Kazatomprom 1H22 Financial Results and 2024 Production Plan

  • 1H2022 RESULTS


    JSC National Atomic Company “Kazatomprom” (“Kazatomprom”, “KAP” or “the Company”) announces its consolidated financial results for the first half-year ended 30 June 2022, prepared in accordance with International Financial Reporting Standards (IFRS). The Company is also disclosing its 2024 production strategy and changes in the Company’s Management Board.

    “Our financial results for the first half of 2022 were strong, reflecting a uranium market that has improved considerably over the past year,” said Yerzhan Mukanov, Kazatomprom’s Chief Operations Officer and acting Chief Executive Officer. “Revenue doubled compared to the first six months of 2021 to nearly 500 billion tenge in 2022, driving a rise in operating profit of 182%, and a near tripling of adjusted net profit to 167.4 billion tenge, all related primarily to customer-requested delivery timing and higher uranium prices year-to-date. From an operational standpoint, production fell slightly compared to the first half of last year, tracking slightly below the annual production plan due to the supply chain issues that delayed wellfield development work in 2021 – work that was required to support this year’s production plan. Therefore, as we have previously noted, the elevated risk that 2022 production volumes could fall short of our expectations remains a concern, though the Company continues to make progress in mitigating the related risks and annual production guidance is unchanged at this time.

    “The unprescedented global economic uncertainty and significant geopolitical developments throughout the first half of 2022 have tested our corporate risk management practices, which have proven to be resilient in several key areas. However, the uncertainty and risk has presented an extraordinary challenge to the Company’s production planning and budgeting processes: in addition to aligning future production with market demand and our contractual commitments, we need to factor in the growing inflationary pressure and potential supply chain delays that could affect our production plans. Although the uranium market has improved, with an increase in long-term contracting interest, a thinning near-term market, and substantially improved pricing, we believe the fundamental shift in the supply-demand balance is still underway, with an illusion of endless secondary supply, creating ongoing opportunities for Kazatomprom as a primary supplier that maintains a disciplined approach. Therefore, consistent with our market-centric strategy and accounting for evolving mine development and production constraints, we expect to increase potential production by about 2,000 to 3,000 tU in 2024 compared to our planned range for 2023, representing continued production discipline and a decrease of approximately 10% against our total Subsoil Use Contracts level in 2024.

    “A key factor contributing to the improved uranium market conditions and the bullish outlook for the nuclear power sector over the past several years, has been the international debate around the social and environmental impacts of energy infrastructure. Those discussions have become even more pronounced as of late amid the growing focus on energy security and diversification in relation to the Russia-Ukraine conflict. Various jurisdictions, including several that had abandoned nuclear plans or were committed to a phase out of clean nuclear energy, are now said to be reviewing policies and in some cases, reconsidering nuclear alongside their renewables energy strategy. That shift in support for nuclear energy would not only avoid the negative environmental impacts of fossil fuel generation, but it could help mitigate the social- and energy security-related risks that have emerged.

    ”Kazatomprom expects to fully participate in the mid- and long-term contracting cycle associated with that anticipated demand growth for nuclear fuel, backed by our now-proven commitment to building long-term value for our stakeholders through continued production and sales discipline.”

    Corporate Update

    2024 Production Plans

    Kazatomprom’s Board of Directors has approved a strategy to revise the Company’s 2024 production volume down by approximately 10% compared to the total Subsoil Use Contract level of 28,691 tU, disclosed in its most recent 2021 Competent Person’s Report (“2021 CPR”).

    The decision to shift production from minus 20% in 2023 to approximately minus 10% in 2024 is based primarily on Kazatomprom’s continued success in signing mid- and long-term contracts with new and existing customers. The current contract book provides sufficient confidence that the additional volume in 2024 will have a secure place in the market and be needed to fulfill future contractual obligations. However, the continued production discipline reflects Kazatomprom’s assessment of the supply-demand balance over the next two years and factors in the challenges the Company is expecting to face in terms of global supply chains and limited availability of certain key operating materials and reagents.

