Good time of the day and welcome to Kazatomprom's conference call to discuss the company's 2023 annual operating and financial results. My name is Botagoz, I'm leading the investor relations team here at Kazatomprom, and thank you for taking the time to join us today. Our conversation will begin with a presentation by our CEO, Mr. Meirzhan Yussupov, followed by an opportunity for investors to ask questions. At this time, all participants are in listen-only mode. Later, we will conduct a question-and-answer session through the phone lines in English, and instructions will be provided at that time. The simultaneous translation of English Q&A will be available for Russian-speaking lines. English-line participants can also submit questions through the broadcast page using the "Ask a Question" button. If you join through the company's website or through our page on the London Stock Exchange website, note that there will be slides displayed during the remarks. These broadcast slides will be also available for download in English and Russian as PDFs called "2023 Full Year Conference Call Slides" shortly after the call. Note that our press release, full version of the 2023 Full Year Operating and Financial Review, along with our audited 2023 financial statements for 12 months ended 31 December 2023, are now available on Kazatomprom's website. Participating in today's call we have Meirzhan Yussupov, Chief Executive Officer, Sultan Temirbayev, Chief Financial Officer, and Dastan Kosherbayev, Chief Commercial Officer. This call is open to all stakeholders, with a question-and-answer portion intended to be an opportunity for members of the investment community to engage with the management team and ask their questions. Please note that this conference call may include forward-looking statements. These statements include all matters that are not historical facts. By their nature, forward-looking statements involve risk and uncertainty, and they are not guarantees of future performance. The company does not make any representation, warranty, or prediction that the results anticipated by such forward-looking statements will be achieved. I will now turn over to Mr. Yussupov. The floor is yours. Thank you, Botagoz. I am delighted to welcome and thank everyone for joining our conference call today. Along with a discussion of Kazatomprom's 2023 Full Year Operating and Financial Results, which were released earlier today, I'll touch on a few key nuclear industry and uranium market developments. A key factor that has contributed to improved market fundamentals and a more bullish outlook for the nuclear industry over the past several years has been the international focus on social and environmental impacts of energy infrastructure. Nuclear energy to deliver large amounts of continuous electricity makes it indispensable for achieving a sustainable and secure energy mix that is available 24/7. As countries worldwide strive to reduce their carbon footprints and transition to cleaner energy sources, nuclear energy's significance is likely to increase, particularly in regions where energy demand is growing and decarbonization is a critical goal. Kazatomprom understands the importance of its role in helping the world transition away from reliance on fossil fuels and is steadfast in delivering long-term value for all stakeholders. From the most recent pro-nuclear policy developments, as you know, nuclear energy became the most discussed topic at the UN Climate Change Conference, COP28 held in December last year in Dubai. COP28 saw a historical level of spot for decarbonization efforts and nuclear energy as a source of low-emission baseload energy in particular. More than 20 countries signed a declaration pledging to triple nuclear energy capacity by 2050. The declaration acknowledged that nuclear energy will be essential in reaching net-zero targets worldwide. No matter what reactor design you use, you will need uranium to fuel it. Kazakhstan accounts for 40% of the world's uranium production on an annual basis, providing fuel for the global energy needs. This means that at least every third nuclear reactor in the world runs on Kazakh uranium. As the world's largest uranium producer, we are ready to continue playing an active role in ensuring the secure and reliable source of uranium for nuclear power plants across the globe. Continuing our discussion, let me proceed with a broader market picture. As you can see on the slide, the third-party forecasts indicate that there is a significantly growing supply gap, not covered by the production volumes coming online in the foreseeable future. In 2030, a supply deficit of GBP 21 million of U3O8 is projected, rising sharply to GBP 147 million of U3O8 by 2040. This model is prepared by the industry experts and is quite conservative in terms of the role of financial players who have significantly contributed to the demand side in recent years. More than 50 million pounds were purchased by some of the financial institutions for the last three years. It didn't only help to absorb available pounds and mobile inventory pockets from the market, but more importantly, it triggered the shift from the utilities' support market reliance to a long-term security of supply prioritization needs. However, only about 4 million out of those 50 million pounds were purchased in 2023 from the spot. Despite that, we still witnessed a strong increase in uranium prices in 2023, which was supported by the activities of other market players. In early 2024, we have seen uranium price passing the three-digit threshold, and that move as well was not because of the financial players, but due to increased activity from the more conventional market participants. Although some of the producers made decisions to restart idled capacity and launch new production in mid-2020s, including ourselves, it will not be sufficient to cover uranium requirements post-2030, especially amid current geopolitical uncertainties, inflationary