Maaden’s Q1 2021 profit fueled by higher product prices: Acting CEO

Logo of Maaden

Saudi Arabian Mining Co.'s (Maaden) profit growth in the first quarter of 2021 was mainly attributed to a rise in the company’s product prices, Acting CEO Abdulaziz Alharbi told Al-Arabiya TV, noting that phosphate and aluminum accounted for 50% and 35% of total revenue, respectively.

Gold represented 15% of total revenue in the first quarter.

The prices of these products grew by 35%-37%, when compared to the first quarter of 2020.

“The aluminum segment witnessed higher demand by the end of 2020 and the first quarter of the year from China, Europe and industrial stimulus in the US. This in turn led to an increase in prices to record levels. We hope prices will remain at these levels,” Alharbi said.

Moreover, global phosphate prices significantly increased, backed by better demand from India, North and South America, and Europe.

Gold is the safe haven amid tough market conditions, Alharbi explained. Gold prices rose in 2020, despite a decline at the end of the year. However, gold maintained solid levels in the first quarter of the year.

Maaden’s net debts decreased by 20%. The company will reduce debt to the required levels based on the industry, Alharbi added, affirming that Maaden’s cash flows are very strong.

In the second quarter of the year, Maaden will focus on supplying high-quality raw materials to its clients and raising local content in supply chains. It will also localize jobs, double production and preserve environment, Alharbi concluded.

Maaden swung to a net profit after Zakat and tax of SAR 761.2 million in Q1 2021, against a net loss of SAR 353.3 million in the year-ago period, Argaam reported.