    The full implementation of this decision could remove approximately 3,500 tU from anticipated global primary supply in 2024. Kazatomprom’s 2024 production is therefore expected to be between 25,000 tU and 25,500 tU (100% basis), compared to the total Subsoil Use Contracts level for 2024 of 28,691 tU, disclosed in the 2021 CPR. Although the year-over-year production increase from 2023 to 2024 is modest, the Company may face significant challenges to any increase above current production levels based on the current state of global supply chains.

    The Company will now begin working with joint venture partners and mining subsidiaries to incorporate the required changes into the 2023 budgets and development plans, accounting for the revised production levels in 2024. Kazatomprom will continue to monitor ongoing market developments and maintain the flexibility to react quickly to changing conditions. No decision has been taken regarding mine development activity and production volumes beyond 2024.

    Management Board Changes

    Yerlan Tuleugozhin, Kazatomprom’s Chief Strategy & Development Officer and Member of the Company’s Management Board, decided to resign from his position effective 15 August 2022, in order to pursue a Masters Degree in Leadership and Strategy from the London School of Business. The Board has decided to reduce the number of senior management positions and not fill the vacancy, instead, redistributing the position’s responsibilities among the other company Officers. As a result, the number of Management Board members has decreased from eight to seven.

    Full biographies for all members of the Management Board are available on the Company’s website, www.kazatomprom.kz

    Extraordinary General Meeting of Shareholders (EGM)

    The Board of Directors has initiated to convene an absentee EGM. A separate press release and corresponding EGM notice has been filed and disclosed on 18 August 2022, in accordance with regulatory requirements, and are available on the Company’s website, www.kazatomprom.kz

    Key financial metrics


    Six months



    ended 30 June


    (KZT billion unless noted)




    Group’s consolidated revenue




    Operating profit




    Net profit




        Earnings per share attributable to owners (basic and diluted), KZT/share1




    Adjusted EBITDA2




    Attributable EBITDA3




    Operating cash flow4




    1 Calculated as: Profit for the period attributable to owners of the Company divided by total share capital, rounded to the nearest KZT.
    2 Adjusted EBITDA is calculated by excluding from EBITDA items not related to the main business and having a one-time effect.
    Attributable EBITDA (previously “Adjusted Attributable EBITDA”) is calculated as Adjusted EBITDA less the share of the results in the net profit in JVs and associates, plus the share of Adjusted EBITDA of JVs and associates engaged in the uranium segment (except JV “Budenovskoye” LLP’s EBITDA due to minor effect it has during each reporting period), less non-controlling share of adjusted EBITDA of “Appak” LLP, JV “Inkai” LLP, “Baiken-U” LLP and JV “Khorasan-U” LLP, less any changes in the unrealized gain in the Group.
    4 Includes income tax and interest paid.

    Operating and Financial Review and Financial Statements

    The Operating and Financial Review, and Consolidated Financial Statements (unaudited, reviewed) provide detailed explanations of Kazatomprom’s results for the first half-year ended 30 June 2022, as compared to the same period in 2021, with guidance for 2022. This press release should be read alongside these documents, all of which are available at www.kazatomprom.kz.

    Changes in the Group structure

    In the first half of 2022 the Group completed the following transactions:

