If you'd like to get contact with us, please send an email to info@maaden.com.sa or you can contact one of our offices below:

SAUDI ARABIAN MINING COMPANY

Head Office - Riyadh
P.O. BOX 68861 Riyadh 11537
Kingdom of Saudi Arabia
Tel: +966 (0) 11 874 8000
Fax: +966 (0) 11 874 8300
info@maaden.com.sa
Public Relations & Media Affairs - Riyadh
P.O. Box 68861 Riyadh 11537
Kingdom of Saudi Arabia
Tel: +966 (0) 11 874 8354
Fax: +966 (0) 11 874 8057
media@maaden.com.sa
Procurement - Riyadh
P.O. BOX 68861 Riyadh 11537
Kingdom of Saudi Arabia
Tel: +966 (0) 11 874 8096
Fax: +966 (0) 11 874 84444
srm@maaden.com.sa
Jeddah
P.O. Box 13784 Jeddah 21414
Kingdom of Saudi Arabia
Tel: +966 (0) 12 229 2600
Fax: +966 (0) 12 229 2651
Al Khobar
P.O. Box 32001 Al Khobar 31952
Kingdom of Saudi Arabia
Tel: +966 (0) 13 811 1970
Fax: +966 (0) 13 811 1964
Jubail
P.O. BOX 11110 Jubail 31961
Kingdom of Saudi Arabia
Tel: +966 (0) 13 347 3333
Fax: +966 (0) 13 347 5682
Investor Relation - Riyadh
P.O BOX 68861 Riyadh 11537
Kingdom of Saudi Arabia
Tel: +966 (0) 11 874 8123
Fax: +966 (0) 11 874 8132
invest@maaden.com.sa

STRATEGIC BUSINESS UNITS - SBU

Aluminium - Riyadh
P.O. BOX 68861 Riyadh 11537
Kingdom of Saudi Arabia
Fax: +966 (0) 11 874 8187
aluminiumsales@maaden.com.sa
Phosphate - Riyadh
P.O. BOX 68861 Riyadh 11537
Kingdom of Saudi Arabia
Tel: +966 (0) 11 874 8329
mktg-online@maaden.com.sa
Gold - Jeddah
P.O BOX 13784 Riyadh 21414
Kingdom of Saudi Arabia
Tel: +966 (0) 12 229 2600
Fax: +966 (0) 12 229 2651
About Image

Saudi Arabian Mining Company (Ma'aden) reports the results of second quarter ended 30 June 2019

Jul 22, 2019

Riyadh, KSA – Saudi Arabian Mining Company (Ma’aden) (Symbol: 1211) (ISIN: SA123GA0ITH7), the Middle East’s leading multi-commodity mining and metals company, and a company listed on the Saudi Stock Exchange (Tadawul), today reported its financial results for the period ended 30th June 2019. The Company recorded a net loss of SR 590 million in Q2 2019 compared to profit of SR 630 million in Q2 2018. The loss is mainly attributed to decreasing commodity prices, which affected the year-on-year profit by SR 481 million, and one-time costs associated with the restructuring of its aluminium rolling business which amounted to SR 159 million.

The company’s profitability was also affected by higher input costs, operating expenses including fixed costs, general and administrative costs, selling and marketing, and finance costs, caused by the full recognition of the operating costs of Ma’aden Wa’ad al Shamal Phosphate Company (MWSPC) and Ma’aden Rolling Company (MRC) which commenced commercial operations in December 2018.

Despite losses incurred in Q2 2019, revenue increased by 26%, reaching SR 4.3 billion compared to SR 3.4 billion in Q2 2018. The increase in revenue resulted primarily from an increase in sales volume of ammonium phosphate fertilizer (APF) and aluminium Flat Rolled Products (FRP) as MWSPC and MRC reached full commercial operations. Cash generated from operations was SR 545 million in Q2 2019; up by 25% when compared to the previous quarter.

Ma’aden reported EBITDA of SR 1.3 billion, a decrease of 29% compared to the same quarter last year.

Also impacting financials this quarter was an increase in power costs for its aluminium smelter due to the recognition of the full power cost of the Saline Water Conversion Corporation (SWCC) power plant, which supplies the smelter.

Commenting on the results, Ma’aden President and CEO, Darren Davis, said: “The second quarter of 2019 showed further weakness in our core commodities, phosphate and aluminium, with prices continuing downward trends seen since 2018, although gold prices remained strong. Aluminium prices remain under pressure as a result of continued uncertainty over the global trading environment, however the transaction to restructure our aluminium rolling business is proceeding as planned and will ensure the long-term sustainability of the business.”

“Phosphate fertilisers weakened due to higher exports from China. Our MWSPC project made further good progress in the second quarter in ramping up operations and across the business, production in most of our units reached record highs. Whilst market challenges are likely to continue, production will reach record levels in 2019 and we have renewed our focus on operational excellence,” Davis continued.

Ma’aden’s first international acquisition, of East Africa-based fertilizer distribution group Meridian, is progressing according to plan and is expected to close in Q3 2019.

Operational updates:

  • During Q2 2019; 1,264K tonnes of APF was sold, an increase of 69% over Q2 2018. The large increase results from MWSPC phosphate commercial operations commencing in December 2018.
  • Ammonia production was 600K tonnes, an increase of 18% as compared to last year. This was primarily due to turnaround maintenance.
  • The production of primary aluminium was 239K tonnes in Q2 2019, an increase of 2% over Q1 2019 and 1.2% over Q2 2018 due to higher metal supply by Can Rec unit.
  • The alumina production in Q2 2019 was 465K tonnes, an increase of 7% over Q1 2019 and 2% from Q2 2018. This was due to limitations on export capabilities (storage capacity).
  • Q2 2019 gold production was 85Koz a decrease of 17% from Q2 2018 and an increase of 9% from Q1 2019 mainly due to lower mill feed gold grade in the Ad Duwayhi mine and increased waste stripping.

For further information please contact:

Media Relations

E: media@maaden.com.sa

MEDIA CONTACTS

Media Relations
media@maaden.com.sa

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