National Atomic Company Kazatomprom JSC
Consolidated Financial Statements
for the year ended 31 December 2023 and
Independent Auditor’s Report
Content
INDEPENDENT AUDITOR’S REPORT
CONSOLIDATED FINANCIAL STATEMENTS
Consolidated Statement of Profit or Loss and Other Comprehensive Income ............................................................... 1
Consolidated Statement of Financial Position ............................................................................................................. 2-3
Consolidated Statement of Cash Flows ...................................................................................................................... 4-5
Consolidated Statement of Changes in Equity ............................................................................................................... 6
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1 NAC Kazatomprom JSC and its operations ........................................................................................................ 7
2 Economic environment of the Group .................................................................................................................. 8
3 Other material accounting policies ...................................................................................................................... 9
4 Adoption of new or revised standards and interpretations ................................................................................ 11
5 Segment information ........................................................................................................................................ 12
6 Balances and transactions with related parties ................................................................................................. 15
7 Revenue ........................................................................................................................................................... 17
8 Cost of sales ..................................................................................................................................................... 19
9 Distribution expenses ....................................................................................................................................... 19
10 General and administrative expenses .............................................................................................................. 20
11 Net (impairment losses)/reversal of impairment losses on financial assets ...................................................... 20
12 Other income .................................................................................................................................................... 21
13 Other expenses and net foreign exchange (loss)/gain ..................................................................................... 21
14 Payroll costs ..................................................................................................................................................... 22
15 Finance income and costs ................................................................................................................................ 22
16 Income tax expense ......................................................................................................................................... 23
17 Earnings per share ........................................................................................................................................... 25
18 Intangible assets ............................................................................................................................................... 26
19 Property, plant and equipment .......................................................................................................................... 27
20 Mine development assets ................................................................................................................................. 28
21 Mineral rights .................................................................................................................................................... 30
22 Exploration and evaluation assets .................................................................................................................... 31
23 Investments in associates................................................................................................................................. 31
24 Investments in joint ventures ............................................................................................................................ 35
25 Accounts receivable ......................................................................................................................................... 37
26 Other financial assets ....................................................................................................................................... 38
27 Other non-financial assets ................................................................................................................................ 39
28 Inventories ........................................................................................................................................................ 40
29 Cash and cash equivalents............................................................................................................................... 40
30 Share capital ..................................................................................................................................................... 41
31 Loans and borrowings ...................................................................................................................................... 41
32 Provisions ......................................................................................................................................................... 44
33 Accounts payable ............................................................................................................................................. 47
34 Other liabilities .................................................................................................................................................. 48
35 Contingencies and commitments ...................................................................................................................... 49
36 Non-controlling interest ..................................................................................................................................... 51
37 Principal subsidiaries ........................................................................................................................................ 53
38 Financial risk management ............................................................................................................................... 54
39 Fair value disclosures ....................................................................................................................................... 62
40 Presentation of financial instruments by measurement category ...................................................................... 63
41 Events after the reporting period ...................................................................................................................... 63
National Atomic Company Kazatomprom JSC
Consolidated Statement of Profit or Loss and Other Comprehensive Income
The accompanying notes are an integral part of these consolidated financial statements.
1
These consolidated financial statements were approved by management at 14 March 2024:
Temirbayev S.E.
Chief Financial Officer
Jakypbekova S.J.
Chief Accountant
In millions of Kazakhstani Tenge
Note
For the year ended
31 December 2023
For the year ended
31 December 2022
Revenue
7
1,434,635
1,001,171
Cost of sales
8
(671,862)
(475,097)
Gross profit
762,773
526,074
Distribution expenses
9
(28,851)
(25,605)
General and administrative expenses
10
(53,110)
(44,507)
Net reversal of impairment losses on non-financial
assets
229
176
Net (impairment losses)/reversal of impairment
losses on financial assets
11
(15,935)
132
Net foreign exchange (loss)/gain
13
(21,330)
17,304
Other income
12
4,474
21,717
Other expenses
13
(50,210)
(9,564)
Finance income
15
41,506
17,327
Finance costs
15
(9,589)
(8,425)
Share of results of associates
23
76,049
75,736
Share of results of joint ventures
24
22,336
13,340
Profit before tax
728,342
583,705
Income tax expense
16
(148,007)
(110,742)
PROFIT FOR THE YEAR
580,335
472,963
Other comprehensive income
Items that may be subsequently reclassified to
profit or loss:
Exchange differences arising on translation of
entities with foreign functional currency
(648)
(46)
Items that will not be reclassified to profit or loss:
Remeasurement of investments in equity securities
at fair value through other comprehensive income
-
14
Remeasurement of post-employment benefit
obligations
291
(478)
Other comprehensive loss for the year
(357)
(510)
TOTAL COMPREHENSIVE INCOME FOR THE
YEAR
579,978
472,453
Profit for the year attributable to:
- Owners of the Company
419,184
348,048
- Non-controlling interest
36
161,151
124,915
Profit for the year
580,335
472,963
Total comprehensive income attributable to:
- Owners of the Company
418,835
347,589
- Non-controlling interest
161,143
124,864
Total comprehensive income for the year
579,978
472,453
Earnings per share attributable to the owners of
the Company, basic and diluted (rounded to
Tenge)
17
1,616
1,342
National Atomic Company Kazatomprom JSC
Consolidated Statement of Financial Position
The accompanying notes are an integral part of these consolidated financial statements.
2
In millions of Kazakhstani Tenge
Note
31 December 2023
31 December 2022
ASSETS
Non-current assets
Property, plant and equipment
19
195,447
188,300
Mine development assets
20
187,216
162,174
Mineral rights
21
496,249
525,140
Intangible assets
18
60,156
59,159
Exploration and evaluation assets
22
26,019
26,543
Investments in associates
23
152,266
154,124
Investments in joint ventures
24
56,585
44,208
Deferred tax assets
16
33,802
34,515
Other financial assets
26
75,873
59,371
Other non-financial assets
27
24,971
21,279
1,308,584
1,274,813
Current assets
Accounts receivable
25
430,319
270,921
Prepaid income tax
9,536
11,451
VAT recoverable
27
146,450
62,389
Inventories
28
423,314
392,621
Other financial assets
26
49,407
20,678
Other non-financial assets
27
19,398
19,274
Cash and cash equivalents
29
211,912
169,536
1,290,336
946,870
Assets of disposal groups classified as held for sale
372
850
1,290,708
947,720
TOTAL ASSETS
2,599,292
2,222,533
National Atomic Company Kazatomprom JSC
Consolidated Statement of Financial Position
The accompanying notes are an integral part of these consolidated financial statements.
3
In millions of Kazakhstani Tenge
Note
31 December 2023
31 December 2022
EQUITY
Share capital
30
37,051
37,051
Additional paid-in capital
2,539
2,539
Reserves
1,228
1,874
Retained earnings
1,487,091
1,268,580
Equity attributable to shareholders of the
Company
1,527,909
1,310,044
Non-controlling interest
36
480,358
386,459
TOTAL EQUITY
2,008,267
1,696,503
LIABILITIES
Non-current liabilities
Loans and borrowings
31
-
83,300
Provisions
32
44,700
43,475
Deferred tax liabilities
16
106,481
116,808
Employee benefits
1,485
1,731
Other liabilities
34
7,547
9,313
160,213
254,627
Current liabilities
Loans and borrowings
31
86,252
54,971
Provisions
32
9,343
4,506
Accounts payable
33
176,011
98,809
Liabilities for other taxes and compulsory
payments
37,437
24,688
Employee benefits
326
325
Income tax liabilities
5,022
4,221
Other liabilities
34
116,421
83,883
430,812
271,403
TOTAL LIABILITIES
591,025
526,030
TOTAL EQUITY AND LIABILITIES
2,599,292
2,222,533
Carrying value of one share (rounded to
Tenge)
17
7,511
6,313
These consolidated financial statements were approved by management at 14 March 2024:
Temirbayev S.E.
Chief Financial Officer
Jakypbekova S.J.
Chief Accountant
National Atomic Company Kazatomprom JSC
Consolidated Statement of Cash Flows
The accompanying notes are an integral part of these consolidated financial statements.
4
In millions of Kazakhstani Tenge
Note
For the year ended
31 December 2023
For the year ended
31 December 2022*
OPERATING ACTIVITIES
Receipts from customers
1,216,066
1,083,872
Receipts under swap transactions
6
243,872
129,617
VAT refund
24,364
74,910
Interest received
17,936
11,701
Payments to suppliers
(516,022)
(476,022)
Payments under swap transactions
6
(155,731)
(201,636)
Payments of wages and salaries
(107,816)
(87,317)
Income tax paid
(154,581)
(125,914)
Other taxes paid
(128,832)
(89,259)
Interest paid
31
(3,873)
(3,570)
Payment return/(payment withheld as restricted funds)
26
14,884
(14,812)
Compensation paid under subsoil use agreement
10
(11,404)
(7,310)
Social payments
(6,754)
(5,226)
Other receipts/(payments), net
116
(5,175)
Cash flows from operating activities
432,225
283,859
INVESTING ACTIVITIES
Acquisition of property, plant and equipment
(50,075)
(21,571)
Proceeds from disposal of property, plant and equipment
154
1,211
Acquisition of intangible assets
(867)
(1,013)
Acquisition of mine development assets
(55,985)
(48,670)
Acquisition of exploration and evaluation assets
(2,121)
(3,223)
Acquisition of short-term debt securities
26
(46,276)
-
Acquisition of long-term debt securities
(3,259)
(8,804)
Redemption of short-term debt securities
5,269
5,787
Placement of term deposits and restricted cash
(38,093)
(12,486)
Redemption of term deposits and restricted cash
37,458
44,688
Loan repayments received from related parties
3,456
3,514
Acquisition of equity investments
26
-
(12,368)
Dividends received from associates, joint ventures
23,24
87,794
45,346
Other receipts/(payments), net
1,345
(3,304)
Cash flows from investing activities
(61,200)
(10,893)
National Atomic Company Kazatomprom JSC
Consolidated Statement of Cash Flows
The accompanying notes are an integral part of these consolidated financial statements.
5
In millions of Kazakhstani Tenge
Note
For the year ended
31 December 2023
For the year ended
31 December 2022*
FINANCING ACTIVITIES
Proceeds from loans and borrowings
31
22,358
70,905
Repayment of loans and borrowings
31
(73,525)
(26,555)
Dividends paid to shareholders
30
(200,970)
(227,388)
Dividends paid to non-controlling interest
(67,245)
(85,667)
Other payments, net
(43)
(172)
Cash flows from financing activities
(319,425)
(268,877)
Net increase in cash and cash equivalents
51,600
4,089
Cash and cash equivalents at the beginning of the year
169,536
161,190
Effect of exchange rate fluctuations on cash and cash equivalents
(9,219)
4,245
Change in impairment provision for cash and cash equivalents
(5)
12
Cash and cash equivalents at the end of the year
29
211,912
169,536
* Certain amounts in this column do not correspond to the consolidated financial statements for the year ended 31 December 2022, since they comprise
reclassifications that are described in Note 3.
These consolidated financial statements were approved by management at 14 March 2024:
Temirbayev S.E.
Chief Financial Officer
Abdimoldayev D.K.
Financial Controller
Jakypbekova S.J.
Chief Accountant
National Atomic Company Kazatomprom JSC
Consolidated Statement of Changes in Equity
The accompanying notes are an integral part of these consolidated financial statements.
6
In millions of Kazakhstani Tenge
Attributable to the shareholders of the Company
Share capital
Reserves
Retained earnings
Additional paid-in
capital
Total
Non-controlling
interest
Total equity
Balance at 1 January 2022
37,051
1,866
1,148,387
2,539
1,189,843
347,258
1,537,101
Profit for the year
-
-
348,048
-
348,048
124,915
472,963
Foreign currency translation difference
-
(6)
-
-
(6)
(40)
(46)
Remeasurements of post-employment benefit
obligations
-
-
(467)
-
(467)
(11)
(478)
Remeasurements of investments in equity securities at
fair value through other comprehensive income
-
14
-
-
14
-
14
Total comprehensive income for the year
-
8
347,581
-
347,589
124,864
472,453
Dividends declared (Note 30)
-
-
(227,388)
-
(227,388)
-
(227,388)
Dividends declared by subsidiaries to other
participants
-
-
-
-
-
(85,663)
(85,663)
Balance at 31 December 2022
37,051
1,874
1,268,580
2,539
1,310,044
386,459
1,696,503
Profit for the year
-
-
419,184
-
419,184
161,151
580,335
Foreign currency translation difference
-
(646)
-
-
(646)
(2)
(648)
Remeasurements of post-employment benefit
obligations
-
-
297
-
297
(6)
291
Total comprehensive income for the year
-
(646)
419,481
-
418,835
161,143
579,978
Dividends declared (Note 30)
-
-
(200,970)
-
(200,970)
-
(200,970)
Dividends declared by subsidiaries to other
participants
-
-
-
-
-
(67,244)
(67,244)
Balance at 31 December 2023
37,051
1,228
1,487,091
2,539
1,527,909
480,358
2,008,267
These consolidated financial statements were approved by management at 14 March 2024:
Temirbayev S.E.
Chief Financial Officer
Abdimoldayev D.K.
Financial Controller
Jakypbekova S.J.
Chief Accountant
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
7
1 NAC Kazatomprom JSC and its operations
These consolidated financial statements have been prepared in accordance with IFRS Accounting Standards for the
year ended 31 December 2023 for National Atomic Company Kazatomprom JSC (the “Company”) and its subsidiaries
(hereinafter collectively referred to as “the Group”).
The Company is a joint stock company set up in accordance with regulations of the Republic of Kazakhstan. The
Company was established pursuant to the Decree of the President of the Republic of Kazakhstan on the establishment
of National Atomic Company Kazatomprom No. 3593, dated 14 July 1997, and the Decree of the Government of the
Republic of Kazakhstan on National Atomic Company Kazatomprom Issues No. 1148 dated 22 July 1997, as a closed
joint stock company with a 100% government shareholding.
As at 31 December 2023, 75% of the Company’s shares are held by SWF Samruk-Kazyna JSC and 25% are on free
float. Government is the ultimate controlling party of the Group. This is unchanged from the prior year end.
The Company’s registered address is Syganak street, building 17/12, Astana city, the Republic of Kazakhstan. The
principal place of business is the Republic of Kazakhstan.
The Group’s principal activities include production of uranium and sale of uranium products. The Group is one of the
world leading uranium producing companies. The Group is also involved in processing of rare metals, manufacture and
sale of beryllium and tantalum products and scientific support of operational activities.
NAC Kazatomprom JSC is an entity representing interests of the Republic of Kazakhstan at the initial stages of the
nuclear fuel cycle and production of fuel assemblies and their components. The Group is a participant in a number of
associates and joint ventures which make a significant contribution to its profit (Notes 23 and 24). The Group’s
development strategy focuses on the core business activities of mining and processing of uranium and related natural
resources. The development strategy is designed to ensure long term value growth for all stakeholders of the Group in
accordance with the principles of sustainable development through aligning production volumes to market conditions
and adopting a market centric focus to sales capabilities, applying best practices in business activities, and developing
a corporate culture consistent with the Group’s position as an industry leader.
As at 31 December 2023, the Group and its associates and joint ventures were a party to the following contracts for
production and exploration of uranium:
Entity / Mine, area Stage Contract date Contract term The Company and entities under control Kazatomprom-SaUran LLP Kanzhugan Production 27 November 1996 51 years Uvanas Liquidation 27 November 1996 - Mynkuduk, East block Production 27 November 1996 31 years Moinkum, block 1 (South) (south part) Liquidation 26 September 2000 - Moinkum, block 3 (Central) (north part) Production 31 May 2010 29 years MC Ortalyk LLP Mynkuduk, Central block Production 8 July 2005 28 years Zhalpak Production 14 December 2021 20 years Appak LLP Mynkuduk, West block Production 8 July 2005 30 years RU-6 LLP North and South Karamurun Production 15 November 1996 44 years JV Inkai LLP Inkai, block 1 Production 13 July 2000 45 years Company Inkai, block 2 Exploration 25 June 2018 6 years** Inkai, block 3 Exploration 25 June 2018 4 years* Baiken-U LLP North Khorasan, block 2 Production 1 March 2006 49 years JV Khorassan-U LLP North Khorasan, block 1 Exploration and Production 8 May 2005 53 years Karatau LLP Budenovskoe, block 2 Production 8 July 2005 35 years JV Akbastau JSC Budenovskoe, block 1 Production 20 November 2007 30 years Budenovskoe, blocks 3, 4 Production 20 November 2007 31 years
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
8
1 NAC Kazatomprom JSC Group and its Operations (continued)
Mine/area Stage Contract date Contract term Associates JV KATCO LLP Southern Moinkum, Northern part and Tortkuduk Production 3 March 2000 39 years JV Zarechnoye JSC Zarechnoye Production 23 September 2002 23 years JV South Mining Chemical Company LLP Akdala Production 28 March 2001 25 years Inkai, block 4 Production 8 July 2005 24 years Joint Ventures Semizbay-U LLP Semizbai Production 2 June 2006 25 years Irkol Production 14 July 2005 25 years** JV Budenovskoe LLP Budenovskoye, blocks 6, 7 Production 16 October 2020 25 years
* Exploration completed, the Group is in the process of obtaining Subsoil use contract.
** The Group plans to extend exploration for 4 additional years for Inkai block 2 mine. The Group extended the contract terms of Irkol
mine until 2030 (Note 41).
At 31 December 2023 the Group comprises 33 entities (2022: 33), mainly located in six regions of the Republic of
Kazakhstan: Turkestan region, East Kazakhstan region, Kyzylorda region, Akmola region, Pavlodar region and Almaty
region. At 31 December 2023 and 2022 the aggregate number of employees of the Group is about 21 thousand people.
2 Economic environment of the Group
In November 2023 Fitch Ratings, an international rating agency, affirmed Kazakhstan's Long-Term Foreign-Currency
Issuer Default Rating (IDR) at 'BBB' with a stable outlook. According to Fitch, Kazakhstan's 'BBB' IDRs reflect strong
fiscal and external balance sheets that have proven resilient to external shocks, and financing flexibility underpinned
by accumulated oil revenue savings. Set against these strengths are its very high dependence on commodities, high
inflation that partly reflects a less developed macroeconomic policy framework relative to 'BBB' peers, and weak
governance indicators. Crude oil and oil condensates continue to be the major contributors to fiscal revenues and
exports, and the sector accounts for 17% of GDP, exposing the economy to external shocks arising from changing
prices in those commodities. Economic diversification efforts are underway but it will take time, given challenges
associated with the business environment and skills shortages.
The economy of the Republic of Kazakhstan continues to develop. Its economy is particularly sensitive to prices on oil,
gas and other commodities, which constitute a major part of the country’s exports. These characteristics include, but
are not limited to, having a national currency that is not freely traded on the global foreign-exchange markets not freely
convertible outside of the country and little presence of Kazakhstani debt and equity securities on foreign stock
exchanges. Additionally, the energy sector in the Republic of Kazakhstan is still impacted by political, legislative, fiscal
and regulatory developments. Uncertainty remains in relation to the exchange rate of Tenge and commodity prices.
The economic environment has a significant impact on the Group’s operations and financial position. Management is
taking necessary measures to ensure sustainability of the Group’s operations. However, the future effects of the current
economic situation are difficult to predict, and management’s current expectations and estimates could differ from
actual results.
