KAP announces 2024 Full Year Financial Results

JSC National Atomic Co. Kazatomprom

19 March 2025

 

AIX: KAP, KAP.Y (GDR)

LSE: KAP (GDR)

19 March 2025, Astana, Kazakhstan

Kazatomprom announces 2024 Full Year Financial Results

National Atomic Company "Kazatomprom" JSC ("Kazatomprom", "KAP" or "the Company") announces its consolidated financial results for the year ended 31 December 2024, prepared in accordance with the International Financial Reporting Standards (IFRS).

"Nuclear energy is widely recognised as an integral part of global green energy policies. Pursuing the necessity to achieve net zero, nuclear energy is being increasingly adopted as a baseload power source by many countries. This bolsters the uranium market fundamentals. Kazatomprom appreciates its strategic importance in helping the world transition away from a reliance on fossil fuels and is steadfast in delivering a long-term value for all stakeholders.

"On the back of strong growth in uranium price throughout the year, our 2024 revenue grew by 26% exceeding 1.8 trillion tenge. Attributable to the Company, adjusted net profit was 38% higher compared to the previous year amounting to almost to 577 billion tenge. These impressive results reflect the growth of the average annual uranium spot price over the past year, robustness of long-term price dynamics, and of course the Company's strong position of the lowest cost producer and largest seller globally.

"The key milestone is the update of our long-term strategy, which reiterates the "Value over Volume" approach as its cornerstone. Kazatomprom's large-scale exploration program aimed at replenishment and efficient use of resource base is already yielding results. We were able to not only sustain our reserves throughout the year, but also to significantly expand our exploration portfolio. The exploration projects in our pipeline are fully attributable to Kazatomprom, further enhancing our credibility as a reliable supplier of natural uranium," - said Meirzhan Yussupov, Chief Executive Officer of Kazatomprom.

Corporate Update

Updated Development Strategy for 2025 - 2034

As a result of the early achievement of key strategic goals set for 2018 - 2028 and fundamental changes in the nuclear industry the Company's Board of Directors has approved the updated Development Strategy for the years 2025-2034, aimed at sustainable entrenchment of Kazatomprom's position and leveraging opportunities emerging in the second nuclear renaissance.

The updated Development Strategy for 2025-2034 remains committed to the "Value over Volume" principle, while adapting to changes in the nuclear fuel market and taking into account the growing demand for uranium products, rare and rare earth metals.

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.

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.

JV Inkai Operations

As was reported in the beginning of 2025, JV Inkai LLP has resolved the approval issue and has resumed its mining operations at block No. 1 of Inkai deposit that were suspended for short period of time. As a result of this suspension, as well as due to not achieving its target production in 2024, JV Inkai is expected to revise its production plans for 2025 downwards.

Anticipated decrease in JV Inkai's 2025 production target is not expected to materially affect Kazatomprom's production plans for 2025 which might, however, result at a lower range of current guidance. The Company remains fully committed to fulfilling contractual obligations towards all existing customers and has sufficient level of inventories to comfortably manage its deliveries throughout 2025.

Adjustments to Free Cash Flow formula affecting dividends for results of FY2025

In June 2024, the Company made dividend payment of nearly 315 billion tenge as a result of 2023. This amount marks a record high since the Company's initial public offering. As of the date of release, the Company is making adjustments to the Free Cash Flow (FCF) calculation, which are subject to consideration at the upcoming Annual General Meeting of Shareholders in May 2025.

The adjustments affect the method for calculating FCF, which is currently calculated using the following formula: FCF = Cash flows from operating activities minus (-) acquisition of fixed assets (FA, including advances) and intangible assets (IA) - acquisition of mine development assets - acquisition of exploration and evaluation assets plus (+) dividends from JVs and associated companies, to be distributed before the annual general meeting of shareholders (AGM) following the reporting year + dividends from JVs and associated companies, distributed after the AGM and not accounted for in the previous period + receipts/disposals (on a net basis) from the sale/acquisition of shares, participation interests in subsidiaries and dependent companies - acquisition of investments in JVs and associated companies, other equity investments in cash.

