Maaden looks to benefit from better product prices

Saudi Arabian Mining Co. (Maaden) says it will benefit from an improvement in product prices and would continue to build large scale business with ongoing project completions.

In its earnings call presentation for Q2 2016, the Gulf’s largest miner said it is well positioned to play a key role in the kingdom’s Vision 2030 plan for the mining sector.

Maaden expects demand for copper to grow by 2 percent. Its Jabal Sayid copper mine, which began commercial production on July 1, 2016, is forecast to reach full production of 45,000 tonnes per annum of copper in 2018.

It also expects overall production and sales of gold to increase while cost per ounce is projected to drop over the coming quarters, as Ad Duwayhi gold mine began commercial operations on April 1, 2016.

The miner is looking to produce 500,000 ounces of gold with the start of production from the new mines.

While ammonium phosphate fertilizer prices have declined significantly by over 30 percent compared to Q2-2015, prices improved slightly compared to the previous quarter, the company said.

Maaden added that the ammonia plant at Wa'ad Al Shammal phosphate complex should start operating by Q3 2016.

Last week, Maaden reported a net profit of SAR 301.4 million for H1-2016, a 43 percent year-on-year (YoY) plunge mainly attributed to lower sales revenue and a decline in product prices.