CCJ Quarterly Update - Kaz being impacted by Sulphuric Acid Challenges31 Jul 2024 12:34
Wonder if KAP will also indicated challenges when it reports tmrw?
https://www.cameco.com/sites/default/files/documents/2024-Q2-News-Release_0.pdf
***Extract*** below but whole report is worth a quick read and overall CCJ have achieved their targets but...
***JV Inkai production purchase allocation remains under discussion: Production at our JV in Kazakhstan was lower for
the quarter and the first half of 2024 due to challenges with sulfuric acid supply in the early part of the year. JV Inkai
continues to experience procurement and supply chain issues, most notably related to the stability of sulfuric acid deliveries.
The 2024 production expectation of 8.3 million pounds of U3O8 (100% basis) is tentative and contingent upon receipt of
sufficient volumes of sulfuric acid. Subsequent to the end of the quarter, Kazatomprom issued a news release indicating
that at the end of June, the government of the Republic of Kazakhstan introduced amendments to the country’s Tax Code,
including significant increases to the Mineral Extraction Tax (MET) rate paid by mining entities on uranium production,
beginning in 2025. We are evaluating the new MET and if it remains as currently formulated, preliminary conclusions
indicate that production costs in Kazakhstan would be similar to northern Saskatchewan operations, depending on the
assumptions used for uranium price, production profile, and exchange rate. See Uranium 2024 Q2 Updates in our second
quarter MD&A for more information. ***
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