pressures, and supply chain challenges worldwide. In the current pricing environment, another Kazatomprom-sized supply source will be needed to cover future market needs. It is important to highlight another important factor that contributed to the market's structural shift, and it refers to the key uranium producers' production and sales discipline. Speaking about ourselves in particular, our commitment to market discipline reflects our strategy creating long-term value for our shareholders. Kazatomprom alone removed about GBP 112 million in actual uranium production from 2017 to 2023. Otherwise, Kazatomprom's unique position occupying the first quartile of the global cost curve, we could continue generating profits even under the low pricing environment. This year's reduction, however, is not fully attributable to our strategy but was partially a forced measure in response to the challenges associated with the sulfuric acid availability and construction delays at our newly developed deposits. Sulfuric acid is the key component of ISR operations. It is needed both when preparing a new deposit for production and throughout an entire life of the mine. On this slide, you can see an illustration of an ISR deposit development. To provide a stable rate of uranium production, the ISR wellfield units should be placed in production in a systematic order. While some units are being prepared for production, others are leached while yet others are in reclamation. Sulfuric acid is used for both acidification at a block preparation phase and uranium leaching at the production phase. Acidification requires 20%-35% of total volume of sulfuric acid, while leaching consumes the other 65%-80%. Therefore, the relationship between acid consumption per tonne of uranium produced is not linear, as a good portion of acid is consumed prior to actual start of production. This is particularly relevant in periods when there is an anticipated change of production volumes, a period where are we now? This is represented by the lines on the graph, which are provided for illustrative purpose only, but they clearly show the general pattern of sulfuric acid consumption. Kazakhstan's sulfuric acid requirements for the last couple of years outweigh domestic production capacity, while historically, the market was excessive. Generally, about 60% of the world's sulfuric acid is utilized in the production of fertilizers. Consequently, the agricultural sector wields a substantial influence on demand for sulfuric acid. Since we have had numerous discussions with the investment community in February post our 2023 trading update, I won't spend time explaining the situation around the sulfuric acid-related challenges again. As of today, the company has secured the volumes required to meet its 2024 production guidance about 20% below subsoil use contract levels. In the medium term, the deficit is expected to alleviate, first as a result of the potential increase in sulfuric acid supply from local producers, non-ferrous metals mining, and smelting operators. Second, the company intends to enhance its in-house sulfuric acid production capacity. Once the new sulfuric acid plant is online, our in-house sulfuric acid production capacity will reach almost 1.5 million tons. For reference, in 2023, Kazatomprom required about 1.7 million tons, so the company views the sulfuric acid-related challenges as having a short-term nature. Despite the challenges, the company managed to meet all of its 2023 targets. Production volume on both a 100% and attributable basis were within the guided ranges, remaining flat compared to 2022. None of these plans would have been achieved without our most important resource. A team of over 20,000 dedicated employees. Kazatomprom ensures that they have the skills, access to training, and equipment needed to work safely, and HSE remains to be one of our key priorities. The HSE measures taken in 2023 made it possible to prevent significant industrial accidents. Both group and KAP sales volumes were 10% higher compared to 2022, primarily due to additional requests from customers to flex up their annual delivery quantities within the frame of existing contracts, as well as some new long-term contracts with the start of deliveries in a prompt window during 2023. Kazatomprom was successful to add new geographies to its customer base in 2023, including UAE, Emirates Nuclear Energy Corporation. Consolidated group inventory of finished products amounted to 7,200 tonnes as of 31 December 2023, 23% lower than at 31 December 2022, a year earlier. Attributable to the company inventory level amounted to 6,100 tonnes of U3O8, a 21% decrease compared to 2022 year-end volumes. The decrease in inventory at both group and KAP levels is attributed to increased 2023 sales. The group's average realized price for 2023 equaled to $55.09 per pound, an increase of 27% compared to 2022 due to an increase in the uranium spot price. It is worth mentioning that year-on-year growth rates for both the group and KAP's average realized price were at a similar level as an increase in the spot market prices for uranium in 2023. Kazatomprom successfully executed its 2023 shipments, experiencing no interruptions, logistical, or insurance-related challenges through both northern and Trans-Caspian routes, with the latter one comprising 64% of all uranium shipments to the Western markets. Despite this fact, selling expenses for 2023 were only about 4% of the C1 cash costs, correspondingly to roughly $0.50 per pound of U3O8. Kazatomprom continues to monitor the list of sanctions on Russia and the potential impact they could have on transportation through Russian territory. To date, there are no restrictions on the company's activities related to the supply of its products to customers worldwide. In addition to physical deliveries, the company has alternative options, including inventory swaps, loans, and book transfers. Therefore, the company is fully hedged