Kazatomprom Q2 2026 production rises as uranium prices strengthen

JSC National Atomic Co. Kazatomprom has reported higher uranium production and stronger realised prices for the second quarter of 2026, helped by a firmer uranium market.

The headline numbers are encouraging. Second-quarter production increased on both a total and attributable basis, Group sales rose 19%, and the Group's average realised uranium price climbed 17%.

There are still a few wrinkles for investors to consider. First-half sales made directly by Kazatomprom fell 13%, realised prices remained below prevailing spot prices, and volatile exchange rates could lead management to revise its financial guidance when half-year results arrive on 21 August.

The operating figures are also preliminary, so they remain subject to change.

Kazatomprom's key Q2 2026 figures

Metric	Q2 2026	Q2 2025	Change
Production, 100% basis	7,147 tU	6,609 tU	8%
Attributable production	3,807 tU	3,467 tU	10%
Group sales volume	6,051 tU	5,065 tU	19%
KAP sales volume	4,548 tU	4,429 tU	3%
Group average realised price	$70.79/lb	$60.36/lb	17%
KAP average realised price	$66.61/lb	$58.67/lb	14%
Average month-end spot price	$85.18/lb	$72.59/lb	17%

The distinction between 100% and attributable production matters. The 100% figure includes all production from operations in which Kazatomprom has an interest, including amounts attributable to joint venture partners. Attributable production reflects Kazatomprom's economic share more closely.

On both measures, output moved in the right direction. Kazatomprom said the increase reflected a higher 2026 production plan, in line with its guidance and the requirements of its subsoil use agreements.

Strong quarter, more mixed half year

The second quarter was stronger than the six-month sales figures might initially suggest.

Group sales rose 19% during the quarter to 6,051 tU. Across the full first half, however, Group sales were broadly flat at 7,586 tU, compared with 7,625 tU a year earlier.

KAP sales, which cover external uranium sales by Kazatomprom's headquarters and its Swiss trading subsidiary, fell 13% during the first half to 6,083 tU. Management attributed this to the timing of deliveries and changes requested by customers, rather than a structural shift in the sales portfolio.

That explanation is reasonable within the context provided by the company. Uranium deliveries can be uneven between quarters, so one reporting period does not necessarily provide a clean view of annual performance.

Even so, investors will want to see the delayed volumes translate into later deliveries rather than disappear entirely. The next financial update should provide a better indication of whether this is simply timing noise.

Higher uranium prices are feeding through

Pricing was another clear positive.

Kazatomprom's Group average realised price rose 17% in the second quarter and 16% across the first half. The KAP average realised price increased 14% and 13%, respectively.

These gains followed stronger uranium market prices. The average month-end spot price was 25% higher year-on-year during the first half at $86.83/lb U3O8.

However, Kazatomprom did not capture the full spot-price increase. Its first-half Group average realised price was $67.88/lb, while the KAP figure was $64.51/lb.

The company explained that its sales portfolio contains long-term contracts linked to spot prices, but some deliveries also include fixed-price elements and price ceilings negotiated under different market conditions. A price ceiling limits how far the selling price can rise, even when the market price moves higher.

This creates a degree of lag between spot-market strength and the prices Kazatomprom reports. It can provide contractual visibility, but it also limits immediate upside when uranium prices rise quickly.

Uranium market activity remains supportive

The wider market backdrop described by Kazatomprom was constructive.

First-half spot transactions increased 19% to 30.1 million lbs U3O8, while the average weekly spot price rose to $85.98/lb from $69.11/lb a year earlier.

Long-term contracting volumes also increased, reaching 32.5 million lbs compared with 27 million lbs in the first half of 2025. The average long-term price climbed by $15.50/lb year-on-year to $95.50/lb.

The announcement also highlighted continued investment in conventional nuclear power and small modular reactors, alongside new mine developments in Mongolia, Uzbekistan, Canada and the United States.

For Kazatomprom, stronger demand and contracting activity are helpful, but additional supply projects are worth monitoring. Most of the named developments have multi-year construction or ramp-up periods, meaning their competitive impact is unlikely to be immediate based on the timelines disclosed.

Guidance is maintained, but financial targets are under review

Kazatomprom reiterated its 2026 production and sales volume guidance. The numerical guidance ranges were not disclosed in this update.

The more important caveat concerns financial guidance. Management is reviewing the potential effects of significant volatility in the exchange rate between the Kazakhstani tenge and the US dollar.

The review covers:

• Revenue
• C1 cash costs on an attributable basis
• Capital expenditure for mining entities
• All-in sustaining costs, or AISC

C1 cash cost is a measure of direct production costs, while AISC provides a broader view by including expenditure needed to sustain mining operations.

Kazatomprom has reserved the right to update these financial targets alongside its half-year results on 21 August. This is not a formal downgrade, but it introduces uncertainty around costs, spending and reported financial performance.

Dividend paid and debt reduced

Kazatomprom completed its 2025 dividend payment on 29 July. Shareholders received a total of KZT 335.16 billion, equivalent to KZT 1,292.27 per ordinary share or global depositary receipt before applicable fees, taxes and charges.

The company also completed a $100 million partial redemption of long-term bonds in June. Reducing outstanding debt can support financial flexibility, although Kazatomprom did not disclose updated net debt or liquidity figures in this operations update.

Investors can review the figures in the original company announcement.

What investors should watch on 21 August

The operational direction is positive: production is growing, second-quarter sales were strong, and higher uranium prices are lifting realised revenue per pound.

The main questions now sit below the production line. Investors need greater clarity on exchange-rate effects, cash costs, capital expenditure and whether first-half delivery timing will unwind over the remainder of the year.

The gap between spot and realised prices also deserves attention. If uranium prices remain elevated, the pace at which Kazatomprom's contract portfolio captures that strength could materially shape future results.

The 21 August half-year report should therefore be more informative than this update. Production and sales guidance remains intact, but the financial guidance review will determine how much of the supportive uranium environment reaches Kazatomprom's reported earnings and cash flow.