Saudi Fransi Capital has revised Maaden’s Q4-15 earnings estimates lower by 34 percent to SAR 217 million and revenue estimates higher by two percent.
“Our full year EPS estimate drops from SAR 1.16 to SAR 0.84,” the brokerage added in a review of the miner’s Q3 results.
It reduced Maaden’s forecast for full year 2015 net income to SAR 986 million from SAR 1.356 billion earlier and maintained the stock with a “hold” rating and a target price of SAR 32.5.
World demand for diammonium phosphate (DAP) is projected to rise at 1.8 percent per year through 2022 to 49.5 million tons per year which the company believes should absorb Wa'ad Al Shammal output.
Ma’aden’s largest gold mine is expected in commercial production in 1Q-16 with annual capacity of 180,000 ounces.
Maaden’s third quarter profits were negatively affected by the product’s prices and unscheduled shutdowns, the company said in an analysts call.
Meanwhile, a positive aspect of the third quarter result is the ability of the company to control costs, while controlling margin shrinking requires more work, according to Saudi Fransi Capital.
Comments
{{DisplayName}}
{{ElapsedTime}}