Kazatomprom has reported its H1 2025 results, only to be overshadowed by a production capacity cut as it announces its 2026 production strategy.
After a review of market conditions and new-mine timelines, Kazatomprom lowered its 2026 nominal licensed production level (100% basis) to 29,697 tU (77 Mlbs) from 32,777 tU (85 Mlbs)—a 10% cut, largely from JV Budenovskoye adjustments. The company explained it may exercise downflex up to 20% against the updated nominal levels and final 2026 guidance will follow after JV partner negotiations.
2025 production guidance is unchanged at 25,000–26,500 tU (65.0–68.9 Mlbs) on a 100% basis and 13,000–14,000 tU (33.8–36.4 Mlbs) attributable.
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“The company does not view the current market developments to be sufficient to return to the company’s initial 100% levels at this time,” the firm said, adding the cut removes “about 5% of the world’s primary supply.”
KAP sales volume guidance is also trimmed down to 13,500–14,500 tU (35.1–37.7 Mlbs) due to a customer’s delivery rescheduling.
On its financials, group revenue fell 6% year over year to KZT 660.2 billion in H1 2025 from KZT 701.1 billion in H1 2024, driven mainly by lower sales volumes. Operating profit rose 12% to KZT 253.7 billion as the cost of sales dropped 16% to KZT 373.7 billion on a smaller share of higher-cost purchased uranium.
On top of this, other income plunged to KZT 4.5 billion, a sharp drop from KZT 336.4 billion last year due to the absence of the KZT 295.7 billion one-time gain recognized in H1 2024 from consolidating JV Budenovskoye. This led to net profit falling 54% to KZT 263.2 billion from KZT 571.7 billion a year ago. On adjusted basis, net profit decreased 5% to KZT 263.2 billion from KZT 276.0 billion.
Cash and cash equivalents nearly doubled versus year-end to KZT 583.9 billion from KZT 294.4 billion and were more than 3.5× higher than KZT 152.1 billion at end of H1 2024.
On a 100% basis, U3O8 production increased 13% to 31.8 Mlbs from 28.2 Mlbs last year. On an attributable basis, output rose 11% to 16.7 Mlbs from 15.1 Mlbs. Attributable cash cost increased 6% to US$17.86/lb and AISC climbed 10% to US$30.81/lb.
Consolidated U3O8 sales slipped 2% to 19.8 Mlbs from 20.2 Mlbs, while KAP sales increased 4% to 18.2 Mlbs from 17.5 Mlbs on timing of customer deliveries. Group average realized price declined 12% to US$58.54/lb and KAP realized price fell 8% to US$57.27/lb.
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