AMAK CEO says results in last 3 years show robust position; new exploration licenses expected

Yahia AlShangiti, CEO of Al Masane Al Kobra Mining Co. (AMAK)

Al Masane Al Kobra Mining Co. (AMAK) reported positive financial results in the last three years, CEO Yahia AlShangiti said.

These plans reflect the company’s strategic plans to boost its financial performance and develop exploration operations, backed by its outstanding ability to develop projects, as well as its diversified operational and management teams.

The company’s financial performance was marked by robustness and sustainability. AMAK’s revenue saw a compound annual growth rate (CAGR) of 193%, reaching SAR 375.2 million in the fiscal year ended Dec. 31, 2020, up from SAR 263.4 million in the fiscal year ended Dec. 31, 2018. Revenue stood at SAR 414.5 million in the nine-month period ended on Sept. 30, 2021.

Net income rose at a CAGR of 136.6%, reaching SAR 88.8 million in the fiscal year ended Dec. 31, 2020, up from SAR 15.9 million in the fiscal year ended Dec. 31, 2018. Net income reached SAR 134.6 million in the nine-month period ended on Sept. 30, 2021, a surge of over 340% from SAR 30.6 million in the year-earlier period. The growth was fueled by higher production and operations as well as effective cost management.

AMAK recorded total sales of SAR 414.5 million in the nine-month period ended Sept. 30, 2021, a 76% rise from SAR 234.9 million a year earlier. Gross profit for the first nine months of 2021 came in at SAR 200.7 million, skyrocketing 188% from SAR 69.8 million a year earlier.

The company is witnessing accelerated development, backed by Vision 2030, which was a strong driver for the Saudi economy in general and the mining sector in particular, AlShangiti affirmed. This vision contributed to converting challenges to growth opportunities. AMAK owns several exploration licenses, in addition to others for which it applied in 2021.

AMAK operates Al Masane copper and zinc mine, which has a daily production capacity of 2,400 tons, or 800,000 tons annually. It also operates Guyan gold mine with a daily production capacity of 1,200 tons, or 40,000 tons annually. Both mines are located in Najran, AlShangiti concluded.