Saudi Arabian Mining Company (Maaden) (1211) Q3 2024 earnings summary

Executive summary

• Achieved second-highest nine-month EBITDA on record at SAR 8.84 billion, up 45% year-on-year, with revenue rising to SAR 22.6 billion, driven by improved production, higher prices, and operational efficiency.

• Net profit for the nine months surged to SAR 3.69 billion, more than fourfold year-on-year, reflecting strong business momentum and higher commodity prices.

• Advanced strategic initiatives, including transformative aluminum transactions, Phosphate 3 expansion, and the Ivanhoe Electric JV.

• Major investments included SAR 4.97 billion in Manara Minerals Investment Company for a 10% stake in Vale Base Metals Limited.

• Positioned as a global mining leader, with operations in 9 countries and sales to 55 countries.

Financial highlights

• Revenue for nine months was SAR 22.6 billion, up 6% year-on-year; EBITDA reached SAR 8.84 billion, up 45%, aided by improved costs and an insurance claim of SAR 563 million.

• Net profit attributable to shareholders rose to SAR 2.98 billion, with EPS increasing to SAR 0.81.

• Operating cash flow totaled SAR 7.08 billion; cash position at period end was SAR 13.7 billion.

• Gross profit for the nine months was SAR 7.0 billion, up from SAR 4.1 billion year-over-year.

• Net debt increased by 7% due to Vale Base Metals investment, with net debt to EBITDA at 1.9x.

Outlook and guidance

• Growth CapEx guidance for 2024 revised down to SAR 3–4 billion due to contracting delays, with no significant impact on project timelines.

• DAP production guidance revised upwards; ammonia guidance slightly reduced.

• Final investment decisions for aluminum recycling and Ar Rjum Gold Mine targeted for early next year.

• Near-term priorities include completing the Mosaic stake acquisition, progressing ALBA deal due diligence, and advancing Phosphate 3 construction.

• Higher sales are expected to continue, supported by commodity prices and increased production volumes in most segments.