  • As previously announced, according to a Framework Agreement signed on 22 November 2021 by the Group and Genchi Global Limited to participate in ANU Energy, created on the Astana International Financial Center, the Group made an investment of KZT 12,368 million (USD 24.25 million) in ANU Energy in March 2022, which constitutes a 32.7% share from the joint investment of the investors. The purpose of ANU Energy is to store physical uranium as a long-term investment. The Group does not have a representative on ANU Energy’s Board of Directors and does not take part in decision-making. Accordingly, the Group does not have significant influence on the management operations of ANU Energy, and the Group therefore recognizes this investment at fair value through profit or loss and does not increase the number of entities within the Holding. In accordance with the Framework Agreement, the Group and ANU Energy signed a short-term contract for the sale and purchase of natural uranium concentrates, under which the Group delivered natural uranium concentrates on 12 May 2022. As at the reporting date, the Group classifies ANU Energy as “Other investment”.
  • In accordance with the privatisation plan of non-core assets as presented in the Company’s 2018 IPO Prospectus, Kazatomprom and “United Chemical Technologies Trading House” LLP entered into an Agreement on 30 December 2021, for the sale of the Company’s 40% share in “Caustic” JSC. On 31 January 2022, partial payment was made for 30% of the Company’s total interest in “Caustic” JSC, therefore “United Chemical Technologies Trading House” LLP’s interest in “Caustic” JSC increased by 12% (30% of the Company’s 40% share). The remaining portion of the Company’s shares were transferred to trust management of “United Chemical Technologies Trading House” LLP until full payment for the Company’s remaining interest is completed, expected not later than 2023.


These activities are focused on the implementation of preventative measures, a risk-based approach to the organization of the production process and an increased awareness of the safety procedures (safety culture) among the Company's employees.

Kazatomprom’s 2022 Guidance

(exchange rate 460 KZT/1USD)


Production volume U3O8 (tU) (100% basis)1

21,000 – 22,0002

Production volume U3O8 (tU) (attributable basis)3

10,900 – 11,5002

Group sales volume (tU) (consolidated)4

16,300 – 16,800

Incl. KAP sales volume (incl. in Group) (tU)5

13,400 – 13,900

Revenue - consolidated (KZT billions)6

930 – 950

     Revenue from Group U3O8 sales, (KZT billions)6

790 – 810

C1 cash cost (attributable basis) (USD/lb)7

$9.50 – $11.00

All-in sustaining cash cost (attributable C1 + capital cost) (USD/lb)7

$16.00 – $17.50

Total capital expenditures of mining entities (KZT billions) (100% basis)8

160 – 170

1 Production volume U3O8 (tU) (100% basis): Amounts represent the entirety of production of an entity in which the Company has an interest; it disregards that some portion of production may be attributable to the Group’s JV partners or other third-party shareholders.
2 The duration and full impact of the COVID-19 pandemic and the Russian-Ukrainian conflict is not yet known. Annual production volumes could therefore vary from internal expectations.
3 Production volume U3O8 (tU) (attributable basis): Amounts represent the portion of production of an entity in which the Company has an interest, corresponding only to the size of such interest; it excludes the portion attributable to the JV partners or other third-party shareholders, except for JV “Inkai” LLP, where the annual share of production is determined as per Implementation Agreement as disclosed in Company’s 2018 IPO Prospectus. Actual drummed production volumes remain subject to converter adjustments and adjustments for in-process material.
4 Group sales volume: includes the sales of U3O8 by Kazatomprom’s sales and those of its consolidated subsidiaries (companies that KAP controls by having (i) the power to direct their relevant activities that significantly affect their returns, (ii) exposure, or rights, to variable returns from its involvement with these entities, and (iii) the ability to use its power over these entities to affect the amount of the Group’s returns. The existence and effect of substantive rights, including substantive potential voting rights, are considered when assessing whether KAP has power to control another entity). For consistency, Group U3O8 sales volumes do not include other forms of uranium products (including, but not limited to the sales of fuel pellets).
5 KAP U3Osales volume: includes only the total external sales of U3O8 of KAP HQ and THK. Intercompany transactions between KAP HQ and THK are not included.
Revenue estimates have only been updated to account for a change in expectations for uranium price and exchange rate for the Kazakhstani Tenge. Revenue expectations are based on a uranium prices taken at a single point in time from third-party sources and on an internal exchange rate assumption of KZT460:USD1. There continues to be significant volatility in both uranium price and the tenge exchange rateTherefore, 2022 revenue could be materially impacted by how actual uranium prices and exchange rates vary from the third-party and internal estimates respectively.
7  Note that the conversion of kgU to pounds U3O8 is 2.59979.
Total capital expenditures (100% basis): includes only capital expenditures of the mining entities, excludes significant CAPEX for investment and expansion projects.