It is proposed to adjust the current FCF calculation as follows:

•     exclude from the cash flows from operating and investing activities proportionate share of cash flows of a non-controlling interest (NCI);

•     include cash flows from the sale of fixed assets, intangible assets and other long-term assets, less proportionate share of cash flows of NCI;

•     include cash receipts from dividends received by the Company's subsidiaries in the reporting period from associates, joint ventures and other investments of third-tier enterprises in which the Company has equity shares/participation interests indirectly through direct interests in subsidiaries, joint ventures and associates, less proportionate share of cash flows of NCI.

Since the approval of the existing FCF formula, the following events have occurred in the structure of the Group, increasing the share of non-controlling interest in FCF, thereby reducing the share of Kazatomprom, as the parent company:

•     sale of a 49% stake of the Company in Ortalyk LLP in July 2021;

•     inclusion of JV Budenovskoye LLP in the Group line-by-line consolidation perimeter through the gain of control with a 51% stake in January 2024.

Adjustments to the FCF calculation formula, if approved by the Annual General Meeting of Shareholders, will be applied on the results of FY2025 and onwards. Dividends for 2024 will be distributed in accordance with the dividend policy in effect on the reporting date.

Key financial metrics

(KZT billion unless noted)					2024	2023	Change
Group's consolidated revenue					1,813	1,435	26%
Operating profit					807	681	19%
Net profit					1,132	580	95%
Earnings per share attributable to owners (basic and diluted), KZT/share1					3,363	1,616	108%
Adjusted net profit (net of one-time effects), attributable to:					836	580	44%
Owners of the Company					577	419	38%
Adjusted EBITDA2					1,097	829	32%
Attributable EBITDA3					789	639	23%
Cash flow from operating activities4					516	432	19%

¹ Calculated as: Profit for the year attributable to owners of the Company divided by Total share capital, rounded to the nearest KZT.

² Adjusted EBITDA is calculated by excluding from EBITDA items not related to the main business and having a one-time effect. Calculation: Profit before tax - finance income + finance expense +/- Net FX loss/(gain) + Depreciation and amortisation + Impairment losses - reversal of impairment +/- one-off or unusual transactions.

³ Attributable EBITDA (previously "Adjusted Attributable EBITDA") is calculated as: Adjusted EBITDA less the share of the results in the net profit in JVs and associates, plus the share of Adjusted EBITDA of JVs and associates engaged in the uranium segment, less non-controlling share of adjusted EBITDA of Appak LLP, JV Inkai LLP, Baiken-U LLP, Ortalyk LLP, Turanium (previously - JV Khorasan-U) LLP and JV Budenovskoye LLP less any changes in the unrealized gain in the Group.

⁴ Includes income tax and interest paid

Operating and Financial Review and Financial Statements

The Operating and Financial Review, and Audited Consolidated Financial Statements provide detailed explanations of Kazatomprom's results for the year ended 31 December 2024, as compared to the same period in 2023, and the Company's guidance for 2025. All abbreviations, links and references provided below are related to respective abbreviations and sections used in the Operating and Financial Review. This press release should be read alongside these documents, which are available at www.kazatomprom.kz.

Update on geopolitical events

The Company continues to constantly monitor international sanctions' regimes and packages assessing potential sanctions risks. To date, events in Ukraine have not affected the Group's financial position. The majority of the Group's revenues are received in US dollars, and financing is also raised in US dollars, creating a natural hedging effect against currency risks. Accordingly, fluctuations in the exchange rate of the national currency do not have a significant impact on the Group's financial results.

The Group exports goods through Russia, which creates risks associated with both transit through Russia and the delivery of goods by sea. The Group continuously monitors potential impact that sanctions may have on the ability to transport material. At the date of the Group's financial statements, there are no restrictions on the Group's activities related to the supply of the Group's products to end customers. Kazatomprom also transports uranium along the Trans-Caspian International Transport Route (TITR), which the Company has successfully used since 2018 in order to mitigate the risk of the northern route being unavailable for any reason. To date, both transport routes are fully operational.

In August 2024, Act No. 118-62 (formerly referred to as H.R. 1042) came into force on a ban on the import from the Russian Federation to the United States of unirradiated low-enriched uranium produced in the Russian Federation or by a Russian enterprise (the law was signed by US President Joe Biden on 13 May 2024). At the same time, the US Department of Energy notes that Russian enrichment capacities provide approximately 35% of the US import of nuclear fuel, and therefore the United States allows the possibility of importing some types of low-enriched uranium from Russia "for a limited period of time" in order to avoid possible disruptions.

