED. NONE OF THE COMPANY NOR ITS SHAREHOLDERS, DIRECTORS, OFFICERS, EMPLOYEES, ADVISORS OR AFFILIATES, OR ANY REPRESENTATIVES OR AFFILIATES OF THE FOREGOING, ASSUMES RESPONSIBILITY FOR THE ACCURACY OF THE PROJECTIONS PRESENTED HEREIN.

The information contained in this communication or document, including but not limited to forward-looking statements, applies only as of the date hereof and is not intended to give any assurances as to future results. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to such information, including any financial data or forward-looking statements, and will not publicly release any revisions it may make to the Information that may result from any change in the Company's expectations, any change in events, conditions or circumstances on which these forward-looking statements are based, or other events or circumstances arising after the date hereof.

 

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