BAKU, Azerbaijan, Feb. 1
By Nargiz Sadikhova - Trend:
Kazatomprom’s production expectations for 2021 remain consistent with its market-centric strategy and the intention to flex down planned production volumes by 20 percent for 2018 through 2022 (versus planned production levels under Subsoil Use Agreements), Trend reports citing the company.
Production volume in 2021 is therefore expected to be between 22,500 tons of uranium and 22,800 tons of uranium on a 100 percent basis, and between 12,550 tons of uranium to 12,800 tons of uranium on an attributable basis; without the reduction production was expected to be approximately 28,000 tons of uranium (100 percent basis) in 2021 according to Subsoil Use Agreements.
Sales volume guidance for 2021 is also aligned with the company’s market-centric strategy. The Group expects to sell between 15,500 tons of uranium and 16,000 tons of uranium, which includes KAP sales of between 13,500 tons of uranium and 14,000 tons of uranium, consistent with sales volumes in 2020.
The company said that sales in excess of planned attributable production are expected to be sourced from inventories, from KAP subsidiaries under contracts and from other third parties.
The company continues to target an ongoing inventory level of approximately six to seven months of annual attributable production (roughly 6,000 tons of uranium to 7,000 tons of uranium, excluding trading volumes held by THK).
“However, the market is being constantly monitored and, in alignment with its value strategy, Kazatomprom may carry an inventory level outside of the target range at any point in time based on seasonality, and to optimize mining and sales volumes in line with changing market conditions,” the company said.
Guidance for 2021 related to the company’s financial metrics will be published alongside the financial results in the 2020 Operating and Financial Review, expected to be released on 16 March 2021.
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.
---
Follow the author on Twitter: @nargiz_sadikh