In November 2024, the Russian Federation imposed restrictions on the export of enriched uranium to the United States in response to the previously adopted Act No. 118-62 of May 13, 2024, banning the import of Russian enriched uranium product to the United States starting from 2028. The restrictions apply both to direct export of uranium to the United States and to exports conducted under agreements with entities registered in the United States. At the same time, deliveries under one-time licenses issued by the Federal Service for Technical and Export Control of the Russian Federation remain possible.

At the time of reporting, the above events and/or sanctions have not had a significant impact on the Group's operations, although the resulting market uncertainty caused by the war in Ukraine has resulted in significant volatility in the uranium spot price, domestic currency exchange rate and the Company's share price.

ESG updates in 2024

In 2024, the Company's Board of Directors approved an updated Sustainable Development Program for 2024-2030 (the "Program"). The document is aimed to ensure implementation of the Company's development strategy in accordance with the principles of sustainable development. The Program outlines the Company's key goals, objectives and specific targets until 2030, grouped into three components - environment, social responsibility and corporate governance.

Supporting global sustainable development agenda, in 2024, the Company has successfully completed the UN Global Compact SDG Ambition Program. The Company also continued improving non-financial information disclosure practices aimed at enhancing transparency. Kazatomprom's integrated annual report is prepared in compliance with SASB, GRI and TCFD information disclosure standards.

Along with the constant improvement of sustainable development practices, the Company's priority is to obtain independent ESG ratings and scores. On 6 December 2024, S&P Global has assigned the Company a Corporate Sustainability Assessment (CSA) score of 48/100, with a total ESG score of 50/100. Kazatomprom's CSA score is 7 points higher compared to the previous year, and almost twice the industry average, which confirms the success of the Company's sustainable development strategy. The full ESG Evaluation report from S&P Global Ratings is available at: https://www.spglobal.com/esg/scores/results?cid=4351546.

In 2024, Kazatomprom disclosed data on "Climate Change" and on "Water Security" for the first time as part of the CDP (Carbon Disclosure Project).

In October 2024, Kazatomprom was included in the list of the TOP-500 "World's Best Companies - Sustainable Growth" according to the international TIME Magazine jointly with the statistical organization Statista. Kazatomprom was ranked 126th and was placed 6th among companies in the resource production and infrastructure sector, being the only Kazakh company included in this ranking. This significant achievement for Kazatomprom reflects the Company's successful efforts in implementation of the best sustainable development practices.

Health, safety and environment (HSE) results

Health, safety, and environmental protection, including nuclear and radiation safety, are priorities for the Company. The Company is continuously improving the management system of its industrial HSE programs as it strives to a goal of zero injuries.

None of the Company's plans and objectives can be achieved without its most important resource: a team of over 22,000 dedicated employees. Kazatomprom ensures they have the skills, access to training and equipment that is necessary to work safely. The Company's business culture is built on a foundation of personal and group responsibility where people are empowered to make safe choices, voice any safety concerns, and report both actual incidents and near misses, to ensure continual improvement. Kazatomprom's commitment to safety and well-being is demonstrated by its membership in the International Social Security Association's Vision Zero, initiative to reduce workplace injuries and promote comfortable and safe working conditions guided by the Vision Zero program's "Seven Golden Rules". These rules apply to all employees of the Holding and their contractors, with the main purpose of achieving the goal of zero injuries.

The Company conducts its production activities in compliance with both Kazakh and international requirements for labour protection and industrial safety, implementing comprehensive measures to prevent incidents and accidents. Health and safety management systems that meet international standards (ISO 45001) have been implemented and annually confirmed by external audit, and the Company carries out systematic work to improve the safety culture among employees and managers at all levels.

The measures undertaken in 2024 to enhance the focus on safety awareness helped to prevent significant industrial accidents (e.g. uncontrolled explosions, releases of hazardous substances, building destructions, and fatal occupational injuries) at the Company's operations. In 2024, the Holding spent approximately KZT 12.95 billion (2023: KZT 12.5 billion) on labour protection, fire and industrial safety programs.