Impact of anti-Russian sanctions
On 24 February 2022 Russia launched a military invasion of Ukraine. In response, the United States, the European
Union and a number of other states imposed widespread sanctions on Russia, including banning Russian banks from
the SWIFT system. Russia is Kazakhstan's largest trade partner. Kazakhstan is also heavily reliant on the Caspian
Pipeline Consortium (CPC), which carries up to 80% of its oil exports and passes through Russian territory.
The conflict in Ukraine and sanctions imposed on Russia have affected commodity prices and Tenge exchange rate.
Inflation moderated to 9.8% in December 2023 after peaking at 21.3% in February 2023. During 2023 the economy
grew 4.8%. As at the date of issuing these consolidated financial statements the official exchange rate of the National
Bank of the Republic of Kazakhstan was Tenge 449.89 per US Dollar 1 compared to Tenge 454.56 per US Dollar 1 as
at 31 December 2023 (31 December 2022: Tenge 462.65 per 1 US Dollar).
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
9
2 Economic environment of the Group (continued)
As part of its ongoing risk assessment program the Group management monitors the potential impact of anti-Russian
sanctions on the Group’s operations. To date, the sanctions have had no significant impact on the Group's operations
although the market uncertainty caused by the conflict between Russia and Ukraine has resulted in significant volatility
of uranium spot price and the Company's share price.
As part of the Group’s exported products are transported through Russia, there are risks associated with transit through
the territory of Russia, insurance and the delivery of cargo by sea vessels. The Group constantly monitors the potential
impact of sanctions on the transportation of finished products. At the date of these financial statements, there are no
restrictions on the Group's activities related to the supply of the Group's products to end customers. Since 2018, the
Group has also successfully used the Trans-Caspian International Transport Route.
There are also risks associated with Russian partners in the Group’s subsidiaries, associates and joint ventures,
including reputational and corporate governance risks. On 24 February 2023, the UK included a number of key
employees of the Rosatom State corporation in the sanctions list. At the same time, as at the date of approval of these
financial statements, the entities of Rosatom State corporation, which are the partners of the Group in six uranium
mining entities in Kazakhstan, are not included in the sanctions list. The Group monitors the risk of sanctions, the Group
drew up an action plan to minimise possible negative consequences. This action plan is updated as new risks are
identified or sanctions programs and lists are updated.
The Group’s management is unable to predict the impact of future events on the Group’s financial position and its
results of this matter. Management will continue to monitor the potential impact of anti-Russian sanctions on the Group
and will take all necessary steps to mitigate risks.
3 Other material accounting policies
Basis of preparation
These consolidated financial statements have been prepared in accordance with IFRS Accounting Standards under
the historical cost convention, as modified by financial instruments categorised at fair value through profit or loss
(“FVTPL”) and at fair value through other comprehensive income (“FVOCI”). The principal accounting policies applied
in the preparation of these consolidated financial statements are set out below. These policies have been consistently
applied to all the periods presented unless specified.
The preparation of consolidated financial statements in conformity with IFRS Accounting Standards requires the use of
certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying
the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where
assumptions and estimates are significant are disclosed in the corresponding notes of these consolidated financial
statements.
Presentation currency
These consolidated financial statements are presented in millions of Kazakhstani Tenge (“Tenge”), unless otherwise
stated.
Consolidation
(i) Consolidated financial statements
The Group has several subsidiaries disclosed in Note 37. Unless otherwise stated, they have share capital consisting
solely of ordinary shares that are held directly by the group, and the proportion of ownership interests held equals the
voting rights held by the group. The country of incorporation or registration is also their principal place of business.
(ii) Associates and joint ventures
The Group’s associates and joint ventures are disclosed in Notes 23 and 24. The entities have share capital, which is
held directly by the group. The country of incorporation or registration is also their principal place of business, and the
proportion of ownership interest is the same as the proportion of voting rights held. Associates are entities over which
the Group has significant influence (directly or indirectly), but not control, generally accompanying a shareholding of
between 20% and 50% of the voting rights. Entities where the Group holds joint control by means of unanimous decision
making with the second participant over relevant activities, are classified as joint ventures.
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
10
3 Other material accounting policies (continued)
(iii) Joint operations
The Group is a party to joint operations as disclosed in Note 37. In accordance with requirements of the relevant
agreements, participants buy output of joint operations equally in accordance with their ownership interest. If
participants of the joint operations do not comply with this requirement during a period, a liability or receivable under
joint operations is recognised for an amount equivalent to the corresponding gross margin. The liability/receivable is
settled either when participants satisfy the parity requirements or participants mutually agree to discharge the
liabilities/receivables, and a corresponding loss/gain is recognised in profit or loss statement. Receivables and payables
between participants of the joint operations are presented on a gross basis in the financial statements. No revenue
from joint operations is recognised in the financial statements until the Group sells the output to third parties.
Foreign currency translation
The functional currency of each of the Group’s consolidated entities is the currency of the primary economic
environment in which the entity operates. The functional currency of the Company and its Kazakhstan subsidiaries is
the national currency of Kazakhstan, Kazakhstani Tenge. Exchange restrictions and currency controls exist in relation
of converting Tenge into other currencies. Currently, Tenge is not freely convertible outside of the Republic of
Kazakhstan. Monetary assets and liabilities are translated into each entity’s functional currency at the official exchange
rate at the respective end of the reporting period. The official exchange rate of Kazakhstan Stock Exchange (KASE) as
at 31 December 2023 was Tenge 454.56 per 1 US Dollar (2022: Tenge 462.65 per 1 US Dollar). Foreign exchange
gains and losses resulting from the settlement of the transactions and from the translation of monetary assets and
liabilities into each entity’s functional currency at year-end official exchange rates are recognised in profit or loss
statement as a separate line item. Note 13 provides additional information about foreign exchange gains and losses
from financing activities (attributable to borrowings) and operating activities (all other foreign exchange gains and
losses).
The results and financial position of the Group’s foreign operation, which has financial statements with different
functional currency, are translated into the presentation currency as follows:
• assets and liabilities for each statement of financial position are translated at the closing rate at the end of the
respective reporting period;
• income and expenses are translated at average exchange rates (unless this average is not a reasonable
approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and
expenses are translated at the dates of the transactions);
• components of equity are translated at the historic rate;
• all resulting exchange differences are recognised in other comprehensive income.
Translation at year-end does not apply to non-monetary items that are carried at historic costs.
Change in presentation
The management has decided to improve presentation of operating cash flows by disclosing cash flows from swap
transactions separately from cash receipts from customers and cash payments to suppliers. Additionally operations on
acquisition and redemption of short-term highly liquid instruments were presented on the net basis. The following
amounts in the consolidated statement of cash flows for the year ended 31 December 2022 have been reclassified in
accordance with the presentation applied in 2023 as follows:
As originally Reclassi- As reclassified In millions Tenge presented fication for 2022 Receipts from customers 1,213,489 (129,617) 1,083,872 Receipts under swap transactions - 129,617 129,617 Payments to suppliers (677,658) 201,636 (476,022) Payments under swap transactions - (201,636) (201,636) Cash flows from operating activities 283,859 - 283,859 Acquisition of short-term debt securities (80,219) 80,219 - Redemption of short-term debt securities 86,006 (80,219) 5,787 Cash flows from investing activities (10,893) - (10,893)
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
11
4 Adoption of new or revised standards and interpretations
The following amendments became effective from 1 January 2023, but did not have any material impact on the Group:
• Deferred tax related to assets and liabilities arising from a single transaction – Amendments to IAS 12 (issued on 7
May 2021).
• Amendment to IFRS 16 – Leases on sale and leaseback (issued on 20 September 2022).
• IFRS 17 - Insurance Contracts (issued At 18 May 2017 and effective for annual periods beginning on or after 1
January 2023). Amendments to IFRS 17 and an amendment to IFRS 4 (issued on 25 June 2020).
• Transition option for insurers applying IFRS 17 – Amendments to IFRS 17 (issued on 9 December 2021 and
effective for annual periods beginning on or after 1 January 2023).
• Amendments to IAS 8 - Definition of Accounting Estimates (issued At 12 February 2021 and effective for annual
periods beginning on or after 1 January 2023).
The Group has adopted Amendments to IAS 1 - Presentation of financial statements and IFRS Practice Statement 2 -
Disclosure of Accounting policies (issued At 12 February 2021) and made corresponding changes in these financial
statements.
Certain new standards and interpretations have been issued that are mandatory for annual periods beginning on or
after 1 January 2024 or later, and which the Group has not early adopted. These are:
• Amendment to IFRS 16 – Leases on sale and leaseback (issued on 20 September 2022 and effective for annual
periods beginning on or after 1 January 2024). The amendments relate to the sale and leaseback transactions that
satisfy the requirements in IFRS 15 to be accounted for as a sale. The amendments require the seller-lessee to
subsequently measure liabilities arising from the transaction and in a way that it does not recognise any gain or
loss related to the right of use that it retained.
• Classification of liabilities as current or non-current, deferral of effective date – Amendments to IAS 1 (originally
issued on 23 January 2020 and subsequently amended At 15 July 2020 and 31 October 2022, ultimately effective
for annual periods beginning on or after 1 January 2024). These amendments clarify that liabilities are classified
as either current or non-current, depending on the rights that exist at the end of the reporting period. Liabilities are
non-current if the entity has a substantive right, at the end of the reporting period, to defer settlement for at least
twelve months. The guidance no longer requires such a right to be unconditional. The October 2022 amendment
established that loan covenants to be complied with after the reporting date do not affect the classification of debt
as current or non-current at the reporting date.
• Amendments to IAS 7 - Statement of Cash Flows and IFRS 7 - Financial Instruments, Disclosures: Supplier
Finance Arrangements (Issued on 25 May 2023). In response to concerns of the users of financial statements
about inadequate or misleading disclosure of financing arrangements, in May 2023, the IASB issued amendments
to IAS 7 and IFRS 7 to require disclosure about entity’s supplier finance arrangements. These amendments require
the disclosures of the entity’s supplier finance arrangements that would enable the users of financial statements
to assess the effects of those arrangements on the entity’s liabilities and cash flows and on the entity’s exposure
to liquidity risk.
• Amendments to IAS 21 - Lack of Exchangeability (Issued on 15 August 2023). In August 2023, the IASB
issued amendments to IAS 21 to help entities assess exchangeability between two currencies and determine the
spot exchange rate, when exchangeability is lacking. An entity is impacted by the amendments when it has a
transaction or an operation in a foreign currency that is not exchangeable into another currency at a measurement
date for a specified purpose.
The Group is currently assessing the impact of the amendments on its financial statements.
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
12
5 Segment information
Operating segments are components that engage in business activities that may earn revenues or incur expenses,
whose operating results are regularly reviewed by the chief operating decision maker (CODM) and for which discrete
financial information is available. The CODM is the person or group of persons who allocates resources and assesses
the performance for the entity. The CODM has been identified as the Management Board of the Group headed by the
CEO.
(a) Description of products and services from which each reportable segment derives its revenue
The Group is a vertically integrated business involved in the production chain of end products – from geological
exploration, mining of uranium and nuclear fuel production, to marketing and auxiliary services (transportation and
logistics, procurement, research and other). The Group is organised on the basis of two main business segments:
• Uranium – uranium mining and processing from the Group’s mines, purchases of uranium from joint ventures and
associates, external sales and marketing of produced and purchased natural uranium, sales of enriched uranium.
This segment includes the Group’s share in the net results of joint ventures and associates engaged in uranium
production, as well as the Group’s head office (NAC Kazatomprom JSC);
• UMP (Ulba Metallurgical Plant JSC) – production and sales of products containing beryllium, tantalum and niobium,
hydrofluoric acid and by-products, processing of uranium on tolling basis for the Group’s uranium entities and
production of uranium powders and pellets to external markets and its joint venture, Ulba-FA LLP.
The revenues and expenses of some of the Group’s subsidiaries, which primarily provide services to the uranium
segment (such as drilling, transportation, security and geological), are not allocated to the results of this operating
segment. These Group’s businesses are not included within reportable operating segments as their financial results do
not meet the quantitative threshold. The results of these and other minor operations are included in the “Other” caption.
(b) Factors that management used to identify the reportable segments
The Group’s segments are strategic business units that focus on different customers. They are managed separately
because of the differences in the production processes, the nature of products produced and required marketing and
investment strategies. Segment financial information reviewed by the CODM includes:
• information about income and expenses by business units (segments) based on IFRS figures on a quarterly basis;
• assets and liabilities as well as capital expenditures by segment on a quarterly basis;
• operating data (such as production and inventory volumes) and revenue data (such as sales volumes per type of
product, average sales price) are also reviewed by the CODM on a monthly and quarterly basis.
(c) Measurement of operating segment profit or loss, assets and liabilities
The CODM evaluates performance of each segment based on gross and net profit. Segment financial information is
prepared on the basis of IFRS financial information and measured in a manner consistent with that in these consolidated
financial statements. Revenues from other segments include transfers of raw materials, goods and services from one
segment to another, amount is determined based on market prices for similar goods.
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
13
5 Segment information (continued)
(d) Information about reportable segment profit or loss, assets and liabilities
Segment information for the reportable segments for the years ended 31 December 2023 and 2022 is set out below:
Uranium UMP Other Eliminations Total In millions of Kazakhstani Tenge 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 External revenue 1,275,045 856,952 123,588 114,555 36,002 29,664 - - 1,434,635 1,001,171 Revenues from other segments 27,697 63,141 8,610 6,855 81,305 70,008 (117,612) (140,004) - - Cost of sales (565,339) (409,158) (104,752) (94,672) (111,122) (97,190) 109,351 125,923 (671,862) (475,097) Gross profit 737,403 510,935 27,446 26,738 6,185 2,482 (8,261) (14,081) 762,773 526,074 Net reversal/(impairment losses) (16,120) (22) 184 (297) 159 421 71 206 (15,706) 308 Share of results of associates and joint ventures 90,633 89,442 5,677 (1,748) 2,075 1,382 - - 98,385 89,076 Net foreign exchange gain (20,194) 16,625 (1,133) 672 (3) 7 - - (21,330) 17,304 Finance income 38,975 15,626 1,168 743 1,363 958 - - 41,506 17,327 Finance expense (8,223) (6,754) (1,291) (1,447) (133) (332) 58 108 (9,589) (8,425) Income tax expense (142,962) (105,947) (4,119) (4,165) (926) (630) - - (148,007) (110,742) Profit/(loss) for the year 561,123 467,382 17,976 12,803 3,677 (2,920) (2,441) (4,302) 580,335 472,963 Depreciation and amortisation charge (92,938) (77,951) (2,281) (2,066) (5,133) (4,914) 5,190 3,553 (95,162) (81,378)
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
14
5 Segment information (continued)
Segment information for the reportable segments for the years ended 31 December 2023 and 2022 is set out below (continued):
Uranium UMP Other Eliminations Total In millions of Kazakhstani Tenge 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 Investments in associates and joint ventures 189,777 186,961 6,634 957 12,440 10,414 - - 208,851 198,332 Total reportable segment assets 2,898,691 2,361,914 119,314 155,011 109,735 89,774 (528,820) (385,016) 2,598,920 2,221,683 Assets of disposal groups classified as held for sale - - - - 372 850 - - 372 850 Total assets 2,898,691 2,361,914 119,314 155,011 110,107 90,624 (528,820) (385,016) 2,599,292 2,222,533 Total liabilities 1,060,152 813,577 25,641 71,798 34,408 25,957 (529,176) (385,302) 591,025 526,030 Capital expenditure 94,767 76,263 4,642 4,794 10,473 8,123 - - 109,882 89,180
Capital expenditure represents additions to non-current assets other than financial instruments, deferred tax assets, post-employment benefits assets and rights arising under
insurance contracts.
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
15
5 Segment information (continued)
(e) Analysis of revenues by products and services
The Group’s revenues are analysed by products and services in Note 7. Information about finance income and costs
is disclosed in Note 15.
(f) Geographical information
The Group’s main assets are located in the Republic of Kazakhstan. Distribution of the Group’s sales between
countries on the basis of the customer’s country of domicile was as follows:
In millions of Kazakhstani Tenge 2023 2022 China 522,521 272,291 Russia 215,042 87,877 Kazakhstan 182,574 109,595 USA 152,462 112,590 Canada 131,135 160,278 France 82,648 68,054 United Kingdom (including Jersey and Cayman Islands) 40,633 150,427 Other countries 107,620 40,059 Total consolidated revenues 1,434,635 1,001,171
Major customers
The Group has a group of customers under common control that accounts for more than 10% of the Group’s
consolidated revenue. This revenue in the amount of Tenge 526,684 million (2022: Tenge 345,696 million) is reported
under the Uranium segment mainly.
6 Balances and transactions with related parties
Parties are generally considered to be related if the parties are under common control or if one party has the ability to
control the other party or can exercise significant influence or joint control over the other party in making financial and
operational decisions. In considering each possible related party relationship, management has regard to the substance
of the relationship, not merely the legal form.
Entities under common control include companies under control of SWF Samruk-Kazyna JSC. Transactions with other
government owned entities are not disclosed when they are entered into in the ordinary course of business with terms
consistently applied to all public and private entities, when they are not individually significant, if the Group’s services
are provided on standard terms available for all customers, or where there is no choice of supplier of services such as
electricity transmission services and telecommunications. In accordance with IAS 24.26 the Group discloses only
individually significant transactions and qualitative and quantitative indication of other collectively, but not individually
significant transactions with government and state owned entities. Detailed description of such significant transactions
is presented in Note 26, 34.
At 31 December 2023, the outstanding balances with related parties were as follows:
Accounts Accounts receivable and Other financial payable and Loans and In millions of Kazakhstani Tenge other assets assets other liabilities borrowings Associates 3,657 2,502 59,037 3,506 Joint ventures 57,115 - 26,951 - Entities under common control 274 - 1,154 - Controlling shareholder - - 7 - Associates of the controlling shareholder - - 1,392 - Other government owned entities 1 9,112 - - Total 61,047 11,614 88,541 3,506
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
16
6 Balances and transactions with related parties (continued)
Transactions with related parties for the year ended 31 December 2023 were as follows:
Purchase of Dividends Finance In millions of Sale of goods Dividends goods and to the and other Payments to Kazakhstani Tenge and services received services Shareholder income budget Associates 14,258 77,907 169,305 - 397 4 Joint ventures 162,318 9,959 57,601 - - - Entities under common control 89 - 13,642 - 528 - Controlling shareholder - - - 150,728 - - Associates of the controlling shareholder - - 6,740 - - - Other government owned entities 46 - 118 - 3,126 11,404 Total 176,711 87,866 247,409 150,728 4,051 11,408
From December 2015, JV Khorasan-U LLP (over which the Group obtained control in 2019) is a co-borrower and
guarantor of a loan to Kyzylkum LLP given by the Company in 2010 in the amount of Tenge 2,502 million (2022:
Tenge 5,933 million).
The Group is a guarantor for loan obtained by Ulba-FA LLP in the amount of Tenge 16,096 million (2022:
Tenge 17,072 million) (Note 35).
In 2023 the Group transfers obligatory pension payments for its employees to the state-owned Unified Accumulative
Pension Fund JSC in the amount of Tenge 9,328 million (2022: Tenge 7,543 million) (Note 14). Corporate income tax
(Note 16) as well as other taxes, penalties and fines are also transferred to the state (Note 8-10).
