AMAK likely to post SAR 45 mln profit in Q4 on favorable prices: CEO

CEO Yehia Al-Shangiti

Al Masane Al Kobra Mining Co. (AMAK) is expected to post profit between SAR 40-45 million in the fourth quarter of 2022, if prices are favorable, said CEO Yehia Al-Shangiti.

He told Al-Arabiya TV that it is expected that AMAK's production levels of zinc and copper in Q4 2022 will be close to those recorded in Q3 2022, expecting a decrease in zinc prices during the fourth quarter, given analyst expectations.

Commenting on AMAK’s financial results for Q3 2022, the CEO said that the company’s production levels during that period were very strong, as its production of gold and copper increased by 55% and 1%, respectively compared to last year, but the decline in prices negatively affected profit. He also noted that gold and copper prices fell by about 7% and 18%, respectively.

As for the exploration licenses obtained by the company last August from the Ministry of Industry and Mineral Resources and the date of their utilization, Al-Shangiti said that AMAK began working on the first steps and collected samples from areas of those licenses.

However, the exploration project will take five to seven years to enter into the company's operations, said the CEO, pointing out that an annual budget for the project has been allocated at a value of SAR 5- 6 million.

AMAK earlier reported a net profit after Zakat and tax of SAR 104.8 million in the first nine months of 2022, a 22% decline from SAR 134.6 million in the year-ago period. In Q3 2022, the net profit fell 46% to SAR 22.6 million, from SAR 41.8 million in the year-before period, according to Argaam's data.