The table below reflects the safety results of 2024 and 2023:

Indicator				2024	2023	Change
Industrial accidents1				-	-
LTIFR (per million man-hours)2				0.09	0.15	(40%)
Unsafe conditions, unsafe actions, near-miss reporting				33,434	36,145	(8%)
Number of accidents3				3	4	(25%)
Fatalities				-	-	-

¹ Defined as uncontrolled explosions, emissions of dangerous substances, or destruction of buildings.

² Lost-Time Injury Frequency Rate (LTIFR) per million hours.

³ Defined as impact on the employee of a harmful and (or) dangerous production factor in performance of his work (job) duties or tasks of the employer, which resulted in an industrial accident, sudden deterioration of health, or poisoning of the employee that led to temporary or persistent disability, or death.

Notwithstanding the continuing actions taken to improve workplace health and safety, three accidents were recorded, in which three workers were injured. The accidents included two slip-and-fall accidents and one case of exposure to hazardous chemicals.

Following each accident, a thorough investigation was completed, the main causes were identified, preventative measures were developed and additional procedures implemented to prevent similar incidents in the future. Investigation results were reported to other Group entities to ensure all operations could learn from the event and adjust their processes accordingly. The Company will continue working to increase the involvement and awareness of employees in industrial safety.

Revenue, net profit, EBITDA

The Group's consolidated revenue continued to show sustainable growth amounting to KZT 1,813,352 million in 2024, an increase of  26% compared to 2023 (in 2023 the Group's consolidated revenue was KZT 1,434,635 million). The increase is mainly due to:

·      the growth in the average realized price associated with an increase in the market spot price for U₃O₈;

·      an increase in revenue from sale of enriched uranium related to the growth of FA deliveries by Ulba-FA LLP in 2024.

Operating profit in 2024 was KZT 806,849 million, an increase of 19% compared to 2023 (in 2023 was KZT 680,812 million). The increase was mainly due to a higher gross profit in 2024.

In 2024 other income amounted to KZT 402,700 million (2023: KZT 50,855 million loss), originated primarily from a net result from business combination (one-time effect), namely control obtained over JV Budenovskoye LLP for KZT 295 719 million (2023: nil) in accordance with the independent valuation report. The Group obtained control over JV Budenovskoye LLP through having majority of the voting rights and representation in the Supervisory Board as of 1 January 2024. Excluding the one-time effect of net gain from business combination, other income is mostly represented by gain from revaluation and disposal of inventory loan returned until March 2024 to ANU Energy OEIC for KZT 14,332 million (2023: loss on revaluation for KZT 37,977 million). Also, in Q4 2023 the Group accrued a provision amount of KZT 15,692 million on receivables from Dioxitek S.A. (Argentina) for the sales of uranium. The payment was received as of the reporting date, thus reversal of impairment was recognised.

Net profit in 2024 amounted to KZT 1,132,115 million, an increase of 95% compared to 2023 (2023: KZT 580,335 million). The increase was mainly due to the gain from control acquired over JV Budenovskoye LLP, a higher operating profit, as well as due to higher share in results of associates in 2024, primarily driven by an increase in the average realized price of associates due to an increase in the spot price for U₃O₈.

Adjusted EBITDA amounted to KZT 1,096,711 million in 2024, a 32% increase year-on-year (KZT 828,623 million in 2023), while attributable EBITDA was KZT 788,681 million in 2024, an increase of 23% compared to previous year (KZT 639,407 million in 2023). The changes were mainly driven by higher operating profit on consolidated level, higher EBITDA of JVs and associates, and growth in the average realized price associated with an increase of the spot price for U₃O₈.

Operating cash flows in 2024 totalled KZT 516,487 million, a significant increase compared to KZT 432,225 million in 2023 mainly due to:

·      KZT 314,230 million increase in cash receipts from customers and under swap transactions during 2024 compared to 2023, due to a growth in the average realized price associated with an increase in the spot price for U₃O₈;

·      KZT 29,501 million increase in 2023 inflows from VAT refunds from the budget.

Offset by:

·      KZT 72,642 million increase in cash payments to suppliers and under swap transactions during 2024 compared to 2023, due to a growth in the spot price for U₃O₈ as well as inflationary pressure on materials and supplies;

·      KZT 77,717 million due to an increase in other taxes paid, primarily from the higher amount of accrued value-added tax resulting from an increase in intra-group sales within the territory of Republic of Kazakhstan, along with an in increase in the mineral extraction tax ("MET");

·      KZT 76,110 million increase in income tax paid due to an increase in profit before tax.