At 31 December 2022, the outstanding balances with related parties were as follows:
Accounts Accounts receivable and Other financial payable and Loans and In millions of Kazakhstani Tenge other assets assets other liabilities borrowings Associates 4,447 5,933 43,703 7,002 Joint ventures 6,559 94 48,428 - Entities under common control 362 - 1,119 - Controlling shareholder - - 17 - Associates of the controlling shareholder 12 - 1,236 - Other government owned entities 17 9,274 1 - Total 11,397 15,301 94,504 7,002
Transactions with related parties for the year ended 31 December 2022 were as follows:
Purchase of Dividends Finance In millions of Sale of goods Dividends goods and to the and other Payments to Kazakhstani Tenge and services received services Shareholder income budget Associates 12,321 38,503 152,580 - 699 9 Joint ventures 53,111 6,934 39,490 - 28 - Entities under common control 41 - 11,582 - 337 - Controlling shareholder - - - 170,541 - 1 Associates of the controlling shareholder 150 - 13,041 - - - Other government owned entities 43 - 53 - 753 7,310 Total 65,666 45,437 216,746 170,541 1,817 7,320
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
17
6 Balances and transactions with related parties (continued)
Key management personnel are represented by personnel with authority and responsibility in planning, management
and control of the Group's activities, directly or indirectly. Key management personnel include all members of the
Management Board and the members of the Board of Directors. The table below represents remuneration of the key
management personnel, paid by the Group in exchange for services provided. This remuneration includes salaries,
bonuses, as well as associated taxes and payments. No remuneration is paid or payable to representatives of the
Controlling shareholder in the Board of Directors.
2023 2022 Accrued Accrued In millions of Kazakhstani Tenge Expense liability Expense liability Short-term benefits Salaries and bonuses 913 39 983 55 Total 913 39 983 55
7 Revenue
The Group’s revenue arises from contracts with customers where performance obligations are satisfied mostly at a
point in time.
In millions of Kazakhstani Tenge 2023 2022 Sales of natural uranium 1,180,722 851,427 Sales of enriched uranium 91,218 - Sales of uranium products 60,580 57,806 Sales of beryllium products 31,857 31,986 Sales of tantalum products 27,061 23,171 Sales of purchased goods 14,607 15,164 Sales of other services 11,605 11,147 Drilling services 8,842 3,730 Transportation services 4,701 3,586 Sales of materials and other goods 3,222 2,815 Research and development 220 339 Total revenue 1,434,635 1,001,171
The most significant factors that affected the Group’s results of operations during the year included:
• Since 2022 the Group sells uranium tablets to Ulba-FA LLP that are produced at Group premises from produced
uranium enriched at third parties, the amount of such sales was Tenge 50,633 million (2022: Tenge 43,566 million).
In the middle of 2023 the Group and Ulba-FA LLP changed the sales agreement terms, now the Group sells
enriched uranium and uranium tablets production services to Ulba-FA LLP. In 2023 the Group sold
Tenge 91,218 million of enriched uranium.
• An 10% increase of natural uranium sales volumes compared to 2022 due to additional customer supply requests
under new and existing contracts. Sales volumes may vary from year to year due to differences in customer delivery
schedules and requests throughout the year and actual physical deliveries.
• A 27% increase in the average selling price compared to 2022 (USD 55.09 versus USD 43.44) due to an increase
in spot price for natural uranium. The Group's current portfolio of natural uranium sale contracts is linked to uranium
spot price; however, some contracts that the Group executed several years ago contained price ceilings and other
arrangments that limit effective price. As a result increase in the Group’s average selling price was lower than
increase in the market natural uranium spot price.
Liabilities under contracts with customers
As at 31 December 2022 current liabilities under contracts with related party customers included advances for uranium
products in the amount of Tenge 35,082 million under contracts with Ulba-FA LLP, which the Group recognised as
revenue during 2023 (Note 34).
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
18
7 Revenue (continued)
Material accounting policies and significant judgements
Revenue is defined as income arising in the course of the Group’s ordinary activities. Revenue is recognised in the
amount of transaction price. Transaction price is the amount of consideration to which the Group expects to be entitled
in exchange for transferring control over promised goods or services to a customer, excluding the amounts collected
on behalf of third parties. Revenue is recognised net of discounts, returns and value added taxes, export duties and
other similar mandatory payments.
(i) Sales of goods (uranium, tantalum, beryllium, niobium and other products)
Sales are recognised when control of the good has transferred, being when the goods are delivered to the customer,
the customer has full discretion over the goods, and there is no unfulfilled obligation that could affect the customer’s
acceptance of the goods. Delivery occurs when the goods have been delivered to the specific location, the risks of
obsolescence and loss have been transferred to the customer, and either the customer has accepted the goods in
accordance with the contract, the acceptance provisions have lapsed, or the Group has objective evidence that all
criteria for acceptance have been satisfied.
Revenue from the sales with discounts is recognised based on the price specified in the contract, net of the estimated
volume discounts. Accumulated experience is used to estimate and provide for the discounts, using the expected value
method, and revenue is only recognised to the extent that it is highly probable that a significant reversal will not occur.
No element of financing is deemed present as the sales are made with an average credit term of 30-270 days, which
is consistent with market practice. A receivable is recognised when the goods are delivered as this is the point in time
that the consideration is unconditional because only the passage of time is required before the payment is due.
Delivery of uranium, tantalum and beryllium products vary depending on the individual terms of a sale contract usually
in accordance with the Incoterms classification. Delivery of uranium products occurs at the date of physical delivery in
accordance with Incoterms or at the date of book-transfer to an account with a convertor specified by the customer. A
book-transfer operation represents a transaction whereby the uranium account balance of the transferor is decreased
with a simultaneous allocation of uranium to the transferee’s uranium account with the same specialised conversion /
reconversion entity.
(ii) Sales of services (transportation, drilling and other)
The Group may provide services under fixed-price contracts. Revenue from providing services is recognised in the
accounting period in which the services are rendered. For fixed-price contracts, revenue is recognised based on the
actual service provided to the end of the reporting period as a proportion of the total services to be provided because
the customer receives and uses the benefits simultaneously.
Swap transactions (judgements)
The Group sells part of its uranium products under swap transactions with separate agreements with the same
counterparty, being for sales and purchase of the same volume of uranium for the same price at different delivery points
or different timeframes. Effectively, this results in the exchange of own uranium (produced or purchased from the
Group’s entities) with purchased uranium.
Normally, under a swap transaction, the Group delivers physical uranium to one destination point, and purchases the
same volume of uranium at a third-party converter for sale to end customers. Swap transactions are entered into
primarily to reduce transportation costs for uranium delivery from Kazakhstan to end customers.
Despite the fact that swap agreements are not formally related to each other, management concluded that these
transactions are in substance linked and would not have occurred on an isolated basis, driven by the existing market
demand and supply forces. In management’s view, supply of the same volume of homogeneous product (uranium) for
the same price represents an exchange of products, which should be presented on a net basis in the consolidated
financial statements, reflecting the economic substance of the transaction. Interpretation of terms and approach to the
accounting for swap transactions requires judgement.
In 2023, the Group did not recognise sales revenue from swap transactions of Tenge 139,322 million (2022:
Tenge 195,958 million) and related cost of sales of Tenge 149,209 million (2022: Tenge 207,789 million). The Group
has also increased other accounts receivable for Tenge 72,978 million (Note 25), accounts payable for
Tenge 31,215 million (Note 33) with net effect impacting inventories. Given that swap agreements require cash
payments, accounts receivable represent cash receipts expected for purchased and paid uranium under swap
agreement, accounts payable represent expected cash payments for sold uranium under swap agreement, where
accounts receivable was repaid by the counterparty.
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
19
7 Revenue (continued)
In 2022 the Group has recognised liabilities under swap agreement for Tenge 4,709 million (Note 34) and inventory for
Tenge 5,627 million with net effect impacting retained earnings. Liability under swap agreement is a non-financial
obligation to return uranium that was already sold to third party.
Purchase and sales agreements assume cash transfers on a regular payment terms, similar to contracts with
customers. The Group presents cash receipts as “receipts under swap transactions” and cash payments as “payments
under swap transactions”.
Enrichment of natural uranium (judgements)
The Group purchases uranium enrichment services from Uranium Enrichment Center JSC (UEC) in Russia. The
transaction is structured as two separate agreements. Group sells natural uranium and purchases enriched uranium
from UEC. Despite agreements with UEC are not formally related, the management concluded that these transactions
are in substance linked and would not have occurred on an isoldated basis. Effectively, this results in the sales of
uranium with an obligation to repurchase it in the form of enriched uranium, in accordance with IFRS 15 requirements
no revenue from sales of uranium to UEC should be recognised, reflecting the economic substance of the transaction.
Interpretation of terms and approach to the accounting for transactions with UEC requires judgement. The cost of
enrichment services included in cost of sales in the amount of Tenge 40,643 million (2022: Tenge 13,363 million) in
process and other services line item (Note 8).
Purchase and sales agreements with UEC assumed cash transfers, starting from 2023 the Group changed the contract
terms to settle cash transfers on a net basis.
8 Cost of sales
In millions of Kazakhstani Tenge 2023 2022 Materials and supplies 364,841 261,825 Depreciation and amortisation 92,824 79,037 Processing and other services 71,126 31,361 Payroll costs 61,886 49,348 Taxes other than income tax 55,868 32,216 Transportation expenses 6,780 5,787 Maintenance and repair 5,475 5,082 Utilities 1,714 1,678 Rent expenses 413 234 Other 10,935 8,529 Total cost of sales 671,862 475,097
An increase in the cost of materials and supplies resulted from an increase in spot price of natural uranium and sulfuric
acid as well as increase in sales volumes.
9 Distribution expenses
In millions of Kazakhstani Tenge 2023 2022 Shipping, transportation and storage 22,408 20,331 Payroll costs 1,916 1,744 Commissions 917 952 Rent 385 214 Materials and supplies 170 199 Depreciation and amortisation 93 56 Other 2,962 2,109 Total distribution expenses 28,851 25,605
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
20
10 General and administrative expenses
In millions of Kazakhstani Tenge 2023 2022 Payroll costs 22,199 20,594 Compensation payment for uranium mined without license 11,404 7,310 Consulting and information services 5,382 5,196 Other provisions (Note 32) 4,679 - Depreciation and amortisation 2,059 2,110 Fines and penalties 689 2,068 Business trip expenses 638 497 Insurance 609 822 Training expenses 523 416 Communication 475 509 Rent 454 460 Other 3,999 4,525 Total general and administrative expenses 53,110 44,507
The PwC network of companies provided the Group with the following audit and non-audit services (net of VAT):
In millions of Kazakhstani Tenge 2023 2022 Audit services 469 434 Non-audit services 115 74 Total services provided 584 508
Compensation payment for uranium mined without license
Compensation payment relates to uranium mined at Zhalpak field of MC Ortalyk LLP and block of Budenovskoye field
of JV Akbastau JSC (Note 37).
In October 2017, the Group obtained a contract for uranium exploration at Zhalpak field for a period up to 31 May 2018.
In May 2018, the Ministry of Energy of the Republic of Kazakhstan agreed to extend the exploration period under the
contract until 31 December 2022 for performing evaluation works. However, the approval process by the Ministry of
Energy of the Republic of Kazakhstan was delayed. In April 2020 MC Ortalyk LLP stopped all work and test production
at the mine. In December 2021 the Group received subsoil use rights. The volume of uranium mined at Zhalpak field
during the period from June 2018 to April 2020 amounted to 162 tons. On 15 August 2023 the Group paid a
compensation of Tenge 11,404 million to the Government for this volume of uranium based on the decision of the
Energy Council of the President of the Republic of Kazakhstan.
JV Akbastau JSC has been involved in negotiations with the regulator over an extended period to update the contract
terms of the subsoil use contract No. 2488 dated 20 November 2007, and during such discussions the regulator has
determined that JV Akbastau JSC exceeded the allowed production volume indicated in the subsoil use contract. In
2021 the Group reached a draft agreement with the regulator which was to provide social support to the Turkistan
region in the amount of Tenge 3,000 million as a compensation for the breach of license terms. However, in 2022 the
regulator rejected the draft agreement and reassessed the amount payable to be compensation for the overproduction
of uranium in the amount of Tenge 7,310 million. The compensation was determined as the fair value of 249 tons of
overproduced uranium based on current uranium spot prices. On 30 December 2022 JV Akbastau JSC signed
addendum No. 4 to the subsoil use contract No. 2488 and paid the compensation.
11 Net (impairment losses)/reversal of impairment losses on financial assets
Impairment losses for the following financial assets:
In millions of Kazakhstani Tenge 2023 2022 Accounts receivable (Note 25) (15,961) 5 Other assets 26 127 Net (impairment losses)/reversal of impairment losses on financial assets (15,935) 132
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
21
In December 2023 the Group delivered uranium concentrates to Dioxitek S.A., Argentina. The government of Argentina
introduced new requirements to import operations, incurred prior to 12 December 2023, which may only be settled by
means of government bonds sales that will provide sufficient amount of US dollars for Dioxitek S.A. to pay its labilities.
The Group expects difficulties with the payment from Dioxitek S. A, thus, 100% provision on the overdue amount of
Tenge 15,692 million was accrued. The management of the Group will resume negotiations with Dioxitek S.A. on debt
repayment.
12 Other income
In millions of Kazakhstani Tenge 2023 2022 Gain from fines and penalties 1,503 306 Income from investment property 383 - Income from disposal of property, plant and equipment 360 1,384 Income from an associate development agreement - 7,671 Gain from joint operations - 4,217 Reversal of social expenses (Note 10) - 3,000 Insurance receipt - 1,981 Income from a joint venture development agreement - 985 Other 2,228 2,173 Total other income 4,474 21,717
On 11 August 2022 participants of JV KATCO LLP (Note 23) made amendments to the partnership agreement on
further development of JV KATCO LLP dated 10 April 2017, under which the Group became entitled to compensation
in the amount of Tenge 7,671 million from the second participant, which was recognised as income in 2022 and other
receivables (Note 25).
13 Other expenses and net foreign exchange (loss)/gain
In millions of Kazakhstani Tenge 2023 2022 Revaluation of inventory loans, net (Note 34) 37,977 1,906 Expenses from joint operations 3,426 - Social expenses 1,299 1,130 Research expenses 806 887 Loss on suspension of production 674 1,126 Loss on disposal of property, plant and equipment 434 175 Non-recoverable VAT 410 620 Depreciation and amortisation 186 175 Loss on disposal of intangible assets 106 93 Other 4,892 3,452 Total other expenses 50,210 9,564
Expenses from joint operations
During the current period he Group fulfilled its obligations under joint operations agreements to purchase equal amounts
of uranium for 2023 and 2022, however, volatility in exchange rates and spot prices resulted in disproportionate Tenge
contributions by each participant and recognition of expense of Tenge 3,426 million by the Group. In 2022 the Group
has recognised income from joint operations for Tenge 4,217 million (Note 12).
Net foreign exchange (loss)/gain
In millions of Kazakhstani Tenge 2023 2022 Foreign exchange (loss)/gain on financing activities, net 748 (4,758) Foreign exchange (loss)/gain on operating activities, net (22,078) 22,062 Total foreign exchange (loss)/gain, net (21,330) 17,304
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
22
14 Payroll costs
In millions of Kazakhstani Tenge 2023 2022 Wages and salaries 109,222 89,208 Including Pension contributions 9,328 7,543 Social tax and social payments 12,964 10,427 Total payroll costs 122,186 99,635
Material accounting policies and significant judgements
Wages, salaries, contributions to pension and social insurance funds, paid annual leave and sick leave, bonuses, and
non-monetary benefits are accrued in the year in which the associated services are rendered by the employees of the
Group. In this case, the Group applies the defined contribution plans scheme. In accordance with the legal requirements
of the Republic of Kazakhstan, the Group withholds pension contributions from employees’ salary and transfers them
into the United pension fund. Upon retirement of employees, all pension payments are administered by the united
pension fund. The Group does not have any legal or constructive obligation to pay additional contributions other than
pension contributions withheld from the salaries of the Group's employees.
15 Finance income and costs
In millions of Kazakhstani Tenge 2023 2022 Interest income calculated using the effective interest rate Cash and cash equivalents 16,590 10,433 Debt securities 8,604 1,262 Loans at amortised cost 397 699 Term deposits 55 111 Other financial income Revaluation of other investments (Note 26) 13,658 4,699 Other 2,202 123 Total finance income 41,506 17,327 Finance costs Unwinding of discount on provisions 4,853 2,892 Interest expense on loans and borrowings 3,753 3,689 Other 983 1,844 Total finance costs 9,589 8,425
Material accounting policies
Interest income on financial assets at amortised cost, other than those at FVTPL, is recorded on an accrual basis using
the effective interest method and recognised in the profit or loss as part of finance income. This method defers, as part
of interest income, all fee received between the parties to the contract that are an integral part of the effective interest
rate, all other premiums or discounts. Interest income on debt instruments at FVTPL calculated at nominal interest rate
is presented within ‘finance income’ line in profit or loss.
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
23
16 Income tax expense
(a) Components of income tax expense
Income tax expense recorded in profit or loss comprises the following:
In millions of Kazakhstani Tenge 2023 2022 Current income tax 157,610 118,853 Deferred income tax (9,603) (8,111) Total income tax expense 148,007 110,742
The income tax rate applicable to the majority of the Group’s profits in 2023 and 2022 is 20%.
(b) A reconciliation between the expected and the actual taxation charge is provided below:
In millions of Kazakhstani Tenge 2023 2022 Profit before tax 728,342 583,705 Theoretical tax charge at statutory tax rate of 20% 145,668 116,741 Prior periods adjustments of income tax 480 2,065 Transfer pricing adjustment 15,666 7,298 Withholding tax on dividend payments 539 677 Share of results of joint ventures and associates (19,677) (17,815) Other items 5,331 1,776 Income tax expense 148,007 110,742
The Group assesses compliance of sales transactions with transfer pricing requirements and makes additional
corporate income tax accruals on an annual basis, if necessary.
(c) Deferred taxes analysed by type of temporary difference
Differences between IFRS and statutory taxation regulations in Kazakhstan give rise to temporary differences between
the carrying amount of assets and liabilities for financial reporting purposes and their tax bases. The tax effect of the
movements in these temporary differences is detailed below at 20%.
Exchange differences arising on translation of Credited/ entities with 1 January (charged) to profit foreign func- In millions of Kazakhstani Tenge 2023 or loss tional currency 31 December 2023 Tax effect of deductible/(taxable) temporary differences Property, plant and equipment, intangible assets and mineral rights (119,042) 6,366 (2) (112,678) Accounts receivable (372) (1,828) - (2,200) Loans and borrowings 12 157 - 169 Accounts payable - 3,184 - 3,184 Provisions 24 1,354 14 1,392 Accrued liabilities on vacation payments and bonuses 2,267 352 (1) 2,618 Taxes 1,827 1,549 - 3,376 Inventories 32,419 (5,691) - 26,728 Other assets 247 (3,588) - (3,341) Other liabilities 325 7,748 - 8,073 (82,293) 9,603 11 (72,679) Recognised deferred tax asset 34,515 (727) 14 33,802 Recognised deferred tax liabilities (116,808) 10,330 (3) (106,481)
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
24
16 Income tax expense (continued)
Management estimates that investments in subsidiaries, associates and joint ventures will be recovered primarily
through dividends. Dividends from subsidiaries, associates and joint ventures are not taxable, accordingly the Group
did not recognise deferred tax on undistributed earnings from investments.
