Maaden CEO says working capital improvements led to record cash generation levels

Robert Wilt, CEO of Saudi Arabian Mining Co.

Saudi Arabian Mining Co. (Maaden) reported its safest and most profitable year ever in 2022, as the transformation that started a year ago began to bear fruit, said CEO Robert Wilt.

Commenting on 2022 financials, he indicated that working capital improvements contributed to achieving record cash generation levels and further strengthening the company's balance sheet.

“From an operational viewpoint, the business is in good shape as we continue to drive efficiencies and take proactive measures to address the changing environment,” the CEO added.

Maaden is keen on investing in the next generation of low-cost and long-life projects, as it improved exploration levels and project delivery capabilities.

The company has made significant progress towards growth targets after operating the Ammonia 3 project, awarding the engineering, procurement and construction management (EPCM) contract for the Phosphate 3 project and Mansourah-Massarah project, which are close to commercial production. In addition, Maaden added more than two million ounces of gold reserves to its portfolio.

Wilt stressed that Maaden is focusing on sustainable growth and financial discipline supported by a capital allocation framework that aims to provide long-term value to shareholders.

The mining major will continue to invest in exploration in the Kingdom, seeking to achieve initial growth through local and international partnerships that will secure new and sustainable sources of mining and minerals, while reducing exploration risk, he pointed out.

According to data compiled by Argaam, Maaden’s profit surged 78% year-on-year (YoY) to SAR 9.31 billion in 2022.