to guarantee it has the material in the required volumes at the preferred location to meet its customer needs. Here, let me draw your attention to our sensitivity analysis. Our average realized price continues to chase the spot price, and our contract book shows the closest in the market correlation with the spot price. This time last year, the analysis was based on the $20-$70 price range, but we have now expanded it to $140 after seeing that market analysis and investment banks have improved their view on uranium prices and significantly increased their price targets. With that, you can see how higher average realized price reflects in our financial results for the year 2023, which were unbeatably strong. While the average annual uranium price showed a modest year-on-year increase of slightly more than 20%, our 2023 revenue growth was significant, amounting to 43% and resulting in KZT 1.4 trillion. Both gross and operating profits also demonstrated an almost 50% year-on-year increase. Adjusted net profit was 25% higher compared to the previous year's results, amounting to KZT 580 billion. This figure was achieved without any one-time effect. These impressive results reflect a considerable improvement in the uranium market over the past year, as well as the company's strong position of the lowest-cost producer and largest seller globally. As you know, Kazatomprom is also present in other stages of the nuclear fuel cycle, including uranium dioxide, ceramic powder production, fuel pellets, and fuel assemblies. In 2023, four batches of fuel assemblies were successfully delivered to a nuclear power plant in China, amounting to just over 130 tonnes of low-enriched uranium equivalent in total. It is expected that this year, ULBA fuel assembly will increase its production volumes to reach the full production capacity of 200 tonnes per year of low-enriched uranium equivalent. For the year 2023, C1 cash costs and all-in sustaining cash costs (AISC) increased by 29% and 32% respectively compared to 2022. The increase in C1 cash costs was primarily due to an increase in the mineral extraction tax expenses, as well as an increase in wages and salaries of the production personnel and inflationary pressure on services, certain materials, and reagents. Expenses related to mineral extraction tax used to be 22% of C1 in 2022 but comprised 28% of C1 cash costs in the reporting year due to changes in the calculation methodology effective from 2023. All-in sustaining cash costs increased due to an overall increase in capital costs on an attributable basis. Capital expenditures of the mining entities increased by 37% compared to the previous period, primarily due to a shift in well-filled development activities, as well as a rise in purchase prices for materials, supplies, equipment, and cost of drilling. Increased spending on well construction and expansion aimed at preparing for the intended production expansion has also contributed to CAPEX growth. Contrary to the initial ramp-up expectations, Kazatomprom's 2024 uranium production guidance is expected to be slightly higher than the previous year's production. Adjustments to the previously announced production intentions are due to challenges related to the availability of sulfuric acid and construction delays at the newly developed deposit, as indicated previously. The company anticipates that the production volume for the majority of its uranium mining operations will be approximately 20% below the levels stipulated in subsoil use agreements. Entities engaged in mining operations at newly established deposits face the potential challenge of descending beneath the threshold of minus 20%. This risk is primarily attributed to delays in the construction of surface facilities and infrastructure. These delays, in turn, are a consequence of the extended timelines required for the development and subsequent approval of project design documentation. I'd like to once again assure that the company remains committed to its 2024 existing contractual obligations to all clients. The group's sales volumes are expected at the range of 15,500-16,500 tonnes of uranium, including Kazatomprom's sales of 11,500-12,500 tonnes of uranium. I am sure you have noted that sales guidance for 2024 is lower compared to 2023. It is due to higher sales of enriched uranium products that are produced out of the company's uranium to Ulba-FA fuel assembly for subsequent production of fuel assemblies, and it is at ensuring a sufficient level of inventories for the future periods. As was previously noted, Kazatomprom's 2023 year-end inventories are at the level of 6,100 tonnes. This volume is comparable to about 10% of world supply and definitely helps us to stay confident in executing our contractual commitments. Additionally, we usually reserve a portion of our annual production as uncommitted, enabling us to capitalize on the emerging market opportunities and adapt to fluctuations in the market conditions. Despite lower sales guidance compared to 2023, we are expecting an increase in revenue of about 20%, with a forecast ranging at KZT 1.7 trillion-KZT 1.8 trillion, which may vary, though, if tenge to U.S. dollar exchange rate and/or spot price fluctuates significantly during 2024. Procurement and supply chain issues, including inflationary pressure on production materials and reagents, are expected to continue throughout 2024. As a result, we expect a 30% increase in C1 cash costs and about a 25% increase in all-in sustaining cash costs for 2024. In addition to the mentioned factors, high uranium prices affecting mineral extraction tax are also expected to contribute to a C1 increase. About AISC, all-in sustaining costs, an increase of this metric is also attributed to the fact that our CapEx is incurred in advance, usually roughly 12 months, and smooths out when production stabilizes. Therefore, you'll see CapEx normalize when the company starts to produce at a higher rate as was intended in 