CGN MINING(HK:01164) 智通财经网·2025-08-25 06:25Core Viewpoint - Zhongyin International maintains a buy rating for CGN Mining (01164), believing that the company's losses in the first half of the year are likely due to seasonal factors, which could restore investor sentiment [1] Production Guidance - The most notable adjustment in the performance of Huaneng Uranium is the downward revision of its nominal capacity for 2026 from 32,777 tons of uranium (85 million pounds) to 29,697 tons of uranium (77 million pounds), a 10% reduction [2] - This reduction of approximately 3,000 tons of uranium is primarily due to adjustments in the joint venture Budenovskove, signaling that the world's largest uranium producer is not prepared to restore full production at current market prices [2] - The new guidance reflects that uranium mining companies are gaining greater bargaining power in pricing negotiations, as there have been more tender activities in the market recently, which is rare during the summer months in previous years [2] Infrastructure Readiness - The downward revision of the 2026 capacity guidance contrasts with the progress made in production infrastructure, including the commissioning of a new processing plant with a capacity of 2,000 tons of uranium by the joint venture KATCO [3] - A new sulfuric acid plant is under construction, expected to be operational by the second quarter of 2027, with the company believing that the sulfur shortage issue has been largely resolved [3] Seasonal Sales Fluctuations - Despite a 13% year-on-year increase in total production, Huaneng Uranium's uranium sales volume for the first half of 2025 decreased by 2% to 7,625 tons due to customer delivery scheduling [4] - The seasonal factors in sales may also be a reason for CGN Mining's profit warning for the first half of 2025, with the company maintaining its full-year sales guidance of 17,500-18,500 tons of uranium, expecting sales volume to catch up in the second half of 2025 [4]