At this time, all 2022 guidance metrics remain unchanged from previously disclosed expectations.

COVID-19 disrupted the overall production supply chain in 2021, resulting in a shortage of certain production materials, such as reagents and piping, affecting exploration and development activities, which led to a shift in the commissioning schedule for new wellfields. Because of the shift, uranium production volumes through the first half of 2022 fell short of internal expectations. In addition to the delays in the commissioning schedule for new wellfields, shortages of certain materials, including sulfuric acid, also have a negative impact on development and production activities. Despite these challenges, the Group is maintaining its 2022 production plan and making every effort to achieve it, though final year-end volumes could fall short if wellfield development and supply chain issues continue or worsen throughout the second-half of the year.

Revenue, C1 cash cost (attributable basis) and All-in Sustaining cash cost (attributable C1 + capital cost) guidance may vary from the ranges shown, to the extent that the KZT-to-USD exchange rate and uranium spot price differ significantly from the Company’s assumptions.

The Company only intends to update annual guidance in relation to operational factors and internal changes that are within its control. Key assumptions used for external metrics, such as exchange rates and uranium prices, are established using third-party sources during the Company’s annual budget process in the previous year; such assumptions will only be updated on an interim basis in exceptional circumstances.

The Company continues to target an inventory level of approximately six to seven months of annual attributable production. However, inventory could fall below these levels due to Pandemic-related production losses. As such, during the first half of 2022, several transactions to purchase material in the spot market were carried out and the Company will continue to monitor market conditions for opportunities to optimize its inventory levels.

Changes to the Tax code of Kazakhstan

In January 2022, the Government of the Republic of Kazakhstan announced that it intended to update the country’s tax code. On 11 July 2022, additions and amendments to the Kazakh tax code were adopted (Laws of the Republic of Kazakhstan “On the Enactment of the Code of the Republic of Kazakhstan “On Taxes and Other Mandatory Payments to the Budget” No. 135-VII LRK), which will change the calculation of the MET base and rate for uranium extraction in 2023. The new tax code comes into force beginning 01 January 2023 and it does not impact 2022 guidance or the Company’s expectations related to taxation in 2022. In accordance with the introduced changes, the tax base for MET on uranium will be determined as the weighted average price of uranium from public sources for the specific reporting period, multiplied by the amount of uranium mined and a MET rate of 6%. MET expenses in absolute terms are expected to increase due to the incorporation of the corresponding  spot price into the formula. However, the ultimate impact cannot be estimated at this time as the new formula will only be applied from 01 January 2023.

Conference Call Reminder - 2022 Half-Year Operating and Financial Review

Kazatomprom has scheduled a conference call to discuss the 2022 half-year operating and financial results, after they are released on Friday, 19 August 2022. The call will begin at 17:00 (Nur-Sultan time) / 11:00 (GMT) / 07:00 (EDT). Following management remarks, an interactive English Q&A session will be held with investors.

For the English live webcast (participants on the webcast can also submit questions during the event), conference call dial-in details and for information on how to participate in the Q&A, please visit:


For the Russian live webcast (listen-only, no Q&A) and corresponding dial-in details, please visit:


A recording of the webcast will also be available at www.kazatomprom.kz shortly after it concludes.

