Kazakh uranium miner Kazatomprom (KZAP.KZ, KAPq.L) reported a first-quarter profit of 93.245 billion tenge ($211.2 million), down 14.6% from 109.2 billion tenge a year earlier.
The company, which is the world’s largest producer of uranium, cited lower sales volumes and a decrease in the average realized price as the main factors contributing to the decline in profitability.
Despite the drop in profits, Kazatomprom’s production and sales volumes remained relatively stable compared to the same period in the previous year. The company produced 4,378 tonnes of uranium in the first quarter, compared to 4,455 tonnes in the same period of 2022.
Kazatomprom is a major player in the global uranium market, accounting for around 23% of the world’s total uranium production. The company’s operations are primarily located in Kazakhstan, one of the world’s largest uranium-producing countries.
The decrease in Kazatomprom’s first-quarter profit reflects the broader market conditions in the uranium industry, where prices have faced some pressures due to various factors, including geopolitical tensions and the ongoing impact of the COVID-19 pandemic on global supply chains.
Investors will be closely monitoring Kazatomprom’s performance in the coming quarters to gauge the company’s ability to navigate the challenging market environment and maintain its position as a leading global uranium producer.