03
KAZATOMPROM AT A GLANCE
Key figures 2020
Production Highlights
stplace
KAZATOMPROM’S RANKING IN GLOBAL URANIUM MINING AND SALES

Niobium product output, tonnes of Nb

+12.4%

Compared to the 2019 level, niobium production increased by 12.4% in the reporting year, as a result of increased demand for niobium products.

Kazatomprom’s uranium output (based on attributable share of production), tonnes

-19.2%

In the reporting period, uranium production dropped by 19.2% compared to 2019 because of the impact of the COVID-19 pandemic, as mine preparation, repair and renewal operations were suspended for four months in 2020.

Beryllium product output, tonnes of Be

-19.1%

In 2020, the output of beryllium products fell by 19.1% compared to 2019, because of changes in the structure of demand for beryllium products.

Kazatomprom’s share of the global natural uranium mining market (based on attributable share of production), %

-6.3%

In 2020, Kazatomprom kept a stable share of the global primary uranium mining market (based on attributable share of production). In the reporting period, the share practically did not change in relation to 2019 and Kazatomprom retained its position as the world’s largest uranium producer and seller.

Tantalum product output, tonnes of Ta

+23.9%

Compared to 2019, the output of tantalum products in physical terms rose by 23.9% as a result of a growing customer demand.



Fuel pellet output, tonnes

-30%

The significant 30% decrease in fuel pellet production compared to 2019 is due to the timing of UF6 coming in for processing.

Financial Highlights

Revenue, KZT billion

+17%

Group revenues were KZT 587.5 billion in 2020, a 17% YOY increase, mainly due to an increase in the average selling price spurred by a rising market spot price for U3O8 and the weakening of the tenge against the US dollar. The growth is also associated with a slight YOY rise in sales volumes in 2020.

Dividends paid, KZT billion

+24%

In 2020, the Company paid dividends of KZT 99.0 billion to its shareholders on the basis of its 2019 performance, an increase of 24% compared to 2019 when dividends of KZT 80.0 billion were paid to shareholders based on the 2018 performance. The increase was related to improved financial results in 2019, with the dividend payment amount being based upon the Company’s approved dividend policy and shareholder approval at the Annual General Meeting of Shareholders.

Profit, KZT billion

+4%

Net profit for the year was KZT 221.4 billion in 2020, an increase of 4% from the previous year. In 2020, the Company generated a gain of KZT 22.1 billion from the divestment of its interest in the Uranium Enrichment Centre joint venture.

Operating profit, KZT billion

+47%

Operating profit in 2020 was KZT 223.9 billion, an increase of 47% compared to 2019. The increase was mainly due to an increase in average realized price as well as an increase in the share of uranium sold that was produced by the Company’s consolidated subsidiaries and JOs.

Capital expenditure of mining companies (on a 100% basis)1, KZT billion

-9%

The 9% YOY decrease in capital expenditures in 2020 compared to 2019 was primarily due to a reduction in field development activities as a result of a decrease in the number of workers in production in the second quarter of 2020 to prevent the spread of the COVID-19 virus.

1 Includes unconsolidated enterprises, joint ventures and joint-stock companies, on a 100% basis.

Net debt/adjusted EBITDА

-120%

In 2020, the net debt to adjusted EBITDA ratio improved by 120% year on year thanks to increased profitability, reduced debt, and higher free cash flow. Adjusted EBITDA in 2020 was KZT 325.7 billion, a 31% YOY increase. Attributable EBITDA was KZT 295.5 billion at the end of 2020, a 36% YOY increase. The changes resulted mainly from reduced debt and an increase in EBITDA.

Earnings per share, KZT/share

-3%

The rate of changes in earnings per share correlates with the Group’s profit for 2020. Earnings per share unadjusted in 2020 were 3% lower than in 2019.

Adjusted earnings per share, KZT/share

+40%

In 2020, adjusted earnings per share increased due to lower amount of one-time effects and higher operating profit.

Staff and Social Sector

Female share of total headcount, %

-2.95%

In 2020, women represented 18.04% of the total number of employees, down by 0.54% against 2019. The decrease was due to outsourcing of non-core operations.

Headcount, employees

-1.94%

In 2020, the Group saw a decrease in its headcount, down by 1.94% year on year. The decrease was due to outsourcing of non-core activities such as the administrative and household units, translation and interpretation, clerical work, and archive keeping.



Contributions to budgets for the social and economic development of the regions where the Company operates, KZT million

+9.68%

The year-on-year increase in contribution to regional budgets of the areas of operations resulted from the weakening of the tenge against the US dollar, as the contributions to the social and economic development and infrastructure of the regions were denominated in US dollars as required by relevant subsoil use contracts.

2 The 2019 headcount was updated to cover the enterprises included in the 2020 report (Ulba-FA LLP, Rusburmash-Kazakhstan LLP). The restated 2019 data are used in subsequent benchmarks.

Occupational Health & Safety

LTIFR (per 1 million man-hours)

+4.2%

The increase in LTIFR was impacted by the COVID-19 pandemic, as employees worked fewer hours compared to 2019.

Number of accidents

The number of accidents remained at the 2019 level.

Unsafe conditions, unsafe acts, and near-miss reporting

+2.8%

With its efforts to improve the safety culture and the responsible attitude of every employee to occupational health and safety issues, the Company recorded 35,529 unsafe conditions, unsafe acts, and near miss incidents in 2020, an increase of 2.8% year on year.

Number of fatalities

Unfortunately, Kazatomprom had one fatal accident in 2020. This case highlights the need to improve the provision of safe working environment for employees and contractors.

Environmental Performance and Energy Consumption

Gross energy consumption (heating and electricity), ‘000 GJ

-78%

In 2020, Kazatomprom’s energy consumption decreased by 78%. This was mainly because of the transfer of MAEK-Kazatomprom LLP to the ownership of the Ministry of Energy of the Republic of Kazakhstan, which reduced natural gas consumption by more than 2 billion m3.

Gross GHG emissions, t СО2 eq (Scope 1)

-13.95%

The 13.95% YOY decrease in direct greenhouse gas emissions stemmed from the scale-down of some operations because of the COVID-19 pandemic, the shift to gas by some subsidiaries, associates and joint ventures, and warmer weather conditions. The decrease in greenhouse gas emissions also stemmed from the transfer of two boiler houses to the Akimat of Sozak District under a memorandum between Uranenergo LLP and the Akimat of Turkistan Region.

Total water withdrawal, ‘000 m3

-2.3%

The 3% YOY drop in water withdrawal in 2020 resulted from the reuse of technological solutions instead of groundwater.

Economic effect from renewables, KZT '000

Solar power plants (PV power plants)

Solar water heating collectors (solar thermal collectors)

Heat pumps