2024. In 2024, the company expects a 30% increase in its total capital expenditures on a 100% basis. The key reasons for this are higher costs for materials, supplies, equipment, and drilling services, as well as a larger portion of capital expenditures attributable to well-field development at newly developed deposits. As such, in order to catch up on the construction delays of the mining infrastructure at JV Budenovskoye, KATCO, and Ortalyk, a total amount of approximately KZT 85 billion is now expected to be spent in 2024. As of 2025, should there be any adjustment to the 2025 production plans, these are expected to be announced with the company's half-year financial results in August this year. However, a swift return to a 100% production volume level relative to subsoil use agreements may be at risk. Also, worth noting that the company's reserve and resource base is the most sustainable across the industry. As of 31 December 2023, in comparison to 2022, total mineral resources increased by about 88,900 tons of uranium, mainly due to revaluation of uranium resources at Karatau, Kharasan, and Appak deposits. As a national operator, Kazatomprom has always focused and will continue to put even more efforts to explore new uranium deposits and replenish its resource base. One of my priorities is to ensure a sufficient level of our resource replenishment. Therefore, the company is planning to launch a large-scale exploration program and to work on assessment in territories aimed at new discoveries. Beyond the operational and financial results, let me highlight the company's major corporate developments. High management turnover remains throughout the year 2023, both within the C-suite and the board level. This is a fact that I have to admit, but I think it is important that the company stays committed to its strategy and constantly delivers on its expectations. When I was appointed as CEO in October 2023, I acknowledged this fact and would like to reiterate that ensuring more stability is definitely one of my priorities. The company also continues to prioritize ESG principles in its operations and activities, worth highlighting that we have obtained a B score on our carbon disclosure project assessment in 2023. This is better than the average score for both the region and the industry. Kazatomprom continues to demonstrate a strong ESG record and will continue to work on improving it. In July, we completed the payment of dividends for 2022, which amounted to KZT 201 billion or $1.7 per share. We will announce our 2023 dividend recommendation in April. But with the exceptional 2023 financial results and net debt to adjusted EBITDA ratio remaining negative, I am sure the company's dividend yield can be expected as the highest across the industry. Wrapping up my presentation, I'd like to confirm the company's continuous commitment to a market-centric strategy, which is one of the most important milestones on the company's development path. Kazatomprom will, with its best-class assets, sustainable reserve-based diversified sales book, and strong contract portfolio, be best positioned to capture future market growth opportunities. The company appreciates being a part of the energy security agenda. With the continuing geopolitical uncertainty and risks, and continuous talks on the bifurcation of the market, Kazatomprom is fully capable of keeping its leadership position as a reliable supplier of natural uranium and is ready to secure utilities' needs in diversifying their supply sources from ESG-compliant and low-risk jurisdictions. With that, I will conclude my presentation. Thank you for your interest and attention. Now, we'll be happy to answer your questions. We will now begin the question-and-answer session. Please limit yourself to two questions at a time. If you have additional questions, you are welcome to rejoin the queue. As a reminder, you can also submit questions using the "Ask a Question" button on the webcast page. To ask a question on the phone line, please press star 1 to raise your hand and join the queue, where you will be welcomed by name and company to ask your questions. If you are listening on your device loudspeaker, please pick up your handset to ensure your questions are clearly heard. Again, please press star 1 to ask a question and join the queue. Your first question comes from the line of Alexander Pearce from BMO. Your line is open. Great. Thank you. So you flagged the KZT 85 billion CAPEX for new projects this year, which includes, obviously, Budenovskoye, KATCO, and Ortalyk, I think. Is it possible for you to provide an update on kind of where they stand in terms of percentage completion of the projects at this point? Hello, Alex. Yeah, thank you for your question. So actually, those projects are at the very beginning of their stage. So I'm not sure I can give you the exact number, but it should be less than a quarter of their total kind of project value. So it is a very early stage, I would say. Okay. Thank you. And then there's a second question. Obviously, the new CAPEX guidance range is KZT 250 billion-KZT 270 billion for 2024. Does that assume and I appreciate you haven't given us a 2025 guidance yet, but does that assume that you can get to licensed capacity in 2025, or is that assuming a lower rate? Yeah, this is kind of a tricky question. But as I say, and we here always have been saying this, we'll be coming up with the updated guidance for 2025 production as a result of six-month results, which will be public in August this year. So technically, at that time, we'll be announcing our guidance for 2025 production. But increased CapEx amounts do not necessarily kind of factor in an increase in production because, as we say, there is also a little bit of construction that is going on and will be taking place. Plus, there is some increase in sulfuric acid, plus an increase in sulfuric acid price, plus an increase in piping. There is also some workforce. So all those, how