Uranium major Kazatomprom (LSE:KAP) has raised its production guidance for the remainder of 2024 following a higher contribution to first-half output.
The Kazakhstan-based producer, which accounts for over 40% of global uranium supply, now expects to produce between 22,500 and 23,500 tonnes of uranium in 2024, up from between 21,000 and 22,500 tonnes previously.
Production for the first half of 2024 rose 6% to 10,857 tonnes compared to the first half of 2023, and was up 5% to 5,780 tonnes in the second quarter compared to the same quarter last year.
While group sales climbed 48% to 5,027 tonnes in the quarter, first half sales actually slid 18% to 7,779 tonnes. However, Kazatomprom has maintained its sales guidance of 15,500 to 16,500 tonnes for 2024.
Kazatomprom says quarterly sales volumes were higher primarily due to the timing of customer-scheduled deliveries.
Uranium prices were also higher, rising 44% to US$68.33 ($104.99) per pound in the June quarter and 41% to US$66.22 in the first half.
The company’s current overall contract portfolio pricing correlates to the uranium spot prices.
Though Kazatomprom notes that deliveries under some long-term contracts in 2024 incorporated a proportion of fixed pricing components, including price ceilings that were negotiated during a comparatively lower price environment.
The average month-end spot price was 61% higher at US$87.88 for the second quarter and 73% higher at US$91.10 for the half year.
Kazatomprom operates — via its subsidiaries, joint ventures and associates — 226 deposits grouped into 14 asset clusters, all of which are located in Kazakhstan. The company has an attributable uranium reserve inventory of just shy of 300,000 tonnes.
Write to Angela East at Mining.com.au
Images: Kazatomprom
