- Saudi Arabian Mining Co. (Ma’aden) has reported a significant 83% year-on-year (YoY) decline in its full-year 2023 net profit attributable to shareholders, amounting to 1.58 billion riyals ($421 billion). This decrease was primarily driven by lower prices across most of its product portfolio. Despite this, Ma'aden managed to surpass analysts’ mean estimate of SAR 1.32 billion, as indicated by data from LSEG. The decline in net profit was attributed to various factors, including higher finance costs resulting from increased borrowing rates and reduced share of profit from joint ventures due to the impact of lower commodity market prices.
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Ma'aden disclosed these details in a regulatory statement on Riyadh's Tadawul exchange on Monday. The company also noted a 27% decrease in sales revenue, totaling SAR 29.3 billion. However, Ma'aden partially offset this decline with higher sales volumes of ammonia phosphate fertilizer, alumina, and gold. Looking ahead, CEO Bob Wilt expressed the company's proactive stance toward expansion, emphasizing plans to "aggressively" ramp up exploration activities in 2024.
Why it matters
This strategic move aligns with Ma'aden's commitment to navigating market challenges and capitalizing on growth opportunities in the mining sector.