do I say, factors can be also kind of factored in an increase of those, as you said, KZT 250 billion-KZT 270 billion. Okay. Thank you. Your next question comes from the line of Jason Fairclough from Bank of America. Please go ahead. Yeah, thanks, everybody, for the presentation. Really appreciate it. A couple of quick ones from me, and I'm going to go back to the CapEx question. There's quite a few questions from investors, and I'd like a little more color as well on how we think about connecting the 100% CapEx number to the CapEx number that actually flows through on the financial statement. So I'm just wondering if you could give a little bit of color on that. That's the first question. And then second, could you talk a little bit more about, if you like, the aspiration to get up to the full production level of the subsoil licenses? So you were planning on ramping in 2024 and 2025. That's been pushed back. But do you still have a medium-term aspiration to get back to full production or full licensed production output? Yeah, thank you for your question, Mr. Sultan. In terms of the second part of your question, I would comment that the current CapEx for 2024, $250-$270 range, it puts us in a position to be able to attain a ramp-up if needed. Obviously, right now, it's hard to say because that will depend on the available volumes of sulfuric acid and the construction timeline for our greenfield projects at KATCO, Budenovskoye, and Ortalyk. We plan to review our capabilities near the half-year to decide if we need to increase our CapEx. Again, that will depend on what level we are going to aspire to in 2025. In terms of the first part of your question, I think in operation and financial review, we have a capital expenditures review where you will be able to match the CapEx number of KZT 200 billion that we have spent this year. You'll be able to have a breakdown on the mining entities of the CapExes, if that answers your question. Yeah, thanks. It does. Just a quick follow-up, if I could. The guidance on the CapEx, the $250, does that include CapEx for the acid plant, or is that separate to that number? And if so, could you remind us the CapEx for the acid plant as it stands today? No, it does not include the acid plant. At the stage of the feasibility study, it has been completed. Now we are at the stage of design. So we don't have a concrete number, so. Yeah. And this CapEx we show of KZT 200 billion is only for mining entities. You have to have a look in terms of that as well. Okay. Thanks. Yeah. Your next question comes from the line of Richard Hatch from Berenberg. Your line is open. Thanks very much for the call. Much appreciated. Sorry if I've missed this. Can you just clarify when you would hope to bring the acid plant online, please? That's the first one. Yeah. When we first released the news about it, we were aspiring for 2026. But obviously, considering the latest delays, it will probably move to 2027 as of now. Obviously, it's a big construction project. As all big construction projects, it might have delays. It has risk of delays. But currently, we can say that it's definitely going to move from 2026 to 2027. Okay. So that kind of, I guess, the view on that would be, therefore, it just ties your hands a little bit more just in terms of being able to ratchet up production. Is that the way we should look at that? Well, obviously, we're going to look at the market, the available volumes that are available at the market of Kazakhstan and our neighboring countries. Yes, the situation as it is right now has developed in 2024 that we have a shortage. Who knows what will be in 2025 or in the later part of 2024? But in terms of securing our own supply, obviously, you can say that it ties our hands a bit. Okay. Understood. Then my next question is just you mentioned in the release, and I think you alluded to it in your presentation, that you have the ability to step into the spot market should you need. But I'm looking at your inventory levels and just questioning if you really do need to do that. I appreciate your sales are higher than your production volumes, but you've got inventory levels. Is it more like is it fair to say that it's more likely than not that you do not enter into the spot market, or would you say you more likely would? Thanks. Yeah, thank you for your question, Dustin here. We like to keep all our options available. But our inventory levels, as you've mentioned, they're sufficient, and they enable us to be comfortable and open to any options. But so far, we don't expect to go into the spot market, and hence, we don't need to. Understood. Then my last one's just on the market. I just wonder I mean, the spot price has been quite volatile here today. We've had a huge rally, and then we've had a pretty big pullback down into the sort of mid-$80-per-pound levels. Can you just talk a little bit about your view on the market as we go into 2024? It would appear the spot market is quite thin, so that seems to be moving the price around a bit. But perhaps can you just give us a little bit of your view on the price outlook for 2024, if at all possible? Thank you. Yeah, yeah, sure. Well, you've said it yourself, the spot market is very thin, right? We do agree that there is a structural deficit coming. It's just like the situation is going to unravel at a certain pace, and we're going to observe it. We expect certain fluctuations within the market in the upcoming periods. But as I've said already, the price is going to go up. It's just like the pace we've observed recently, perhaps, is going to slow down a bit. But in general, the upward trend is going to continue. There is no doubt about that. That's really helpful. Thank you very much for taking my questions. Your next question comes from the line of Alex Bedwany from Canaccord Genuity. Your line is open. Thank you, gentlemen. Just following on for my first question from Richard's question regarding inventories, are you still targeting 