Kazatomprom Steps Down Its Output Expectations for 2021

Kazatomprom, the national nuclear company in Kazakhstan has lowered its outlook for uranium production this year from 22,500 tons to 21,700 tons, according to the company.

Lower expectations in production results in 2021 have been caused by delays in mine preparation work due to the pandemic. COVID-19’s impact on the entire supply chain was tremendous. Now the company has no or limited access to some materials and equipment (chemicals, some pipes and pumps, etc.). That’s why the company has adjusted the schedule.

«The output is expected about 21,700 – 22,000 tons (previously it was 22,500 – 22,800 tons),» the company said.

Due to difficulties in supply chains, about 800 tons of uranium are needed to meet the demand. It is expected that the production deficit might be compensated later. However, there is no clear information when this might happen because many materials necessary for the production are still in shortage.

In 2020 Kazatompom produced 19,400 tons of uranium. This year the production rate maybe 11.4% – 13% higher.
Expectations on consolidated amounts of sales per year have risen to 16,300 – 16,800 tons (previously 15,500 – 16,000) because subsidiaries are going to sell the product to their partners in their joint ventures. However, expectations on annual sales of the company haven’t changed.

The outlook for the company’s revenue has risen from $1.4 billion to $1.5 billion.

In the first half of this year, Kazatomprom’s net profit plunged 12% to $136 million. Over the same period last year, the company earned $154 million of net profit. However, from the year-to-year perspective, the company’s revenue increased 54% from $358 million in the first half of 2020 to $551 million for the same period this year, even though the overall production has grown just slightly to 10.451 tons.