Financial analysts from Freedom Broker and Halyk Finance have lauded the financial report of the uranium company “Kazatomprom,” particularly noting a positive growth trajectory in revenue. According to Freedom Broker’s assessment, while an increase in production costs and a decrease in uranium sales are anticipated, they recommend purchasing Kazatomprom’s shares, anticipating the company’s ability to rebound to its target metrics. Similarly, Halyk Finance acknowledges that Kazatomprom hasn’t fully capitalized on the surging uranium prices, yet they advise investors to buy the company’s stocks based on the record-breaking financial results, as reported by broker reviews.
Freedom Broker highlights potential production challenges due to sulfuric acid procurement issues, projecting them to be temporary and affirming Kazatomprom’s capability to regain previous production and sales targets. Additionally, experts underscore the company’s record revenue of 1.43 trillion tenge, marking a 43% year-on-year increase, driven by a 39% surge in natural uranium sales in 2023 and the initiation of enriched uranium sales, yielding 91 billion tenge in revenue.
Despite a marginal 2% decline in uranium production in 2023, Kazatomprom managed to sell 10% more uranium compared to 2022, amidst a 22% increase in the average uranium selling price. While operational profitability surged by 49%, net profits grew by 23%, with the company’s assets expanding to 2.59 trillion tenge by the end of 2023.
Looking forward, analysts foresee a potential 27% increase in Kazatomprom’s stock value, reaching 23.3 thousand tenge, alongside an estimated dividend of at least 1,188 tenge per share for 2023. Halyk Finance maintains its target price at 22.8 thousand tenge, emphasizing the company’s potential to capitalize on uranium sales amid high market prices.
