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

Executive summary

• Revenue for the nine months reached SAR 22.6 billion, up 6% year-on-year, driven by higher production, improved prices, and strong sales in gold and aluminum.

• EBITDA rose 45% year-on-year to SAR 8.84 billion, supported by operational efficiency, favorable pricing, and a SAR 563 million insurance claim.

• Net profit for the nine months surged over fourfold to SAR 3.69 billion, reflecting strong business momentum and lower depreciation.

• Advanced strategic initiatives, including transformative aluminum transactions, Phosphate 3 expansion, and large-scale mineral exploration.

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

Financial highlights

• Q3 2024 revenue was SAR 8.05 billion, up 12% sequentially; nine-month revenue was SAR 22.58 billion, up from SAR 21.24 billion.

• EBITDA for nine months reached SAR 8.84 billion, up 45% year-on-year; EBITDA margin improved to 39% from 29% year-on-year.

• Net profit for nine months was SAR 3.69 billion, up from SAR 589 million last year; EPS at SAR 0.81, up 334% year-on-year.

• Operating cash flow for nine months was SAR 7.08 billion; closing cash position at SAR 13.7 billion.

• Net debt increased by 7% due to investments, with net debt/EBITDA at 1.9x, within guided range.

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 raised to 5,700–6,000 KMT; ammonia guidance slightly reduced to 3,000–3,200 KMT.

• Full ownership of MAC and MBAC from Alcoa expected to close H1-FY25; SABIC’s Alba stake acquisition to close Q1-FY25.

• MWSPC stake increase to 85% on track for completion by end-2024.

• Aluminum recycling plant project advancing, with FID targeted for H1-FY25.