Maaden reports 61% hike in gold output in Q1

Saudi Arabian Mining Co. (Maaden) has reported a 61 percent surge in gold production to 71,000 ounces in Q1 2017.

This production increase was due to the start of commercial operations in Ad Duwayhi gold mine, owned by Maaden Gold and Base Metals (MGBM), on April 1, 2016, the miner said in a Q1 earnings call.

Continued focus on efficiency and productivity helped Maaden to reduce cash cost in gold by 22 percent compared to the same quarter last year.

Maaden produced and sold 599,000 tons and 467,000 tons of ammonia, up 97 percent and 127 percent respectively as compared to the same quarter last year. The increased production and sales volume are largely ascribed to the start of commercial operations of Maaden Waad Al Shamal ammonia plant.

Maaden said it will maintain focus on efficiency, productivity and throughput.

Maaden’s gross profit margin jumped to 34 percent in Q1 2017, compared to 22 percent in Q1 2016.

During the quarter, cash cost of ammonium phosphate fertilizer was reduced by nearly 17 percent year-on-year (YoY), primarily due to lower input costs, better efficiencies and higher throughput.

Also, cash cost in aluminum was cut significantly due to increased volumes, decreased fixed costs through strong cost control measures, reduction in some of the raw material consumption, and lower input costs, notably the lower price of alumina.

Precious metals accounted for 12 percent of the company’s revenue in Q1 2017, compared to 8 percent in Q1 2016.