6-7 months of attributable production to be in that inventory, or are you happy at this point, given that sales are higher than production or likely to be higher than production, to run down the inventory if need be? Well, the figure we have right now is the one we're comfortable with. So we're probably going to sustain this at the mentioned level. But we don't have a firm policy on that. Okay. Cool. Now, turning to something different. So obviously, the earnings numbers were quite stellar. However, I note that it was about somewhere between KZT 200 billion and KZT 250 billion short between EBITDA and operating cash flow, the conversion into cash flow. And it looks like that is reflected in the VAT receivables billed and accounts receivable as well. Have you seen that that's unwound already in this year to date? And the reason I ask is, is that something that would be taken into account when the board sets the dividend in April? Well, in terms of trade accounts receivable, yes, you are right. There is an item in financial statement that explains the reasons for it. I mean, we had a reasonable revenue increase. Obviously, as a percentage, our trade accounts receivable are going to increase. I will not say linear, but as a general approach, obviously, it's going to increase. In terms of it affecting the cash flow, obviously, the revenue from operating activities is going to affect the cash flow. I do not see how accounts receivables are going to affect that. So sorry, just to follow up, has the VAT receivables and accounts receivables begun to unwind this year, or is it still quite high? Sorry. As you know, we have a dividend policy that we clearly state in our investor handouts, and the formula is clearly stated there. So we are going to distribute according to that formula. Okay. Thank you, gentlemen. Before we continue on to the next question, a reminder for those on the webcast, please use the Ask a Question button. For those on the phones, please press star one to join the queue. Your next question comes from the line of Grace Symes from Energy Intelligence. Your line is open. Hello. Thanks for taking my question. I saw in the operating results, it says the group obtained control over JV Budenovskoye LLP from 1st January 2024 as a result of significant changes in charter documents. I was just wondering if you could give any further detail on what exactly that means. Well, I don't think we'll be able to comment on that. We have a disclosure that, as you said, this is according to the charter between the two partners. And according to the items in that charter, we are going to attain ownership starting from not attain ownership, have a control over JV Budenovskoye starting from 1st January 2024. Okay. Kazatomprom did not have control over it until 1st January 2024? Sorry, can you repeat that again? Yep. Sorry. So does that mean that Kazatomprom did not have control over the JV until the 1st of January 2024? Yep. Yes, that's correct. That's correct. We attained control starting from 1st January 2024. Okay. And then just one more question. We are going to consolidate it starting from 1st January 2024. Okay. Thank you. Just one more question. So I know the U.S. is considering a ban on Russian-enriched uranium. My understanding is that Kazatomprom's uranium that goes to the U.S. through St. Petersburg is on the same ships that Russia uses for its enriched uranium. Is there any concern about potential impact on shipping of Kazatomprom's uranium to the U.S. because of that? And is there any plan for Kazatomprom to potentially charter its own ships instead? Well, so far, there are no restrictions on any shipments from St. Petersburg. And as you've probably seen from our results, 63% of our shipments to the west in 2023 were carried out through Trans-Caspian International Route through Azerbaijan. So we have all the options in that. And also, I can add that so 63%-64% last year. And actually, there was a visit paid by our president to Baku earlier this week. And then I've had a personal meeting with the top officials there, including First Deputy Prime Minister, Mr. Eyyubov. And we have, again, reconfirmed their willingness and our willingness to cooperate on this matter. Actually, if you just compare absolute numbers or volume that is going through Middle Corridor, through Trans-Caspian Route, uranium product is a tiny portion of this because in our case, it's not more than at this point, not more than 10,000 tons of uranium, while other materials that are being shipped through Middle Corridor, through Azerbaijan using Trans-Caspian Route is I mean, there are huge numbers, including grain, oil, and other materials. So even if we, let's say, double our transit volumes through Azerbaijan, that will not, I mean, increase share I mean, dramatically increase share of uranium in that mix of materials that is being transited through Azerbaijan. So the total volume of all goods being transited, I don't know, maybe it's hundreds of millions of tons. In our case, it's only a few thousand tons. Just to give you the color on the amounts or absolute amount that we are talking about. All right. Thank you very much. A final reminder. For those on the phone lines, please press star one to raise your hand and join the queue. This is for any questions or follow-up questions. For those on the webcast, please use the Ask a Webcast button. Your next question comes from the line of Anna Antonova from J.P. Morgan. Your line is open. Good afternoon, gentlemen. Thank you very much for the presentation. A quick question from our side. What share of deliveries through Trans-Caspian Route can we expect this year compared to below 70% last year? Thank you. That will be roughly the same as in 2023. So it would be safe to say 2/3 of all shipments to the west. Thank you. You have a further follow-up question from Grace Symes from Energy Intelligence. Your line is open. Hi. Sorry, one more question. I know you mentioned starting an