AMAK expects strong demand, improved operational, financial gains: CEO

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

Geoffrey Day, CEO of Al Masane Al Kobra Mining Co. (AMAK), expects strong demand for the company’s products and continued improvement in operational and financial performance, driven by ongoing efficiency gains, disciplined financial management, and resilient commodity prices.

Speaking to Argaam, Day said the Q2 2025 earnings growth was driven by higher revenues—mainly from gold—and lower financing costs compared to the same quarter last year.

Gold revenues jumped 114% YoY in Q2 2025, driven by higher prices and a 40% increase in sales volumes, while stronger pricing helped lift copper revenues despite a 12% and 10% pullback in copper and zinc sales volumes, respectively.

Gold and silver output declined 40% and 34% YoY, respectively, during the same quarter. This came as the scheduled maintenance at the Guyan plant, which was brought forward to expand leaching filter capacity, temporarily reduced production.

Day noted this slump was not structural but part of AMAK’s mining cycle, with H1 2025 focused on development activities to support higher output in H2 2025, in line with the annual production plan.

Copper and zinc sales volumes are expected to rebound. AMAK has revised its 2025 production timeline to reinforce development in H1 and boost output in H2 of this year.

Day said AMAK’s second-quarter gains were driven by both market prices and operational improvements, as gold revenues benefited from higher prices, improved throughput, and recovery rates. Plant capacity also soared from a planned 55 tons to over 65 tons per hour by quarter-end, with further upgrades in the pipeline.

Base metal revenues improved due to better recovery and higher capacity following January–February maintenance and expanded filtration capacity at the Guyan plant.

Day said AMAK’s 2024-announced strategy targets operational excellence, expanded exploration in Saudi Arabia, and a new exploratory drilling firm. Progress is underway to procure six new rigs, reflecting strong execution of the plan.

According to Argaam data, AMAK’s H1 2025 profit rose 67% YoY to SAR 128.3 million, up from SAR 76.9 million. The second-quarter profit reached SAR 73 million, marking an 18% YoY increase.