This article first appeared on GuruFocus.
Group Sales Volume: Exceeded 7.5 thousand tonnes in H1 2026, in line with the same period last year.
Group Production Volume: Increased by 9% year-on-year in H1 2026.
Company-Level Production Volume: Increased by 10% year-on-year in H1 2026.
Average Realized Price (Group): Increased by 16% year-on-year to $67.88 per pound.
Consolidated Revenue: Grew 9% year-on-year to almost KZT718 billion, compared to KZT660 billion in H1 2025.
Operating Profit: Reached almost KZT253 billion, effectively matching the prior year’s results.
Adjusted EBITDA: Stood at KZT371 billion, up 2% from the prior year’s six-month period.
Net Profit: Decreased to KZT240 billion in H1 2026, compared to KZT263 billion last year, due to unfavorable foreign exchange appreciation and increased finance costs.
Attributable EBITDA: Landed at roughly KZT265 billion, a 12% decline, due to a higher share of sales and EBITDA of mining subsidiaries attributable to non-controlling partners.
Consolidated Group Inventory: Slightly exceeded 8,200 tonnes as of June 30, 2026, a 23% increase year-on-year.
Company-Level Inventory: Rose by 15% to 6,200 tonnes.
C1 Cash Costs: Rose by 37% in US dollar terms in H1 2026 compared to H1 2025.
All-In Sustaining Costs: Increased by 25% in US dollar terms in H1 2026 compared to H1 2025.
Sulfuric Acid Costs: Increased by 39% on average, representing 15.3% of the group’s uranium production costs.
Release Date: August 21, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
Strong market fundamentals with long-term uranium prices at 18-year highs in the mid-to-high $90s per pound, supporting future contracting.
Group production increased 9% year-on-year in H1 2026, keeping the company on track with subsoil use requirements.
Average realized price rose 16% year-on-year to $67.88 per pound, reflecting a strong commercial portfolio.
Consolidated revenue grew 9% to KZT718 billion, with adjusted EBITDA up 2% to KZT371 billion, demonstrating financial stability.
Inventory levels increased 23% to over 8,200 tonnes, providing a strong buffer for delivery obligations and market flexibility.
Global nuclear expansion (70+ reactors under construction, 38 countries committed to tripling nuclear by 2050) drives long-term demand.
Negative Points
C1 cash costs rose 37% and all-in sustaining costs increased 25% due to higher mineral extraction tax, sulfuric acid prices, and tenge appreciation.
Net profit declined to KZT240 billion from KZT263 billion due to unfavorable foreign exchange losses and higher finance costs.
Attributable EBITDA fell 12% to KZT265 billion due to a larger share of profits allocated to non-controlling partners.
Regulatory pause at a TQZ construction site will delay the project by 6-12 months, though no material impact on mining operations is expected.
Revenue guidance was revised downward due to the strengthening of the Kazakh tenge against the US dollar, impacting financial outlook.
Sulfuric acid prices increased 39%, and the company has not yet fully contracted its 2027 requirements, posing future cost risks.
Q & A Highlights
Q: Can you help us bridge the $2 per pound increase in the FY26 C1 guidance between FX movements versus sulfuric acid and other inflation? Can you quantify how much of the increase would remain if FX were unchanged from the original budget assumption? A: Marat Tulebayev, CFO: It is hard to precisely tell the proportion of the effect of the exchange rate versus the increase in CapEx, but I think the effect from these two factors is pretty much equal. These are the two most material factors influencing our C1 cost from our previous guidance to the updated one.
Q: Can you give us a sense of the direction of travel on C1 costs into next year? Do you have visibility on whether sulfuric acid volumes contracted for 2027 are at materially higher prices than in ’26? A: Marat Tulebayev, CFO: We have contracts for sulfur and sulfuric acid for next year, but we don’t have full coverage of our requirements yet. We usually sign all contracts by October. We do not expect any material increase in sulfuric acid prices. While the spot price for sulfur increased 4 times year-over-year, the price for sulfuric acid in Kazakhstan increased only close to 27%. We are pretty diversified and do not depend solely on the spot price for sulfur.