For further information, please contact:

Kazatomprom Investor Relations Inquiries

Cory Kos, International Adviser, Investor Relations

Botagoz Muldagaliyeva, Director of Investor Relations

Tel: +7 (8) 7172 45 81 80

Email: iratkazatomprom.kz

Kazatomprom Public Relations and Media Inquiries

Gazhaiyp Kumisbek, Chief Expert of GR & PR Department

Tel: +7 (8) 7172 45 80 63

Email: pratkazatomprom.kz

About Kazatomprom

Kazatomprom is the world's largest producer of uranium, with the Company’s attributable production representing approximately 24% of global primary uranium production in 2021. The Group benefits from the largest reserve base in the industry and operates, through its subsidiaries, JVs and Associates, 26 deposits grouped into 14 mining assets. All of the Company’s mining operations are located in Kazakhstan and extract uranium using ISR technology with a focus on maintaining industry-leading health, safety and environmental standards (ISO 45001 and ISO 14001 compliant).

Kazatomprom securities are listed on the London Stock Exchange, Astana International Exchange, and Kazakhstan Stock Exchange. As the national atomic company in the Republic of Kazakhstan, the Group's primary customers are operators of nuclear generation capacity, and the principal export markets for the Group's products are China, South and Eastern Asia, Europe and North America. The Group sells uranium and uranium products under long-term contracts, short-term contracts, as well as in the spot market, directly from its headquarters in Nur-Sultan, Kazakhstan, and through its Switzerland-based trading subsidiary, Trade House KazakAtom AG (THK).

For more information, please see the Company website at www.kazatomprom.kz

Forward-looking statements

All statements other than statements of historical fact included in this communication or document are forward-looking statements. Forward-looking statements give the Company’s current expectations and projections relating to its financial condition, results of operations, plans, objectives, future performance and business. These statements may include, without limitation, any statements preceded by, followed by or including words such as “target,” “believe,” “expect,” “aim,” “intend,” “may,” “anticipate,” “estimate,” “plan,” “project,” “will,” “can have,” “likely,” “should,” “would,” “could” and other words and terms of similar meaning or the negative thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the Company’s control that could cause the Company’s actual results, performance or achievements to be materially different from the expected results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company’s present and future business strategies and the environment in which it will operate in the future.


Cost of sales

Cost of sales totalled KZT 291,532 million in the first half of 2022, an increase of 89% compared to the same period of 2021 mainly due to higher sales volume in the first half of 2022 and an increase in the share of U3O8 purchased from JV and associates, and from third parties.

The cost of materials and supplies was KZT 206,039 million in the first half of 2022, an increase of 122% compared to the same period of 2021 due to a significant increase in the proportion of sales of uranium purchased from JVs and associates, as well as from third parties. When such uranium is sold, the cost of sales is predominantly represented by the cost of purchased materials and supplies at the prevailing spot price with certain applicable discounts. Also, the purchase price of materials and supplies, including U3O8, increased as a result of inflationary pressure, the increase in the spot prices and the weakening of the KZT against the US dollar.

Selling expenses

Selling expenses totalled KZT 10,592 million in the first half of 2022, a significant increase compared to the same period of 2021. The increase was due to a much higher shipment volume in the first half of 2022 in comparison to the same period of 2021 as well as changes in the delivery destination points for uranium products, an increase in transportation tariffs, as well as the weakening of the KZT against the USD, as a significant portion of shipping, transportation and storing expenses are denominated in foreign currency.

General & administrative expenses (G&A)

G&A expenses totalled KZT 18, 774 million in the first half of 2022 (KZT 16,499 million KZT during the same peiod of 2021). The increase in G&A expenses was partly related to the increase in provision on liabilities for uranium products to KZT 3,900 million during the first half of 2022 (six month period ended 30 June 2021: KZT 2,932 million).


The Group manages its liquidity requirements to ensure the continued availability of cash sufficient to meet its obligations on time, avoid unacceptable losses, and settle its financial obligations without jeopardizing its reputation.

