John Quakes Profile picture
Retired Earth Sciences Researcher, Professor, Analyst, Writer, Trekker and Explorer. πŸ₯ΎπŸŒŽ Invested in the Global #Nuclear & #Uranium Renaissance πŸŒ…βš›οΈβš‘οΈβ›οΈ πŸ€ πŸ‚

Aug 27, 2020, 8 tweets

Kazatomprom 1H20 Financial Results πŸ’° World's largest #Uranium producer has released its Financial & Operations Review for H1 2020 & held a 1-hour Conference Call with Q&A. πŸ’» Market responding positively with trading Up a tad near 52-week highπŸ‘ kazatomprom.kz/en/media/view/…

#Kazakhstan's #Uranium production was down -3% in first 6 months of 2020, down -7% attributable to , as #COVID19 slowdown to be primarily felt in H2 as per previous 2020 Guidance. CAPEX down -38% vs H1 2019 due to #COVID19 suspensions.β›οΈβ†˜οΈ Details: kazatomprom.kz/storage/2e/ofr…

Here are some Slides from Kazatomprom 's Conference Call. Excellent presentation with detailed coverage of ISR #Uranium production timelines, impact of #COVID19. πŸ˜·β›οΈβ†˜οΈ As of today, workers now back on site beginning drilling & wellfield operations after 4-month halt.

Kazatomprom holding to 2020/2021 #Uranium Production Guidance as still uncertain what actual impact of 4-month #COVID19 suspension will be. A 2nd Wave could further impact operations this year & in 2021. Globally, ~20M lbs #U3O8 supply lost this year to #nuclear supply.⛏️‡️

Kazatomprom would not provide details on Spot purchased #Uranium, only to say that due to lost production, with no catch up, they will see inventory levels fall uncomfortably low & so will continue Spot purchasing to meet deliveries later this year & into 2021. βš›οΈπŸ›’

Overall, Kazatomprom sees a fundamental shift in #Uranium market from relying on Spot/Mid-term to Long-Term Contracts as global 20M lbs #COVID19 production loss tightens up Spot Market, reduces Mid-term trader supply, increases concerns over Security of Supply.

#Nuclear utilities have continued to delay Long-Term contracting due to multiple overhangs & #COVID19 operational issues in H1 but expects #Uranium contracting to pick up significantly into the fall. Shift to LT rather than Spot raises importance of LT Contract Price.

sees tight Spot Market now & the shifted focus onto Long-Term #Uranium contracts may reverse normal price action. Moves higher in Long-Term Price may be what drive Spot Price higher later this year as #Nuclear utilities accelerate LT contracting in H2 and 2021. βš›οΈπŸ›’β€΄οΈ

Share this Scrolly Tale with your friends.

A Scrolly Tale is a new way to read Twitter threads with a more visually immersive experience.
Discover more beautiful Scrolly Tales like this.

Keep scrolling