Top uranium producer expects 'modest' production growth this year

By Steve Goldstein

Kazatomprom, the world's largest producer of uranium, said Friday there will be modest production growth this year as it reported swelling profits.

Kazatomprom (KZ:KZAP) (NATKY) said its annual profit rose 23% to 570 billion Kazakhstani tenge ($1.27 billion), on a 43% jump in revenue to 1.44 trillion tenge.

The company said its sales growth was faster than the "slightly more than 20%" rise in average uranium prices, due to increasing sales volumes.

Last year's production on what it calls an attributable basis fell 1%, and the midpoint of its guidance implies a 2% increase. The company said there are challenges related to the availability of sulphuric acid and construction delays at the newly developed deposits.

It said it may purchase uranium from the spot market, while continuing to monitor market conditions for opportunities to optimise its inventory.

Uranium has something of a cult following in financial markets, on the view that the shift to clean energy will necessitate increased nuclear power. The Sprott Physical Uranium Trust ETF CA:U.UT has jumped 74% over the last 52 weeks.

-Steve Goldstein

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03-15-24 0452ET

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