The Investment Whisperer
  • Business
  • Politics
  • Investing
  • World
  • Business
  • Politics
  • Investing
  • World

The Investment Whisperer

Investing

Uranium Stocks Surge as Kazakhstan Raises Mineral Extraction Tax

by admin July 12, 2024
July 12, 2024
Uranium Stocks Surge as Kazakhstan Raises Mineral Extraction Tax

Kazakhstan’s announcement of a significant increase in the Mineral Extraction Tax (MET) for uranium sent uranium stocks trending higher on July 10 as concerns of a potential supply disruption grew due to Kazakhstan’s position as the world’s largest uranium-producing country.

The new tax rate changes will come in two waves. The first, effective January 1, 2025, will impose an initial hike from the current 6 percent to 9 percent.

Starting in 2026, they will take on a more complex and differentiated rate structure, structured to vary based on production volumes and the price of natural uranium concentrate (U3O8).

For production volumes up to 500 metric tons, the rate will be 4 percent, increasing incrementally to a maximum of 18 percent for volumes exceeding 4,000 metric tons.

Additionally, if the price of U3O8 exceeds certain thresholds, an additional rate increase will apply, starting at 0.5 percent for prices above US$70 per pound and rising to a maximum of 2.5 percent for prices above US$110 per pound.

The country’s national uranium company Kazatomprom (LSE:KAP,OTC Pink:NATKY) is directly impacted by this tax change. Kazatomprom is a key player in the global uranium market, accounting for approximately 20 percent of global primary uranium production in 2023. The company has already faced challenges this year, including securing sulfuric acid necessary for production.

The company’s recent financial results highlight its strong market performance. In 2023, the company reported consolidated revenue of 1,434,635 million Kazakhstani tenge, or US$3.19 billion, a 43 percent increase from 2022. Despite a 2 percent decline in U3O8 production, sales volume rose by 10 percent, driven by increased buyer demand.

The company acknowledged the impending tax changes in a press release.

Meanwhile, Kazakhstan’s government stated the tax increase as part of broader economic reforms aimed at balancing the budget and redistributing wealth more equitably.

‘Our minerals extraction tax rates are among the lowest in the world,’ Economy Minister Alibek Kuantyrov told Reuters. ‘I think we can carefully raise it by 10-20 percent.’

These changes come amid increased government spending in response to global economic pressures and the ongoing conflict in Ukraine.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

0
FacebookTwitterGoogle +Pinterest
previous post
New High-Grade 35% Copper and 10g/t Gold Rock Chips at Ti-Tree
next post
Russia interfering in 2024 election to help Trump, US intelligence officials say

Related Posts

Top 5 Canadian Mining Stocks This Week: Euro...

April 1, 2025

Vizsla Copper Completes Acquisition of Universal Copper

April 19, 2024

HiPurA® HPA Pilot Plant Early-Stage Commissioning Commenced

June 29, 2024

Crypto Market Recap: Bitcoin Stages a Comeback as...

April 11, 2025

The Red-Hot Case for Copper as an Inflation...

February 14, 2024

European Lithium

December 29, 2023

Forward Water Technologies Corp. and Fraser Mackenzie Accelerator...

July 23, 2024

5 Best-performing Canadian Pharma Stocks (Updated January 2025)

January 12, 2025

Bold Ventures Adds to Management Team

August 9, 2024

Gold Grades Continue to Impress at Northern Zone...

September 2, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Categories

    • Business (1,432)
    • Investing (3,523)
    • Politics (4,756)
    • World (4,659)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: TheInvestmentWhisperer.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 TheInvestmentWhisperer.com | All Rights Reserved