Kazatomprom 1H20 Financial Results 💰 World's largest #Uranium producer has released its Financial & Operations Review for H1 2020 & held a 1-hour Conference Call with Q&A. 💻 Market responding positively with trading Up a tad near 52-week high👍 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.⛏️↘️ 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. 😷⛏️↘️ 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. ⚛️🛒
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. ⚛️🛒⤴️
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