The tax effect of the movements in the temporary differences for the year ended 31 December 2022 is:
Exchange differences arising on translation of entities with Credited/ foreign 1 January (charged) to profit functional In millions of Kazakhstani Tenge 2022 or loss currency 31 December 2022 Tax effect of deductible/(taxable) temporary differences Property, plant and equipment, intangible assets and mineral rights (123,495) 4,442 11 (119,042) Accounts receivable (208) (164) - (372) Loans and borrowings 3 9 - 12 Provisions 1,572 (1,548) - 24 Accrued liabilities on vacation payments and bonuses 1,663 604 - 2,267 Taxes 1,509 318 - 1,827 Inventories 28,076 4,347 (4) 32,419 Other assets 158 88 1 247 Other liabilities 310 15 - 325 (90,412) 8,111 8 (82,293) Recognised deferred tax asset 30,689 3,818 8 34,515 Recognised deferred tax liabilities (121,101) 4,293 - (116,808)
In the context of the Group’s structure, tax losses of different Group companies may not be offset against current tax
liabilities and taxable profits of other Group companies and, accordingly, taxes may accrue even where there is a
consolidated tax loss. Therefore, deferred tax assets and liabilities are offset only when they relate to the same taxable
entity.
The Group has not recognised deferred tax assets in respect of unused tax loss carry forwards of Tenge 1,596 million
in 2023 (2022: Tenge 1,274 million) and excluded from the calculation the tax losses for the enterprises sold in 2023
with unrecognized tax losses. The tax loss carryforwards expire as follows:
In millions of Kazakhstani Tenge 2023 2022 2030 - 470 2031 470 804 2032 804 - 2033 322 - Total unrecognised deferred tax asset on tax losses 1,596 1,274
Material accounting policies and significant judgements
Current tax is the amount expected to be paid to, or recovered from, the taxation authorities in respect of taxable profits
or losses for the current and prior periods using tax rates enacted or substantively enacted at the reporting date, and
any adjustment in respect of previous years.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and
assets, and they relate to the same tax authority on the same taxable entity, if there is an intention to settle current tax
liabilities and assets on a net basis or tax assets and liabilities will be realised simultaneously.
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
25
16 Income tax expense (continued)
The Group’s uncertain tax positions are reassessed by management at the end of each reporting period. Liabilities are
recorded for income tax positions that are determined by management as more likely than not to result in additional
taxes being levied if the positions were to be challenged by the tax authorities. The assessment is based on the
interpretation of tax laws that have been enacted by the end of the reporting period, and any known court or other
rulings on such issues.
Liabilities for penalties, interest and taxes other than on income are recognised based on management’s best estimate
of the expenditure required to settle the obligations at the end of the reporting period.
17 Earnings per share
Basic earnings per share is calculated by dividing the profit or loss attributable to owners of the Company by the number
of ordinary shares in issue during the year (Note 30). The Company has no dilutive potential ordinary shares, therefore,
the diluted earnings per share equals the basic earnings per share. Earnings per share from continuing operations is
calculated as follows:
In millions of Kazakhstani Tenge 2023 2022 Profit for the year for the year attributable to owners of the Company (in millions of Kazakhstani Tenge) 419,184 348,048 Number of ordinary shares (in thousands) 259,357 259,357 Earnings per share attributable to the owners of the Company, basic and diluted (rounded to Tenge) 1,616 1,342
The Group issued bonds which are included in the official list of Kazakhstan Stock Exchange JSC (hereinafter - the
“KASE”). The Company is required to present information on the book value of one share calculated in accordance
with the KASE Listing Rules.
Book value per share is calculated as follows:
In millions of Kazakhstani Tenge 2023 2022 Total assets of the Group (in millions Tenge) 2,599,292 2,222,533 Intangible assets (in millions Tenge) (60,156) (59,159) Total liabilities of the Group (in millions Tenge) (591,025) (526,030) 1,948,111 1,637,344 Number of ordinary shares (in thousands) 259,357 259,357 Book value of one share (Tenge per share) 7,511 6,313
Material accounting policies and significant judgements
Earnings per share are determined by dividing profit or loss attributable to the Company's shareholders by the weighted
average number of participating shares outstanding during the reporting year, adjusted for stock splits.
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
26
18 Intangible assets
Licences and In millions of Kazakhstani Tenge patents Software Goodwill Other Total At 1 January 2022 Cost 2,524 13,466 54,953 3,055 73,998 Accumulated amortisation and impairment (1,345) (5,870) (6,459) (1,384) (15,058) Carrying value 1,179 7,596 48,494 1,671 58,940 Additions 136 345 - 908 1,389 Disposals (328) (784) - (259) (1,371) Amortisation charge (284) (875) - (110) (1,269) Other 1,026 (928) - 1,372 1,470 At 31 December 2022 Cost 3,069 11,321 54,953 4,819 74,162 Accumulated amortisation and impairment (1,340) (5,967) (6,459) (1,237) (15,003) Carrying value 1,729 5,354 48,494 3,582 59,159 Additions 187 596 - 1,279 2,062 Disposals (22) (1,064) - (15) (1,101) Amortisation charge (298) (982) - (115) (1,395) Other 37 1,262 - 132 1,431 At 31 December 2023 Cost 3,249 11,141 54,953 6,215 75,558 Accumulated amortisation and impairment (1,616) (5,975) (6,459) (1,352) (15,402) Carrying value 1,633 5,166 48,494 4,863 60,156
MC Ortalyk LLP, JV Akbastau JSC and Karatau LLP
Goodwill relates to prior period business combinations of MC Ortalyk LLP in the amount of Tenge 5,166 million, Karatau
LLP of Tenge 24,808 million and JV Akbastau JSC of Tenge 18,520 million. At least annually, goodwill is tested for
impairment at the level of a corresponding cash generating unit (the lowest levels for which there are separately
identifiable cash inflows that are largely independent of the cash inflows from other assets or groups of assets).
The Group has identified each mine (contract territory) as a separate cash-generating unit unless several mines are
technologically connected with single processing plant in which case the Group considers such mines as one cash-
generating unit. The carrying value of goodwill applicable to each of the entities was allocated to their respective cash
generating units, Central Mynkuduk mine (Central block) and separate blocks of Budenovskoye mine (Note 1) for MC
Ortalyk LLP and Karatau LLP, JV Akbastau JSC, respectively.
The recoverable amount was determined on a value in use basis, cash flows forecasts were based on approved
reserves, estimated production volumes, subsurface use contracts periods and a pre-tax discount rate of 18.59% for
2023 year (2022: 19.03%).
Production volumes are consistent with those agreed with the competent authority and independent consultant’s report
and are based on the production capacity of the cash-generating units. Key assumptions used in calculations include
forecast sales prices, production volumes. Sales prices used in developing forecasted cash flows were based on annual
spot and long-term base price projections (denominated in US Dollar per pound of uranium) published by UxC LLC in
the fourth quarter of 2023.
Production costs and capital expenditures are based on approved business plans for 2024-2028 and growth of 6.39%
which approximates long-term average inflation rates. The estimated values in use significantly exceed the carrying
amounts of the non-current assets of the three cash-generating units, including goodwill, and therefore even reasonably
possible changes in key assumptions would not lead to impairment losses being recognised.
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
27
19 Property, plant and equipment
Movements in the carrying amount of property, plant and equipment were as follows:
Machinery Const-Railway infra-and ruction in In millions of Kazakhstani Tenge Land structure Buildings equipment Vehicles Other progress Total At 1 January 2022 Cost 407 2,035 139,246 95,311 24,560 7,048 13,960 282,567 Accumulated depreciation and impairment - (1,035) (43,300) (48,232) (13,619) (4,226) (668) (111,080) Carrying amount 407 1,000 95,946 47,079 10,941 2,822 13,292 171,487 Additions 17 - 107 7,334 5,225 431 11,011 24,125 Transfers - 38 1,941 1,150 43 104 (3,276) - Depreciation charge - (89) (5,633) (6,742) (1,934) (732) - (15,130) Changes in estimate (Note 32) - - 8,630 585 - - - 9,215 Other - - 262 524 80 (1) (2,262) (1,397) At 31 December 2022 Cost 424 2,073 150,996 101,960 28,082 7,446 19,833 310,814 Accumulated depreciation and impairment - (1,124) (49,743) (52,030) (13,727) (4,822) (1,068) (122,514) Carrying amount 424 949 101,253 49,930 14,355 2,624 18,765 188,300 Additions 11 1 987 10,005 6,273 815 6,569 24,661 Transfers - - 1,999 3,892 151 52 (6,094) - Reclassification from mine development assets (Note 20) - - 2,803 - - - - 2,803 Depreciation charge - (91) (5,888) (7,559) (2,341) (827) - (16,706) Changes in estimate (Note 32) - - (1,685) (496) - - - (2,181) Other (31) - 158 (50) (14) 7 (1,500) (1,430) At 31 December 2023 Cost 404 2,074 154,903 113,170 34,051 8,136 18,576 331,314 Accumulated depreciation and impairment - (1,215) (55,276) (57,448) (15,627) (5,465) (836) (135,867) Carrying amount 404 859 99,627 55,722 18,424 2,671 17,740 195,447
At 31 December 2023, the Group had contractual capital expenditure commitments in respect of property, plant and
equipment of Tenge 3,966 million (2022: Tenge 5,310 million).
At 31 December 2023, the gross carrying value of fully depreciated property, plant and equipment still in use was
Tenge 38,006 million (2022: Tenge 34,870 million).
Depreciation and amortisation charged on long-term assets for the years ended 31 December are as follows:
In millions of Kazakhstani Tenge 2023 2022 Mine development assets 55,991 42,045 Mineral rights 28,612 28,237 Property, plant and equipment 16,706 15,130 Intangible assets 1,395 1,269 Right-of-use assets 16 19 Total accrued depreciation and amortisation 102,720 86,700
Depreciation and amortisation charged to profit or loss for the years ended 31 December are as follows:
In millions of Kazakhstani Tenge 2023 2022 Cost of sales 92,824 79,037 General and administrative expenses 2,059 2,110 Distribution expenses 93 56 Other expenses 186 175 Total depreciation and amortisation charged to profit or loss 95,162 81,378
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
28
19 Property, plant and equipment (continued)
Material accounting policies and significant judgements
Property, plant and equipment are stated at cost, less accumulated depreciation and provision for impairment, where
required. The individual significant parts of an item of property, plant and equipment (components) with useful lives
different from the useful lives of the given asset as a whole are depreciated individually, applying depreciation rates
reflecting their anticipated useful lives.
(i) Depreciation
Land is not depreciated. Depreciation of items within buildings category that are used in extraction of uranium and its
preliminary processing is charged on a unit-of-production (UoP) method in respect of items for which this basis best
reflects the pattern of consumption. Depreciation on other items of property, plant and equipment is calculated using
the straight-line method to allocate their cost to their residual values over their estimated useful lives:
Useful lives in years Buildings 10 to 50 Machinery and equipment 3 to 50 Vehicles 3 to 10 Other 3 to 20
Each item’s estimated useful life depends on its own useful life limitations and/or term of a subsurface use contract and
the present assessment of economically recoverable reserves of the mine property at which the item is located. Since
2017, the Group uses reserve reports prepared by an independent consultant (Note 21).
20 Mine development assets
Site restoration Ion exchange In millions of Kazakhstani Tenge Field preparation costs resin Total At 1 January 2022 Cost 317,560 13,532 18,757 349,849 Accumulated depreciation and impairment (200,129) (4,457) (6,590) (211,176) Carrying amount 117,431 9,075 12,167 138,673 Third-party services 43,649 - - 43,649 Material used 16,238 - 966 17,204 Transfer from property, plant and equipment 2,789 - - 2,789 Depreciation charge (40,940) (590) (515) (42,045) Changes in accounting estimates (Note 32) 693 1,211 - 1,904 At 31 December 2022 Cost 380,929 14,743 19,723 415,395 Accumulated depreciation and impairment (241,069) (5,047) (7,105) (253,221) Carrying amount 139,860 9,696 12,618 162,174 Third-party services 43,244 - - 43,244 Material used 36,609 - 741 37,350 Transfer from/to property, plant and equipment 1,584 (1,633) - (49) Transfer from Exploration and Evaluation Assets (Note 22) 2,716 - - 2,716 Disposals (9) - - (9) Depreciation charge (54,350) (1,037) (604) (55,991) Depreciation on disposals 9 - - 9 Changes in accounting estimates (Note 32) (1,811) (417) - (2,228) At 31 December 2023 Cost 463,262 12,693 20,464 496,419 Accumulated depreciation and impairment (295,410) (6,084) (7,709) (309,203) Carrying amount 167,852 6,609 12,755 187,216
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
29
20 Mine development assets (continued)
Estimated site restoration costs are capitalised when the Group recognises a provision for site restoration. The carrying
value of the provision and site restoration assets is reassessed at each reporting period end (Notes 32).
Material accounting policies and significant judgements
Mine development assets are stated at cost, less accumulated depreciation and provision for impairment, where
required. Mine development assets comprise reclassified exploration and evaluation costs, the capitalised costs of
pump-in and pump-out well drilling, main external tying of the well with surface piping, equipment, measuring
instruments, ion-exchange resin, estimated site restoration, acid costs and other development costs. Under existing
production method, the wellfields are progressively established over the orebody as uranium is depleted by blocks.
Mine development assets are amortised at the mine level using the unit-of-production method based on carrying value
of the asset. Unit-of-production rates are based on proved and probable reserves for reclassified exploration and
evaluation assets, while capitalised development costs that are amortised based on ready for extraction volumes.
Ready for extraction volumes represent a portion of proved and probable reserves that management estimates to
extract from a mine as a result of available capitalised costs.
The estimate of proved and probable reserves is based on reserve reports which are an integral part of each subsoil
use contract. These reserve reports are incorporated into feasibility models which are approved by the government and
detail the total proven reserves and estimated scheduled extraction by year. Since 2017, the Group uses reserve
reports prepared by an independent consultant (Note 21).
In 2023 the Group unified depreciation method for capitalised developments costs across all mining entities because
technological blocks into which mines are conventionally divided (and based on which depreciation was calculated by
some entities) represent in fact one geological block and uranium production solution creates flows inside deposit as a
result of which production at some technological blocks results in over or underproduction, and the cost of asset is not
depreciated correctly.
Impairment of non-financial assets (estimates)
Assets related to uranium mines include property, plant and equipment, mine development assets, mineral rights,
exploration and evaluation assets, investments in associates, investments in joint ventures, and other investments.
At the end of each reporting period, management assesses whether there are any impairment indicators of individual
assets (or cash-generating units). If any such indicators exist, management estimates the recoverable amount, which
is determined as the higher of an asset’s fair value less costs to sell and its value in use. An impairment loss is
recognised for the amount by which carrying amount exceeds recoverable amount.
The calculation of value in use requires management to make estimates regarding the Group’s future cash flows. The
estimation of future cash flows involves significant estimates and assumptions regarding commodity prices (uranium
and other products), the level of production and sales, discount rates, growth rates, operating costs and other factors.
The impairment test and calculations are based on assumptions that are consistent with the Group’s business plans.
Due to its subjective nature, these estimates could differ from future actual results of operations and cash flows, any
such difference may result in impairment in future periods which would decrease the carrying value of the respective
asset.
As of 31 December 2023 management did not find any impairment indicators of assets (cash generating units)
associated with the production of uranium products.
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
30
21 Mineral rights
In millions of Kazakhstani Tenge At 1 January 2022 Cost 649,452 Accumulated amortisation and impairment (96,495) Carrying amount 552,957 Additions 420 Amortisation for the period (28,237) At 31 December 2022 Cost 649,872 Accumulated amortisation and impairment (124,732) Carrying amount 525,140 Additions Changes in accounting estimates (Note 32) (279) Amortisation for the period (28,612) At 31 December 2023 Cost 649,593 Accumulated amortisation and impairment (153,344) Carrying amount 496,249
Material accounting policies and significant judgements
Mineral rights are stated at cost, less accumulated depreciation and provision for impairment, where required. Mineral
rights acquired as part of business combinations are recognised at fair value. The capitalised cost of acquisition of
mineral rights comprises subscription bonus, commercial discovery bonus, the cost of subsurface use rights and
capitalised historical costs. The Group is obliged to reimburse historical costs incurred by the state in respect of mining
rights prior to licence or subsoil use contracts being issued. These historical costs are recognised as part of the
acquisition cost with a corresponding liability equal to the present value of payments made during the licence period or
subsoil use contract.
Mineral rights are amortised using unit-of-production method based upon proved and probable reserves commencing
when uranium first starts to be extracted.
The estimate of proved and probable reserves is based on reserve reports, which are an integral part of each subsoil
use contract. These reserve reports are incorporated into feasibility models, which are approved by the government
and detail the total proven reserves and estimated scheduled extraction by year. Since 2017, the Group uses reserve
reports prepared by an independent consultant.
Ore reserves (estimates)
Uranium reserves are a critical component of the Group’s projected cash flow estimates that are used to assess the
recoverable values of relevant assets as well as depreciation and amortisation expense. Estimates of uranium reserves
also determine the life of mines, which in turn affect asset retirement obligation calculations.
On an annual basis the Group engages an independent consultant to assess the Group’s ore reserves and mineral
resources in accordance with the Australasian Code for reporting on geological exploration works, mineral resources
and ore reserves (hereinafter - JORC Code). Independent assessment of reserves and resources was carried out as
at 31 December 2023 and 31 December 2022. The consultant reviewed all key information upon which the reported
mineral resource and ore reserve statements for the mining assets of the Group are based.
The consultant’s reports contain an assessment of the tons of uranium contained in ore which has the potential to be
extracted by the existing and planned mining operations (the mineral resource), and also the tons of uranium contained
in ore currently planned to be extracted as envisaged by the respective life-of-mine plans (the ore reserve). The Group
used the ore reserves data for calculation of impairment of long-term assets, unit of production depreciation for each
of the Group’s mines as well as asset retirement obligation calculations.
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
31
22 Exploration and evaluation assets
Tangible Intangible In millions of Kazakhstani Tenge assets assets Total At 1 January 2022 21,853 2,525 24,378 Additions 2,393 - 2,393 Changes in accounting estimates (228) - (228) At 31 December 2022 24,018 2,525 26,543 Additions 2,118 447 2,565 Transfer to Mine Development Assets (Note 20) (2,716) - (2,716) Changes in accounting estimates (Note 32) (373) - (373) At 31 December 2023 23,047 2,972 26,019
Material accounting policies and significant judgements
Exploration and evaluation assets are measured at cost less provision for impairment, where required. The Group
classifies exploration and evaluation assets as tangible or intangible according to the nature of the assets acquired.
Exploration and evaluation assets comprise the capitalised costs incurred by the Group prior to proving that viable
production is possible and include geological and geophysical costs, the costs of exploratory wells and directly
attributable overheads associated with exploration activities.
The decision to enter or renew a subsoil use contract after the expiration of the exploration and appraisal period is
subject to the success of the exploration and appraisal of mineral resources and the Group's decision to proceed to the
production (development) stage.
Tangible exploration and evaluation assets are transferred to mine development assets upon demonstration of
commercial viability of uranium production and amortised using unit-of-production method based upon proved reserves.
Once commercial reserves (proved or commercial reserves) are found, intangible exploration and evaluation assets
are transferred to mineral rights. Accordingly, the Group does not amortise exploration and evaluation assets before
commercial reserves (proved or commercial reserves) are found. If no commercial reserves are found, exploration and
evaluation assets are expensed.
Costs associated with activities undertaken prior to exploration such as design, technical and economical assessments
are expensed as incurred.
