The Saudi Arabian Mining Company (Ma’aden) released its consolidated financial and operating results for the first quarter ended 31 March 2017. The Company reported strong profit growth driven by increased production volumes across all segments, improved commodity prices and a cost advantages.
The Q1 2017 recorded stronger prices for aluminium, gold and copper in comparison to Q1 2016. Total sales increased by 20% YoY driven by increased volumes in all business segments and higher prices for aluminium by 17%. Net income rose 70% YoY to reach SAR 341 million.
“Ma’aden continues to deliver on all fronts, achieving both outstanding operational performance as well as a strong financial performance in the first quarter of the year. We ramped-up production as planned in all our businesses and we continued our relentless focus on cost optimization and on generating strong free cash flow to strengthen our balance sheet. The recent recovery in the prices for aluminium, copper and gold underlines our belief that we are in the right commodities for the long term,” said Ma’aden President and CEO Khalid Al Mudaifer.
During Q1 2017, Ma’aden produced 228,000 tonnes of primary aluminium, up 4% YoY. The increase is mainly due to increased production efficiency and higher volumes from the can recycling facility.
In the alumina segment, Ma’aden produced 369,000 tonnes of alumina from its alumina refinery and the company achieved a major milestone by making its first export of 30,000 tonnes. This is a significant step in the growth of Ma’aden as it reflects the fact that Ma’aden is now self-sufficient in alumina and the current production surpasses its present domestic consumption. The alumina refinery has more opportunities to optimize production in the coming time. The company expects to see further production growth over the next year.
The aluminium cash cost during the quarter reduced significantly due to increased sales volumes, less fixed costs achieved through solid cost control measures, reduction in raw material consumption and lower input costs, especially because of the lower cost of alumina. The rolling mill operation continues to ramp up production and is slowly but steadily penetrating the can sheet market in the Middle East region.
Source: http://www.alcircle.com
