JSC National Atomic Company "Kazatomprom" ("Kazatomprom" or "the Company") announces the following update related to the impact of the COVID-19 pandemic on the Company’s business and operations.
“Kazatomprom’s main priority is the health and wellbeing of our staff and their families, our partners, and the communities where we operate,” said Galymzhan Pirmatov, chief executive officer of Kazatomprom. “In April, we announced measures to protect our people by reducing the number of employees on sites to minimum possible levels, for a period of three months. Throughout that time, we have followed government restrictions and health advice, however, we believe that the pandemic-related risks still remain too high for a full return of production employees to our sites. We are therefore extending the period of reduced operational activity for an additional month, with the intention of gradually increasing mine site staff levels at the beginning of August, if it is deemed safe to do so.”
Business continuity plans were implemented at all of the Company’s offices, including the corporate headquarters in Nur-Sultan, Kazakhstan, with nearly all staff working from home. Production employees who remained at the Company’s mines have been working safely with social distancing and strict hygiene protocols in place. Today’s extension of the protection measures for an additional month is not expected to have a material impact on the Company’s 2020 production volume guidance (19,000 tU to 19,500 tU on a 100% basis - attributable production between 10,500 tU and 10,800 tU). Kazatomprom's production decisions and contractual obligations are backed by inventory, and the Company will continue to responsibly manage its supply sources, including purchases in the spot market if necessary, in order to meet its sales commitments (unchanged at 13,500 tU to 14,500 tU).
Kazatomprom’s management team has established a suite of safe operating criteria, which the Company will continue to assess in the coming weeks, prior to implementing any decision to begin a return to normal operating levels. If it is safe to do so, the Company expects to ramp up activity at a staged and gradual pace, beginning with drilling programs at advanced exploration properties, where the implementation of appropriate social distancing and safety protocols is more straightforward. The return of mining subsidiary production employees for the resumption of mine development activities is then expected to proceed in the first week of August.
The Company will continue to monitor the situation at the operations, as well as all regional COVID-19 developments and governmental directives, to ensure that any required actions to reduce the spread and/or impact of the pandemic are implemented without delay. Further information will be included in Kazatomprom’s 2Q20 Operations and Trading Update, to be released on 03 August 2020.
For further information, please contact:
Investor Relations Inquiries
Cory Kos, Director of Investor and Public Relations
Tel: +7 7172 45 81 80
Public Relations and Media Inquiries
Torgyn Mukayeva, Deputy Director of Investor and Public Relations
Tel: +7 7172 45 80 63
A copy of this announcement will be made available at www.kazatomprom.kz.
Kazatomprom is the world's largest producer of uranium, with the company’s attributable production representing approximately 24% of global primary uranium production in 2019. The Group benefits from the largest reserve base in the industry and operates, through its subsidiaries, JVs and Associates, 24 deposits grouped into 13 mining assets. All of the Company’s mining operations are located in Kazakhstan and use in-situ recovery mining technology with a focus on maintaining industry-leading health, safety and environment standards.
Kazatomprom securities are listed on the London Stock Exchange and Astana International 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 visit our website at http://www.kazatomprom.kz
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.
THE INFORMATION WITH RESPECT TO ANY PROJECTIONS PRESENTED HEREIN IS BASED ON A NUMBER OF ASSUMPTIONS ABOUT FUTURE EVENTS AND IS SUBJECT TO SIGNIFICANT ECONOMIC AND COMPETITIVE UNCERTAINTY AND OTHER CONTINGENCIES, NONE OF WHICH CAN BE PREDICTED WITH ANY CERTAINTY AND SOME OF WHICH ARE BEYOND THE CONTROL OF THE COMPANY. THERE CAN BE NO ASSURANCES THAT THE PROJECTIONS WILL BE REALISED, AND ACTUAL RESULTS MAY BE HIGHER OR LOWER THAN THOSE INDICATED. NONE OF THE COMPANY NOR ITS SHAREHOLDERS, DIRECTORS, OFFICERS, EMPLOYEES, ADVISORS OR AFFILIATES, OR ANY REPRESENTATIVES OR AFFILIATES OF THE FOREGOING, ASSUMES RESPONSIBILITY FOR THE ACCURACY OF THE PROJECTIONS PRESENTED HEREIN.
The information contained in this communication or document, including but not limited to forward-looking statements, applies only as of the date hereof and is not intended to give any assurances as to future results. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to such information, including any financial data or forward-looking statements, and will not publicly release any revisions it may make to the Information that may result from any change in the Company’s expectations, any change in events, conditions or circumstances on which these forward-looking statements are based, or other events or circumstances arising after the date hereof.