23 Investments in associates
The table below summarises the movements in the carrying amount of the Group’s investment in associates:
In millions of Kazakhstani Tenge 2023 2022 Carrying value at 1 January 154,124 116,892 Share of results of associates 76,049 75,736 Dividends received from associates (77,907) (38,504) Carrying value at 31 December 152,266 154,124
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
32
23 Investments in associates (continued)
The Group’s interests in its principal associates were as follows:
2023 2022 % ownership % ownership Country of interest held Carrying value in interest held Carrying value incorpora-/ % of voting millions of / % of voting in millions of tion Principal activities rights Tenge rights Tenge Extraction, processing and export of uranium JV KATCO LLP Kazakhstan products 49.00% 97,501 49.00% 113,920 JV South Mining Extraction, processing Chemical and export of uranium Company LLP Kazakhstan products 30.00% 29,768 30.00% 16,147 Extraction, processing JV Zarechnoye and export of uranium JSC Kazakhstan products 49.98% 18,671 49.98% 18,197 Extraction, processing and export of uranium Kyzylkum LLP Kazakhstan products 50.00% 5,351 50.00% 5,017 Production of sulphuric SSAP LLP Kazakhstan acid 9.89% 877 9.89% 742 Zhanakorgan-Transit LLP Kazakhstan Transportation 40.00% 98 40.00% 101 JV Rusburmash Geological exploration, Kazakhstan LLP Kazakhstan drilling services 49.00% - 49.00% - Total investments in associates 152,266 154,124
According to amendments to the Partnership Agreement, the Group also became entitled to an additional 11% of
JV KATCO LLP annual profit allocation starting from 2022 and until the end of JV KATCO LLP operations, with the
ownership interest being unchanged.
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
33
23 Investments in associates (continued)
Summarised financial information for 2023 in respect of each of the Group’s material associates is set out below. The summarised financial information below represents amounts
shown in the associates’ financial statements prepared in accordance with IFRS, adjusted by the Group for equity accounting purposes.
JV South Mining In millions of Kazakhstani Tenge Kyzylkum LLP JV KATCO LLP Chemical Company LLP JV Zarechnoye JSC Other Total Current assets 5,791 88,943 111,031 34,598 4,774 245,137 Including cash 819 41,771 37,133 4,913 1,043 85,679 Non-current assets 11,922 166,440 47,603 23,847 11,686 261,498 Total assets 17,713 255,383 158,634 58,445 16,460 506,635 Current liabilities (4,146) (14,872) (29,370) (5,872) (8,833) (63,093) Including financial liabilities net of trade and other accounts payable and provisions (2,558) (119) (3,208) - (982) (6,867) Incl. loan from the Company (2,558) - - - - (2,558) Non-current liabilities (1,328) (22,037) (8,850) (5,476) (422) (38,113) Including financial liabilities net of trade and other accounts payable and provisions - (559) (24) - - (583) Total liabilities (5,474) (36,909) (38,220) (11,348) (9,255) (101,206) Net assets 12,239 218,474 120,414 47,097 7,205 405,429 Group’s share of net assets of associates 6,119 107,053 36,124 23,539 (346) 172,489 Unrealised profit - (16,881) (6,356) (4,910) - (28,147) Additional allocation of profits - 7,261 - - - 7,261 Other (768) - - 42 1,239 513 Goodwill - 68 - - 82 150 Carrying value of investments in associates 5,351 97,501 29,768 18,671 975 152,266 Total revenue 13,587 147,448 199,667 54,796 17,790 433,288 Depreciation and amortisation (689) (14,614) (9,577) (6,604) (387) (31,871) Finance income 489 1,523 582 227 109 2,930 Finance costs (474) (2,064) (4,703) (460) (218) (7,919) Foreign exchange gain/(loss) 80 (1,546) (4,242) (214) (1) (5,923) (Impairment losses)/reversal of impairment losses 17 34 12 3 (1) 65 Income tax (130) (19,984) (30,435) (6,422) (380) (57,351) Profit for the year 668 66,006 112,699 24,685 99 204,157 Total comprehensive income 668 66,006 112,699 24,685 99 204,157 Unrealised profit - (6,288) 362 (4,291) - (10,217) Share in accumulated unrecognized losses - - - - 889 889 Share of result of associates 334 33,315 34,171 8,046 182 76,049 Dividends received - 49,734 20,551 7,573 49 77,907
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
34
23 Investments in associates (continued)
Summarised financial information for 2022 in respect of each of the Group’s material associates is set out below. The summarised financial information below represents amounts
shown in the associates’ financial statements prepared in accordance with IFRS, adjusted by the Group for equity accounting purposes.
JV South Mining In millions of Kazakhstani Tenge Kyzylkum LLP JV KATCO LLP Chemical Company LLP JV Zarechnoye JSC Other Total Current assets 6,757 132,298 77,223 26,011 2,515 244,804 Including cash 5 97,300 13,855 7,147 338 118,645 Non-current assets 15,619 132,022 42,114 19,593 11,493 220,841 Total assets 22,376 264,320 119,337 45,604 14,008 465,645 Current liabilities (6,766) (8,822) (33,059) (4,068) (5,099) (57,814) Including financial liabilities net of trade and other accounts payable and provisions (3,397) (82) (21,920) (32) (894) (26,325) Incl. loan from the Company (3,397) - - (3,397) Non-current liabilities (4,038) (20,139) (10,060) (3,973) (1,308) (39,518) Including financial liabilities net of trade and other accounts payable and provisions (2,852) - (3,286) - (835) (6,973) Incl. loan from the Company (2,852) - - - - (2,852) Total liabilities (10,804) (28,961) (43,119) (8,041) (6,407) (97,332) Net assets 11,572 235,359 76,218 37,563 7,601 368,313 Group’s share of net assets of associates 5,786 115,326 22,865 18,774 390 163,141 Unrealised profit - (10,592) (6,719) (619) - (17,930) Additional allocation of profits - 9,118 - - - 9,118 Other (768) - - 42 371 (355) Goodwill - 68 - - 82 150 Carrying value of investments in associates 5,018 113,920 16,146 18,197 843 154,124 Total revenue 10,572 146,304 131,039 44,538 13,757 346,210 Depreciation and amortisation (682) (12,262) (6,328) (6,218) (643) (26,133) Finance income 162 127 655 109 87 1,140 Finance costs (435) (1,282) (1,393) (347) (314) (3,771) Foreign exchange gain/(loss) (642) 4,931 (1,331) (1,288) - 1,670 (Impairment losses)/reversal of impairment losses (2) 180 26 1 (1) 204 Income tax (368) (24,035) (21,706) (5,073) (338) (51,520) Profit for the year (1,039) 82,891 76,114 18,939 (567) 176,338 Total comprehensive income (1,039) 82,891 76,114 18,939 (567) 176,338 Unrealised profit - (2,141) (4,307) 777 - (5,671) Share in accumulated unrecognized losses - - - - 519 519 Share of result of associates (520) 47,593 18,528 10,242 (107) 75,736 Dividends received 1,080 18,796 15,576 3,013 39 38,504
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
35
24 Investments in joint ventures
The table below summarises the movements in the carrying amount of the Group’s investment in joint ventures:
In millions of Kazakhstani Tenge 2023 2022 Carrying value at 1 January 44,208 37,803 Share of results of joint ventures 22,336 13,340 Dividends received from joint ventures (9,959) (6,935) Carrying value at 31 December 56,585 44,208
The Group’s interests in its principal joint ventures were as follows:
2023 2022 Country of incorpora-% ownership Carrying value in % ownership Carrying value in tion Principal activity interest held millions of Tenge interest held millions of Tenge Extraction, processing and export of uranium Semizbay-U LLP Kazakhstan products 51.00% 31,318 51.00% 28,252 SKZ-U LLP Kazakhstan Production of sulphuric acid 49.00% 8,377 49.00% 6,493 Extraction, processing and export of uranium JV Budenovskoe LLP Kazakhstan products 51.00% 7,169 51.00% 5,428 Production of fuel assemblies and their Ulba-FA LLP Kazakhstan components 51.00% 6,634 51.00% 957 Transfer and distribution of Uranenergo LLP Kazakhstan electricity, grid operations 79.23% 3,087 79.23% 3,078 JV UKR TVS CJSC Ukraine Production of nuclear fuel 33.33% - 33.33% - Total investments in joint ventures 56,585 44,208
Uranenergo LLP
Management concluded that the Group does not have the ability to exercise control over Uranenergo LLP. Accordingly,
this investment is classified as an investment in a joint venture.
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
36
24 Investments in joint ventures (continued)
Summarised financial information on respect of the Group’s material joint ventures is set out below. The summarised financial information below represents amounts shown in the
joint ventures’ financial statements prepared in accordance with IFRS, adjusted by the Group for equity accounting purposes.
Semizbay-U LLP JV Budenovskoe LLP Ulba-FA LLP Other Total In millions of Kazakhstani Tenge 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 Current assets 52,012 37,976 20,593 153 241,991 121,989 4,290 5,121 318,886 165,239 Including cash 29,571 18,725 11,885 114 739 19,791 338 1,164 42,533 39,794 Non-current assets 31,061 25,111 43,310 28,801 20,756 26,142 24,445 24,808 119,572 104,862 Total assets 83,073 63,087 63,903 28,954 262,747 148,131 28,735 29,929 438,458 270,101 Current liabilities (11,512) (6,153) (11,936) (1,079) (213,927) (92,883) (4,095) (9,675) (241,470) (109,790) Including financial liabilities net of trade and other accounts payable and provisions (3,646) (66) (6,617) (31) (11,318) (4,147) - (3,219) (21,581) (7,463) Non-current liabilities (7,677) (6,100) (23,759) (5,320) (35,812) (53,373) (2,886) (2,354) (70,134) (67,147) Including financial liabilities net of trade and other accounts payable and provisions - - (22,633) (5,123) (20,182) (30,818) - - (42,815) (35,941) Total liabilities (19,189) (12,253) (35,695) (6,399) (249,739) (146,256) (6,981) (12,029) (311,604) (176,937) Net assets 63,884 50,834 28,208 22,555 13,008 1,875 21,754 17,900 126,854 93,164 Group’s share of net assets of joint ventures 32,581 25,925 14,387 11,503 6,634 957 12,104 10,213 65,706 48,598 Goodwill 4,105 4,105 - - - - (1,374) (1,374) 2,731 2,731 Impairment losses - - - - - - (21) (21) (21) (21) Other 131 149 (1,258) (115) - - 755 753 (372) 787 Unrealised gain - - (5,960) (5,960) - - - - (5,960) (5,960) Unrealised profit (5,499) (1,927) - - - - - - (5,499) (1,927) Carrying value of investments in joint ventures 31,318 28,252 7,169 5,428 6,634 957 11,464 9,571 56,585 44,208 Total revenue 70,757 55,660 8,542 - 114,004 22,929 17,072 15,708 210,375 94,297 Depreciation and amortisation (7,994) (5,758) (245) (13) (1,160) (292) (1,449) (1,342) (10,848) (7,405) Finance income 712 498 150 4 1,300 35 50 11 2,212 548 Finance costs (838) (501) (1,139) (252) (1,423) (1,489) (51) (119) (3,451) (2,361) Foreign exchange gain/(loss) (208) 807 (176) (98) - (2,374) 110 (455) (274) (2,120) Impairment losses (218) (387) 10 (40) - (1) (15) (5) (223) (433) Income tax (8,506) (6,243) (1,164) (149) (317) (425) (1,025) (792) (11,012) (7,609) Profit/(loss) for the year 32,542 25,215 3,413 (1,261) 11,132 (3,428) 3,857 3,098 50,944 23,624 Other comprehensive income/(loss) - - - - - - - - - - Total comprehensive income/(loss) 32,542 25,215 3,413 (1,261) 11,132 (3,428) 3,857 3,098 50,944 23,624 Unrealised profit (3,572) 1,382 - - - - - - (3,572) 1,382 Share of results of joint ventures 13,025 14,242 1,741 (643) 5,677 (1,749) 1,893 1,490 22,336 13,340 Dividends received 9,959 6,935 - - - - - - 9,959 6,935
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
37
25 Accounts receivable
In millions of Kazakhstani Tenge 2023 2022 Trade accounts receivable 290,094 251,697 Trade accounts receivable from related parties 57,917 7,024 Total gross trade accounts receivable 348,011 258,721 Provision for impairment of trade receivables (Note 11) (15,901) (87) Provision for impairment of trade receivables from related parties (74) (3) Total trade accounts receivable 332,036 258,631 Other accounts receivable 98,374 12,389 Other accounts receivable from related parties 115 81 Total gross other accounts receivable 98,489 12,470 Provision for impairment of other receivables (204) (180) Provision for impairment of other receivables from related parties (2) - Total other accounts receivable 98,283 12,290 Total accounts receivable 430,319 270,921
Increase in accounts receivable balance is explained by:
• Increase of trade accounts receivable in line with revenue increase,
• Increase in sales volumes to Ulba-FA LLP,
• Other receivables expected under swap transactions (Note 7).
Material accounting policies and significant judgements
Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course of
business. They are generally due within 12 months period and are therefore all classified as current. Trade receivables
are recognised initially at the amount of consideration that is unconditional, unless they contain significant financing
components, when they are recognised at fair value. The Group holds the trade receivables with the objective of
collecting the contractual cash flows and therefore measures them subsequently at amortised cost using the effective
interest method. Details about the Group’s impairment policies and the calculation of the loss allowance are provided
in Note 38.
Other receivables are recognised initially at fair value and are subsequently carried at amortised cost using the effective
interest method. Those are mainly current receivables other than those for goods sold or services performed. As of
31 December 2023 other receivables include amounts from swap operations (Note 7).
Information on the Group’s exposure to credit and currency risks and provision for impairment for accounts receivable
is disclosed in Note 38.
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
38
26 Other financial assets
In millions of Kazakhstani Tenge 2023 2022 Non-current assets Restricted cash 30,588 29,044 Investment in ANU Energy 30,667 17,066 Long-term debt securities 12,257 9,202 Loans to related parties - 2,536 Other 2,361 1,523 Total other non-current assets 75,873 59,371 Current assets Short-term debt securities 46,276 72 Loans to related parties 2,502 3,491 Restricted cash 191 15,923 Term deposit 8 930 Other 430 262 Total other current assets 49,407 20,678
Restricted cash
In accordance with the terms of its subsoil use contracts, the Group transfers cash to long-term bank deposits to finance
future site restoration activities. As at 31 December 2023 the balance of restricted cash held in long-term bank deposits
related to financing of future site restoration activities was Tenge 30,588 million (2022: Tenge 29,044 million).
At December 31, 2022, current restricted cash balance includes blocked payments of US Dollars 32.3 million
(equivalent to Tenge 14,956 million), which were returned to the Group on January 30, 2023 in the amount of Tenge
14,884 million (including foreign exchange differences).
Investments in ANU Energy
On 22 November 2021 the Group invested US Dollar 24.25 million (equivalent to Tenge 12,368 million) in shares of
ANU Energy OEIC Ltd together with other state-owned entities and entities under common control of SWF Samruk-
Kazyna JSC in equal ownership shares of 32.7%. The purpose of ANU Energy OEIC Ltd. is to store physical uranium
as a long-term investment. Management of ANU Energy OEIC Ltd. is performed by a third party in accordance with
trust management agreement. The Group recognises investment at fair value through profit or loss. The fair value is
determined based on the fair value of uranium spot prices (Note 39).
The Group has recognised gain from revaluation of other investments of Tenge 13,658 million (2022:
Tenge 4,699 million) (Note 15). As of 31 December 2023 the fair value of investment in ANU Energy OEIC Ltd. was
Tenge 30,667 million (2022: Tenge 17,066 million).
Debt securities
On May 12, 2022, in order to diversify its treasury portfolio, the Group invested in Eurobonds issued by Development
Bank of Kazakhstan JSC, in the amount of 19.9 million US Dollars, or Tenge 8,804 million with a maturity of 3 years
and a coupon rate of 5.75%. The bonds are measured at amortised cost. On December 8, 2023 the Group invested in
bonds issued by the Eurasian Development Bank in the amount of US Dollars 7.1 million or Tenge 3,259 million with a
maturity of 3 years and a coupon rate of 5.72%. Bonds are valued at amortised cost. As at December 31, 2023, the
amount of long-term investments is equal to Tenge 12,257 million including foreign exchange differences.
As at December 31 2023 current debt securities include Tenge 46,276 million of investment in US Treasury bills with
84 days duration.
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
39
27 Other non-financial assets
In millions of Kazakhstani Tenge 2023 2022 Non-current Long-term inventories 12,226 7,299 VAT recoverable 6,253 8,725 Advances for non-current assets 3,397 1,782 Investment property 2,010 2,046 Prepaid expenses 692 789 Other assets to related parties 291 415 Other assets 102 223 Total other non-current assets 24,971 21,279 Current Advances for goods and services 11,722 11,085 Prepaid expenses 2,618 2,059 Other assets to related parties 2,774 3,834 Prepaid insurance 623 1,309 Prepaid taxes other than income tax 221 443 Other assets 1,440 544 Total other current assets 19,398 19,274
Value added tax
Value added tax (VAT) related to sales is payable to the tax authorities when goods are shipped, or services are
rendered. Purchase VAT can be offset against sales VAT upon the receipt of a tax invoice from a supplier. Tax
legislation allows the settlement of VAT on a net basis. Accordingly, VAT related to sales and purchases unsettled at
the reporting date is stated in the consolidated statements of financial position on a net basis separately for each
consolidated entity.
As at 31 December 2023, VAT recoverable by the Group amounted to Tenge 146,450 million (2022:
Tenge 62,389 million). The Group expects that this amount will be confirmed for return by tax authorities in the first half
of 2024. VAT confirmed by tax audits is subject to refund from the budget by transfer to a current account or by offset.
Recoverable VAT is classified as non-current if its settlement is not expected within one year after the reporting period.
Non-current VAT is not discounted.
Material accounting policies and significant judgements
Advances are carried at cost less provision for impairment. Advances are classified as non-current when the goods or
services relating to the prepayment are expected to be obtained after one year, or when the advances relate to an
asset which will itself be classified as non-current upon initial recognition. Advances for assets are transferred to the
carrying amount of the asset once the Group has obtained control of the asset and it is probable that future economic
benefits associated with the asset will flow to the Group.
Other advances are written off to profit or loss when the goods or services relating to the prepayments are received. If
there is an indication that the assets, goods or services relating to an advance will not be received, the carrying value
of the advance is written down accordingly and a corresponding impairment loss is recognised in profit or loss for the
year. Non-current advances are not discounted.
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
40
28 Inventories
In millions of Kazakhstani Tenge 2023 2022 Finished goods and goods for resale 331,494 296,833 Including uranium products 328,015 295,051 Work-in-process 62,496 54,016 Raw materials 26,451 34,831 Other materials 2,793 7,486 Fuel 1,800 1,488 Spare parts 1,233 989 Provision for obsolescence and write-down to net realisable value (2,953) (3,022) Total inventories 423,314 392,621
Movements in the provision for obsolescence are as follows:
In millions of Kazakhstani Tenge 2023 2022 Balance at 1 January (3,022) (3,250) Reversal of provision during the year 302 1,011 Inventory write off during the year 534 77 Accrual of provision during the year (767) (821) Translation of foreign currency - (39) Balance at 31 December (2,953) (3,022)
Inventories are recorded at the lower of cost and net realisable value. The cost of inventory is determined on the
weighted average basis.
29 Cash and cash equivalents
In millions of Kazakhstani Tenge 2023 2022 Demand deposits 108,717 38,274 Current bank accounts 93,701 131,260 Cash in the form of reverse repurchase transactions 9,506 - Cash in hand 4 14 Provision for impairment (16) (12) Total cash and cash equivalents 211,912 169,536
Significant non-cash transactions include settlement of cash transfers with Uranium Enrichment Center JSC for
Tenge 47,862 million (Note 7).
Material accounting policies and significant judgements
Cash and cash equivalents include cash in hand, deposits held at call with banks, and bank deposits with original
maturities of three months or less. Cash and cash equivalents are carried at amortised cost because: (i) they are held
for collection of contractual cash flows and those cash flows represent SPPI, and (ii) they are not designated at FVTPL.