exploration program and resource replenishment. I was just wondering if you could provide any detail on what territories or deposits or areas that you're looking at with that program. Thanks. Okay. In terms of further exploration, the territories are pretty much in the same area that we are doing now. One of our priorities starting from this year will be further geological exploration and adding up some additional, maybe, volumes or tons to our KAP's share. Coming to your question, yeah, it's pretty much in the same area, not far from those deposits that we are mining at this moment. All right. Thank you. A further follow-up question from Alexander Pearce from BMO. Your line is open. Great. Thank you. So just to follow up on Budenovskoye. Obviously, you mentioned in the release that you have the offtake for 100% of production, I think, to Russia between 2024 and 2026. Are you able to provide any detail for us in terms of the volumes or indeed if there's any kind of minimum threshold for delivery? And if there is, does that mean that you have to provide some of the volumes from your other operations, rather? In terms of whether it's 100% or not, well, it depends on how the construction will go on in the first place. I mean, if there are some delays, then as it might happen sometimes, so there might be some delay. We already kind of pointed out those risks. In terms of volumes, I'm not sure. I mean, what is it? In terms of volumes, you can have a look at the CPR profile of the Budenovskoye mine. That will give you a reflection of what volumes were planned for 2024, 2025, and 2026, which is, yeah. So just to be clear then, so if the operation isn't ramped up as per the CPR, though, do you have to provide additional volumes to meet the CPR numbers in terms of? Well, yeah, we don't provide detailed information on our kind of negotiations or talks with our partners. Okay. Understood. Thanks. This is your final opportunity for those listening by the phone to ask a question or a follow-up. Please press star one now on your telephone keypad. Again, this is your final opportunity for those on the phone lines to ask a question or a follow-up. Please press star one on your telephone keypad. And we'll pause just for a moment for any final questions. You do have a final question from Anna Antonova from J.P. Morgan. Your line is open. Thank you. A quick follow-up question from our side. I think in the press release, you mentioned that you were able to secure the sulfuric acid volumes for production for this year. Could you please maybe talk about the mix of those volumes, where they come from? So have you managed to source more from locally, or have you managed to secure imports from China or from some other countries? Any commentary on that would be much appreciated. Thank you. Thank you for your question. For 2024, yes, we have mentioned that we were able to contract the volumes needed for the guidance that we gave for 2024. Yes, most of it was procured domestically, but some parts were procured from our neighboring countries. But China is not on the list because there are difficulties in terms of legal issues and delivering the acid from China. So China is definitely not on the list. It's neighboring countries, CIS countries. Thank you. That concludes the question and answer session from the audio line. I will now pass the call back to Mrs. Muldagaliyeva to take written questions from the webcast participants. Please go ahead. Thank you, operator. Yes, we have several questions coming in from our webcast. The first one is coming from Borya Petlanda, a retail investor. "Good morning. First of all, congratulations on these results. It shows the great margins that Kazatomprom has and how much cash it generates. After a comment that it would take at least one year Kazakhstan to close the gap between supply and demand, it is obvious that the market expects and needs Kazatomprom to return to its subsoil use agreement level." So the question is, "What range of CapEx budget do you foresee to reach these subsoil use agreement levels? Thank you for your question. I think we've earlier answered that question partly. The answer is same. We see that the current CapEx guidance that we gave for 2024, it kind of puts us in a position to be able to attain a ramp-up if needed because you have to remember we have prepared reserves in 2023 for a planned ramp-up for 2024. So considering that, we might be able to attain that ramp-up. But obviously, the limiting factor in terms of that is the available volumes of sulfuric acid and the construction timeline for our greenfield projects at KATCO, Budenovskoye, and Ortalyk. We are going to decide on that near the half-year of 2024. So I would say that the better guidance we'll be able to give to answer your question, it will be after we finish the six-month results and give guidance for 2024. Thank you, Mr. Temirbayev. The next question is coming from John Praxis from Praxis Management. "How much in percentage is the inflation rate you are feeling in your costs currently and we should expect in 2024? Yes. The inflation rate in 2023, official inflation rate of National Bank, was about 10%. Obviously, it's difficult to say how exactly in our cost structure, what exactly and how exactly it's affected. But the usual suspects are obviously materials and supplies. And you will see that the price of sulfuric acid has increased substantially, even more than inflation rate. That's obviously because of the shortage in the market currently. There is pressure on the payroll costs. You can see that increase in our cost of sale. The payroll costs have increased 25%. And the piping materials, the prices of piping materials in the capital expenditure that we have in our wellfield development costs, they have increased as well. So we are feeling the inflation that is in Kazakhstan right now. But to what extent it's in line with the official rate of 10%, it's difficult to say. Thank you, Mr. Temirbayev. The