AIX: KAP, KAP.Y (GDR)

LSE: KAP (GDR)

2 May 2025, Astana, Kazakhstan

Kazatomprom 1Q25 Operations and Trading Update

National Atomic Company "Kazatomprom" JSC ("Kazatomprom", "KAP" or "the Company") announces the following operations and trading update for the first quarter ended 31 March 2025.

This update provides a summary of recent developments in the uranium and nuclear industries, as well as provisional information related to the Company's key first quarter operating and trading results. The information contained in this Operations and Trading Update may be subject to change.

Market Overview

The beginning of the year was characterised by heightened anticipation regarding changes to the U.S. trade policy following the inauguration of President Donald Trump for a new term. On 2 April, President Trump signed the Executive Order 14257 "Regulating Imports with a Reciprocal Tariff to Rectify Trade Practices that Contribute to Large and Persistent Annual United States Goods Trade Deficits," authorising additional duties on imports from U.S. trading partners. Section 3 of the Order specifies a list of goods in the Annex II exempt from the new tariffs, including various forms of nuclear fuel. Furthermore, Kazakhstan's Ministry of Trade and Integration officially confirmed that over 90% of Kazakhstan's exports to the United States, including natural uranium concentrates, are exempt as per Annex II of the Executive Order and are therefore not expected to be subject to additional tariffs.

On 15 April, the U.S. President signed the Executive Order 14272 "Ensuring National Security and Economic Resilience through Section 232 Actions on Processed Critical Minerals and Derivative Products." The Order directs the Department of Commerce (DOC) initiate a section 232 investigation to assess impact of imports of processed critical minerals (as well as uranium) on national security. The resulting report is due to the U.S. President within 180 days from investigation's commencement and shall provide analysis and recommendations to strengthen U.S. domestic production and enhance the competitiveness and resilience of the U.S. critical minerals sector.

At CERAWeek 2025, held in March in Houston, USA, major technology corporations - Amazon, Google, Meta, Dow, Occidental, Allseas, and OSGE - officially pledged to support tripling global nuclear energy capacity by 2050. This commitment comes amid discussions sparked by DeepSeek's AI breakthrough at the end of January, which assumed the reduced energy consumption for data centers. This led to uranium market volatility and a re-evaluation of small modular reactors' (SMR) position in future energy demands. Nevertheless, the tech industry's backing of nuclear suggests a strategic move to ensure energy security and support anticipated growth in digital infrastructure.

The World Nuclear Fuel Cycle 2025 conference held in Montreal on 8-10 April further emphasised the need to expand uranium mining, conversion, enrichment, and fuel fabrication capacities to meet the projected doubling of uranium demand by 2040. Industry experts from around the world highlighted that while uranium resources are sufficient, significant investment in new projects is essential to avoid potential supply disruptions and to support the growth in nuclear capacity, which is expected to reach up to 694 GWe by 2040 under favourable conditions.

On 7 February, the Government of Vietnam approved the master plan for nuclear energy development and application to enhance the legal framework and state management of atomic energy in accordance with best international practices. The project also involves building two nuclear power plants (NPPs) with a combined capacity of 400 MWe in the central province of Ninh Thuan by 2030.

On 5 March, Russia, represented by Rosatom State Corporation, and Myanmar, represented by the Ministry of Science and Technology, signed an SMR cooperation agreement on the development of a 110 MWe reactor project in Myanmar. The agreement sets out the terms and main areas of interaction between the parties and the possibility of a further expansion of capacity to 330 MWe.

On 18 March, the President of the Republic of Kazakhstan Kassym-Jomart Tokayev established the Atomic Energy Agency in line with Kazakhstan's progress in the civil nuclear program. According to the relevant Decree, the Agency assumes key functions previously managed by the Ministry of Energy in the areas of subsoil use of uranium mining, the use of nuclear energy, radiation safety, and the establishment and operation of the Semipalatinsk nuclear safety zone. Furthermore, on 2 April, the Ministry of Energy announced the establishment of a strategic reserve of natural uranium to power future Kazakh NPPs with domestic resources.

On 27 March, the President of Poland signed the bill allocating funds in the amount of PLN 60.2 billion ($15.5 billion) from the national budget to the construction of Poland's first NPP. Two years ago, the Polish Government already selected the Westinghouse AP1000 reactor technology and construction site, with an aim to commence the reactor's commercial operation in 2033.

