Uranium Energy Corp UEC

👋I urge U to read thru Kazatomprom's 37-page❓

[mangoe]

John Quakes

@quakes99 -

I urge U to read thru Kazatomprom's 37-page "Operating and Financial Review for the Six Months ended on 30 June 2024" to get the fullest possible view of #Kazakhstan's #Uranium production and revised "lower for longer" outlook due to acid shortages & mine construction delays.

It's especially important to read the fine print in the Footnotes, as there is often a lot of additional information that's quite significant.

Take a look at the production levels for each of Kazakhstan's 14 mining companies and identify which foreign JV partners are being affected... such as the -18% drop for the Inkai JV with Canada's Cameco while others such as Russia's Karatau JV rose +30%. Gives U a clear indication as to where those mined lbs are headed and the quantities involved.

The era of cheap lbs coming out of Kazakhstan seems to be over...
Cost of sales up +38%
All-in sustaining cash costs up +45%
Capital expenditures up +64%
Corporate income tax up +81%
Mineral Extraction Tax (MET) up +104%
Other taxes & payments up +60%

If you're a foreign JV partner in a Kazakh mining company that's having to purchase your share of lbs at the global Spot market price, then see the skyrocketing costs and taxes being sucked out of that company's cash flow & profit margin, resulting in a tiny dividend rebate payment in the following year... U really have to ask yourself "is it worth it?" Your certainly going to have the raise the price you charge your customers for those lbs that you receive from Kazakhstan!

Cameco said in their recent conference call that the cost to produce & deliver lbs from Kazakhstan is approaching that to mine those lbs in Saskatchewan! And those MET rates are jumping again next year and even higher in 2026! Add on the unknown impacts of Kazakhstan's inflation and currency exchange rates. This puts purchased production and profits by JV partners like Cameco at a higher level of risk than when costs and Uranium prices were far lower years ago when those JV's began. Risks to Cameco's contract book also rise as production, shipping, profit risks head higher. Risks to both cost and security of supply from Kazakhstan keep rising!

There's a tremendous amount of useful information throughout the document that is relevant to understanding the wider global uranium market picture, imho. Good luck with your research and investments!

Download here: https://kazatomprom.kz/storage/60/6m_2024_ofr_eng.pdf