Cost of sales

Cost of sales totalled KZT 931,621 million in 2024, an increase of 39% compared to previous year (2023: KZT 671,862 million) mainly due to a higher cost for purchased uranium (as described below) and a higher production cost for uranium produced by consolidated subsidiaries and JOs.

The cost of materials and supplies was KZT 518,578 million in 2024, an increase of 42% compared to 2023 (2023: KZT 364,841 million) due to an increase in spot price of U₃O₈ affecting the cost of uranium purchased from JVs and associates, as well as from third parties (when such uranium is sold, the cost of sales is predominantly represented by the cost of purchased materials and supplies at the prevailing spot price with certain applicable discounts). The growth of cost of materials and supplies was also due to an increase of purchase price of production materials, supplies and reagents (including sulphuric acid), due to an inflationary pressure.

Selling expenses

Selling expenses totalled KZT 26,216 million in 2024 and decreased by 9% compared to 2023 (in 2023 was KZT 28,851 million). The decrease is mainly due to a decrease in sales volumes and a change in transportation routes.

General & Administrative expenses (G&A)

G&A expenses comprised KZT 48,666 million in 2024 and decreased by 8% compared to 2023 due to the following reasons.

G&A in 2023 included compensation paid to the government in the amount of KZT 11,404 million due to unauthorised volume of uranium mined (about 162 tonnes) at the Zhalpak field for the period from June 2018 to April 2020.

The decrease of G&A was partially offset by financial assistance of KZT 3,032 million provided to support the regions of the Republic of Kazakhstan affected by the floods.

Liquidity

The Group manages its liquidity requirements to ensure the continued availability of cash sufficient to meet its obligations on time, avoid unacceptable losses, and settle its financial obligations without jeopardizing its reputation.

(KZT million)	2024	2023	Change
Cash and cash equivalents	294,385	211,912	39%
Term deposit (deemed as cash equivalents)	28	8	250%
Total cash	294,413	211,920	39%
Undrawn borrowing facilities	101,346	115,004	(12%)

Total cash, including term deposits, at 31 December 2024 amounted to KZT 294,413 million, compared to KZT 211,920 million at 31 December 2023, due to increase in cash flows from operating, investing and financing activities.

Undrawn borrowing facilities are the credit lines available to the Group and considered as an additional liquidity source payable within 12 months, primarily used to temporarily cover cash deficits related to uneven receipts of trade receivables.

As of 31 December 2024, the total limit on the Group's undrawn revolving credit lines was KZT 101,346 million (USD 194 million), which was fully available for use at the Company's discretion (December 31, 2023: USD 253 million).

Debt leverage ratios

The following table summarises the key ratios used by the Company's management to measure financial stability in 2024 and 2023. Management targets a net debt to adjusted EBITDA of less than 1.0.

(KZT million)	2024	2023	Change
Total debt (excluding guarantees)	149,953	86,377	74%
Total cash balances	(294,413)	(211,920)	39%
Net debt	(144,460)	(125,543)	15%
Adjusted EBITDA*	1,096,711	828,623	32%
Net debt / Adjusted EBITDA (coefficient)	(0.13)	(0.15)	(13%)

*Adjusted EBITDA is calculated by excluding from EBITDA items not related to the main business and having a one-time effect. Calculation: Profit before tax - finance income + finance expense +/- Net FX loss/(gain) + Depreciation and amortisation + Impairment losses - reversal of impairment +/- one-off or unusual transactions.

Uranium segment production and sales metrics

				2024	2023	Change
Production volume of U3O8 (100% basis)		tU		23,270	21,112	10%
Production volume of U3O8 (attributable basis)1		tU		12,286	11,169	10%
U3O8 sales volume (consolidated)		tU		16,670	18,069	(8%)
Including KAP U3O8 sales volume2, 3		tU		12,769	14,915	(14%)
Group inventory of finished goods (U3O8)		tU		6,334	7,242	(13%)
Including KAP inventory of finished goods (U3O8)4		tU		5,431	6,108	(11%)
Group average realized price		KZT/kg		84,733	65,344	30%
Group average realized price		USD/lb		69.48	55.09	26%
KAP average realized price5		USD/lb		65.78	52.10	26%
Average weekly spot price		USD/lb		86.28	60.53	43%
Average month-end spot price6		USD/lb		85.14	62.51	36%

¹ The Production volumes of U₃O₈ (attributable basis) are not equal to the volumes purchased by KAP headquarters (HQ)

² KAP U₃O₈ sales volume (incl. in Group): includes only the total external sales of KAP HQ and THK. Intercompany transactions between KAP HQ and THK are not included. Yet, some part of Group U₃O₈ production goes to the production of EUP, fuel pellets and fuel assemblies (FA) at Ulba-FA LLP.

