Maaden Q1 profit jumps twofold to $262m

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Higher sales volume and lower depreciation costs helped Saudi state-backed miner Maaden’s net profits rise more than twofold rise year on year for the first quarter of 2024.

Net earnings reached SAR982 million ($262 million) in January to March, compared to SAR419 million a year earlier.

Revenue fell 9 percent year on year to SAR7.2 billion during the quarter, driven by lower prices and sales volumes in ammonia and aluminium.

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“We have continued to drive our strategic priorities, including an additional 113 km of drilling at Uruq South, supporting our exploration efforts as we expand our geological surveys in the development of the Central Arabian gold region,” said CEO Bob Wilt.

Wilt said that Maaden’s largest and most technologically advanced gold mine Mansourah-Massarah is now fully operational, adding that it has made good progress on contract awards for the first phase of the phosphate 3 plant.

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The Saudi-listed company’s phosphate business unit is also progressing with initial groundworks and early construction work now under way at the first phase of its phosphate 3 mega-complex. The plant will add 1.5 million tonnes of annual capacity by the end of 2026.

Maaden will also benefit from improving aluminium demand from increased global manufacturing activity following the completion of the pot relining programme last year. 

Flat-rolled production is expected to improve as demand normalises in the market.

Maaden has also approved the development of a new aluminium recycling plant at Ras Al Khair that will produce nearly 400,000 million tonnes annually.