On 8 April, the OECD Nuclear Energy Agency and the International Atomic Energy Agency released the 2024 edition of the "Uranium Resources, Production and Demand" report, widely known as the "Red Book". The report confirms that identified global uranium resources, totalling 7,934,500 tonnes, are sufficient to support both the continued operation and growth of nuclear power through 2050 and beyond, provided that timely investments are made in new exploration, mining and processing projects. The Red Book offers a comprehensive review of uranium market fundamentals and emphasises the importance of sustained investment to ensure long-term security of supply for the expanding nuclear sector.

On 10 April, the U.S. Department of Energy (DOE) made conditional commitments to five advanced reactor developers - Kairos Power, Radiant Industries, TerraPower, TRISO-X, and Westinghouse - to receive the first allocations of high-assay low-enriched uranium (HALEU) from its HALEU Availability Program. The Program was established in 2020 to secure a domestic supply of HALEU for civilian domestic research, development, demonstration, and commercial use, enabling nuclear developers to request the material from DOE sources, including material from the National Nuclear Security Administration.

The following events underscored key developments on the demand side during the reporting period:

·      The first safety-related concrete was poured for Unit 1 of China General Nuclear's Lufeng NPP. It is the third unit to begin construction at the site, which will eventually house six CAP1000 reactors, each with a capacity of 1250 MWe;

·      Belgium's nuclear operator ENGIE Electrabel and the Government of Belgium finalised the 10-year life extension agreement for the Tihange 3 and Doel 4 nuclear reactors, with a total capacity of 2 GWe, securing their operation until 2035;

·      The Nuclear Power Corporation of India (NPCIL) announced the connection of Rajasthan Atomic Power Project's Unit 7 to India's Northern Grid. The unit is the third 700 MWe reactor in a series of 16 PHWRs being set up in India;

·      Unit 2 of Phase II of the Qinshan NPP in China has been reconnected to the grid following a refuelling and maintenance outage during which the unit's net electrical power has been increased by 33 MWe, up to 703 MWe;

·      Russia's nuclear regulator Rostekhnadzor approved a 15-year life extension for the Beloyarsk NPP's Unit 3, with a BN-600 Fast Neutron Reactor. The extension is to last until 2040, taking it to 60 years of operation;

·      Canadian Nuclear Safety Commission authorised Ontario Power Generation to construct a BWRX-300 reactor at the Darlington New Nuclear Project site. Earlier GE Hitachi, reactor technology vendor, stated that reactor's commercial operations are expected to commence in 2029.

On the supply side:

·      Canadian GoviEx Uranium Inc. signed a letter of intent with Niger's Ministry of Mines, agreeing to a structured roadmap that details a mutually acceptable plan for negotiations. As part of the process, the parties agreed to temporarily suspend the international arbitration regarding the Madaouela uranium project license revocation;

·      A draft decree adopted by Niger's Council of Ministers granted Niger-owned COMIREX a permit for the Moradi uranium mine in the Agadez region. Under the terms of the mining agreement, COMIREX's project is expected to produce an average of 300 tU annually over a period of five years. The project is expected to further generate a mining royalty on the sale of uranium production of "more than" $5.8 million and a surface royalty of $182,450 during the life of the project;

·      Paladin Energy announced the withdrawal of Langer Heinrich Mine's 2025 production guidance following the short-term disruption in operations due to heavy rainfall in Namibia. The Australia-based producer, which holds a 75% stake in the project, has also announced that the mine is unlikely to achieve nameplate guidance of 6 million lbs U₃O₈ (2,307 tU) by the end of 2025;

·      Peninsula Energy announced in its financial report for the second half-year of 2024 that, due to delays in construction and commissioning of a processing plant, Lance project will not produce sufficient quantities of uranium to satisfy the mid-2025 delivery obligation of 200,000 lbs U₃O₈ under one of its contracts, leaving the matter open to provision.

·      The U.S. Energy Information Administration released the Domestic Uranium Production Report for Q4 2024, stating that domestic uranium production for Q4 2024 amounted to 375,401 lbs U₃O₈ (144.4 tU), more than triple the Q3 2024 production. The increase attributed to two in-situ recovery facilities, one in Texas and one in Wyoming, and the resumption of uranium production at White Mesa Mill in Utah;

·      Dalur JSC, part of Rosatom State Corporation, has completed the construction and commissioning of facilities at the pilot industrial site and shipped the first batch of uranium from the Dobrovolnoye deposit. According to official sources, commissioning the Dobrovolnoye deposit - which has estimated reserves of 7,067 tU - would enable Dalur to increase its volume of annual uranium recovery from the current 590 tU to 700 tU per year.