(KZT million)

As of June 30, 2022

As of December 31, 2021

As of June 30, 2021

Change for six months of 2022

Cash and cash equivalents





Current term deposit





Total cash





Undrawn borrowing facilities





1 Includes income tax and interest paid.

The Group’s total cash and cash equivalents, including current term deposits at 30 June 2022 were KZT 380,402 million, increasing by 86% compared to KZT 204,410 million as at 31 December 2021 and higher in comparison to KZT 151,762 million as of 30 June 2021, mainly due to the accumulation of cash prior to the distribution of the 2021 dividend.

Undrawn borrowing facilities are the credit lines available to the Group and considered as an additional liquidity source payable within 12 months, primarily used to temporarily cover cash deficits related to uneven receipts of trade receivables. As at 30 June 2022, the Group’s fully available revolving credit lines comprised a total of KZT 165,560 million (USD 352 million), while as at 31 December 2021, the figure amounted KZT 177,902 million (USD 412 million), and as at 30 June 2021,  the figure amounted KZT 255,450 million (USD 597 million). The decrease is primarily related to the closure of unused credit lines.

As at 30 June, 2022, the Group has no current or long-term bank loans.

The amount of non-bank loans as of 30 June 2022 totalled KZT 97,971 million and predominantly includes long-term USD-indexed Company coupon bonds with a nominal amount of KZT 70 billion and maturity in October 2024, issued in September 2019 on the Kazakhstan Stock Exchange (KASE).

Debt leverage ratios

The following table summarises the key ratios used by the Company’s management to measure financial stability. Management targets a net debt to adjusted EBITDA of less than 1.0.

(KZT million)

As at June 30, 2022

As at December 31, 2021

As at June 30, 2021

Change for six months of 2022

 Total debt (excluding guarantees)





 Total cash balances





 Net debt 





 Adjusted EBITDA*





 Net debt / Adjusted EBITDA (coefficient)





* For the purposes of “Net debt/Adjusted EBITDA (coefficient)” calculation Adjusted EBITDA for the first six months of 2022 and 2021 was calculated as for 12 months (the first half of the reporting period and the second half of the previous period). Adjusted EBITDA is calculated as Profit before tax - finance income + finance expense +/- Net FX loss/(gain) + Depreciation and amortisation + Impairment losses - reversal of impairment +/- one-off or unusual transactions.

Uranium segment production and sales metrics



Six months


ended 30 June






Production volume of U3O8 (100% basis)





Production volume of U3O8 (attributable basis)1





U3O8 sales volume (consolidated)





    Including KAP U3O8 sales volume2, 3





Group inventory of finished goods (U3O8)





    Including KAP inventory of finished goods (U3O8)4





Group average realized price





Group average realized price





KAP average realized price5





Average weekly spot price





Average month-end spot price6





The Production volumes of U3O(attributable basis) is not equal to the volumes purchased by Company and THK.
KAP U3O8 sales volume (incl. in Group): includes only the total external sales of KAP HQ and THK. Intercompany transactions between KAP HQ and THK are not included.
3 Group sales volume and KAP sales volume (incl. in Group) does not include approximately 32 tU equivalent sold as UF6 in 2Q22.
4 KAP inventory of finished goods (incl. in Group): includes the inventories of KAP HQ and THK.
5 KAP average realized price: the weighted average price per pound for the total external sales of KAP and THK. The pricing of intercompany transactions between KAP and THK are not included.
6 Source: UxC, TradeTech. Values provided represent the average of the uranium spot prices quoted at month end, and not the average of each weekly quoted spot price, as contract price terms generally refer to a month-end price.

Production volume on both a 100% and attributable basis was lower in the first half of 2022 compared to the same period in 2021, due to the impact of the COVID-19 pandemic on wellfield development in 2021. There is typically an eight- to ten-months lag between wellfield development and uranium extraction by in-situ recovery, therefore in 2021, delays and/or limited access to certain key materials and equipment impacted the wellfield commissioning schedule at the time, resulting in lower production a half-year later in 2022. Production on an attributable basis in the second quarter and first half of 2022 was lower compared to the same period in 2021 primarily due to the sale of a 49% share of “Ortalyk” LLP to CGN Mining UK Limited in July 2021.