³ Group sales volume and KAP sales volume (incl. in Group) does not include approximately 1,800 tonnes of natural uranium equivalent used for the supply of EUP in 2024 for the project of "Ulba-FA" LLP (2023: 1,300 tonnes).

⁴ KAP inventory of finished goods (incl. in Group): includes the inventories of KAP HQ and THK.

⁵ KAP average realized price: the weighted average price per pound for the total external sales of KAP and THK. The pricing of intercompany transactions between KAP and THK are not included.

⁶ Source: UxC, TradeTech. Values provided represent the average of the uranium spot prices quoted at month end, and not the average of each weekly quoted spot price, as contract price terms generally refer to a month-end price.

Kazatomprom's 2024 production results were within the guided ranges. Production volumes on a 100% basis and on attributable basis were higher throughout 2024 compared to 2023 due to an increase in the production plan in accordance with the commitments under the Subsoil Use Agreements.

Both Group and KAP sales volumes slightly exceeded guidance in 2024 due to an increase in physical deliveries associated with additional requests from customers to flex up their annual delivery quantities within the frame of existing contracts, as well as due to prior periods' adjustments associated with conversion facility certification and weighing procedures.

Consolidated Group inventory of finished U₃O₈ products amounted to 6,334 tonnes as at 31 December 2024, 13% lower than at 31 December 2023. At the KAP HQ and THK level, inventory of finished U₃O₈ products amounted to 5,431 tonnes, 11% lower than at 31 December 2023. Overall, the decrease in inventory is due to higher sales of EUP to Ulba-FA LLP, as well as return of U₃O₈ under inventory loans and swap deals. Inventory loans and swap deals are part of the Group's normal inventory management activity, required to mitigate potential logistical risks that could affect the timely delivery of Kazakh uranium to Western conversion enterprises due to heightened geopolitical instability.

The Group's average realized price in 2024 was KZT 84,733 per kgU (69.48 USD/lb U₃O₈), a 30% increase on KZT/kgU (26% on USD/lb U₃O₈) compared to 2023 due to higher uranium spot prices. The Company's current contract portfolio pricing correlates with the spot uranium prices, however some deliveries in 2024 were made under long-term contracts, which include fixed pricing components, including price ceilings that were negotiated during a comparatively lower price environment.

The Company's current  contract portfolio price is correlated to uranium spot prices. For short-term deliveries to end-user utilities, the spot price can vary between the time contract pricing in accordance with Kazakh transfer pricing regulations, and the spot market price i when the actual delivery takes place. The impact of market volatility during the time lag between price-setting and delivery becomes more pronounced as volatility increases, in both rising and falling market conditions. At the same time, pricing mechanisms for some long-term contracts include fixed basic price components that were set in lower price conditions.

Uranium segment costs and capital expenditures

(KZT million unless noted)					2024	2023	Change
C1 Cash cost (attributable basis)			USD/lb		16.59	13.27	25%
Capital cost (attributable basis)			USD/lb		11.06	8.10	37%
All-in sustaining cash cost (attributable C1 + capital cost)			USD/lb		27.65	21.37	29%
Capital expenditures of mining companies (100% basis)1					317,540	201,321	58%

¹ Excludes liquidation funds and closure costs.

C1 Cash cost (attributable) for 2024 was within the 2024 guided ranges ($16.50 - $18.00/lb), while All-in-sustaining cash cost (attributable C1 + capital cost, "AISC") was slightly below the 2024 guided range  ($27.75 - $29.25/lb), caused by the factors listed below.

C1 Cash cost (attributable) increased by 25% and AISC increased by 29% in USD equivalent for 2024 compared to 2023. The increase in C1 Cash cost was primarily due to an increase in spot prices affecting MET as well as increasing inflationary pressure on materials and supplies (including sulphuric acid).