Restricted balances are excluded from cash and cash equivalents. Balances restricted from being exchanged or used
to settle a liability for at least twelve months after the reporting period are included in other non-current assets.
Cash and cash equivalents also include transactions under reverse repurchase transaction with highly liquid
government securities received as a pledge with the agreement to sell them within 1 to 30 days. Reverse repo
transactions are readily convertible to cash and cash equivalents and are subject to insignificant risk of changes in
value.
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
41
30 Share capital
At 31 December 2023 the total number of authorised and paid ordinary shares is 259,356,608 (2022: 259,356,608) of
which 75% is owned by SWF Samruk-Kazyna JSC and 25% of the shares/GDRs are freely floated with listing on the
Astana International Exchange (AIX) and the London Stock Exchange (LSE). One GDR represents a share in one
share. Each ordinary share carries the right to one vote. Registered share capital is Tenge 37,051 million.
Dividends declared and paid during the year were as follows:
In millions of Kazakhstani Tenge 2023 2022 Dividends payable at 1 January - - Dividends declared during the year 200,970 227,388 Dividends paid during the year (200,970) (227,388) Dividends payable at 31 December - - Dividends declared during the year per share, in Tenge 775 877
Material accounting policies and significant judgements
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown
in equity as a deduction, net of tax, from the proceeds. Any excess of the fair value of consideration received over the
par value of shares issued is recorded as share premium in equity. Additional paid-in capital primarily represents capital
contributions made by non-controlling interests in excess of their ownership.
31 Loans and borrowings
In millions of Kazakhstani Tenge 2023 2022 Non-current Bonds - 83,300 Total non-current loans and borrowings - 83,300 Current Promissory notes issued 3,506 7,002 Bonds 82,746 24,016 Bank loans - 23,953 Total current loans and borrowings 86,252 54,971 Total loans and borrowings 86,252 138,271
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
42
31 Loans and borrowings (continued)
Information about the Group’s loans and borrowings is presented as follows:
In millions of Kazakhstani Tenge Currency Maturity 2023 2022 Bank loans Fortebank JSC US Dollar 2023 - 23,202 Halyk Bank JSC Tenge 2023 - 751 Total bank loans - 23,953 Bonds Bonds US Dollar 2024, 2023 82,746 107,316 Total bonds 82,746 107,316 Promissory notes issued Kyzylkum LLP Tenge on demand 3,506 7,002 Total promissory notes issued 3,506 7,002
The company placed US Dollar-indexed bonds on 27 September 2019 with a maturity of 27 October 2024 and a coupon
of 4% per annum. The nominal value of one bond is Tenge 1,000, total volume is 70 million.
Promissory notes were issued by a subsidiary of the Group JV Khorasan-U LLP in December 2014 to repay amounts
owing for mine development assets. According to the terms, the promissory notes are payable on demand at an interest
rate of 0.1%. As at 31 December 2023, the right of claim under these promissory notes belongs to Kyzylkum LLP, an
associate of the Group (Note 6).
As at 31 December 2022, current bank loans included loans from Forte Bank JSC in the amount of
Tenge 23,202 million and Halyk Bank of Kazakhstan JSC in the amount of Tenge 751 million. Also, during the reporting
period, the Group received a loan from Forte bank JSC in the amount of Tenge 22,358 million.
Bank loans that were received to cover short-term liquidity shortages, were repaid as at the reporting date and the
repayment amount was Tenge 46,808 million. Additionally, the Group made a partial repayment of promissory notes in
the amount of Tenge 3,500 million and bonds in the amount of Tenge 23,217 million.
The Group’s loans and borrowings were unsecured. In 2023, the Group’s weighted average interest rate on fixed
interest rate loans was 3.81% (2022: 3.62%).
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
43
31 Loans and borrowings (continued)
Reconciliation of debt
The table below shows an analysis of the debt amount and changes in the Group’s liabilities arising from financing
activities for each of the periods presented:
Loans and In millions Kazakhstani Tenge borrowings Lease liabilities Total Debt at 31 December 2021 89,017 291 89,308 Proceeds from loans and borrowings 70,905 - 70,905 Foreign currency translation 4,760 (2) 4,758 Interest accrued 3,689 20 3,709 Repayment (26,555) (162) (26,717) Interest paid (3,545) (25) (3,570) Other non-cash changes - 51 51 Debt at 31 December 2022 138,271 173 138,444 Proceeds from loans and borrowings 22,358 103 22,461 Foreign currency translation (749) (4) (753) Interest accrued 3,753 17 3,770 Repayment (73,525) (42) (73,567) Interest paid (3,856) (17) (3,873) Other non-cash changes - (105) (105) Debt at 31 December 2023 86,252 125 86,377
Material accounting policies and significant judgements
Borrowings are recognised initially at fair value, net of transaction costs incurred and are subsequently carried at
amortized cost using the effective interest method.
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
44
32 Provisions
Compensation for occupational Environment In millions of Kazakhstani Tenge diseases protection Site restoration Other Total At 1 January 2022 Non-current 129 1,261 30,725 77 32,192 Current 67 96 706 - 869 Total 196 1,357 31,431 77 33,061 Provision for the year 45 28 - 197 270 Transfers - 77 - (44) 33 Unwinding of discount 19 128 2,745 - 2,892 Provision used (61) (10) - - (71) Change in estimates - 7,811 3,940 45 11,796 At 31 December 2022 Non-current 133 9,268 34,074 - 43,475 Current 66 123 4,042 275 4,506 Total 199 9,391 38,116 275 47,981 Provision for the year 17 204 - 16,228 16,449 Transfers - - - 2,380 2,380 Unwinding of discount 23 946 3,884 - 4,853 Provision used (63) (47) (265) (11,564) (11,939) Change in estimates - (1,768) (3,635) (278) (5,681) At 31 December 2023 Non-current 110 8,604 33,886 2,100 44,700 Current 66 122 4,214 4,941 9,343 Total 176 8,726 38,100 7,041 54,043
Site restoration provision
The nominal cost of site restoration provision as at 31 December 2023 is Tenge 100,955 million (2022: Tenge 84,209
million). The amount of provision for restoration of mine sites was calculated using current prices (the prices effective
at the reporting date) for expenditures to be incurred and then inflated using the forecast inflation rate effective for the
period until the settlement of restoration.
The change in provision is explained by the updated estimate of radioactive waste disposal amount based on tests
performed across all Group mines on pumping and production wells, which resulted in the decrease of the nominal
amount. Management believes that such approach gives a more precise information. The natural increase of provision
due to inflation and additional operating activities during the year was partially offset by the increase in discount rates.
The amount of the provision for environment protection is mainly associated with Ulba Metallurgical Plant JSC. The
nominal cost of restoration of liquidation facilities As at 31 December 2023 is Tenge 138,724 million (2022:
Tenge 134,438 million).
Other provisions
Taking into account that in 2023 the Group fulfilled its obligation to pay compensation to the state budget for the uranium
mined without license in the amount of Tenge 11,404 million (Note 10), the Group accrued a provision to compensate
the second participant of MC Ortalyk LLP in the amount of Tenge 4,679 million, or 49% of Tenge 11,404. Depending
on the applicability of certain conditions in the Sale and Purchase with a second participant, the Group may have an
obligation to compensate the second participant for unexpected payments to the state budget with regards to prior
periods.
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
45
32 Provisions (continued)
Material accounting policies and significant judgements
In accordance with environmental legislation and the subsoil use contracts, the Group has a legal obligation to
remediate damage caused to the environment from its operations and to decommission its mining assets and landfills
and restore landfill sites after closure of mining activities. Provision is made based upon the net present values of
estimated site restoration and retirement costs as soon as the obligation arises from past mining activities. The Group
estimates the site restoration costs for each mine operated. Estimate provision is charged to the cost of corresponding
asset (mine development assets or property, plant and equipment) in the reporting period when an obligation arises
from past operating activity performed.
Provisions for asset retirement obligations do not include any additional obligations which are expected to arise from
future disturbances. The cost estimates are calculated annually during the course of the operations to reflect known
developments, including updated cost estimates revised subsoil use terms and estimated lives of operations, and are
subject to formal reviews on a regular basis. The amortisation or “unwinding” of the discount applied in establishing the
net present value of provisions is charged to profit and loss in each reporting period. The amortisation of the discount
is disclosed as finance costs. In view of the long-term nature of provisions, there is uncertainty concerning the actual
amount of expenses that will be incurred in performing site restoration activities for each mine. Changes in estimates
occur due to annual revision of costs for site liquidation including newly drilled wells, sand traps and other facilities
subject to subsequent liquidation.
Provision for asset retirement obligations (estimates)
Site restoration
The provision for asset retirement obligations is estimated based upon the Group’s interpretation of current
environmental legislation in the Republic of Kazakhstan and the Group’s related programme for liquidation of
subsurface use consequences on the contracted territory and other operations supported by the feasibility study and
engineering research in accordance with the applicable restoration and retirement standards and techniques.
Provisions for asset retirement obligations are subject to potential changes in environmental regulatory requirements
and the interpretation of the legislation. Provisions are recognised when there is a certainty of incurring of such liabilities
and when it is possible to measure the amounts reliably. The scope of work stipulated by the legislation and included
in the calculations of the asset retirement obligations contains the dismantling of facilities and infrastructure (pumping,
injection and observation wells, technological units for acidification and distribution of solutions, pipelines, access roads,
technological sites, landfills, buildings and other facilities) and subsequent restoration of land.
The calculation of the provision for production assets retirement as of 31 December 2023 was performed by the Group’s
internal specialists and reviewed by an independent consultant.
Principal assumptions used in the estimations include:
• a discount rate that reflects the current market estimates of the time value of money and those risks specific to the
liability not reflected in the best estimate of the costs. The discount rate is based on a risk-free rate determined by
reference to the interest rate on government bonds with maturity matching the period of the Group’s each subsoil
use contract, range of 11.7% - 13.3% (2022: average 11.55%);
• long-term inflation rate applied to the nominal costs calculated at current prices of 4.01% - 6.39% in 2023 (2022:
average 5.99%);
• discounting period in accordance with the estimated life of mines and reserves depletion period;
• low radioactive waste management program assumes removal and disposal at special landfills owned by the
Group.
Sensitivity analysis of the principal assumptions as at 31 December 2023 is as follows:
(Decrease)/Increase of (Decrease)/Increase of In millions of Kazakhstani Tenge assumptions decommissioning provisions Inflation rate -1% (4,640) +1% 3,993 Discount rate -1% 4,348 +1% (3,714)
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
46
32 Provisions (continued)
Sensitivity analysis of the principal assumptions as at 31 December 2022 is as follows:
(Decrease)/Increase of (Decrease)/Increase of In millions of Kazakhstani Tenge assumptions decommissioning provisions Inflation rate -1% (4,469) +1% 5,288 Discount rate -1% 5,052 +1% (4,229)
Provision for environment protection
In 2021 the Ecological Code of the Republic of Kazakhstan (the Code) came into effect. The Code stipulates that
operators of assets that are considered to have a negative impact on the environment have an obligation to
decommission such assets in accordance with the requirements of the legislation. Liquidation measures will depend
on the assets’ nature and the degree of their impact on the environment.
Based on the analysis carried out by the Group’s specialists, as well as based on the interpretation of current
environmental legislation and IFRS requirements, in 2022 the Group recognised an obligation to decommission,
dismantle and reclaim the Group’s facilities.
The liability for decommissioning, dismantling and reclamation was assessed and recognised in relation to the following
facilities: facilities classified as category I (facilities that have a significant negative impact on the environment): JSC
Ulba Metallurgical Plant site in Ust-Kamenogorsk, as well as assets technologically related to them and located on the
territory of the industrial site. The Group assessed liquidation obligations based on the methodology approved by the
Environmental Code.
Principal assumptions used in the estimations include:
• current prices are inflated using the expected long-term inflation rate of 6.39% for assets with liquidation term until
2027, 4.49% for assets with liquidation term until 2042, 3.76% for assets with liquidation term after 2044 (2022:
7.7% for assets with liquidation term until 2027, 4.6% for assets with liquidation term until 2042, 3.93% for assets
with liquidation term after 2044), and subsequently discounted;
• the discount rate for calculation of the provision as of 31 December 2023 is 13.3% for assets with liquidation term
until 2027, 12.15% for assets with liquidation term until 2042, 10.36% for assets with liquidation term after 2044.
(31 December 2022: 14.4% for assets with liquidation term until 2027, 11.3% for assets with liquidation term until
2042, 10% for assets with liquidation term after 2044);
• the discounting period equates to the remaining useful life of buildings and constructions, of not less than 50 years.
All buildings and constructions are subject to annual technical reviews to determine required capital and operating
expenditure requirements.
Sensitivity analysis of the principal assumptions As at 31 December 2023 is as follows:
(Decrease)/Increase of (Decrease)/Increase of In millions of Kazakhstani Tenge assumptions decommissioning provisions Inflation rate -1% (2,762) +1% 4,300 Discount rate -1% 4,028 +1% (2,608) Discount period -10% 2,642 +10% (1,970)
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
47
32 Provisions (continued)
Sensitivity analysis of the principal assumptions As at 31 December 2022 is as follows:
(Decrease)/Increase of (Decrease)/Increase of In millions of Kazakhstani Tenge assumptions decommissioning provisions Inflation rate -1% (3,148) +1% 4,950 Discount rate -1% 4,665 +1% (2,986) Discount period -10% 2,682 +10% (2,044)
Based on the Group’s analysis of current regulation, management concluded that certain other Ulba metallurgical
plant’s assets should be excluded from asset retirement obligations as at 31 December 2023 since there is no
reasonable calculation method for these types of assets and/or the potential amount of such liabilities is not significant.
This judgement is based on the following:
• such assets do not have a significant negative impact on the environment and ecological legislation does not
require financial provision for the assets;
• production processes involving these assets do not lead to consequences that would require dismantlement and
recultivation works to mitigate the negative environmental impact.
As the requirements of the Environmental Code are relatively new, there is no practice of applying these requirements
and there are ambiguities in the legislation, management has applied significant judgment in terms of assessing
liabilities and their amounts. In case of changes in environmental legislation, its interpretation and practice of its
application, as well as in the judgments and in the Group's estimates, such liabilities may be revised in the future.
Refer to Note 35 for details of the Group’s provisions on Environmental Code at 31 December 2023.
Key assumptions which serve as the basis for determining the carrying value of the provision for restoration of mine
sites provision are as follows:
• there is a high probability that the Group will proceed to development and production stages for its fields which are
currently under exploration. This creates a constructive obligation for the Group to recognise a site restoration
provision for all mining and exploration licenses;
• the expected term for future cash outflows for the mine sites is based on the life of the mines. A substantial part of
the expenditures is expected to occur starting from 2045, at the end of the expected life of the mines.
33 Accounts payable
In millions of Kazakhstani Tenge 2023 2022 Trade accounts payable 91,532 39,794 Trade accounts payable to related parties 83,857 58,668 Total trade accounts payable 175,389 98,462 Other accounts payable 622 346 Other accounts payable to related parties - 1 Total other accounts payable 622 347 Total accounts payable 176,011 98,809
The Group’s exposure to currency and liquidity risk related to trade and other payables is disclosed in Note 38.
Material accounting policies and significant judgements
Trade payables are accrued when the counterparty performs its obligations under the contract and are recognised
initially at fair value and subsequently carried at amortised cost using the effective interest method.
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
48
34 Other liabilities
In millions of Kazakhstani Tenge 2023 2022 Non-current Liabilities under contracts with customers 2,698 2,746 Advances received 2,275 2,276 Deferred income from subsidies received 1,725 1,820 Other 849 2,471 Total non-current other liabilities 7,547 9,313 Current Liabilities under inventory loan agreements 91,151 19,147 Accrued unused vacation payments and bonuses 13,175 11,453 Liabilities under contracts with customers from related parties 2,818 35,082 Tender participation guarantee 2,748 735 Wages and salaries payable 2,719 2,420 Social contributions payable 2,135 1,795 Issued financial guarantees 863 653 Liabilities under uranium swap contracts (Note 7) - 4,709 Joint operations liabilities - 4,569 Other 812 3,320 Total current other liabilities 116,421 83,883
Liabiitites under inventory loan agreements
In 2020, the Group received uranium hexofluoride under inventory loan agreements for the total amount of US Dollars
21.9 million (Tenge 8,597 million) to fulfill the obligations under one of the sales agreement. Liabilities were
subsequently measured at fair value in accordance with changes in uranium spot prices and exchange rates. In 2023
the Group returned uranium under inventory loan agreements by purchasing it from third party.
The Group borrowed 886 tones of natural uranium from ANU Energy OEIC Ltd. due for return at 31 December 2023.
In December 2023 the Group has returned 38 tones and extended the due date of agreement until the end of March
2024. As at December 31, 2023 the fair value of liability under inventory loan agreement was Tenge 91,151 million,
revaluation loss for the year amounted to Tenge 37,977 million (Note 13).
Uranium loans are part of the Group’s normal inventory management policy, required to mitigate logistical risks that
could affect the timely delivery of Kazakhstani uranium to Western conversion enterprises due to heightened
geopolitical instability. The Group enters into inventory loan agreements, according to which one party (the lender)
undertakes to provide the other party (the borrower) with products, and the borrower obliges to return to the lender an
identical amount of uranium products. The Group obtains inventory loans to facilitate the performance of its uranium
supply obligations. The Group classifies inventory loans received as a non-financial liability.
Upon receipt of the inventory loan, the Group accounts for the inventory at the contracted cost. Liability arising from
inventory loan are recognised as part of other liabilities at the fair value of the uranium products at the reporting date.
Subsequent revaluation of the inventory loan is carried out through profit or loss as part of other income/expenses in
accordance with changes in the fair value of uranium products.
Joint operations liabilities
As at 31 December 2023, joint operations liabilities represent obligations of the Group under the terms of the joint
operations contractual agreements that require equal volumes of uranium to be purchased during the period by the
participants. In 2023, the Group repurchased the 2023 volume in full, as well as the corresponding volume of the
previous period.
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
49
35 Contingencies and commitments
Compliance with Kazakhstan Tax legislation
The tax environment in the Republic of Kazakhstan is subject to change and inconsistent application and
interpretations.
Kazakhstani tax legislation and practice is in a state of continuous development, and therefore is subject to varying
interpretations and frequent changes, which may be retroactive. Tax periods remain open to retroactive review by the
Kazakhstan tax authorities for five years.
The Group’s management believes that its interpretation of the relevant legislation is appropriate and the Group’s tax
positions will be sustained. In the opinion of the Group’s management, no material losses will be incurred in respect of
existing and potential tax claims in excess of provision or disclosures that have been made in these consolidated
financial statements.
Compliance with subsoil use contractual obligations
In accordance with the terms of the subsoil use contracts, the Group mining entities are required to comply with the
obligations specified therein. Failure to comply with the conditions stipulated by subsoil use contracts may lead to
negative consequences, including termination of contracts, fines and penalties. Under current subsoil use legislation,
the payment of penalty does not relieve subsurface user from fulfillment of obligations under subsoil use contracts.
As at December 31, 2023, at some enterprises, the underproduction of uranium exceeds the legally allowed threshold
of 20%, which is associated with a shortage of strategic materials. In addition, mining enterprises failed to meet their
financial obligations under subsoil use contracts, which could result in penalties of 1% of the defaulted obligation in the
amount of Tenge 40-50 million for 2023. The Group has not recognised additional liabilities in the financial statements
as at 31 December 2023 as it plans to settle financial liabilities in future periods in accordance with revised work
programs.
