Americas Uranium Read across from Kazatomprom 1H26 results and 2026 production guidance

Equity Research 21 August 2026 | 3:15PM EDT

Americas Uranium: Read-across from Kazatomprom 1H26 results and 2026 production guidance

Kazatomprom (KAP, not covered), the world’s largest producer of U3O8, released its Brian Lee, CFA | 1H26 results today on 8/21. We highlight that the company reiterated its 2026 Goldman Sachs & Co. LLC

production and sales guidance despite stronger yoy production growth in 1H26. Tyler Bisset, CFA | While 1H26 results benefited from higher uranium prices, profitability was pressured Goldman Sachs & Co. LLC

by higher mineral extraction taxes (MET), sulfuric acid costs and foreign exchange Keshav Choudhary | impacts. In this note, we provide brief commentary on KAP’s 1H26 results, cost Goldman Sachs India SPL outlook and key operational updates.

2026 guidance reiterated. KAP maintained its 2026 production guidance of 71.49mn-75.39mn lbs on a 100% basis and attributable production guidance of 37.70mn-40.30mn lbs. Sales guidance also remains unchanged at 50.70mn-53.30mn lbs on a consolidated basis and 34.06mn-36.66mn lbs at the KAP level. While production and sales guidance were unchanged, KAP revised its 2026 financial guidance metrics. Revenue guidance was lowered to KZT 2.1-2.2tn from KZT 2.2-2.3tn, while C1 cash cost guidance increased to $25.5-27.0/lb from $23.5-25.0/lb and AISC guidance increased to $39.0-40.5/lb from $35.0-36.5/lb, reflecting KZT appreciation, higher sulfuric acid prices and elevated wellfield development activity.

1H26 operating and financial results. Production increased 9% yoy to 34.6mn lbs (100% basis) and 10% yoy to 18.3mn lbs (attributable basis), driven by higher production plans and continued ramp-up at several operations, including JV Inkai, JV Budenovskoye and JV KATCO. Consolidated sales volumes were largely unchanged yoy at 19.7mn lbs, while KAP-level sales volumes declined 13% due primarily to delivery timing and customer scheduling changes. Revenue increased 9% yoy to KZT 717.8bn, supported by a 16% increase in realized uranium pricing, while net profit declined 9% yoy to KZT 240.4bn, reflecting higher foreign exchange losses and financing costs. Adjusted EBITDA increased 2% yoy to KZT 371.3bn. Group finished goods inventory increased 23% yoy to 21.4mn lbs, while KAP inventory increased 15% yoy to 16.1mn lbs, providing additional delivery flexibility.

Cost pressures and sulfuric acid remain key watch items. Attributable C1 cash costs increased 37% yoy to $24.48/lb and AISC increased 25% yoy to $38.45/lb, driven by Kazakhstan’s higher differentiated MET regime, sulfuric acid cost inflation and KZT appreciation. Sulfuric acid costs increased 39% yoy during the period, while management also cited ongoing inflation across materials, equipment and drilling services. Separately, KAP disclosed that commissioning of the Taiqonyr Qyshqyl Zauyty (TQZ) sulfuric acid plant has been delayed to 3Q27-1Q28 from the prior

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1Q27 target following a regulatory work suspension, although management stated it does not expect a material impact on uranium production and continues to see stable sulfuric acid supply for 2026. Meanwhile, JV Inkai, JV Budenovskoye and JV KATCO continued production ramp-ups, and the new Zhalpak processing facility was commissioned in July with initial capacity of 500 tU/year and expansion to 900 tU/year planned for 2027.

EGM called to approve two new uranium contracts. Kazatomprom announced an Extraordinary General Meeting to seek shareholder approval for a spot-term contract of natural uranium concentrates with State Nuclear Uranium Resource Development Company Limited (SNURDC) and a contract for the supply of…