Open Source Securities estimates that in 2024-2026, the net profit of CGN Mining (01164) will be HK$8.52, 9.29, and HK$1,089 billion, respectively.
The Zhitong Finance App learned that Open Source Securities released a research report saying that CGN Mining (01164), as the leader in the uranium industry, is progressing smoothly and maintains a “buy” rating. In 2023, the company achieved operating income of HK$7.368 billion, +101.04% YoY, and net profit to mother of HK$497 million, or -3.46% YoY. The decline in net profit was mainly due to rising prices of raw materials such as sulfuric acid, which led to deterioration in mine costs. In 2024, the shortage of sulfuric acid raw materials may continue, or costs will rise slightly. Therefore, the company's net profit to mother is expected to be HK$8.52, 9.29, and HK$1,089 million respectively in 2024-2026.
According to the report, in 2023, the company's natural uranium equity will produce 1,276 tons of uranium, of which Xie will contribute 472 tons of uranium and the Austrian company will contribute 805 tons of uranium. The overall progress of the company's project is progressing smoothly. The contract for the use of underground resources in the Yikang Mine has been extended to 2030, construction of the Za Mine Hydrometallurgical Plant has officially started, and the PLS project has submitted an EIA report. According to Kazakh's production guidelines, the bank expects the company's natural uranium equity production to remain stable in 2024.
Furthermore, on the demand side, nuclear energy continues to develop steadily, and the number of nuclear power installations worldwide continues to increase. On the supply side, since 2028, production mines have successively entered a peak period of production cuts and decommissioning. At the same time, the secondary supply level is at a historically low level. Resuming and increasing production in the short term is not enough to change the short supply situation. The medium- to long-term natural uranium supply and demand gap continues to expand, and natural uranium recovery is on the rise.