WOOD Flash – Kazatomprom: site visits in Kazakhstan – key takeaways
We took part in Kazatomprom’s site visit to several of its production and processing facilities in Kazakhstan, held last week, over 2-3 October. The trip was attended by investors from the US, Europe and Asia, with the focus being on operations; from the company’s side, it was attended by the CFO, the IR team, as well as some of the production team and subsidiary heads. We left with some key takeaways, mainly: i) flexibility in terms of switching production on/off; ii) the footprint of the operations under ISR methodology being relatively small; iii) the dynamics between the company and its JV partners in agreeing production cuts; and iv) the level of technology and automation across its facilities. From an operational stand-point, we believe the company is positioned to take advantage of a recovery in uranium prices. We reiterate our positive view on the company, which offers a unique opportunity, as it is the largest and lowest-cost uranium producer, trading at 7.0x EV/EBITDA (on our FY20E estimates), over a 50% discount vs. its major international peer, and paying a 5.9% dividend yield at the bottom of the commodity cycle.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
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