Market Pricing and Activity

* Average of UxC and TradeTech reported prices

In January 2025 spot prices fell to $69.28 /lb U₃O₈ from the previous $72.63 /lb U₃O₈ at the end of 2024. The decline continued in February, reaching a new low of $65.03 /lb U₃O₈ at the end of the month. This was due to the anticipation of potential U.S. tariffs, which in turn resulted in a decreased demand on the spot market. Quotations dropped even further, reaching $64.23 /lb U₃O₈ in March, resulting in a lower month-end average price of $66.18 /lb U₃O₈ in the first quarter of 2025_.

According to third-party analysts, spot market participants transacted 8.45 million pounds of U₃O₈ (~3,250 tU) at an average weekly spot price of $67.93/lb U₃O₈ in the first quarter of 2025, compared to 7.7 million pounds of U₃O₈ (~2,962 tU) at an average weekly spot price of $96.75/lb U₃O₈ during same period in 2024. Thus, spot transaction volume in the first quarter of 2025 was up 10%, compared to the same period last year.

In the long-term market activity was slightly lower than in the previous year, with third-party sources reporting transaction volume of ~21 million pounds of U₃O₈ (~8,077 tU) in the first quarter of 2025, compared to ~23 million pounds of U₃O₈ (~8,846 tU) in the first quarter of 2024. Despite the decrease in activity, the long-term price increased by approximately $2.50/lb U₃O₈ on an annualised basis to $80.00/lb U₃O₈ (published by third parties on a monthly basis only).

Company Developments

New Supply Agreements with European utilities

As was announced earlier, Kazatomprom and Switzerland-based Axpo Power AG, alongside Kernkraftwerk Leibstadt AG (KKL AG), have signed the first ever contract for the supply of Kazakh natural uranium concentrates for the energy needs of Switzerland's Beznau and Leibstadt nuclear power plants. This contract is a key element in advancing energy security and decarbonisation efforts, strengthening partnership and ensuring the long-term supply of natural uranium for Switzerland's nuclear energy sector

Kazatomprom also signed an agreement with ČEZ, a. s., marking a significant expansion of its presence in Europe and further strengthening its position in the global uranium market. The supply of Kazakh natural uranium concentrates in the next seven years can cover approximately one-third of uranium needs for Westinghouse-manufactured fuel assemblies for the Temelín nuclear power plant. The agreement enhances the energy security of the Czech Republic and supports the plant's role in providing clean and sustainable energy.

Annual General Meeting of Shareholders

Kazatomprom's Board of Directors has initiated the convening of the Annual General Meeting of Shareholders (AGM) to be held on 27 May 2025 at 10:30 local time (GMT+5) at the Company's headquarters. Date and time when a list of shareholders entitled to participate at the AGM will be compiled: 25 April 2025 at 00:00 local time (GMT+5). AGM notice and agenda, as well as detailed information in relation to AGM, are available at the Company's website.

Dividend recommendations for 2024

The Board of Directors, based on the Company's audited 2024 financial results, has recommended a dividend payment of KZT 1,264.12 per ordinary share (one GDR equal to one ordinary share). The total dividend equals approximately KZT 327.9 billion, representing 75% of free cash flow (FCF) as calculated in accordance with the Company's Dividend Policy. The dividend payment recommendation is subject to approval by the Meeting, scheduled for 27 May 2025. The payment of annual dividend is proposed to be made beginning 17 July 2025 to shareholders of record at 00:00 local time (GMT+5) on 16 July 2025.

Composition of the Board of Directors

Due to the termination of duties from 27 March 2025 of Mr. Yernat Berdigulov, Managing Director for Strategy and Asset Management of Samruk-Kazyna JSC ("the Fund"), member of the Company's Board of Directors, the Fund has commenced proceedings for the early removal of his authority as a member of the Company's Board of Directors and the representation of the interests of the Fund. Election of a new representative of the Fund to the Board of Directors of the Company for the whole term of office of the Board has therefore been submitted for consideration by the AGM. Mrs. Saltanat Satzhan, who currently holds the position of Managing Director for Development and Privatisation - member of the Fund's Management Board, is proposed as the new representative.

