AMAK sees better results in Q3: Board member

Logo of Almasane Alkobra Mining Co. (AMAK)

Savas Sahin,, Board Member and Chairman of the Executive Committee at Almasane Alkobra Mining Co. (AMAK), said revenues during the second quarter of 2024 increased by SAR 83 million (70%) compared to the same period of 2023.

He told Argaam that this growth was driven by higher production volume due to better operational performance.

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"Overall, our copper and zinc revenues were 91% and 159% higher, respectively, compared with last year," Sahin noted, adding that the company's production is expected to be better than Q2 and the financial performance depends on the realized metal prices in Q3.

In Q2 2024, AMAK produced 63% more copper concentrate and 58% more zinc concentrate than last year, thanks to its second base metal mine, Moyeath Process Plant, being commissioned in this quarter.

"Gold production stayed almost in line with last year (only 4% lower) but higher gold prices helped us beat last year’s gold revenues," Sahin said, adding that revenue from gold increased by SAR 2.3 million.

Although gold prices increased by 11% year-on-year (YoY), it was partly offset by a 4% decrease in quantities sold during current quarter.

Net profit during the second quarter increased by SAR 51 million compared to a year earlier, driven by a SAR 55 million rise in gross profit, thanks to better controlling of costs, with a decrease in general and administrative expenses and finance costs despite higher selling and marketing expenses as well as tax and Zakat charges.

All metal sales (copper, zinc, gold, and silver) increased in the second quarter of 2024 compared to the same quarter last year, with copper sales reaching SAR 77.3 million, up 91% YoY, while zinc sales soared 159% to SAR 71.3 million, as the following table illustrates:

Regarding the processing plant in Moyeath, Sahin said the plant's production capacity reaches 450,000 tons annually. He added that the plant will likely add 9,500 tons of dry copper concentrates and 39,000 tons of dry zinc concentrates annually, with commercial production expected to begin in the third quarter.

He also anticipated that the company's production in the third quarter would be better than the second quarter, noting that financial performance depends on metal prices during the quarter.

As for dividends, the official clarified that they are distributed according to the previously announced policy and the company's financial position and liquidity.