Saudi Arabian Mining Company (Ma'aden) (Symbol: 1211) (ISIN: SA123GA0ITH7), one of the fastest growing global mining companies and the largest multi-commodity mining and metals company in the Middle East, today reported its financial results for the period ended 31st December 2020.
Ma'aden's Chief Executive Officer, Mosaed Al Ohali, commented on the results: 'During the year 2020 we witnessed a noticeable decline in the prices of our basic products, which affected the financial performance of the company in general, especially with regard to aluminum, which observed a decline in prices since before the COVID-19 pandemic. Starting from September 2020, there was a significant improvement in our financial performance, in line with the improvement of the market prices, supported by the diversity of Ma'aden's product portfolio which includes market cycle followers - phosphates, ammonia and aluminum - as well as gold, which is a counter-cycle commodity and seen to be an investor safe haven.
Al Ohali continued: 'It is also important to stress our continued focus on enhancing operational efficiency, which contributed to the increase in production in the main products and thus sales in the second half of 2020. These factors combined to achieve net profits of USD$164 million by Q4 and strong cash flows enabling Ma'aden to continue fulfilling all its financial commitments and to continue investing in growth projects in the minerals and phosphate sectors'.
We are optimistic about the market's heading towards recovery, maximizing profits and returns on investment. At Ma'aden, we will continue with the support of the Saudi leadership, to develop the domestic minerals sector and create value from the Kingdom's huge mineral resources estimated at more than USD$1.3 trillion. These resources will create many opportunities for growth and expansion in the local mining market, supported by the new mining investment law, which will raise investor confidence to invest in this market. Further, at a global level we are hopeful that availability of many Covid-19 vaccines will drive faster recovery of the global economy, increase demand and improve prices,' Al Ohali added.
Al Ohali concluded; 'Currently, Ma'aden's investments amount to nearly USD$2 billion in ongoing projects, including the Mansoura & Massarah gold mine, which is a big step towards achieving our goal of one million ounces of gold production annually and placing Ma'aden among the major global gold producers. We continue our strategy to increase our phosphate fertilizers, gold and basic minerals capacities while at the same time focusing on improving the performance of our existing plants and aspiring to play our part to achieve the goals of the Kingdom's 2030 vision, diversify sources of income, create jobs and transform the mining sector to be the third pillar of Saudi Arabian industry.
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