Kazatomprom's 2024 Integrated Annual Report

As previously disclosed, the text-only version of the 2024 Integrated Annual Report was approved by the Company's Board of Directions and published to Kazatomprom's website on 30 April 2025 in accordance with listing requirements. The document can be accessed at the Company's website under the following link.

Kazatomprom's 2025 First-Quarter Operational Results¹

¹ All values are preliminary.

² U₃O₈ Production volume (100% basis): Amounts represent the entirety of production of an entity in which the Company has an interest; it therefore disregards the fact that some portion of that production may be attributable to the Group's joint venture partners or other third party shareholders. Precise actual production volumes remain subject to converter adjustments and adjustments for in-process material.

³ Production volume U₃O₈ (tU) (attributable basis): Amounts represent the portion of production of an entity in which the Company has an interest, corresponding only to the size of such interest; it excludes the portion attributable to the JV partners or other third-party shareholders, except for JV Inkai LLP, where the annual share of production is determined as per Implementation Agreement.

⁴ Group U₃O₈ sales volume: includes the sales of U₃O₈ by Kazatomprom and those of its consolidated subsidiaries (companies that KAP controls by having (i) the power to direct their relevant activities that significantly affect their returns, (ii) exposure, or rights, to variable returns from its involvement with these entities, and (iii) the ability to use its power over these entities to affect the amount of the Group's returns. The existence and effect of substantive rights, including substantive potential voting rights, are considered when assessing whether KAP has control over an entity). For consistency, Group U₃O₈ sales volumes do not include other forms of uranium products (including, but not limited to the sales of fuel pellets and enriched uranium product (EUP)).

⁵ KAP U₃O₈ sales volume (incl. in Group): includes only the total external sales of U₃O₈ of KAP HQ and Trade House KazakAtom AG (THK). Intercompany transactions between KAP HQ and THK are not included.

⁶ Group average realized price (USD/lb U₃O₈): average includes Kazatomprom's sales and those of its consolidated subsidiaries, as defined in parenthesis in footnote 4 above.

⁷ KAP average realized price (USD/lb U₃O₈): the weighted average price per pound for the total external sales of KAP HQ and THK. The pricing of intercompany transactions between KAP HQ and THK are not included.

⁸ Source: UxC, TradeTech. Values provided are the average of the month-end uranium spot prices quoted by UxC and TradeTech, and not the average of each weekly quoted spot price throughout the month. Contract price terms generally refer to a month-end price.

* For some JVs the Company has a right to purchase additional volumes beyond its attributable share if the JV partner chooses to forgo its entitled share.

** For JV Budenovskoye LLP, 100% of the 2024-2026 annual production is fully committed for supplying the needs of the Russian civil nuclear energy industry, under an offtake contract at market-related terms.

*** Please note the conversion ratio of kgU to pounds U₃O₈ is 2.5998.

Production on both a 100% basis and an attributable basis was higher in the first quarter of 2025 compared to the same period in 2024, due to an increase in both the full year and the first quarter of 2025 production plan in line with the Company's guidance and Subsoil Use Agreements' requirements in 2025 compared to 2024.

In the first quarter of 2025, sales for the Group were lower compared to the same period in 2024, while KAP sales exceeded the 2024's first quarter volumes. The variation in sales volumes at both the Group and KAP levels is due to the timing of customers' request of scheduled deliveries. Sales volumes can vary substantially each quarter, and quarterly sales volumes vary year to year due to variable timing of customer delivery requests during the year, and physical delivery activity.

The 30% decline in the spot price during the reporting period had a limited effect on the Group's and Kazatomprom's average realized prices, with them decreasing by 13% and 3% respectively, compared to the same period in 2024. The Company's current sales portfolio includes long-term contracts linked to the uranium spot prices. Certain deliveries under long-term contracts in 2025 incorporated a portion of fixed pricing components, including price ceilings that were negotiated during a different price environment.

In the uranium market, the trends in quarterly metrics and interim results are rarely representative of annual expectations; for annual expectations, please see the Company's guidance metrics, as well as its price sensitivity table from section 12.1 Uranium sales price sensitivity analysis, in the Company's Operating and Financial Review for 2024.

Kazatomprom's 2025 Reiterated Guidance

¹ Production volume U₃O₈ (tU) (100% basis): Amounts represent the entirety of production of an entity in which the Company has an interest; it disregards that some portion of production may be attributable to the Group's JV partners or other third-party shareholders. Precise actual production volumes remain subject to converter adjustments and adjustments for in-process material.

