We bring to your attention the Kazatomprom’s Annual Report for 2023. In this report you can find the key results of the Development Strategy implementation and the Company's performance over the past year.
2023 was a year of significant events and important achievements for us. Innovation, continuous development, and high-level technological expertise help Kazatomprom retain its leading position in the uranium sector. In 2023, Kazatomprom's contribution to global uranium production was about 20%. Kazakhstan accounted for about 39% of global uranium production.
Ulba-FA successfully implemented its plans. One of the primary objectives was global diversification of the client base and expansion of supply geography. In 2023, we delivered nuclear fuel to China, which confirms the high level of Company's technical expertise and readiness to develop new areas.
The 2023-2030 Sustainable Development Programme has become the basis of our growth and development strategy. This document defines our goals and objectives for environmental, social and corporate responsibility. We are committed to minimising our environmental impact and actively support social programmes, which contributes to the development of corporate governance principles.
Kazatomprom actively invests in the socio-economic development of the regions where it operates, supporting projects in education, sports, culture and charity. In 2023, the Company allocated KZT 659 million for such projects. We recognise the importance of interaction with local communities and regularly hold public hearings on environmental and social policy issues.
ESG principles remain the cornerstone of our further development and our commitment to carbon neutrality and reducing environmental footprint. Our Company also actively monitors safety and environmental protection, adhering to international standards. In 2023, the Company successfully passed ISO 45001 and ISO 14001 compliance audits. It actively manages risks, conducts safety audits and records hazardous conditions, actions and incidents without consequences. During 2023, four accidents occurred at our entities resulting in injuries to five employees. A thorough investigation of each case was conducted to identify the causes and develop measures to prevent them in the future. No radiation incidents were recorded.
Transparency and responsibility remain the key principles of our work. We regularly monitor sanctions risks and maintain an open dialogue with our leaders and the public.
The Company demonstrates financial strength, investment attractiveness, and a high level of investor trust. The "value over volume" strategic approach adopted in 2018 has proven its effectiveness.
Lower production costs and improved financial performance were the results of efforts to enhance operational efficiency. Control over production costs at a competitive level allows the Company to maintain high profitability, keeping EBITDA Margin at least 50%. Kazatomprom's share price increased by 45%, providing shareholders with a return of 51%.
With current trends such as growing energy consumption in developing countries and increasing demand for clean energy, the uranium and uranium products market presents significant prospects for development. Kazatomprom, as a leader in uranium production, makes a significant contribution to the development of energy and environmentally sustainable technologies.
We continue to explore various spheres for the Company's further development to maximise the use of our competitive advantages and strengthen further long-term development. Continuous strengthening of its position and investments in new technologies will help the Company successfully deliver on its ambitious plans and remain a key player in this forward-looking market segment.
The Board will continue to provide governance and performance improvement to the Company, representing the interests of all parties involved. On behalf of the Board of Directors, I would like to thank all our stakeholders – especially Kazatomprom’s shareholders, employees, customers and partners – for their mutually beneficial cooperation in 2023.
