AMAK’s Q3 profit driven by better selling prices, volumes: CEO

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

Al Masane Al Kobra Mining Co. (AMAK) posted higher profit for Q3 2024, backed by several factors including lower finance costs, enhanced operating efficiency and better product selling prices, CEO Geoffrey McDonald Day told Argaam in an interview.

Copper and zinc prices jumped 19% and 17% year-on-year (YoY), respectively, with gold prices jumping 28%.

Copper sales volumes reached 5,6000 metric tons (MT) in the three-month period, while zinc and gold volumes hit 17,100 MT and 6.6 million MT, respectively.

The following table shows copper, gold and zinc sales:
 

The CEO added that the combined revenue from copper, zinc, gold and silver account for 100% of the third-quarter topline:

The rise in gold prices in Q3 2024 compared to the year-earlier period had a positive impact on the company's financial performance. AMAK’s gold sales revenue increased by 55% YoY in Q3.
 

Day added that this growth was driven by a 28% rise in prices and a 36% increase in production, which directly contributed to boosting the company’s profitability. This revenue growth, supported by favorable conditions in the gold market, reflects the strength of the company’s diversified portfolio.
 

Additionally, with gold production rising by more than 35% YoY, the higher prices bolstered returns from the company's mining operations and strengthened its overall financial position.
 

The company continues to watch commodity prices, being positively positioned to tap similar opportunities in the future. This approach aims to enhance shareholder value and support the company’s growth objectives.
 

Day stated that the company’s performance aligns perfectly with Saudi Arabia’s Vision 2030. AMAK is not only focused on growth but is also committed to sustainable growth that supports the Kingdom's goal of building a robust and diversified mining sector.
 

By expanding its production and operating efficiently, AMAK will effectively contribute to the local economy and maximize value for its shareholders.
 

He explained that the new growth strategy aims to further increase production capacity and manage costs effectively, reinforcing its role as a key player in Saudi Arabia's mining industry.
 

The company is bullish that 2024 will set new benchmarks for AMAK, not just in terms of financial performance but also its contributions to the Kingdom’s mining sector.
 

The launch of a wholly-owned drilling company, whose sustainable growth plans align clearly with Vision 2030, was also highlighted. This drilling company will focus on accelerating exploration activities across AMAK’s 21 existing licenses.
 

The drilling company covers approximately 1,500 square kilometers, including 17 licenses for base metals such as copper and zinc, as well as gold and silver, with a total area of 1,296.4 square kilometers. It also holds two licenses for industrial minerals spanning 110.91 square kilometers.
 

The new company will also offer drilling and related services to other clients across the Kingdom.
 

AMAK’s net income rose to SAR 136.7 million in the first nine months of 2024, compared to SAR 48.6 million during the same period in 2023. Meanwhile, the Q3 profit surged to around SAR 60 million, from SAR 5.2 million, Argaam reported.