Kazatomprom's attributable C1 cash cost categories are generally broken down as follows (proportions vary year-to-year, and vary between operations, deposits and regions):

General Attributable Cash cost (C1) Categories					2024	2023
MET					30%	28%
Material and supplies					23%	21%
Payroll costs					17%	18%
Processing and other services					13%	15%
General and administrative expenses					5%	5%
Selling expenses					3%	4%
Others					9%	10%
Total					100%	100%

AISC increased due to an overall increase in capital cost on an attributable basis, driven by factors as specified below.

Capital expenditures of mining entities (100% basis) in 2024 totalled KZT 317,540 million, an increase of 58% compared to 2023 (KZT 201,321 million) and were higher than the updated guidance range provided for 2024 (KZT 285 - 305 billion). The increase was attributable to:

•     capital investments for the wells construction and building infrastructure for new facilities commissioned at JV Katco LLP, Ortalyk LLP and JV Budenovskoye LLP for an aggregate amount of KZT 108 bln (previously guided - KZT 97 billion);

•     an increase in purchase prices for materials, supplies, equipment and cost of drilling and preparation of wellfields for 2025 increase (compared to 2024 volumes) as per 2025 guidance. 

Kazatomprom's 2025 Guidance

	Guidance for 2025
	520 KZT/1USD
Production volume U3O8, (tU) (100% basis)1, 2	25,000 - 26,5002
Production volume U3O8, (tU) (attributable basis)3	13,000 - 14,0002
Group sales volume, (tU) (consolidated)4	17,500 - 18,500
Incl. KAP sales volume (included in Group sales volume), (tU)5	14,000 - 15,000
Revenue - consolidated, (KZT billions)6	1,600 - 1,700
Revenue from Group U3O8 sales, (KZT billions)6	1,400 - 1,500
C1 cash cost (attributable basis) (USD/lb) **	$16.50 - $18.00
All-in sustaining cash cost (attributable C1 + capital cost) (USD/lb)**	$29.00 - $30.50
Total capital expenditures (KZT billions) (100% basis)7	385 - 415

¹ Production volume U₃O₈ (tU) (100% basis): Amounts represent the entirety of production of an entity in which the Company has an interest; it disregards that some portion of production may be attributable to the Group's JV partners or other third-party shareholders. Precise actual production volumes remain subject to converter adjustments and adjustments for in-process material.

² The duration and full impact including, but not limited to sanctions pressure due to the Russian-Ukrainian conflict and limited access to some key materials are not known. As a result, annual production volumes may differ from internal expectations.

³ Production volume U₃O₈ (tU) (attributable basis): Amounts represent the portion of production of an entity in which the Company has an interest, corresponding only to the size of such interest; it excludes the portion attributable to the JV partners or other third-party shareholders, except for JV "Inkai" LLP, where the annual share of production is determined as per Implementation Agreement as disclosed in IPO Prospectus. Actual drummed production volumes remain subject to converter adjustments and adjustments for in-process material. For JV Budenovskoye LLP, 100% of the 2024-2026 annual production is fully committed for supplying the needs of the Russian civil nuclear energy industry, under an offtake contract at market-related terms.

⁴ Group sales volume: includes Kazatomprom's sales and those of its consolidated subsidiaries (according to the definition of the Group provided on page one of this document). Group U₃O₈ sales volumes do not include other forms of uranium products (including, but not limited to, the sales of fuel pellets and enriched uranium product).

⁵ KAP sales volume (included in Group sales volume): includes only the total external sales of KAP HQ and THK. Intercompany transactions between KAP HQ and THK are not included.

⁶ Revenue expectations are based on uranium prices taken at a single point in time from third-party sources. The prices used do not reflect any internal estimate from Kazatomprom, and 2025 revenue could be materially impacted by how actual uranium prices and exchange rates vary from the third-party estimates.

⁷ Total capital expenditures (100% basis): includes only capital expenditures of the mining entities, includes significant CAPEX for investment and expansion projects. Excludes liquidation funds and closure costs. For 2025 includes development costs for mining infrastructure of JV Budenovskoye LLP, JV Katco LLP (South Tortkuduk) and MC Ortalyk LLP (Zhalpak) for a total amount of approximately KZT 153 billion.