In the first half of 2022, both Group and KAP sales volumes were significantly higher compared to the same period in 2021, primarily due to the timing of customer-scheduled deliveries. Sales volumes can vary substantially each quarter, and quarterly sales volumes vary year to year due to variable timing of customer delivery requests during the year, and physical delivery activity.

Consolidated Group inventory of finished U3O8 products as at 30 June 2022 amounted to 9,276 tonnes, which was 5% higher than as at 30 June 2021. At the Company level, inventory of finished U3O8 products was 7,156 tonnes, an increase of 6% compared to 30 June 2021. The increase in inventory was related to a higher purchase volume from subsidiaries, JVs, JOs and associates in the first half of 2022 as well as procurement from the market and swap deals.The Company continues to target an inventory level of approximately six to seven months of annual attributable production. However, inventory could fall below these levels due to pandemic-related production delays. As such, during the first half of 2022, several transactions to purchase material in the spot market were carried out and the Company will continue to monitor market conditions for opportunities to optimize its inventory levels.

The Group’s average realized price in the first half of 2022 was KZT 47,807 per kg (40.88 USD/lb), an increase of 46% compared to the same period of 2021 due to a higher average spot price for uranium products, and the weakening of the KZT against the USD. The average realized prices at the KAP level for the first half of 2022 were also higher than in the same period of 2021 due to same reasons. The Company’s current overall contract portfolio pricing correlates to uranium spot prices. However, for short-term deliveries to utilities, the spot price can vary significantly between the time contract pricing is established according to Kazakh transfer pricing regulations, and the spot price in the general market when the actual delivery takes place. The market volatility during that time lag between price-setting and delivery becomes more evident as volatility increases, in both rising and falling price conditions. In addition, some long-term contracts incorporate a proportion of fixed pricing that was negotiated prior to the sharp increase in spot price. As a result, increases in both the Group and KAP’s average realized prices in the first half of 2022 compared to the same period in 2021 were lower than the increase in the spot market price for uranium over the same intervals.

In the uranium market, the trends in quarterly metrics and interim results are rarely representative of annual expectations; for annual expectations, please see the Company’s guidance metrics for 2022 below, and the price sensitivity table from Section 12.1 Uranium sales price sensitivity analysis, in the Company’s Operating and Financial Review for 1H2022.

Uranium segment costs and capital expenditures



Six months


ended 30 June

(KZT million unless noted)





C1 Cash cost (attributable basis)





Capital cost (attributable basis)





All-in sustaining cash cost (attributable C1 + capital cost) 1





Capital expenditures of mining companies (100% basis)2





Significant CAPEX for investment and expansion projects are excluded.
2 Excludes liquidation funds and closure costs.

ESG Update at Kazatomprom

In March 2022, the Company became a full member of the UN Global Compact, the world's largest corporate sustainability initiative that aligns more than 16,000 member companies from 158 countries in taking positive actions to advance societal goals. Joining this initiative reinforces the commitment of participating companies to consistently implement the ten universal principles of the UN Global Compact in their activities, covering the fields of human rights, labour, environment and anti-corruption.

Kazatomprom aspires to introduce the best sustainability-related industry practices, including the leading principles of the International Council on Mining and Metals (ICMM) and the World Nuclear Association (WNA). By the end of 2022, Kazatomprom expectes to obtain its first independent ESG rating and consequently, during the current year, expects to focus on measures of increased energy efficiency, greater levels of environment protection and negative impact prevention, labour protection and production safety, further development of human resources in the context of ESG, social and economic development in its areas of presence, and importantly, high quality information disclosure with improved ESG-related transparency and accountability.

Health, safety and environment (HSE) results

Active measures continued to be undertaken in the first half of 2022 to focus on safety awareness, which helped to prevent major industrial accidents (including uncontrolled explosions, emissions of dangerous substances or destruction of buildings) and production injuries at the Company's enterprises.

