The largest multi-commodity mining and metals corporation in the Middle East, Saudi Arabian Mining Corporation "Ma'aden," released its financial results for the second quarter of 2023 today. As part of Ma'aden's 2040 growth strategy, the company's focus on transformation has supported an increase in fertilizer production, assisted in securing new strategic partnerships, and increased the company's financial flexibility to implement transformational growth projects.
QUARTER HIGHLIGHTS Continued emphasis on fostering capacity-building and production expansion through partnerships:
• A record quarter for phosphate production as Ma'aden maintains its dominance in the world fertilizer market and strives to increase production
• Established the Ivanhoe Electric exploration JV, providing Saudi Arabia with access to ground-breaking technologies that will revolutionize exploration capabilities.
• Manara Minerals, a joint venture between Ma'aden and PIF, purchased a 10% investment in Vale Base Metals, expanding Ma'aden's global strategic minerals footprint and opening doors for the company to diversify its product mix.
• Ma'aden continued to help the decarbonization of value chains by exporting 25,000 tons of low-carbon blue ammonia to China.
• Implemented the next stage of the business's new operating model to boost output, cut expenses, and improve productivity.
• received the first Moody's and Fitch investment-grade credit Credit Ratings.
• Mansourah-Massarah, Ma'aden's largest gold project, is still in the commissioning phase. It is anticipated to generate an average of 250,000 ounces of gold per year, with the start of commercial production planned for H2-FY23.
• SAR 6.97 billion in revenue and SAR 351 million in net profit, down from a record year in FY22 due to decreased commodity prices.
• The financial situation has been further reinforced; long-term borrowings and net debt have decreased by 11% and 9%, respectively, from December 2022. This includes Ma'aden Wa'ad Al Shamal Phosphate Company's (MWSPC) early repayment of SAR 3 billion in debt.
"Ma'aden achieved a record quarter of phosphate production as we strengthened our leading position in the global fertilizer market," stated Robert Wilt, Ma'aden's CEO. This reflects our present growth-focused strategy, which is motivated by our transformation program and 2040 strategic objectives. To support our upcoming phase of expansion, we will keep putting our efforts into making our company better. As a result, we must become a leaner, more responsive organization that can achieve our next stage of growth. Scaling the company's activities, putting in place a more effective operating model, and positioning Ma'aden to make the mining industry the third pillar of the Saudi economy are all things we are moving toward successfully. The actions we are taking will guarantee that we develop into a business ready to take on the demands of our sector and appreciate the worth of Saudi Arabia's mineral endowment.
