Maaden net profits jump 58% to 413m in Q1

07/05/2025 01:51 AST

Saudi Arabian Mining Company (Maaden), one of the world's fastest growing mining companies, today reported a revenue of SAR8.51 billion ($2.27 billion) for the first quarter of 2025, a 16% year-on-year (YoY) increase driven by higher consolidated sales volumes and overall prices.

The revenue was down 15% quarter-on-quarter (QoQ), largely driven by lower overall sales volumes coming off a record Q4-FY24 production quarter, the company said.

EBITDA was up 16% YoY to SAR3.47 billion, mainly due to overall higher sales volumes and strong pricing environment.

The company posted a net profit of SAR1.55 billion ($413.23 million), up 58% YoY, reflecting strong EBITDA, net lower zakat, income tax and severance.

It had strong cash generation from operations of SAR1.94 billion and closing cash position of SAR12.36 billion. Net debt/EBITDA was at 1.9x, below target range.

Othe highlights
 The company issued its first international senior unsecured sukuk offering with an aggregate principal of $1.25 billion. More than nine times oversubscribed, it was one of the most successful international sukuk offerings in Saudi Arabia to date.
 Full and final redemption of Maaden Phosphate Company (MPC) sukuk for SAR3.5 billion
 Delivered operational excellence across all BUs with higher YoY production of phosphate and aluminum.
 Continued safety improvements reducing All Incident Frequency Rate (AIFR) to 0.02 and severity rate of 0.01 in Q1-FY25.
 Advanced Phosphate 3 Phase 1 construction with SAR3.5 billion in awarded contracts. The project reached 35% overall completion rate, with a significant portion of the civil foundation and structural steel installation underway.
 Announced two potential mineral deposit discoveries - new gold findings at Wadi Al Jaww and further success at Jabal Shayban, indicating the potential for a new gold and copper district.
 Announced new drilling results at Mansourah-Massarah gold mine with strong gold mineralization, highlighting underground potential beneath current open pits.
 Completed acquisition of SABIC's 20.62% stake in ALBA against the cash consideration of SAR3.62 billion, furthering the company's 2040 growth strategy.
 Signed non-binding Heads of Terms with Aramco for the formation of a minerals exploration and mining joint venture (JV) in the Kingdom of Saudi Arabia. The proposed JV would further unlock the potential of the Kingdom's high-value mineral resources, meeting growing demand for lithium and other transition minerals domestically and globally.
 Expanded Maaden global footprint with new offices in Brazil, South Africa and Singapore, and established new warehouses in Vietnam and Brazil.

Bob Wilt, Maaden CEO, said: "We are off to a great start in 2025. We are building on the momentum of last year and continuing our progress across all operations, with strong production results, safety improvements, exploration success, project advancement and portfolio consolidation.

"During the quarter, we acquired a 20.62% stake in ALBA and progressed the consolidation of Alcoa's share of Maaden Bauxite and Alumina Company and the Maaden Aluminum Company. We are also seeing significant progress of Phosphate 3 Phase 1, which will add 1.5Mt annual phosphate fertilizer capacity upon completion.

"Our exploration activities remain central to our strategy, with our accelerated efforts delivering promising results across the Arabian Shield. Specifically, we made breakthrough gold and copper discoveries at Wadi Al Jaww and Jabal Shayban, advanced underground potential at Mansourah-Massarah, and progressed joint venture discussions with Aramco to unlock Saudi Arabia's critical minerals," he said.

"At the beginning of the second quarter, we officially launched Maaden's new brand identity, reflecting our ambitious vision to become a KSA-based, globally significant mining champion that drives progress through technology, innovation and talent," he said.

"Looking ahead our strong financial position and focus on operational excellence positions us well to navigate the current market uncertainty. We will continue to drive value for our shareholders and develop mining as the third pillar of the Saudi economy."

In the first quarter of 2025, Maaden generated revenue of SAR8.51 billion, down 15% quarter-on-quarter (QoQ), largely driven by lower overall sales volumes coming off a record Q4-FY24 production quarter. Despite higher raw material costs and lower overall commodity prices, EBITDA margin expanded to 41%, up from 36% in Q4-FY24, supported by lower operating and fixed costs. Revenue and EBIDTA increased by 16% YoY, reflecting higher overall sales volumes and prices, more than offsetting the higher raw material costs and the absence of the SAR199 million insurance claim received in the Aluminum BU that benefited Q1-FY24 results. Net profit was up by 58% YoY, reflecting higher EBITDA and net lower zakat, income tax and severance expenses.

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