Q: Can you give us color on progress with long-term contracting? Market data suggests the first half of ’26 was close to a record period for new contracting. Is that what you are seeing? A: Aldiyar Toktarov, Head of Sales: In terms of long-term contracting, we are in a pretty good position. We receive RFPs from various partners all over the world. We have a good diversification of our geographical sales, and we see strong signals for long-term contracting that have persisted over the last several years. We have a good perspective for the future.
Q: Inventory increased to around 8,000 tonnes. How much is already allocated to contracts for the second half, and how much is strategic? What does a “comfortable level” of inventory mean for you? A: Aldiyar Toktarov, Head of Sales: The increase in inventory in the first six months of 2026 was driven by lower sales volume compared to the same period of 2025. Inventory levels may vary from year to year depending on production levels and sales volume. The company follows the principle of balanced maintenance of inventory levels to meet its obligations to clients in the following years. Since sales volumes in 2026 are guided to be higher than in 2025, we expect to meet the sales guidance.
Q: The EGM that has been calleddoes this relate to a new transaction that has not previously been disclosed, or is it a previously announced deal? A: Aldiyar Toktarov, Head of Sales: This transaction has not been previously disclosed by the company. These are new transactions announced today for the EGM, and they are not related to the previously announced transaction regarding the amendment of a previous contract. These are new contracts.
Q: What is the incentive price of uranium needed to achieve equilibrium? What is the holdup in the long-term price getting there? A: Dastan Kosherbayev, Chief Strategy Officer: It is a matter of perspective. Historically, $50 was seen as the incentive price to start production. Structurally exceptional fundamentals are being obscured by temporary policy uncertainty. Prices are not nearly at the levels we will witness in the upcoming years. In 2008, prices were around $130, which translates to about $120 with inflation adjustment. We are not nearly there in terms of overall pricing. It becomes a matter of energy security for certain jurisdictions.
Q: Production at RU-6 and Semyzbay-U saw large year-on-year shifts, specifically down 30%. Can you provide further information on why? A: Marat Tulebayev, CFO: For RU-6, the decrease is 30% in half-year results, but in absolute terms, it is slightly more than 100 tonnes. According to our plan, the annual production will be the same for RU-6 as it was in 2025. For Semyzbay, the production volume in 2025 and 2026 will be the same. For Zarechnoye, the decrease is due to the Subsoil Use Agreement plan, where production decreases by 2028 and the mining asset will be closed.
Q: Selling expenses increased 23% year on year due to shifts in delivery destinations and higher transportation tariffs. What were those shifts, and are the higher tariffs due to the Middle East crisis? A: Aldiyar Toktarov, Head of Sales: The increase mainly reflects changes in delivery destinations and the transportation mix, including increased use of the Trans-Caspian International Transport Route (TITR). It is not related to the Middle East crisis, as our main transportation routes do not pass through the Persian Gulf. Both the Trans-Caspian route and the traditional northern route continue to operate reliably.
Q: What is the reason behind the lower revenue guidance this year, and should we expect a further realized price increase in the second half of 2026? A: Marat Tulebayev, CFO: The main reason we changed our forecast guidance for the rest of the year is the appreciation of the Kazakh tenge, as our functional currency is tenge. It is hard to say what will happen with the realized price in the second half; it highly depends on the spot price, but we do not expect a decrease.
Q: Following up on the EGM, is this new transaction with a Chinese counterparty more than half the book value of Kazatomprom? When do you expect to announce details? A: Aldiyar Toktarov, Head of Sales: This new transaction is not more than half; it is more than a quarter. According to our legislation, transactions concluded with a partner in joint ventures where we have an interest must be approved by the EGM. Due to confidentiality, we are not able to disclose any details of these transactions, consistent with our previous practice.
Q: What is the reason for close to zero free cash flow in the second quarter of 2026 amid higher sales volume and price? A: Ulan Khassanov, Managing Director: One of the main reasons for the decrease in free cash flow is lower sales compared to the previous period. This is mainly due to the shift of our
For the complete transcript of the earnings call, please refer to the full earnings call transcript.