What You Need to Know About the World’s Biggest Uranium Producer

Kazatomprom is not just big, it is built to win

• Most people have never heard of Kazatomprom, but it supplies over 40 percent of the world’s uranium. That makes it a key part of the global energy system. But it is not just big, it is smart. The way it mines uranium is cheaper and cleaner than most other producers. It uses a process called in situ recovery which keeps its costs around 18 dollars per pound. Right now, it is selling uranium for over 60 dollars. That is a huge margin most competitors would love to have. On top of that, it is working with global partners like Cameco in Canada and CGN in China. This gives it access to more markets and reduces risk from any one region.

The world is turning back to nuclear and Kazatomprom is in the centre of it

• Energy security is now a real concern for governments. As gas becomes more expensive and renewables face storage and grid issues, nuclear is back in the conversation. Countries want long term, stable sources of power, and small modular reactors are making nuclear more flexible. Uranium demand is rising as a result. But supply is not keeping up. There are not many new mines coming online. That puts Kazatomprom in a strong position. It can expand production if needed and still keep costs low. With Western countries trying to move away from Russian suppliers, Kazakhstan becomes even more important as a stable alternative. This is not just about mining anymore. It is about politics and power.

What we think at Cordoba

• Uranium is one of the few commodities today where tracking demand path is fairly straight forward, which can’t be said the same for the supply side.
• Demand is growing. Utilities are signing more long-term contracts than they have in years. Nuclear is back on the agenda in the US, Europe, China and even parts of Africa and the Middle East. SMRs are moving from concept to build. Unlike past cycles, this demand is not just speculative, it appears to be more structural.
• But supply has not caught up. Mines take years to develop. Many were shut down in the last bear market and are only now considering restarts. Cost inflation, permitting delays and geopolitical risk make new supply harder to bring online. And above all, most of the world’s uranium still comes from just a handful of countries. That concentration means prices could move fast if one of those suppliers’ falters.
• We think the market is underestimating how tight this could get. Spot prices have risen, but long-term prices are still playing catch-up. If utilities start to ‘panic’ buy, like we have seen in past cycles, we could see prices overshoot. Kazatomprom, with its low-cost base and ability to ramp output, stands to benefit most in that scenario.