JSC National Atomic Company "Kazatomprom" ("Kazatomprom" or "the Company") announces the following update related to the impact of the COVID-19 outbreak on the Company’s business.
“As the impact of COVID-19 continues to be felt around the world, Kazakhstan has taken strong steps to slow the spread of the virus,” said Galymzhan Pirmatov, chief executive officer of Kazatomprom. “Measures imposed by the government of Kazakhstan, including restrictions on the movement of people and strict hygiene directives, are now covering all regions where Kazatomprom operates and have been enforced at all of our sites and offices. Our thoughts and thanks are with everyone who is helping to combat this global pandemic, especially healthcare workers, law enforcement services and state authorities.
“Amid current conditions, Kazatomprom’s first priority is the health and wellbeing of our staff and their families, our partners, and the communities where we operate. In order to abide by local lock down requirements and reduce the risk of a localized outbreak, all of the Company’s subsidiaries are reducing the number of staff on site to minimum possible levels. All non-essential staff will return home with full pay, while those remaining on site will operate within strict social distancing and hygiene practices. We are now working with our joint venture partners on assessing the full impact and detailed implementation of this decision across all of Kazakhstan's uranium mines, and we appreciate their support during these challenging times.”
These measures are expected to remain in place for three months, resulting in a lower level of wellfield development activity and, in consequence, a reduction in production volumes. Based on that assumption, the Company expects Kazakhstan’s 2020 annual uranium production volume to decrease by up to 4,000 tU from previous expectations (previously 22,750 tU to 22,800 tU on a 100% basis), although the precise impact on production may vary from this estimate.
The reduced production level is not expected to impact Kazatomprom’s 2020 sales obligations, underlining its strength as a reliable supplier to the nuclear industry. The Company has informed all of its customers that their full contractual requirements will be met.
The Company expects to provide updated 2020 guidance for attributable production, revenue, CAPEX, C1 cash costs, and All-in sustaining costs in its 1Q20 Operations and Trading update on 4 May 2020, following the completion of an updated macroeconomic assessment and the stabilization of the Tenge to US dollar exchange rate.
Kazatomprom remains financially stable with a strong, unlevered balance sheet and a commitment to its dividend policy, including the minimum US$200 million payment expected in 2020.
More than ever, this pandemic highlights the important role that nuclear power generation plays in providing a resilient and reliable source of clean, baseload electricity for maintaining key services around the world, including hospitals, transportation, telecommunication, and food storage, as well as the heating and lighting of homes.
For further information, please contact:
Kazatomprom Investor Relations Inquiries
Cory Kos, Director of Investor and Public Relations
Tel: +7 7172 45 81 80
Kazatomprom Public Relations and Media Inquiries
Torgyn Mukayeva, Deputy Director of Investor and Public Relations
Tel: +7 7172 45 80 63
Powerscourt – London (Giles Read)
Tel: +44 20 7250 1446
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 mined using ISR 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 see our newly updated 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.