² The duration and full impact including, but not limited to sanctions pressure due to the Russian-Ukrainian conflict and limited access to some key materials are not known. As a result, annual production volumes may differ from internal expectations.

³ Production volume U₃O₈ (tU) (attributable basis): Amounts represent the portion of production of an entity in which the Company has an interest, corresponding only to the size of such interest; it excludes the portion attributable to the JV partners or other third-party shareholders, except for JV "Inkai" LLP, where the annual share of production is determined as per Implementation Agreement as disclosed in IPO Prospectus. Actual drummed production volumes remain subject to converter adjustments and adjustments for in-process material. For JV Budenovskoye LLP, 100% of the 2024-2026 annual production is fully committed for supplying the needs of the Russian civil nuclear energy industry, under an offtake contract at market-related terms.

⁴ Group sales volume: includes Kazatomprom's sales and those of its consolidated subsidiaries (according to the definition of the Group provided on page one of this document). Group U₃O₈ sales volumes do not include other forms of uranium products (including, but not limited to, the sales of fuel pellets and enriched uranium).

⁵ KAP sales volume (included in Group sales volume): includes only the total external sales of KAP HQ and THK. Intercompany transactions between KAP HQ and THK are not included.

⁶ Revenue expectations are based on uranium prices taken at a single point in time from third-party sources. The prices used do not reflect any internal estimate from Kazatomprom, and 2025 revenue could be materially impacted by how actual uranium prices and exchange rates vary from the third-party estimates.

⁷ Total capital expenditures (100% basis): includes only capital expenditures of the mining entities, includes significant CAPEX for investment and expansion projects. Excludes liquidation funds and closure costs. For 2025 includes development costs for mining infrastructure of JV Budenovskoye LLP, JV Katco LLP (South Tortkuduk) and MC Ortalyk LLP (Zhalpak) for a total amount of approximately KZT 153 billion.

* Please note that the conversion ratio of kgU to pounds U₃O₈ is 2.5998.

** For some JVs, the Company has a right to purchase additional volumes beyond its attributable share if the JV partner chooses to forgo its entitled share of production (beyond the production volume attributable to Company).

At this time, all 2025 guidance metrics remain unchanged from expectations disclosed earlier in the Company's Operating and Financial Review for 2024.

Revenue, C1 cash cost (attributable basis) and All-in Sustaining cash cost (attributable C1 + capital cost) may vary from the ranges shown, to the extent that the USD/KZT exchange rate and uranium spot price differ significantly from the Company's assumptions.

The Company only intends to update annual guidance in relation to operational factors and internal changes that are within its control. Key assumptions used for external metrics, such as exchange rates and uranium prices, are established using third-party sources during the Company's annual budget process in the previous year; such assumptions will only be updated on an interim basis in exceptional circumstances.

Kazatomprom's Mine Tour for investment community

Kazatomprom is delighted to invite interested institutional investors and analysts to its two-day tour to the uranium mines in southern Kazakhstan on 8-9 September 2025. Detailed information and schedule of the mine tour will be provided to registered participants as the event approaches.

Advanced planning is required to efficiently coordinate the attendance of analysts and investors. Please get registered to secure a place at Kazatomprom's mine tour, and save the dates in your calendar. Registration is open until 1 August 2025.

For further information, please contact:

Investor Relations Inquiries

Botagoz Muldagaliyeva, Director, Investor Relations

Tel: +7 7172 45 81 80/69

Email: ir@kazatomprom.kz

Public Relations and Media Inquiries

Altynay Karibzhanova, Chief Expert, Public Relations

Tel: +7 7172 45 80 63

Email: pr@kazatomprom.kz

A copy of this announcement is available at www.kazatomprom.kz.

About Kazatomprom

Kazatomprom is the world's largest producer of uranium with the Company's attributable production representing approximately 21% of global primary uranium production in 2024. The Group benefits from the largest reserve base in the industry and operates, through its subsidiaries, JVs and Associates, 27 deposits grouped into 14 mining assets. All of the Company's mining operations are located in Kazakhstan and extract uranium using ISR technology with a focus on maintaining industry-leading health, safety and environment standards (ISO 45001 and ISO 14001 certified).

Kazatomprom securities are listed on the London Stock Exchange and the Astana International Exchange. Kazatomprom is 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 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 Astana, Kazakhstan, and through its Switzerland-based trading subsidiary, Trade House KazakAtom AG (THK).

For more information, please see the Company website at www.kazatomprom.kz.

Forward-looking statements

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.