Insurance
The Kazakhstani insurance industry is in development stage, and many forms of insurance protection common in other
countries are not yet available. Since 2021, the Corporate Property Insurance Program of the Company’s enterprises
has been implemented against the “risks” of death, loss or damage as a result of accidental and unforeseen direct
physical impact (excluding equipment breakdown/failure and interruption in production).
The Group does not have full insurance coverage for risks related to mining activities and production facilities, including
for damages caused by the stoppage of production or obligations incurred to third parties in connection with damages
caused to the property or the environment resulting from accidents or operations.
The Group provides directors and officers liability insurance, which cover for the Company’s managers to protect them
from claims which may arise from decisions and actions taken (“alleged wrongful acts”) within the scope of their regular
duties. The terms of the policy prohibit disclosure of the amount of the insurance coverage.
Environmental obligations
In 2021, a new Environmental Code (hereinafter referred to as the “Code”) came into force. The Code provides for the
division of objects that have a negative impact on the environment into four categories, depending on their level of
impact, which implies the differentiation of environmental requirements for each of the categories. Operators of facilities
that have a negative impact on the environment have obligations to eliminate the consequences of the operation of
facilities in accordance with the requirements of the legislation of the Republic of Kazakhstan.
The changes in the Code mainly affected non-mining companies of the first category, which include: Ulba Metallurgical
Plant JSC, SSAP LLP, SKZ-U LLP and Kyzylkum LLP. Following detailed technical and commercial assessments
during the current year, the Group recognized in 2022 obligations to remediate the consequences of the operation of
facilities (Note 32).
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
50
35 Contingencies and commitments (continued)
Under the current version of the Code, the Group has an obligation to provide financial security to eliminate the
consequences of Category I facilities by July 1, 2024. Financial support is provided in the form of: guarantee; pledge
of a bank deposit; pledge of property; insurance. Financial security is provided in one of several types of financial
security listed above, or in a combination of them at the choice of the operator of a category I facility, provided that the
share of financial security in the form of a bank deposit pledge must be:
1) after ten years from the date of commissioning of the facility (for existing facilities as at July 1, 2021 until 2031) -
at least fifty percent of the total amount of financial support;
2) after twenty years from the date of commissioning of the facility for existing facilities as at July 1, 2021 until 2041 -
one hundred percent of the total amount of financial support. The operator of category I facility is obliged to ensure
the availability of financial security continuously until all its obligations to eliminate the consequences of the
operation of such a facility are fully fulfilled.
The amount of financial support is determined in accordance with the methodology approved by the authorized body
in the field of environmental protection, based on the estimated cost of work to eliminate the consequences of operating
a category I facility, and is subject to recalculation every seven years. According to the Group’s calculations, the future
cost (undiscounted) of measures to eliminate the consequences of the operation of facilities at Ulba Metallurgical Plant
JSC amounted to Tenge 138,724 million.
As at December 31, 2023, the estimated amount of financial support is Tenge 179,623 million. As part of discussions
with representatives of the Ministry of Environment, the Group's management understands that changes will be made
to the legislation, in accordance with which the conditions and terms for providing financial support will be revised.
The Management of the Group is currently in discussions with the competent authorities regarding the method and
timing of funding the liability.
As a result of the assessment of liabilities, non-mining enterprises of categories II-IV did not have significant obligations
as at the reporting date.
Guarantees
Guarantees are irrevocable assurances that the Group will make payments in the event that another party cannot meet
its obligations. The maximum exposure to credit risk under financial guarantees provided to secure financing of certain
related parties at 31 December 2023 is Tenge 16,096 million (2022: Tenge 18,937 million) (Note 6).
Compliance with covenants
The Group is subject to certain covenants related primarily to its liabilities under credit lines and guarantee agreements.
The Group complied with all applicable covenants As at 31 December 2023 and 31 December 2023 and during the
periods then ended.
Legal proceedings
On 23 July 2021, the Fund for the Protection of the Rights of Investors in Foreign Countries (hereinafter referred to as
the Fund), to which the rights of claim were assigned by Quorum Debt Management Group, filed a lawsuit with the
Arbitration Court of the Irkutsk Region, Russia, demanding the recovery of funds from the Company in the amount of
US Dollars 50,000,000 under a Framework Agreement (support for asset recovery activities) dated 25 December 2013,
which was expired on 26 December 2016. By the ruling of the Arbitration Court of the Irkutsk Region dated 31 August
2021, the civil case on the above claim was terminated due to lack of jurisdiction, with which the Company fully agrees,
since the agreement provides for jurisdiction under Kazakh procedural legislation. By the decision of the Fourth
Arbitration Court of Appeal dated 24 January 2022 and the decision of the Arbitration Court of the East Siberian District
dated 24 May 2022, the ruling of the Arbitration Court of the Irkutsk Region dated 31 August 2021 in the above case
was left unchanged. However, on 7 December 2022, the Judicial Collegium for Economic Disputes of the Supreme
Court of the Russian Federation cancelled the rulings of the Arbitration Court of the Irkutsk Region of 31 August 2021,
the rulings of the Fourth Arbitration Court of Appeal of 24 January 2022, and the rulings of the Arbitration Court of the
East Siberian District of 24 May 2022 with sending the case for a new trial to the Arbitration Court of the Irkutsk Region
in connection with the jurisdiction of this case by the courts of the Russian Federation.
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
51
35 Contingencies and commitments (continued)
On 3 May 2023, the Arbitration Court of the Irkutsk Region ruled to satisfy the claims and recover from the Company
in favour of Quorum Debt Management Group LLC (previously the Fund was the claimant in the case) US dollars
50,000,000 of losses, as well as Russian roubles 200,000 for the payment of state duty. The Company believes that
the decision of the Judicial Collegium for Economic Disputes of the Supreme Court of the Russian Federation of
7 December 2022 was made with violations and intends to appeal the judicial acts to all higher instances.
The Company filed a supervisory appeal against the decision of the Supreme Court of the Russian Federation dated 7
December 2022. However, by the decision of the Supreme Court of the Russian Federation from 18 April 2023, it was
refused to transfer the supervisory appeal for consideration by the Presidium of the Supreme Court of the Russian
Federation. Also, At 11 May 2023, the Company filed a complaint addressed to the Chairman of the Supreme Court of
the Russian Federation against the rulings of the Supreme Court of the Russian Federation and the refusal to transfer
the complaint for consideration by the Presidium of the Supreme Court of the Russian Federation. On 7 July 2023, by
letter of the Chairman of the Supreme Court of the Russian Federation, the Company's complaint was denied.
Also, the Company filed an appeal against the decision of the Arbitration Court of the Irkutsk Region dated 3 May 2023,
as part of the consideration of the appeal, At 19 October 2023, the Court rejected the Company’s appeal and upheld
the decision of the Arbitration Court of the Irkutsk Region dated 3 May 2023.
On 1 November 2023, the Company filed a cassation appeal against the Resolution of the Fourth Arbitration Court of
Appeal dated 19 October 2023, and the Decision of the Arbitration Court of the Irkutsk Region dated 3 May 2023. On
17 January 2024, the Arbitration Court of the East Siberian District satisfied the Company’s cassation appeal, judicial
acts of 3 May 2023 and 19 October 2023 were canceled and the case was sent back to the court of the first instance
for a new trial. The consideration of the civil case in the Arbitration Court of the Irkutsk Region is scheduled for
26 March 2024. As at 31 December 2023, the Company had not recognised a liability in this litigation.
36 Non-controlling interest
The following table provides information about subsidiaries that have a non-controlling interest as at
31 December 2023:
Country of Ownership incorporation rights held by Profit or loss and principal non-controlling attributable to non-Accumulated non-In millions of Kazakhstani Tenge place of business interest controlling interest controlling interest Name JV Inkai LLP Kazakhstan 40% 70,774 160,880 JV Khorasan-U LLP Kazakhstan 50% 34,668 147,252 Baiken-U LLP Kazakhstan 47.5% 17,217 94,769 MC Ortalyk LLP Kazakhstan 49% 28,053 49,826 Appak LLP Kazakhstan 35% 9,774 19,076 Ulba Metallurgical Plant JSC Kazakhstan 5.67% 678 8,410 Volkovgeologiya JSC Kazakhstan 0.66% (13) 145 Total 161,151 480,358
The following table provides information about subsidiaries that have a non-controlling interest as at 31 December
2022:
Country of Ownership incorporation rights held by Profit or loss and principal non-controlling attributable to non-Accumulated non-In millions of Kazakhstani Tenge place of business interest controlling interest controlling interest Name JV Inkai LLP Kazakhstan 40% 48,497 129,891 JV Khorasan-U LLP Kazakhstan 50% 24,044 112,584 Baiken-U LLP Kazakhstan 47.5% 17,452 77,558 MC Ortalyk LLP Kazakhstan 49% 26,195 42,730 Appak LLP Kazakhstan 35% 8,029 15,449 Ulba Metallurgical Plant JSC Kazakhstan 5.67% 819 8,088 Volkovgeologiya JSC Kazakhstan 1.04% (121) 159 Total 124,915 386,459
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
52
36 Non-controlling interest (continued)
The summarised financial information of these subsidiaries is as follows:
Ulba Metallurgical Plant JSC Appak LLP JV Inkai LLP Baiken-U LLP JV Khorasan-U LLP MC Ortalyk LLP Volkovgeologiya JSC In millions of Kazakhstani Tenge 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 Current assets 71,489 112,643 33,041 24,853 201,730 133,314 123,197 86,830 157,370 90,905 62,834 59,750 18,434 9,097 Non-current assets 47,929 42,479 30,467 27,752 208,787 215,967 99,501 102,771 179,207 181,990 52,807 36,564 15,689 11,208 Current liabilities (12,315) (57,444) (5,114) (4,088) (14,068) (11,812) (6,103) (6,629) (11,571) (14,560) (8,074) (4,781) (20,609) (15,954) Non-current liabilities (13,326) (14,355) (3,730) (4,218) (31,055) (34,053) (16,918) (19,529) (30,337) (33,004) (5,882) (4,329) (5,518) (162) Equity, incl. 93,777 83,323 54,664 44,299 365,394 303,416 199,677 163,443 294,669 225,331 101,685 87,204 7,996 4,189 Equity attributable to the Group 85,367 75,235 35,587 28,850 204,514 173,525 104,908 85,885 147,416 112,747 51,859 44,474 7,851 4,030 Non-controlling interest 8,410 8,088 19,077 15,449 160,880 129,891 94,769 77,558 147,253 112,584 49,826 42,730 145 159 Revenue 132,198 121,435 58,056 45,050 240,176 165,966 79,891 74,579 130,789 90,156 125,743 95,240 42,355 29,742 Depreciation and amortisation (2,281) (2,066) (6,240) (4,084) (15,858) (11,812) (15,667) (11,921) (18,617) (14,823) (9,063) (6,490) (1,764) (1,503) Including depreciation and amortisation at fair value arising from business combinations - - - - (1,986) (3,088) (10,141) (5,996) (11,020) (8,588) - - - - Finance income 1,172 855 365 576 465 633 458 619 559 217 402 26,375 124 61 Finance costs (1,297) (1,864) (370) (428) (377) (1,114) (477) (244) (279) (203) (440) (26,469) (825) (85) Income tax expense (4,119) (4,165) (7,023) (5,688) (35,323) (26,047) (9,067) (11,082) (16,061) (14,162) (17,378) (13,982) (162) 69 Including tax effect of depreciation and amortisation of adjustments to fair value - - - - 398 616 2,024 1,202 2,204 1,718 - - - - Net foreign exchange gain (839) 953 (10) 229 (2,165) 1,542 (404) 529 (1,437) 3,729 (919) 1,686 2 (4) (Impairment losses)/reversal of impairment losses (151) 1,054 13 (20) - - 31 57 - - (37) (41) (57) (18) Profit for the year 17,639 12,699 27,925 22,940 141,548 96,995 36,247 36,740 69,337 48,089 57,251 53,458 (1,979) (4,844) Profit attributable to the owners of the Company 16,961 11,880 18,151 14,911 70,774 48,498 19,030 19,288 34,669 24,045 29,198 27,263 (1,966) (4,723) Profit attributable to non-controlling interest 678 819 9,774 8,029 70,774 48,497 17,217 17,452 34,668 24,044 28,053 26,195 (13) (121) Profit/(loss) for the year 17,639 12,699 27,925 22,940 141,548 96,995 36,247 36,740 69,337 48,089 57,251 53,458 (1,979) (4,844) Other comprehensive income/(loss) 8 (726) (3) (7) - - (14) - - - (4) (11) - (16) Total comprehensive income/(loss) for the year 17,647 11,973 27,922 22,933 141,548 96,995 36,233 36,740 69,337 48,089 57,247 53,447 (1,979) (4,860) Dividends declared to non-controlling interest 358 177 6,145 3,691 39,784 41,727 - - - 21,750 20,956 18,316 1 1 Net cash inflow/(outflow) from: - operating activities 12,761 9,777 30,424 18,166 96,367 87,391 (8,211) 27,041 (3,861) 48,124 61,431 40,252 1,606 1,719 - investing activities (3,504) (2,383) (10,477) (10,287) (13,657) (10,649) (7,579) (7,433) (13,295) (13,525) (23,990) (12,488) (6,060) (3,837) Including: Sale of non-current assets 36 1,252 - - - - 2 45 - - - - 61 3 Acquisition of non-current assets (3,493) (3,322) (10,111) (8,425) (13,657) (10,649) (8,647) (6,416) (13,061) (12,209) (23,990) (11,150) (6,408) (3,552) - financing activities (7,207) (4,023) (17,557) (10,547) (79,569) (75,305) - - (3,500) (47,000) (42,773) (37,382) 9,194 2,791 Net cash inflow/(outflow) 2,050 3,371 2,390 (2,668) 3,141 1,437 (15,790) 19,608 (20,656) (12,401) (5,332) (9,618) 4,740 673
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
53
36 Non-controlling interest (continued)
Allocation of profit between the non-controlling interest of JV Inkai LLP and the Group is impacted by the allocation of JV
Inkai LLP dividends. The distribution of dividends is made in accordance with the amendment to the agreement between
the parties, and is not based on ownership interests. For 2021, dividends were distributed between the non-controlling
interest and the Company in the amount of 59.4% and 40.6%, respectively, for 2022 - in the amount of 50% and 50%,
respectively, for 2023 - in the amount of 50% and 50%, respectively. This amendment was agreed by the parties to
compensate the non-controlling interest for losses due to a 20% reduction in production in 2021-2022. Accordingly, the
amount reclassified from profit attributable to the Group to profit attributable to non-controlling interests in 2023 amounted
to Tenge 14,155 million (2022: Tenge 9,700 million).
37 Principal subsidiaries
These consolidated financial statements include the following subsidiaries:
Ownership Principal activity 2023 2022 KAP Technology JSC Communication services 100% 100% Qorgan-Security LLP Security services 100% 100% Exploration, production, processing and sale of uranium Appak LLP products 65% 65% Production and processing of uranium materials, Ulba Metallurgical Plant JSC production of rare metals and semiconductor materials 94.33% 94.33% Exploration and research of uranium reserves, drilling services, monitoring of radiation level and environment Volkovgeologiya JSC conditions 99.34% 98.96% Research, project, development and engineering High Technology Institute LLP consulting services 100% 100% Exploration, production, processing and sale of uranium MC Ortalyk LLP products 51% 51% Exploration, production, processing and sale of uranium RU-6 LLP products 100% 100% Exploration, production, processing and sale of uranium Kazatomprom-SaUran LLP products 100% 100% KAP Logistics LLP Procurement and transportation services 99.9999% 99.9999% Marketing function for sale of uranium, investment and Kazakatom TH AG administration of finances, goods and rights 100% 100% Exploration, production, processing and sale of uranium JV Inkai LLP products 60% 60% Exploration, production, processing and sale of uranium Baiken-U LLP products 52.5% 52.5% Taiqonyr Qyshqyl Zauyty LLP Sulfuric acid production 100% - Exploration, production, processing and sale of uranium JV Khorasan-U LLP products 50% 50%
Taiqonyr Qyshqyl Zauyty LLP
In March 2023 the Group established a new subsidiary Taiqonyr Qyshqyl Zauyty LLP (hereinafter - the “TQZ LLP”) as
part of the project for the construction of a sulfuric acid production plant. Considering that sulphuric acid production is not
Group’s core business, the Group expects to decrease its ownership in TQZ LLP by attracting external investors.
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
54
37 Principal subsidiaries (continued)
These consolidated financial statements include the following joint operations:
Ownership Principal activity 2023 2022 Exploration, production, processing and sale of uranium Karatau LLP products 50% 50% Exploration, production, processing and sale of uranium JV Akbastau JSC products 50% 50% Energy Asia (BVI) Limited (EAL) Commercial and investment activities 50% 50%
All entities are incorporated and operate on the territory of the Republic of Kazakhstan, except for Kazakatom TH AG,
which is incorporated in Switzerland and EAL that is registered in the British Virgin Islands.
38 Financial risk management
Accounting policies and disclosures in respect of financial instruments are applied to the following classes of financial
instruments:
In millions of Kazakhstani Tenge Note 2023 2022 Financial assets Trade accounts receivable 25 332,036 258,631 Demand deposits 29 108,717 38,274 Other accounts receivable 25 98,283 12,290 Current bank accounts 29 93,685 131,248 Investments in debt securities 26 58,533 9,274 Restricted cash 26 30,779 44,967 Investment in ANU Energy 26 30,667 17,066 Reverse repurchase transaction 29 9,506 - Loans to related parties 26 2,502 6,027 Other 2,803 2,745 Total financial assets 767,511 520,522
Financial liabilities Trade and other accounts payable 33 176,011 98,809 Bonds 31 82,746 107,316 Promissory note issued 31 3,506 7,002 Issued financial guarantees 34 1,347 1,286 Preferred shares 265 265 Dividends payable to other participants 260 259 Lease liabilities 31 125 173 Bank loans 31 - 23,953 Total financial liabilities 264,260 239,063
Financial risks are monitored by the Group’s risk management function and comprise market risk (including currency risk,
interest rate risk and price risk), credit risk and liquidity risk. The objectives of the Group’s financial risk management
policy are to establish risk limits, and then ensure that exposure to risks stays within these limits. Risk management
policies and systems risk management function are regularly analysed for the need of revision due to changes in market
conditions and the Group operations. The Group’s monitors compliance with approved policies and procedures.
This note presents information about the Group’s exposure to each of the above risks, the Group’s objectives, policies
and processes for measuring and managing risk, and the Group’s policy for management of capital. Further quantitative
disclosures are included throughout these consolidated financial statements.
The Board of Directors has overall responsibility for the establishment and oversight of the Group’s risk management
framework. The Management Board has established a Risk Management Committee, which is responsible for developing
and monitoring the Group’s risk management policies. The committee reports regularly to the Management Board and
the Board of Directors on its activities.
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
55
38 Financial risk management (continued)
Credit risk
The Group has exposure to credit risk, which is the risk that one party to a financial instrument will cause a financial loss
for the other party by failing to discharge an obligation. Exposure to credit risk arises as a result of the Group’s sales of
products on credit terms and other transactions with counterparties giving rise to financial assets. Financial assets, which
potentially expose the Group to credit risk, consist mainly of trade and other receivables, cash and cash equivalents, term
deposits, investments in securities and loans to related parties.
The Group’s maximum exposure to credit risk by class of assets is reflected in the carrying amounts of financial assets in
the statements of financial position and the nominal amount of financial guarantees (Note 34).
