Title: Kazatomprom: Uranium Production, Guidance & Sulphuric Acid Supply Show: Jimmy Connor (YouTube) - interview recorded in London during World Nuclear Association week Host: James (Jimmy) Connor Guest: Dastan Kosherbayev, head of investor relations, Kazatomprom Date: 2026-09-17 URL: https://youtu.be/GFGPe5M7VnE Length: 8:42 Note: (mm:ss) cues from the YouTube auto-transcript (pasted by Stephen); fillers (uh/um, stutters) removed and ASR garbles restored in place ("Dustin"=Dastan, "Kazatam/Kazapron/Kazat Prom/Kazata Prom/Kazatam problem/Kazat and prom/Katam/a prom"=Kazatomprom, "cyber tooth"=saber-tooth, "8 800,000"=800,000, "fully rampant"=fully ramped up, "of or production cost"=of our production cost); wording otherwise verbatim. Speaker turns are not labelled by the auto-transcript (">>" marks a change of speaker).
00:09 Dastan, thank you very much for joining us today. I want to start our discussion by talking about production and then finish up on the meetings you've had in London this week. So, in terms of guidance, the guidance for this year is 27.5 to 29,000 tons of uranium for 2026. Are you still confident in meeting that number? >> Yes.
00:32 Hi James, very pleased to see you as usual. We are confident that we'll be able to deliver on the guidance that will be issued for this year. As for the next year, I guess it will be published in the beginning of February and, well, back in the days everyone's used to Kazatomprom giving guidance 2 years in advance, but that was under a very different market environment which has changed significantly, and thus it was decided that we best keep these plans to ourselves as there is a very delicate mechanics behind the whole thing. >> And just because you touched on 2027, I
01:09 know you haven't released formal guidance, but what can the market expect in terms of production? Is it going to be in line with 2026? >> More or less, yes, that's the approach we would like to implement, cuz all in all, everyone's really concerned with Kazatomprom's production and when we're going to start producing more or what would incentivize us and all these things.
01:31 But overall, we remain committed to the principle that's been guiding us since the IPO. Kazatomprom's strategy has always been value over volume. >> What would it take, or what current uranium price would it take, to increase production? >> That's an excellent question, the one that we get very often, and I guess at this time I can say that there is no such price.
01:58 There is no incentive for us to ramp up production because essentially our overall strategy, as we've said, value over volume, has proven itself as a reliable and very efficient tool, and given that we have our own ambitious nuclear program and the way we see that the whole global geopolitical situation is unraveling, essentially we would still like to keep our pounds in the ground and maximize the value that we get for each pound that we produce. >> Let's talk about sulfuric acid.
02:30 This is a very key ingredient for the production of uranium using the ISR method. You currently have two processing plants that produce sulfuric acid. You're working on a third one. What's the status of the third plant and when will it start producing? >> Yeah, well, we've made an announcement recently.
02:48 I think it's been included into one of our disclosures that the project's been halted for at least 6 months. The previous deadline I believe was the end of first quarter of 2027. So now it's going to be extended for at least 6 months because fossilized remains of a prehistoric animal were discovered at the site.
03:10 It's not a dinosaur, but it's not a saber-tooth tiger either. I think it's some sort of a giant camel or something. And it's around 12,000 years old. So right now the state commission needs to establish or then verify whether these are the remains of a single species or a part of a larger herd, and once they've been able to establish that, then we'll take it from there.
03:35 If it's a single species, we just remove it and I think they'll resume on building. But if it's part of a larger herd, we'll need to figure something out and that may present itself as a challenge. But right now, it's too early to say what's actually happening with this. >> And when the third plant is up and running, how many tons of sulfuric acid will it produce? >> The project capacity is 800,000 tons.
03:59 And once it's fully ramped up and online, it will take several months for it to ramp up once it's launched. But overall, that's going to place us on a safer side in terms of our own processing capacity. >> The Middle East is very important for both the production and transportation of sulfuric acid.
04:22 Has the situation in the Middle East impacted your ability to acquire sulfuric acid? >> It had no direct impact as we don't source any sulfur, we rely on local producers, but as you can imagine, given the urge for local producers to divert both the sulfuric acid and sulfur elsewhere, of course we were faced with the situation that drew up our costs a bit and the negotiations became tougher as well. But then again, a lot of these sulfuric acid producers are in for a long game and they understand that if they spoil this relationship
04:57 right now for some temporary profits, in the future they would still need to go into the market and purchase certain quantities. So most of them understand that they need to remain on the better side with us, with Kazatomprom overall, and there is so much emphasis regarding the sulfuric acid that I guess it is fair to say that on behalf of Kazatomprom we've been navigating these challenges efficiently, and the fact is that sulfuric acid is still less than 15% of our production cost. So
05:37 there is a great buffer if need there be. >> Dastan, I want to ask you about your inventory levels. In June, your finished uranium inventory level was measured at 21.4 million pounds. I believe it was up 20% year-over-year. Why the increase in inventory? >> It's more of a seasonal thing. It needs to be noted that a lot of companies' performance metrics, especially the inventory, sales and some financials, should not be evaluated on the half year results, cuz these are
06:08 attributes of a seasonal business, so to speak. We most certainly did not increase the inventory level deliberately. It depends on when clients want their stuff and each year it's a different story, so to speak. >> You head up investor relations at Kazatomprom.
06:29 So you've been very busy this week in London meeting with investors and I'm curious what sort of conversations have you had with investors. What sort of questions do they have? Do they have any concerns? >> Well, sulfuric acid is the most widespread topic I guess. Overall people are asking whatever is happening with the market.
06:48 I guess everyone is discussing the urgency to implement, from ambition to action essentially, and I think now is the time that is going to intensify, cuz the momentum's been with us for quite a while now and I guess action will follow, it's inevitable, and we as Kazatomprom are very well positioned to take advantage of this whole situation, and all in all it is safe to say that once everyone starts delivering on their promises to triple nuclear capacity,
07:21 that's when we're going to see some proper nuclear renaissance. >> So, we've touched on a few different things here in the last few minutes. Is there anything I'm missing? Is there anything else you would like to share with our viewers? >> Well, I'd like to thank you for what you're doing, for promoting the industry, for taking the time, and all in all, I guess I'd like to iterate Kazatomprom's commitment to ensuring the energy security of the world's population, as well as doing business with everyone who's willing to do
07:52 business. And we're happy to support this nuclear endeavor, so to speak. >> One more question before we wrap it up. We are in London, which is one of the great cities in the world. You actually lived here for a few years. You went to university here. What do you love most about London? >> I guess the feeling that I have here in London that I don't feel foreign.
08:19 I feel as if I belong. Even if I visit this for a week or for a day, it doesn't matter. I think London is and will always be a place for everyone. >> Dastan, thank you very much for making time today. >> Thank you, James.