Saudi Arabian Mining Company (Maaden) (1211) Q2 2024 earnings summary

Executive summary

• Net profit rose 160% year-on-year in H1 2024 to SAR 2.01 billion, driven by improved production costs, operational efficiencies, insurance claim benefits, and higher base metals prices.

• Revenue for H1 2024 was SAR 14.53 billion, down 3% year-over-year, mainly due to lower commodity prices in aluminium and phosphate, partially offset by higher base metals prices and volumes.

• EPS increased 161% year-over-year to SAR 0.54, with total comprehensive income at SAR 2.39 billion.

• Operational progress included increased alumina, aluminium, and gold production, with gold output reaching 241,000 ounces in H1.

• Innovation and ESG initiatives advanced, including water recovery, waste-to-value projects, CO2 capture, and digital transformation in safety and asset management.

Financial highlights

• EBITDA for H1 2024 was SAR 5.91 billion, up 31% year-over-year, with margin up 11 percentage points to 41%.

• Net profit attributable to shareholders for H1 2024 was SAR 2.01 billion, up 160% year-over-year, with EPS at SAR 0.54.

• Cash from operations was SAR 4.2 billion, supporting investments in growth projects like Phosphate 3 and the Vale Base Metals acquisition.

• Cash and cash equivalents at period end were SAR 11.84 billion, down 24% from 2023, mainly due to the SAR 5 billion Vale Base Metals acquisition.

• Net debt increased by 15% to SAR 25.0 billion, with net debt/EBITDA at 2.3x, within guidance.

Outlook and guidance

• Phosphate 3 construction underway, with phase one to add 1.5 million metric tons of capacity.

• 2024 production guidance: DAP equivalent 5,500–5,800 KMT, ammonia 3,200–3,400 KMT, alumina 1,600–1,800 KMT, aluminium 850–1,050 KMT, gold 450–560 Koz.

• Sustaining CAPEX guidance for 2024 is SAR 2.5–3.0 billion; growth CAPEX is SAR 5.6–6.6 billion.

• Mosaic’s 25% stake in Wa’ad Al Shamal to be acquired, increasing phosphate market share, pending regulatory approval.

• DAP prices expected to firm in H2 as China’s exports slow and India/Brazil replenish inventories.