JSC National Atomic Company Kazatomprom

For H1 2025, consolidated revenue was KZT 660 billion, down 6% from KZT 701 billion in H1 2024. Operating profit was KZT 254 billion, up 12% year over year from KZT 227 billion. Net profit was lower year over year, though management said adjusted net profit declined only 5% after excluding one-time items from 2024; the adjusted figure was also affected by a KZT 12.7 billion foreign exchange loss versus a KZT 7.3 billion gain in H1 2024. C1 cash costs rose 6% and all-in sustaining costs rose 10% in U.S. dollar terms, driven by a higher mineral extraction tax rate and higher sulfuric acid prices, including a 46% increase in sulfuric acid cost. For 2025, guidance was left unchanged except for a 500-tonne reduction in cap sales volume; total sales guidance for 2025 remained intact. Management also said 2026 production may exceed 2025, but specific guidance is still under review and should be disclosed in early February.

The CEO did not participate, but the lead management commentary was clearly strategic and upbeat on the uranium market. Kazatomprom framed nuclear energy as a long-term structural growth story, emphasizing a widening supply gap, persistent demand for long-term contracts, and the need for disciplined production rather than volume growth. Management also highlighted Kazakhstan exploration, support from the government, and the company’s role in supplying future domestic nuclear demand as strategic priorities.

Ulan Khassanov said the H1 financials reflected timing effects and one-off items rather than a deterioration in the core business. He pointed to the KZT 660 billion revenue figure, the KZT 254 billion operating profit, and the one-time KZT 295 billion nonmonetary income booked last year from gaining control of Budenovskoye, which he said is why the comparison should not be viewed as a true restatement. He also said capital expenditures are typically back-end loaded, so H1 spend being below half of the annual plan is normal, and he reiterated that the dividend policy remains based on free cash flow with no expectation of special dividends or buybacks. On working capital, he said lower receivables mainly reflected the timing of sales and collections.

Analysts focused on 2026 production, sulfuric acid supply, contracting trends, capex phasing, inventory, and the impact of Budenovskoye and subsoil-use changes. Management said 2026 production may exceed 2025, but guidance is still being negotiated and will be disclosed in early February; sulfuric acid supply should be stable, though price pressure can still affect costs. On contracting, management said utility requests for quotes and proposals are increasing across the U.S., Europe, and Asia, with security of supply becoming a bigger priority than price, and they expect more activity around the World Nuclear Association Symposium. On capital allocation, management said cash will continue to support the existing dividend policy, with no planned buybacks or special dividends.