Saudi Arabian Mining Company (Ma’aden) announced a 71 percent jump in its net profit to reach SAR 2.7 billion in the third quarter of this year, over the same year-ago period.
The company’s sales also registered a 50 percent rise in Q3 2022 to reach SAR 10 billion ($ 2.7 billion).
Ma’aden said higher production volumes during the period, despite lower commodity prices helped the company to improve its bottom line in the latest quarter.
The input costs during the period also went, impacting the overall profitability of the company.
Robert Wilt, CEO of Ma’aden said during the quarter the company’s focus was to deliver long-term growth.
“We remain on track for a record year, underpinned by the company’s strong cash generation, diversified operations, and global customer base,” he said.
Wilt said this has mitigated the impact of external pressures in Q3 from lower commodity prices and higher input material costs, which have already started to normalise in Q4.
“Looking ahead, we will continue to develop our operations so that we can deliver sustained, market-leading growth while establishing mining as the third pillar of the Saudi economy,” he said.
Among the major developments this quarter, Ma’aden signed four memoranda of understanding (MoUs) with the largest fertilizer companies in India, in August, increasing the company’s access to the world’s largest export market for phosphate and ammonia.
In August, Ma’aden ended trial production and commenced commercial production at the Ammonia 3 plant, part of its third phosphate project.
The plant has a capacity of approximately 1.1 million tons annually and will strengthen Ma’aden’s position as the global leader in fertilizer production.
During the quarter, the mining major also started extracting gold from the Mansourah-Massarah site for the first time.
As Ma’aden’s largest gold project to date, the plant is expected to produce an average of 250,000 ounces per annum, increasing its current gold mining capacity by 70 percent.
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