The table below shows quality of Group’s financial instruments (credit ratings of banks and other counterparties, where
available) as at 31 December 2023:
Rated Rated Rated Standard & Standard & Standard & Poor’s BBB+ to Poor’s BB+ In millions of Kazakhstani Tenge Poor’s AAA to A- BBB- to B- Total Demand deposits 8 1,498 107,211 108,717 Current bank accounts 88,360 3,443 1,882 93,685 Investment in debt securities 46,276 12,257 - 58,533 Restricted cash 2,288 13,578 14,913 30,779 Reverse repo transaction - 9,506 - 9,506 Term deposits - - 8 8 Total 136,932 40,282 124,014 301,228
The table below shows quality of Group’s financial instruments (credit ratings of banks and other counterparties, where
available) as at 31 December 2022:
Rated Rated Rated Standard & Standard & Standard & Poor’s BBB+ to Poor’s BB+ In millions of Kazakhstani Tenge Poor’s AAA to A- BBB- to B- Total Current bank accounts 33,291 17,183 80,774 131,248 Restricted cash 9,908 2,842 32,217 44,967 Demand deposits 2,968 3,216 32,090 38,274 Investment in debt securities - 9,274 - 9,274 Term deposits - - 946 946 Total 46,167 32,515 146,027 224,709
The Group applies the simplified approach permitted in IFRS 9 to measure expected credit losses which uses a lifetime
expected loss allowance for all trade receivables. To measure the expected credit losses, trade receivables have been
grouped based on shared credit risk characteristics and the days past due.
The expected loss rates are based on the payment profiles of sales over a period of 24 month before
31 December 2023 or 31 December 2022 respectively and the corresponding historical credit losses experienced within
this period. The historical loss rates are not adjusted to reflect forward-looking information on macroeconomic factors
because those factors do not significantly affect the risk profile.
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
56
38 Financial risk management (continued)
The credit loss allowance for trade receivables is determined according to provision matrix presented in the table below.
The provision matrix is based the number of days that an asset is past due. The information as of 31 December 2023 is
presented below:
Gross carrying Lifetime In millions of Kazakhstani Tenge Loss rate amount ECL 2023 Trade receivables - current 0.08% 303,425 (242) - less than 30 days overdue 0.02% 28,834 (6) - 30 to 90 days overdue 3.85% 26 (1) - 90 to 180 days overdue 100% 34 (34) Individually impaired trade receivable (Note 11) 100% 15,692 (15,692) Total trade receivables (gross carrying amount) 348,011 Credit loss allowance (15,975) Total trade receivables from contracts with customers (carrying amount) 332,036
The information as of 31 December 2022 is presented below:
Gross carrying Lifetime In millions of Kazakhstani Tenge Loss rate amount ECL 2022 Trade receivables - current 0.03% 258,607 (70) - less than 30 days overdue 10.53% 38 (4) - 30 to 90 days overdue 20% 30 (6) - 90 to 180 days overdue 20% 46 (10) Total trade receivables (gross carrying amount) 258,721 Credit loss allowance (90) Total trade receivables from contracts with customers (carrying amount) 258,631
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
57
38 Financial risk management (continued)
The following table explains the changes in the credit loss allowance for trade and other receivables between the
beginning and the end of 2023 as well as impairment provision for trade and other receivables during 2022:
Trade accounts Other accounts In millions of Kazakhstani Tenge receivable receivable Provision at 1 January 2022 172 106 Provision for the year 90 76 Reversal (172) - Amounts written-off - (2) Provision at 31 December 2022 90 180 Change in estimates (16) 16 Provision for the year 15,936 70 Reversal (23) - Amounts written-off (12) (39) Provision at 31 December 2023 15,975 227
The Group’s exposure to credit risk in respect of trade accounts receivable is influenced mainly by the individual
characteristics of each customer. The demographics of the Group’s customer base, including the default risk of the
industry and country, in which customers operate, has no significant influence on credit risk. The Group is exposed to
concentrations of credit risk. Approximately 75% of the Group’s revenue for 2023 (84% of trade receivables As at
31 December 2023) is attributable to sales transactions with eleven main customers (2022: 75% of Group’s revenues and
84% of trade receivables attributable to seven customers). The Group defines counterparties as having similar
characteristics if they are related entities.
The Group applies a credit policy under which each new customer is analysed individually for creditworthiness before the
Group’s standard payment and delivery terms and conditions are offered.
The Group does not require collateral in respect of trade and other receivables.
The maximum exposure to credit risk for trade receivables at the reporting date by geographic region was:
In millions of Kazakhstani Tenge 2023 2022 Canada 99,217 54,239 China 65,555 143,154 Kazakhstan 58,614 8,100 Russia 45,940 12,989 United Kingdom 24,414 30,712 USA 22,514 8,338 Romania 14,751 - European Union 469 403 Japan 420 696 Argentina 142 - Total 332,036 258,631
Credit risk exposure in respect of loans to related parties (Note 26) arises from possibility of non-repayment of loans. For
loans to joint ventures and associates, the Group manages the credit risk by requirement to provide collateral in lieu of
borrowers’ property. Borrowers do not have a credit rating.
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
58
38 Financial risk management (continued)
Expected Credit Loss (ECL) measurement
Measurement of ECLs is an estimate that involves determination methodology, models and data inputs. The following
components have a major impact on credit loss allowance: definition of default, SICR, probability of default (“PD”),
exposure at default (“EAD”), and loss given default (“LGD”), as well as models of macro-economic scenarios. The Group
regularly reviews and validates the models and inputs to the models to reduce any differences between expected credit
loss estimates and actual credit loss experience of issued loans and guarantees.
The Group used supportable forward-looking information for measurement of ECL, primarily an outcome of its own macro-
economic forecasting model. Several assumptions that are easily interpretable can be selected for analysis: GDP growth
rate, inflation rate, exchange rate, crude oil price and current economic indicator. Final macroeconomic scenario includes
only historically observed values of the inflation rate and the share of overdue loans. Forward-looking information is
included in parameters of PD within the horizon of the next year after the reporting date. In addition, to calculate credit
losses, the corporate average cumulative default probabilities are updated annually according to S&P's Annual Global
Corporate Default Study and Rating.
Liquidity risk
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The
Group is exposed to daily calls on its available cash resources. Liquidity risk is managed by the treasury department of
the Group. Management monitors monthly rolling forecasts of the Group’s cash flows.
The Group seeks to maintain a stable funding base primarily consisting of borrowings, trade and other payables and debt
securities. The Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient
liquidity to meet its liabilities as they fall due, under both normal and stressful conditions, without incurring unacceptable
losses or risking damage to the Group’s reputation. The Group invests available cash funds in diversified portfolios of
liquid assets, in order to be able to respond quickly to unforeseen liquidity requirements.
The Group ensures that it has sufficient cash on demand to meet expected operational expense or financial obligations
which excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural
disasters.
Below is a summary of the Group’s undrawn borrowing facilities and available cash and cash equivalents, including current
term deposits, which are the important instruments in managing the liquidity risk:
In millions of Kazakhstani Tenge 2023 2022 Undrawn borrowing facilities 115,004 84,665 Current term deposits 108,725 39,204 Current bank accounts 93,685 131,248 Reverse repo transaction 9,506 - Total 326,920 255,117
The table below shows liabilities at the reporting date by their remaining contractual maturity. The amounts disclosed in
the maturity table are the contractual undiscounted cash flows. Such undiscounted cash flows differ from the amount
included in the statements of financial position because the statement of financial position amount is based on discounted
cash flows.
When the amount payable is not fixed, the amount disclosed is determined by reference to the conditions existing at the
end of the reporting period. Foreign currency payments are translated using the spot exchange rate at the end of the
reporting period.
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
59
38 Financial risk management (continued)
The following are the contractual maturities of financial liabilities at 31 December 2023:
On demand From In millions of Carrying Contractual and less than From 1 to 3 months to From 1 to Over Kazakhstani Tenge value cash flows 1 month 3 months 1 year 5 years 5 years Trade and other accounts payable 176,011 176,011 - 176,011 - - - Bonds 82,746 85,440 - - 85,440 - - Promissory notes issued 3,506 3,506 - 3,506 - - - Issued financial guarantees 1,347 16,096 16,096 - - - - Preferred shares 265 265 - - - 265 - Dividends payable to other participants 260 260 - - 260 - - Lease liabilities 125 202 - 11 32 127 32 Total 264,260 281,780 16,096 179,528 85,732 392 32
The following are the contractual maturities of financial liabilities at 31 December 2022:
On demand From 3 In millions of Carrying Contractual and less than From 1 to months to From 1 to Over Kazakhstani Tenge value cash flows 1 month 3 months 1 year 5 years 5 years Bonds 107,316 114,706 - 23,216 861 90,629 - Trade and other accounts payable 98,809 98,809 - 98,809 - - - Bank loans 23,953 24,161 - 24,161 - - - Promissory notes issued 7,002 7,002 7,002 - - - - Issued financial guarantees 1,286 18,937 18,937 - - - - Preferred shares 265 265 - - - 265 - Dividends payable to other participants 259 259 - - 259 - - Lease liabilities 173 259 - 12 38 154 55 Total 239,063 264,398 25,939 146,198 1,158 91,048 55
Market risk
The Group has exposure to market risks. Market risk is the risk that changes in market prices will have a negative impact
on the Group’s income or the value of its financial instrument holdings. Market risks arise from open positions in (a) foreign
currencies, (b) interest bearing assets and liabilities and (c) equity products, all of which are exposed to general and
specific market movements. The objective of market risk management is to monitor and control market risk exposures
within acceptable limits, while optimising the return on investments. Management sets limits on the value of risk that may
be accepted, which is monitored on a daily basis. However, the use of this approach does not prevent losses outside of
these limits in the event of more significant market movements.
Sensitivities to market risks included below are based on a change in a factor while holding all other factors constant. In
practice this is unlikely to occur and changes in some of the factors may be correlated – for example, changes in interest
rate and changes in foreign currency rates.
Currency risk
The Group is exposed to currency risk on sales, purchases and borrowings which are denominated in currencies other
than the functional currency. Borrowings are denominated in currencies that match the cash flows generated by operating
entities in the Group. Therefore, in most cases, economic hedging is achieved without derivatives. In respect of other
monetary assets and liabilities denominated in foreign currencies, the Group ensures that its net exposure is kept to an
acceptable level by planning future expenses taking into consideration the currency of payment. The Group is mainly
exposed to the risk of US Dollars currency fluctuations.
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
60
38 Financial risk management (continued)
The Group’s exposure to currency risk was as follows:
In millions of Kazakhstani Tenge 2023 2022 Denominated in US Dollars Trade accounts receivable 210,774 248,201 Current bank accounts 88,168 97,471 Demand deposits 52,287 385 Other investments 42,986 26,487 Other accounts receivable 23,304 7,508 Loans to related parties* 2,502 5,933 Term deposits - 922 Other assets 855 1,646 Total assets 420,876 388,553 Bonds* (82,746) (107,316) Trade and other accounts payable (19,666) (6,350) Issued financial guarantees (1,347) (1,286) Bank and non-bank loans - (23,202) Total liabilities (103,759) (138,154) Net exposure to currency risk 317,117 250,399
* Loan given to Kyzylkum LLP and bonds are nominated in Tenge but are subject to indexation for changes in US
Dollar/Tenge exchange rate.
A 14% weakening and 14% strengthening of Tenge against US Dollar as at 31 December 2023 (2022: 21% weakening
and 21% strengthening) would increase/(decrease) equity and profit or loss by the amounts shown below.
In millions of Kazakhstani Tenge 2023 2022 US Dollar strengthening by 14% (2022: 21%) 35,898 42,067 US Dollar weakening by 14% (2022: 21%) (35,898) (42,067)
Movements of Tenge against US Dollar above represent reasonably possible changes in market risk estimated by
analysing annual standard deviations based on the historical market data for 2023 and 2022.
Price risk on uranium products
The Group is exposed to the effect of fluctuations in the price of uranium, which is quoted in US Dollar on the international
markets. The Group prepares an annual budget based on future uranium prices.
Uranium prices historically fluctuate and are affected by numerous factors outside of the Group’s control, including, but
not limited to:
• demand for uranium used as fuel by nuclear power stations;
• depleting levels of secondary sources such as recycling and blended down highly enriched stocks available to close
the gap of the excess demand over supply;
• impact of regulations by the International Agency on Nuclear Energy;
• other factors related specifically to uranium industry.
At the end of the reporting period there was no significant impact of commodity price risk on the Group’s financial assets
and financial liabilities except for investments in ANU Energy OEIC Ltd. (Note 26).
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
61
38 Financial risk management (continued)
A 20% weakening and 20% strengthening of Tenge against spot price as at 31 December 2023 would increase/(decrease)
equity and profit or loss by the amounts shown below.
In millions of Kazakhstani Tenge 2023 2022 Spot price increase by 20% 6,224 5,324 Spot price increase by 20% (6,224) (5,324)
Interest rate risk
Changes in interest rates impact loans and borrowings by changing either their fair value (fixed rate debt) or their future
cash flows (floating rate debt). At the time of raising new loans or borrowings, management uses its judgement to decide
whether it believes that a fixed or a floating rate would be more favourable to the Group over the expected period until
maturity. As at 31 December 2023 100% (2022: 100%) of the Groups borrowings have a fixed interest rate. At the reporting
date, the interest rate profile of the Group’s interest-bearing financial instruments was:
In millions of Kazakhstani Tenge 2023 2022 Fixed rate instruments Demand deposits 108,717 38,274 Investment in debt securities 58,533 9,274 Restricted cash 30,779 44,967 Reverse repurchase transaction (reverse repo) 9,506 - Loans to related parties 2,502 6,027 Term deposits 8 946 Bonds (82,746) (107,316) Promissory notes issued (3,506) (7,002) Bank loans - (23,953) Net position 123,793 (38,783)
Fair value sensitivity analysis for fixed rate instruments
The Group has only fixed rate instruments. The Group does not account for any fixed rate financial assets and financial
liabilities at fair value through profit or loss. Therefore, a change in interest rates at the reporting date would not affect
profit or loss. However, fixed rate financial assets and financial liabilities are exposed to fair value risk from change in
interest rates. Reasonably possible changes in interest rates do not significantly affect fair values of those financial assets
and financial liabilities.
Capital management
The Group’s policy is to maintain a strong capital base so as to safeguard the Group’s ability to continue as a going
concern, to maintain investor, creditor and market confidence, to provide returns for shareholders, to maintain an optimal
capital structure to reduce the cost of capital, and to sustain future development of the business. Capital includes all
capital and reserves of the Group as recorded in the consolidated statements of financial position.
The Group may sell uranium for non-military purposes and only to customers residing in countries which signed the
Nuclear Non-Proliferation Treaty and are members of the International Agency on Nuclear Energy. In addition, the Group
must maintain certain internal qualitative capital management targets based on the Group’s consolidated financial
information, such as total shareholder return, free cash flow, EBITDA margin.
The Group applies the Policy on borrowings and financial sustainability management, which is aimed to manage financial
risks by adopting common principles and rules of debt management and financial sustainability for non-financial
organisations. The Group has complied with all externally and internally imposed capital requirements during 2023 and
2022, requirements associated with borrowing facilities.
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
62
39 Fair value disclosures
Fair value measurements are analysed by level in the fair value hierarchy as follows: (i) level one are measurements at
quoted prices (unadjusted) in active markets for identical assets or liabilities, (ii) level two measurements are valuations
techniques with all material inputs observable for the asset or liability, either directly (that is, as prices) or indirectly (that
is, derived from prices), and (iii) level three measurements are valuations not based on observable market data (that is,
unobservable inputs). Management applies judgement in categorising financial instruments using the fair value hierarchy.
If a fair value measurement uses observable inputs that require significant adjustment, that measurement is a Level 3
measurement. The significance of a valuation input is assessed against the fair value measurement in its entirety.
Financial assets carried at amortised cost
Estimate of all financial assets carried at amortised cost is Level 3 measurement, except for cash and cash equivalents,
which is in Level 2. The estimated fair value of fixed interest rate instruments is based on estimated future cash flows
expected to be received discounted at current interest rates for new instruments with similar credit risks and remaining
maturities. Discount rates used depend on the credit risk of the counterparty.
All financial assets of the Group as at the end of the reporting period are carried at amortised cost except as disclosed
below.
Financial assets carried at FVTPL
Financial assets carried at FVTPL include derivative asset and investment in ANU Energy OEIC Ltd. (Note 26) that are
recognised at fair value through profit and loss. The Group estimates fair value of investment in ANU Energy OEIC Ltd.
as a percentage of Group’s owned share multiplied by the fair value of uranium held by the entity as at the date. Fair value
measurement falls in Level 2 category. The main inputs used in fair value estimation are spot prices for uranium pulished
by UxConsulting LLP and TradeTech LLP independent nuclear industry’s market research and analysis companies. Fair
value of a derivative asset is determined based on binominal model with uranium spot price forecasts. This is a Level 3
category.
Liabilities carried at amortised cost
Fair values of other liabilities were determined using valuation techniques. The estimated fair value of fixed interest rate
instruments with stated maturities were estimated based on expected cash flows discounted at current interest rates for
new instruments with similar credit risks and remaining maturities. The fair value of liabilities repayable on demand or
after a notice period (“demandable liabilities”) is estimated as the amount payable on demand, discounted from the first
date on which the amount could be required to be paid. The weighted average discount rate is 6.83% p.a (2022: 4.94%).
Fair values versus carrying amounts
With the exception of instruments specified in the following table, the Group believes that the carrying value of financial
assets and financial liabilities are recognised in the consolidated financial statements approximate their fair value:
2023 2022 Carrying Carrying In millions of Kazakhstani Tenge value Fair value value Fair value Financial liabilities Bonds 82,746 80,924 83,300 82,288 Total 82,746 80,924 83,300 82,288
In assessing fair values, management uses the following major methods and assumptions: (a) for interest free financial
liabilities and financial liabilities with fixed interest rate, financial liabilities were discounted at effective interest rate which
approximates the market rate; (b) for financial liabilities with floating interest rate, the fair value is not materially different
from the carrying amount because the effect of the time value of money is immaterial.
National Atomic Company Kazatomprom JSC
Notes to the Consolidated Financial Statements – 31 December 2023
63
40 Presentation of financial instruments by measurement category
For the purposes of measurement, IFRS 9 Financial Instruments classifies financial assets into the following categories:
(a) financial assets at FVTPL; (b) debt instruments at FVOCI, (c) financial assets at AC. Financial assets at FVTPL have
two sub-categories: (i) assets mandatorily measured at FVTPL, and (ii) assets designated as such upon initial recognition
or subsequently. All of the Group’s financial assets as at the end of reporting period fell into the category AC, except for
the financial derivative asset and investment in ANU Energy OEIC Ltd. (Note 26), classified as FVTPL upon initial
recognition. All of the Group’s financial liabilities were carried at amortised cost.
41 Events after the reporting period
Control over JV Budenovskoe LLP
The Group obtained control over JV Budenovskoe LLP from 1 January 2024 as a result of significant changes in Charter
and Foundation agreement that became effective from 1 January 2024. The Group’s ownership interest remained the
same, 51%. The Group plans to complete the assessment of fair value for the business combination until the end of 2024.
The carrying value of JV Budenovskoy LLP’s assets and liabilities as of 31 December 2023 are disclosed in Note 24. Also
on 11 March 2024, JV Budenovskoye LLP received a loan from the second participant in the amount of Tenge 4,500
million with a repayment period until March 2025.
Addendum to the subsoil use contract of Semizbay-U LLP
Addendum to subsoil use contract for Irkol field that had an expiration date on 4 March 2024, was signed on
28 February 2024 with the new contract date of 2030.
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