BAKU, Azerbaijan, Feb. 1
By Nargiz Sadikhova - Trend:
Uranium production by Kazakhstan’s Kazatomprom National Atomic Company amounted to 4,386 tons during 4Q2020 compared to 5,926 tons in 4Q2019, having decreased by 26 percent year-on-year, Trend reports with reference to the company's report.
The production volume over 2020 stood at 19,477 tons which is 15 percent less as compared to 22,808 tons over 2019.
Furthermore, the sales volume of the company equaled 6,574 tons of uranium in 4Q2020, which is 18 percent less compared to 8,042 tons in 4Q2019. Sales over 2020 equaled 16,432 tons which are 2 percent more than 16,044 tons over the same period last year.
The average realized price was $29.31 per pound during 4Q2020 compared to $26.08 per pound in 4Q2019, which indicates a 12-percent increase year-on-year. Overall 2020 average realized price equaled $29.63 per pound which is 10 percent more than $26.91 per pound in 2019.
On both a 100 percent and attributable basis, production volumes for the fourth quarter and for 2020 were significantly lower, related to the expected impact of the pandemic and the Company’s decreased wellfield development activity and lower staff levels from April through July 2020.
“There is a four- to the eight-month lag between the wellfield development phase and production phase of the in-situ recovery mining process and as a result, the safety measures implemented during the first half of 2020 had a more significant production impact in the second half of the year, compared to the first half,” the company said.
Although fourth-quarter Group and KAP sales volumes were lower than in 2019 due to the timing of customer delivery requests, year-end 2020 sales volumes were similar year-over-year, reaching the upper end of the 2020 guidance ranges for both metrics.
The uranium spot price did not change significantly from the third to the fourth quarter, but it remains higher than in 2019, resulting in a positive impact on Kazatomprom’s average realized price for the fourth quarter and for 2020 (12 percent and 10 percent higher, respectively).
All annual operational and sales results presented above were in line with the Company’s 2020 guidance.
Kazatomprom is the world's largest producer of uranium, with the company’s attributable production representing approximately 23 percent of global primary uranium production in 2018.
The company benefits from the largest reserve base in the industry and operates, through its subsidiaries, JVs, and Associates, 26 deposits grouped into 13 mining assets. All of the company’s mining operations are located in Kazakhstan.
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