Saudi Arabian Mining Company (Ma’aden) reported net profits of approximately SAR 971.5 million in the first three months of 2024. This marks a significant turnaround compared to a net loss of SAR 83.4 million during the same period in 2023.
Details
The high quarterly profits of the mining giant were attributed to higher prices and sales volumes, as well as a decrease in depreciation expenses.
Additionally, the company benefited from receiving an insurance claim with a value of SAR 94 million for relining pots within its smelter plants.
These gains were partially offset by an increase in operating expenses, which included provisions for expected credit losses.
So what
The company’s sales in the third quarter increased by around 29% YoY surpassing SAR 8 billion.
This was due to improved selling prices across its products and a rise in the sales volumes of all products, except for alumina, primary aluminum, and gold.
Following the announcement of the strong results, Ma’aden’s stock rose by more than 4%, reaching SAR 56.2 at market close Wednesday.
Some context
Ma’aden, which is involved in some of the world’s largest mining projects, reported a net profit of nearly SAR 3 billion during the first nine months of 2024, marking an annual increase of approximately 333%. Its revenues grew by 6.3%, reaching about SAR 22.6 billion.
Earnings per share surged to SAR 0.81, compared to SAR 0.19 in the same period last year.
Now what
The CEO of Ma’aden, Robert Wilt, explained that the current quarter saw several important strategic announcements, which would shape the future of the company’s aluminum business.
He also spotlighted Ma’aden’s strengthened position in the mining sector as the third pillar of Saudi Arabia’s economy.
Wilt added that recent agreements signed with Alcoa and SABIC will contribute to expanding Ma’aden’s operational foothold.
He also noted that Ma’aden’s acquisition of SABIC’s stake in Aluminium Bahrain Company (Alba) underscores its efforts to expand and strengthen its operations regionally and internationally.
Furthermore, exploring the potential merger of Ma’aden’s aluminum business with Alba could create a new, world-leading aluminum company, enhancing production capacity, strengthening regional economic ties, and delivering added value for all stakeholders.
