/KASE, January 12, 2024/ – NAC Kazatomprom JSC (Astana), whose securities
are officially listed on Kazakhstan Stock Exchange (KASE), has provided KASE
with the following press release dated January 12, 2024:
quote
National Atomic Company "Kazatomprom" JSC ("Kazatomprom", "KAP" or "the
Company") expects its 2024 production to be adjusted due to the challenges
related to the availability of sulphuric acid, a critical operating material,
as well as delays in completing construction works at the newly developed
deposits, however remains committed to its 2024 delivery obligations.
In August 2022, Kazatomprom's Board of directors has approved the Company's
intention to increase production volumes in 2024 to a 90% level relative to
Subsoil Use Agreements. The decision to shift production from 80% in 2023 to
approximately 90% in 2024 (against Subsoil Use Agreements) was based primarily
on Kazatomprom's continued success in signing mid- and long-term contracts with
new and existing customers.
In August 2022, the Company has also highlighted, and reiterated in its
communications throughout 2023, the risks associated with increasing the
production due to the challenges related to global supply chains and limited
availability of certain key operating materials and reagents.
Kazatomprom has been putting its best efforts and is continuing to work on
securing the supply of critical operating materials and reagents, however the
challenging situation around sulphuric acid is evolving in Kazakhstan and in
the region. Given the growing demand from agricultural and industrial
enterprises and shortages on both domestic and foreign regional markets,
preliminary agreements with suppliers resulted in securing lower than required
volume of sulphuric acid for 2024.
While actively pursuing alternative sulphuric acid supplies, current projections
indicate that the Company's intention to achieve 90% production volume as per
Subsoil Use Agreements in 2024 may be challenging.
The exact impact on the Company's operational performance is now being assessed
and will be detailed in the upcoming production guidance for 2024 as part of the
Q4 2023 Trading Update, which is expected to be released no later than 1
February 2024.
unquote
The complete press release is available on KASE website –
https://kase.kz/files/emitters/KZAP/kzap_relizs_120124.pdf
[2024-01-12]