next question is coming from Will Forbes at Tamesis Partners. "Given asset issues, why are you not looking to boost your own asset production to be fully self-sufficient going forward? Yeah. As you know, we currently have in our assets two assets that produce sulfuric acid, SKZ-U and SSAP. They are producing at the maximum level that they are able to produce. Obviously, to build up a new capacity is easy to say, easy to say, but very hard to do. As you know, we are planning to build a sulfuric acid plant. But even as we said today, it has already moved from 2026 to 2027. So to answer your question, yes, we are looking at building up our own capacity. But it's quite challenging to do that very quickly. Thank you. Well, the next question was coming from the Russian line. So I'll just translate it here. It corresponds to the previous one. "Are there more precise information on when are you expecting to when you're expecting your sulfuric acid supplies to normalize? As we've already mentioned today, we have already secured well, we have contracted the needed volume of sulfuric acid that we need to get for our 2024 guidance. In terms of 2025, as I mentioned as well, the current market is quite difficult in terms of predicting what available volumes will be in the near term. So for 2024, we have more or less secured. For 2025, it's difficult to say. Yeah. Thank you, Mr. Temirbayev. The next question is also related to sulfuric acid. "Do your neighbors like Uzbekistan face similar shortages in sulfuric acid supply?" The question was from John Praxis at Praxis Management. It's difficult to say. I can tell you for sure that we are not importing any volume from Uzbekistan currently and are not planning in 2024. So what's their domestic production and demand? It's hard to say. But considering that we do not import sulfuric acid from Uzbekistan, maybe it gives you some guidance. Yes. Thank you. The next question is coming from Charles Cartledge at Fidera. "Some people say that as mines deplete, so they require more sulfuric acid per tonne of uranium produced. Is that true? If not, how can it be evidenced using the data? Yes. There were a lot of speculation in terms of that. I've seen analysis of previous years, the volumes of acid that we had being compared to the volumes of production that we have. I can say that this analysis is not correct because we have, as we said in the blocks, the leaching phase and the block preparation phase. Obviously, if we have more blocks for preparation, this will change the amount of needed volume of sulfuric acid in one year, and it might be different in another year. So it's not a straight-line analysis, I would say. I think our CEO have mentioned in our presentation that in terms of wellfield production profile. Just a short answer to your question is no, there is no depletion. It's just that the needed volume of sulfuric acid for this year was not available due to shortage. That's why we had to revise our guidance in terms of production. I think if depletion would be an issue, you would see that in our Competent Person's Report that we produce each year. Thank you, Mr. Temirbayev. The next question is coming from Piia Moilanen at Argonaut Capital. "Hi, can you please tell us what you are seeing from the Chinese buyers given they have the world's most aggressive nuclear expansion plan? How do you think the percentage of your volumes going to China will evolve? Yes. Thank you for your question. Well, as you know, China is building the most number of reactors currently. And they have very aggressive plans for expanding. And we receive a lot of inquiries and requests from them for us to indicate our offers. But we try to sustain a balanced approach to our sales portfolio and distribute our sales evenly across all regions. And even though China is well capable of purchasing everything we produce, it is our own selection or our own choice not to sell everything to China. Thank you, Mr. Kosherbayev. The next question is, "What are utilities saying right now? How are your conversations with them since the start of the year? Yeah. We're in constant contact with all the utilities across the world. Naturally, they're all concerned with the security of supply and looking ahead forward into the next decade. But as you well know, utilities typically keep 3-4 years of inventory stock. They're in no rush to get contracting. Basically, we're trying to figure out what's the new normal for the market price because you well understand that the current spot market is very thin, as already mentioned. It serves as a reference point. But definitely, that's not the actual market price. Yes. Thank you, Mr. Kosherbayev. The next question is from David Turver. "When you first announced 2025 production guidance of 31,000 tonnes, you indicated that the order book justified the production increase. What is the expected delivery volume in 2025, and by how much you will need to increase production and/or inventory in 2024 to give a suitable buffer to meet 2025 order commitments? Yeah. Thank you for your question. At the time when we did that, yeah, we thought perhaps that would be a good opportunity to increase our sales. But then we stumbled upon the difficulties we've already mentioned, so the ones associated with sulfuric acid. And committed to our value-over-volume strategy, we decided that it's best to revise that. Plus, as we've said, we are not fully contracted. And we have a lot of flexibility in terms of that. So we don't need to ramp up our production to meet our sales portfolio. I think these are all the questions from the webcast. Okay. Thank you, everyone. I think there is no further questions in our webcast lines known in Russian or English. So thank you, everyone, for joining our call today. If you have any additional questions, please feel free to email or contact our IR team. We'll be happy to answer your questions in written. Thank you, everyone, for your time again. Have a good day.