The following table reflects safety results of the first half of 2021-2022:



Six months

ended 30 June






Industrial accidents1

LTIFR (per million man-hours)2



Unsafe conditions, unsafe actions, near-miss reporting




Number of accidents3




1 Defined as uncontrolled explosions, emissions of dangerous substances, or destruction of buildings.
Lost-Time Injury Frequency Rate (LTIFR) per million hours.
3 Defined as impact on the employee of a harmful and (or) dangerous production factor in performance of his work (job) duties or tasks of the employer, which resulted in an industrial accident, sudden deterioration of health, or poisoning of the employee that led to temporary or persistent disability, or death.

The Group maintains a strong focus on improving workplace health and safety. There were no fatal accidents or incidents causing injuries in the first half of 2022.

As part of the continuing work to improve the industrial safety systems, the Company completed the following activities in the first half of 2022:

the Group has approved an "Occupational Safety Management System" standard, which includes sections on safety culture, management of risks, contractors, incidents, information and training, and industrial safety processes in all areas (labour protection, industrial safety, nuclear and radiation safety, environmental protection, health protection); a survey was conducted on employee satisfaction with the state of industrial safety in the Group; monthly meetings were held with the heads of the Group's industrial safety divisions to discuss topical issues in the field of industrial safety; training was conducted for the employees of the Group on the topic of "Effective methods for safety  briefing"; analysis of the frequency and nature of detected hazardous conditions, hazardous actions, potentially hazardous situations, and Near Miss to determine the adequacy of the corrective measures taken; comprehensive measures were taken to combat COVID-19 at the Group's enterprises a KZT 31,254 million increase in income tax paid due to the increase in profit before tax.


Operating profit in the first half of 2022 was KZT 172,818 million, an increase of 182% compared to the same period of 2021. The increase was mainly due to higher revenues in 2022 as indicated above.

Net profit in the first half of 2022 was KZT 167,374 million, an increase of 188% compared to the same period of 2021. The increase was mainly due to higher operating profit in the first half of 2022 as indicated above. There were no significant adjusting one-time effects during the first halves of 2022 and 2021. Profit for the period attributable to non-controlling interest increased significantly during the first half of 2022 compared to the same period of 2021, impacted by the sale of a 49% share of “Ortalyk” LLP in July 2021 in addition to the explanations stated above.

Adjusted EBITDA totalled KZT 224,457 million in the first half of 2022, an increase of 126% compared to the same period of 2021, while attributable EBITDA was KZT 182,825 million in the first half of 2022, an increase of 89% compared to the same period of 2021. The changes were mainly driven by higher operating profit.

Operating cash flows for the first half of 2022 totalled KZT 256,227 million, a significant increase compared to KZT 80,833 million during the same period of 2021 mainly due to:

a KZT 425,691 million increase in cash receipts from customers during the first half of 2022 compared to the same period of 2021, due to differences in the timing of the sales schedule for the first halves 2021 and 2022, growth in the average realized price associated with an increase in the market spot price for U3O8 and the weakening of the KZT against the USD; offset by a KZT 188,811 million increase in payments for accounts payable to suppliers during the first half of 2022 mostly due to change in timing of the purchases schedule for the first halves 2021 and 2022 and growth in the average purchase price associated with an increase in the market spot price for U3O8 and the weakening of the KZT against the USD;


Revenue, net profit, EBITDA

During the first half of 2022, the Group’s consolidated revenue was KZT 493,716 million, an increase of 110% compared to the same period of 2021. The increase is mainly due to:

a significant increase in sales volume in the first half of 2022 in comparison to the same period of 2021 mainly related to the timing of customer requirements and the resulting differences in the timing of deliveries for first halves of 2022 and 2021; growth in the average realized price associated with an increase in the market spot price for U3O8; and weakening of the KZT against the USD in the first half of 2022.