AMAK’s new finds to boost future growth plans: CEO

Geoffrey Day, CEO of Al Masane Al Kobra Mining (AMAK)

Al Masane Al Kobra Mining Co.’s (AMAK) CEO Geoffrey Day said that it is still too early to quantify a precise financial value for the new discoveries, as the maiden JORC-compliant resource estimate and associated engineering and economic studies will only be completed in 2026.

However, the current drilling covers less than 10% of the license area, which indicates substantial long-term value potential for AMAK’s growth pipeline, he added, in an interview with Argaam.

From a strategic standpoint, the discovery strengthens AMAK’s future resource base, supports the company’s ambition to expand its multi-metal portfolio, and creates a strong platform for future production growth. As drilling and geophysics continue across the remaining 90% of the license area, the potential for additional resource additions may materially enhance the long-term financial impact once engineering and economic studies are complete, according to the CEO.

In the near term, the impact on profitability and cash flow will be limited to ongoing exploration expenditures and engineering studies leading to a development schedule and budget for the new mine. However, in the medium to long term, the discovery has the potential to create a new mining front for AMAK, supporting additional production streams that could contribute meaningfully to revenue, EBITDA, and long-term cash generation and sustain AMAK’s business well beyond its current resource life, said the CEO.

Once the JORC-compliant resource and accompanying concept study are released in 2026, AMAK will have the technical and economic basis needed to evaluate development scenarios, production rates, and capital requirements. This will allow the company to outline how the project may integrate with AMAK’s existing processing hub-located approximately 100 km from the discovery-and leverage infrastructure and operational synergies, according to Day.

He further indicated that the discovery aligns with AMAK’s strategy to expand its production base, which, if successfully developed, would positively reflect on profitability and strengthen long-term cash flows.

AMAK is currently in the early stages of evaluation. The capital investment required to develop the discovery will depend on the outcomes of the 2026 concept study, which will assess project design, mining method, processing requirements, infrastructure needs, and integration with AMAK’s existing facilities, according to the CEO.

He added that, while it is premature to provide exact figures, the company expects to define the indicative investment range once the JORC resource and economic studies are completed. Following this, AMAK will begin the formal process of converting the exploration license into a mining license.

If studies progress as planned, and subject to regulatory approvals, development could commence shortly after the JORC release, with first commercial production anticipated a few years following the start of construction. A more accurate timeline will be disclosed once technical and financial evaluations are finalized, said Day.

According to data available with Argaam, AMAK said recently it discovered potentially economically viable mineral resources containing copper, zinc, gold, and silver within one of its exploration licenses in the Najran region.

Preliminary internal studies indicated the presence of a mineral resource estimated at around 11 million tons, with strong potential for further growth, as drilling to date covered less than 10% of the total license area.