Ma’aden Operating Profit Jumps 622% While Sales Reach Over 3 Billion Riyals
The Saudi Arabian Mining Company (Ma’aden) today announced strong financial and operating results for the third quarter of 2014. Ma’aden sales during the quarter reached SR 3152 million, an increase of 96% over the same quarter last year, while operational profit was SR 694 million in Q3 2013, an increase of 622% compared to same quarter in 2013. This significant increase in operating income was largely attributable to higher sales volumes and an increase in prices achieved for all Ma’aden products except gold.
Although net income decreased in Q3 2014 compared to Q3 2013, this is largely due to contractual payments from partners Mosaic and Sabic that were paid to Ma’aden in Q3 2013. When these payments are excluded, Ma’aden achieved an increase in net income this quarter compared to the same quarter last year. The net income for Q3 2014 also increased compared to Q2 2014 by 30.9%.
Commenting on the financial and operating results, Ma’aden CEO and President Khalid Al Mudaifer said, "While increased sales volumes and prices have bolstered our revenue and income this quarter, we’ve also achieved significant progress in developing the Ad Duwayhi gold mine and the Wa’ad Al Shamal phosphate project, and we began production at our joint venture aluminum rolling mill in Ras Al Khair.”
Mr. Mudaifer went on to stress that Ma’aden achieved a number of milestones across the organization this quarter as it made real progress towards achieving its vision of becoming a world class minerals enterprise. Beginning with safety, during Q3 the Ma’aden Phosphate Company achieved five million and Ma’aden Aluminium achieved ten million safe man hours without a lost time injury.
In gold operations, Mr. Mudaifer mentioned that Ma’aden achieved over 60% completion of the new Ad Duwayhi mine, which remains on track to deliver first production in mid-2015 and is expected to produce approximately 180,000 ounces of gold annually. Ad Duwayhi is one of several potential new gold mines in the Central Arabian Gold Region that are made feasible by Ma’aden’s 500 km treated wastewater pipeline, which is now complete and will reduce wastewater environmental impacts.
In its Aluminium business, Mr. Mudaifer said that Ma’aden had reached a number of milestones in Q3 including first production of caustic soda and customer delivery of the first aluminium coil sheet from the rolling mill. Ma’aden continues to work towards completion of the aluminium refinery anticipated before the end of the year. Upon completion, the Ma'aden Aluminium joint venture will become the first fully integrated aluminium complex in the Middle East.
Expanding its product portfolio, Ma’aden also signed a partnership agreement during Q3 with Canadian company Barrick Gold Corporation for a 50% interest in the Jabal Sayid copper project. Production at Jabal Sayid, the most important copper mine ever discovered in the Kingdom, is expected in the late 2015 as engineering, construction and equipment installation are substantially complete. Production capacity is expected to reach between 45 and 60 thousand tonnes per year. Based on the current reported reserves, the expected life of the mine is up to 15 years but may be increased as the joint venture expands exploration efforts.
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