Kazakhstan’s Kazatomprom (LON: KAP) announced on Thursday that it has raised its production guidance for 2024following an increase in output during the first half of the year. The world’s top uranium producer now expects to produce between 22.5 million and 23.5 million tonnes of uranium in 2024, up from the previous guidance of 21 million to 22.5 million tonnes.
The updated forecast comes after the company boosted its uranium production by 6% year-on-year in the first half of 2024, reaching 10,857 tonnes. Production on an attributable basis rose 7% to 5,797 tonnes.
Despite the increase in production, Kazatomprom and its subsidiaries experienced an 18% decrease in sales in the first half of the year, totaling 7,779 tonnes. However, the average price of uranium concentrate surged by 41% to $66.22/lb.
Earlier this year, uranium prices soared to a 15-year high of $104/lb due to tight supply and rising demand. The company noted that average realized prices for the second quarter and the first half of 2024 were higher than in the same periods of 2023, primarily due to an increase in the uranium spot price.
“The company’s current contract portfolio pricing reflects uranium spot prices. However, some long-term contracts for 2024 include fixed pricing components and price ceilings that were set during a period of lower prices,” Kazatomprom said in a statement.