* Note that the conversion of kgU to pounds U₃O₈ is 2.5998.

** For some JVs, the Company has a right to purchase additional volumes beyond its attributable share if the JV partner chooses to forgo its entitled share of production (beyond the production volume attributable to Company).

Production in 2025 is expected to be in the range of 25,000 - 26,500 tonnes of uranium on a 100% basis and in the range of 13,000 - 14,000 tonnes of uranium on an attributable basis. The JV Inkai LLP is expected to revise its production plans for 2025 downwards, as a result of not achieving its target production in 2024, and the temporary suspension of production in January 2025.

As was disclosed earlier, it is expected that in 2025 mining entities will have different percentage rate decreases compared to the levels stipulated in the Subsoil Use Agreements within the acceptable 20% deviation.

Sales volume guidance for 2025 is fully aligned with the Company's market-centric strategy. The Group expects to sell between 17,500 tU and 18,500 tU, including KAP sales of between 14,000 tU and 15,000 tU. Increase in 2025 sales volume guidance in comparison to 2024 at both the Group and KAP levels is attributed to the growth in U₃O₈ sales commitments under existing contracts, along with the pipeline of discussions for new U₃O₈ sales contracts underway.

Revenue, C1 cash cost (attributable basis) and All-in Sustaining cash cost (attributable C1 + capital cost) may vary from the guidance provided if the KZT to USD exchange rate fluctuates significantly during 2025. Increase in spot market price for U₃O₈ affecting the MET as well as procurement and supply chain issues, including inflationary pressure on production materials and reagents, are expected to continue throughout 2025. This may affect the Company's financial metrics for 2025. Guidance will be updated if the aforementioned uncertainties persist throughout 2025.

The Company foresees significant increase in its 2025 total capital expenditures of mining entities on 100% basis in comparison to 2024. This growth is mainly attributed to the expected capital expenditures of KZT 153 billion for development of mining infrastructure and ensuring production at JV Budenovskoye LLP, JV Katco LLP (South Tortkuduk) and Ortalyk LLP (Zhalpak), as well as to the higher volume of wellfield preparation and development works (drilling and well construction) in 2025 for future production periods. In this regard guidance range for capital expenditures of mining entities on 100% basis has been widened, which translates into the increase in guidance for All-in Sustaining cash cost (attributable C1 + capital cost) in comparison to 2024 results.

The Company may purchase uranium from the spot market, while continuing to monitor market conditions for opportunities to optimise its inventory.

Conference Call Reminder - 2024 Full-Year Operating and Financial Review

Kazatomprom has scheduled a conference call to discuss its 2024 year operating and financial results later today, 19 March 2025. The call will begin at 17:00 (Astana) / 12:00 (GMT) / 08:00 (ET). Following Management remarks, an interactive English Q&A session will be held with investors (remarks in English, with a simultaneous Russian translation of the remarks and the Q&A available on a listen-only line).

For the English live webcast (participants on the webcast can also submit questions during the event), conference call dial-in details and for information on how to participate in the Q&A, please visit:

https://sparklive.lseg.com/JSCNationalAtomicCoKazatomprom/events/dcec8e05-2f16-4323-9f6e-44269eab46f5/2024-full-year-operating-and-financial-review-conference-call

For the Russian live webcast (listen-only, no Q&A) and corresponding dial-in details, please visit:

https://sparklive.lseg.com/JSCNationalAtomicCoKazatomprom/events/f78f3a91-48d5-4a51-a3c2-1ca2c4bc09b3/2024

A recording of the webcast will also be available at www.kazatomprom.kz shortly after it concludes.

For further information, please contact:

Kazatomprom Investor Relations Inquiries

Botagoz Muldagaliyeva, Director of Investor Relations

Tel: [phone]

Email: [e-mail]

Kazatomprom Public Relations and Media Inquiries

Altynay Karibzhanova, Chief Expert, Public Relations

Tel: [phone]

Email: [e-mail]

About Kazatomprom

Kazatomprom is the world's largest producer of uranium, with the Company's attributable production representing approximately 21% of global primary uranium production in 2024. 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.

Kazatomprom securities are listed on the London Stock Exchange and Astana International Exchange. As the national atomic company in the Republic of Kazakhstan, the Group's primary customers are operators of nuclear generation capacity, and 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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