Maaden hit by lower prices, seeks to cut costs: CEO

Saudi Arabian Mining Co. (Maaden) is facing several challenges amid the COVID-19 outbreak, Al Arabiya TV reported, citing chief executive officer Mosaed Bin Sulaiman Al Ohali.

"Lower prices squeezed liquidity; aluminum dropped from $1,700/ton to below $1,400/ton, and phosphate prices also retreated compared to last year, but they are currently flat," Al Ohali stated.

Meanwhile, gold prices are rallying due to the geopolitical conditions and the COVID-19 outbreak.

"It is not right to focus on a short-term outlook; Maaden has a competitive advantage and a strong capital base," Al Ohali added.

"Our employees' safety is a priority," said Al Ohali, adding that Maaden seeks to boost productivity, increase cash flows, cut expenses and accelerate the execution of mega projects.

"We will focus on preserving cash instead of shareholder payout in response to the coronavirus pandemic," Al Ohali noted, expecting prices to increase further.

Al Ohali was named as a CEO as of April 2020.