Kazakh Kazatomprom's decreased wellfield dev't activity results in lower 3Q2020 output

Business Materials 2 November 2020 12:59 (UTC +04:00)
Kazakh Kazatomprom's decreased wellfield dev't activity results in lower 3Q2020 output

BAKU, Azerbaijan, Nov. 2

By Nargiz Sadikhova - Trend:

Uranium production by Kazakhstan’s Kazatomprom National Atomic Company amounted to 4,657 tons during 3Q2020 compared to 6,082 tons in 3Q2019, having decreased by 23 percent year-on-year, Trend reports with reference to company's report.

The production volume over 9M2020 stood at 15,091 tons which is 11 percent less as compared to 16,882 tons over 9M2019.

Furthermore, the sales volume of the company equaled 5,638 tons of uranium in 3Q2020, which is 1.1 times more compared to 2,577 tons in 3Q2019. Sales over 9M2020 equaled 9,857 tons which also is 23 percent more than 8,002 tons over the same period last year.

The average realized price was $31.08 per pound during 3Q2020 compared to $25.45 per pound in 3Q2019, which indicates a 22-percent increase year-on-year.

The company said that on both a 100 percent and attributable basis, production volumes for the third quarter and first nine months of 2020 were lower, related to the expected impact of the pandemic, and the Company’s decreased wellfield development activity and lower staff levels throughout the second quarter.

“There is a four to 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 are expected to predominantly impact the second half of the year,” the company said.

The year-over-year increase in uranium sales at both the Group and KAP levels was due to seasonality and differences in the customer-requested timing of deliveries in 2019 and 2020.

The rising uranium spot price had a positive impact on Kazatomprom’s average realized price, which increased in the third quarter and nine months of 2020. If spot prices in 2020 remain higher than in 2019, the trend of increasing the realized price is expected to continue, with the Company’s fourth-quarter delivery schedule expected to be slightly higher than the third quarter.

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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