Shares in Western Australia-based uranium companies closed trade strongly on Monday, following major news from global powerhouse Kazapromtom.
Shares in Western Australia-based uranium companies closed trade strongly on Monday, following major news from global powerhouse Kazapromtom.
Kazakhstan-based Kazapromotom, the world’s largest producer of the commodity, confirmed its production guidance for the 2025 full-year would be reduced to 25,000-26,500 tonnes of uranium, with the company citing both production delays and the prolonged sulphuric acid shortage in Kazakhstan.
“Kazatomprom remains committed to its 2025 contractual obligations to all existing clients,” it said in a written statement.
“The company has a comfortable level of inventories to fulfil its existing contractual commitments in 2025 and will persist in ensuring the availability of essential inventory levels, thereby ensuring its capability to fulfil delivery commitments while optimising resource utilisation.
“Additionally, the company usually reserves a segment of its annual production as uncommitted.
“This approach enables us to capitalize on emerging opportunities and adapt to fluctuations in the market landscape.
“This strategic approach enables the company to mitigate risks effectively and uphold our contractual obligations to clients, even amidst production-related challenges.
“Taking into consideration high level of uncertainties related to the sulphuric acid supply and construction delay challenges, no decision has been taken regarding mine development activity and production volumes for 2026 and beyond.”
Monday’s development is a polar opposite to what transpired on August 2, when Kazapromtom told the market it had revised its 2024 full-year production guidance from 21,000-22,500t to 22,500-23,500t.
This update resulted in a sizable sell off of WA-based uranium company shares.
Kazapromtom’s concern regarding the sulphuric acid shortage is nothing new, having flagged concerns as early as February.
At the time, the company said it was actively engaged in discussions with sulphuric acid manufacturers in neighbouring countries, in a bid to alleviate the problem.
WA uranium stocks at close of trade
Deep Yellow $1.17 (up 17 per cent), Paladin Energy $10.88 (up 12 per cent), Peninsula Energy 8.9 cents (up 10 per cent), Boss Energy $3.13 (up 8 per cent), Aurora Energy Metals 5.8 cents (up 7 per cent), Bannerman Energy $2.47 (up 9 per cent), Toro Energy 24 cents (flat), Cauldron Energy 2 cents (up 11 per cent), Aura Energy 14 cents (up 8 per cent)
