Last checked at 16 Mar 2020 07:26
AIX: KAP, KAP.Y (GDR)
LSE: KAP (GDR)
Currency: KZT (₸), unless otherwise noted
16 March 2020, Nur-Sultan, Kazakhstan
COVID-19: Current Situation and Implications for KAP
JSC National Atomic Company "Kazatomprom" ("Kazatomprom" or "the Company") announces the following update related to the impact of the COVID-19 outbreak on the Company, including the measures taken to date and possible future implications to its business.
The World Health Organization has elevated the COVID-19 outbreak to the level of pandemic and following the confirmation of the first cases of the disease in Kazakhstan on 15 March 2020 the President of the Republic of Kazakhstan, Kassym-Jomart Tokayev, declared a country-wide state of emergency. The President's decree is expected to remain in effect from 16 March 2020 until 15 April 2020, with full details available on the following government website: https://www.akorda.kz/ru/legal_acts/decrees/o-vvedenii-chrezvychainogo-polozheniya-v-respublike-kazahstan
"The coronavirus outbreak is first and foremost a global human emergency, affecting hundreds of thousands of people," said Galymzhan Pirmatov, Chief Executive Officer of the Company, "and as it continues to expand, it will undoubtedly have a growing impact on businesses and world economies. However, the current priority for Kazatomprom is the health and safety of our people. We have assembled a cross-functional committee to continuously monitor the situation and have immediately taken actions to protect our employees and their families. Strict preventive measures are now in place, including the transfer of certain higher risk groups of employees to remote work schedules, implementing rotating remote work schedule and limiting all travels and direct contact where possible. As of today, we remain committed to our 2020 production and sales plans, but the situation is changing rapidly, and we are preparing for various scenarios accordingly."
Kazatomprom's uranium mining sites are primarily in remote areas of the South regions of Kazakhstan, and to date, the pandemic has had no impact on the Company's uranium mining or processing operations. However, their remote nature requires that production, maintenance, catering and support staff stay on site and live in close quarters while at work. COVID-19 could pose a significant health and safety concern if an outbreak were to occur in such a setting, and/or if key staff were restricted to quarantine and unable to work. As a result, in addition to the initial measures already taken to minimize the spread of COVID-19, the Company is assessing various production and delivery scenarios. Kazatomprom will not hesitate to take any actions necessary to keep people safe, ensure the environment is protected and our assets are properly managed during this global pandemic. Actions taken could result in lower production due to pre-emptive suspensions of one or more operations.
In the event that mine production or the ability to physically deliver material is impacted, Kazatomprom's production decisions and contractual obligations are backed by inventory, and the Company will continue to responsibly manage its supply sources in order to meet the commitments. At 31 December 2019, the Company had over 8,500 tU of inventory on attributable basis, equal to approximately eight months of 2020 attributable production.
Kazatomprom will keep stakeholders updated regarding any changes and/or effects on the Company's businesses and operations related to COVID-19.
For further information, please contact:
Kazatomprom Investor Relations Inquiries
Cory Kos, Director of Investor and Public Relations
Tel: +7 (8) 7172 45 81 80
Email: ir@kazatomprom.kz
Kazatomprom Public Relations and Media Inquiries
Torgyn Mukayeva, Deputy Director of Investor and Public Relations
Tel: +7 (8) 7172 45 80 63
Email: pr@kazatomprom.kz
Powerscourt - London (Giles Read)
Tel: +44 20 7250 1446
Email: Kazatomprom@powerscourt-group.com
A copy of this announcement will be made available at www.kazatomprom.kz.
About Kazatomprom
Kazatomprom is the world's largest producer of uranium, with the company's attributable production representing approximately 24% of global primary uranium production in 2019. The Group benefits from the largest reserve base in the industry and operates, through its subsidiaries, JVs and Associates, 24 deposits grouped into 13 mining assets. All of the Company's mining operations are located in Kazakhstan and mined using ISR technology with a focus on maintaining industry-leading health, safety and environment standards.
Kazatomprom securities are listed on the London Stock Exchange and Astana International Exchange. As the national atomic company in the Republic of Kazakhstan, the Group's primary customers are operators of nuclear generation capacity, and the principal export markets for the Group's products are China, South and Eastern Asia, Europe and North America. The Group sells uranium and uranium products under long-term contracts, short-term contracts, as well as in the spot market, directly from its headquarters in Nur-Sultan, Kazakhstan, and through its Switzerland-based trading subsidiary, Trade House KazakAtom AG (THK).For more information, please see our newly updated website at http://www.kazatomprom.kz
Forward-looking statements
All statements other than statements of historical fact included in this communication or document are forward-looking statements. Forward-looking statements give the Company's current expectations and projections relating to its financial condition, results of operations, plans, objectives, future performance and business. These statements may include, without limitation, any statements preceded by, followed by or including words such as "target," "believe," "expect," "aim," "intend," "may," "anticipate," "estimate," "plan," "project," "will," "can have," "likely," "should," "would," "could" and other words and terms of similar meaning or the negative thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the Company's control that could cause the Company's actual results, performance or achievements to be materially different from the expected results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which it will operate in the future. THE INFORMATION WITH RESPECT TO ANY PROJECTIONS PRESENTED HEREIN IS BASED ON A NUMBER OF ASSUMPTIONS ABOUT FUTURE EVENTS AND IS SUBJECT TO SIGNIFICANT ECONOMIC AND COMPETITIVE UNCERTAINTY AND OTHER CONTINGENCIES, NONE OF WHICH CAN BE PREDICTED WITH ANY CERTAINTY AND SOME OF WHICH ARE BEYOND THE CONTROL OF THE COMPANY. THERE CAN BE NO ASSURANCES THAT THE PROJECTIONS WILL BE REALISED, AND ACTUAL RESULTS MAY BE HIGHER OR LOWER THAN THOSE INDICATED. NONE OF THE COMPANY NOR ITS SHAREHOLDERS, DIRECTORS, OFFICERS, EMPLOYEES, ADVISORS OR AFFILIATES, OR ANY REPRESENTATIVES OR AFFILIATES OF THE FOREGOING, ASSUMES RESPONSIBILITY FOR THE ACCURACY OF THE PROJECTIONS PRESENTED HEREIN. The information contained in this communication or document, including but not limited to forward-looking statements, applies only as of the date hereof and is not intended to give any assurances as to future results. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to such information, including any financial data or forward-looking statements, and will not publicly release any revisions it may make to the Information that may result from any change in the Company's expectations, any change in events, conditions or circumstances on which these forward-looking statements are based, or other events or circumstances arising after the date hereof.