Kazatomprom (LSE:KAP) delivered resilient results for the first half of 2026, with consolidated revenue increasing 9% year on year to almost KZT 718 billion as favourable uranium pricing and stable long-term market fundamentals supported the business.
Although industry-wide cost inflation contributed to lower net profit and earnings per share, management pointed to continued strong demand for secure nuclear fuel supplies. The company said its uranium production remains effectively fully committed to customers, reflecting sustained demand across the global nuclear energy market.
Regulatory changes reinforce national operator role
During the period, Kazatomprom outlined a series of legislative changes in Kazakhstan covering subsoil use, uranium licensing and radioactive waste management.
The new framework further strengthens the company’s central position as Kazakhstan’s national uranium operator, including its responsibilities across production and remediation activities. Changes to uranium licensing requirements and exploration arrangements are also expected to shape future development of the country’s uranium resources.
Kazatomprom completed payment of its 2025 dividend and convened an extraordinary general meeting through absentee voting to consider major uranium supply agreements and changes to the board.
Zhalpak processing facility enters operation
The company also commissioned its Zhalpak processing facility, which initially has annual capacity of 500 tonnes.
Kazatomprom plans to increase capacity at the facility to 900 tonnes per year during 2027, supporting the development of its production and processing infrastructure as it responds to long-term demand from nuclear utilities.
Sulphuric acid project faces up to 12-month delay
Progress at the TQZ sulphuric acid plant has been disrupted after construction activities were halted to allow for the recovery and examination of potential paleontological specimens discovered at the site.
Kazatomprom now expects commissioning of the plant to be delayed by between six and 12 months. However, the company currently anticipates no material effect on its uranium mining operations as a result of the postponement.
Management said 2027 production guidance will be adjusted if necessary as the situation develops.
Investor mine tour planned for October
Kazatomprom plans to host a mine tour for analysts and shareholders in October 2026 as part of its efforts to strengthen engagement with the investment community and provide greater visibility into its operations.
The group’s longer-term outlook continues to benefit from high margins, strong returns on equity and relatively low leverage. These strengths are balanced by slower revenue and profit momentum and a significant reduction in trailing free cash flow.
Technical indicators also remain a source of pressure, with the shares trading below important medium-term moving averages and the MACD remaining negative. Valuation and dividend yield, however, provide some support to the investment case.
More about Kazatomprom
National Atomic Company Kazatomprom JSC is Kazakhstan’s national uranium operator and one of the world’s leading producers of natural uranium concentrates, supplying nuclear utilities through international and long-term contracts.
The company operates across uranium mining, processing and related services, with production centred primarily on in-situ recovery operations. Its activities support growing global demand for nuclear energy as a source of baseload, low-emission electricity.
Kazatomprom operates within Kazakhstan’s evolving nuclear and subsoil regulatory framework, which includes tighter equity requirements for uranium production licences and a shift towards a contracting model for uranium exploration. The company also manages strategic mine developments, processing facilities and supply-chain infrastructure, giving it a central role in both Kazakhstan’s civil nuclear industry and the wider global uranium market.
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