Maaden says ammonia output jumps 85% in Q2

Saudi Arabian Mining Company (Maaden) continued to ramp up output and increase throughput at existing operations in the second quarter, the company said in its earnings conference call.

Ammonia production jumped 85 percent year-on-year (YoY) to 555,000 tons in the same period, thanks to commencement of commercial operations of Maaden Waad Al Shamal ammonia plant.

Gold output rose 17 percent YoY to 70,000 ounces driven by higher volumes from Ad Duwayhi mine.

“Continued focus on costs helped Maaden to maintain its overall annual gold cash cost objectives,” the company added in a statement.

Meanwhile, the company said a feasibility study for the third phosphate project is progressing well, while feasibility of its new Mansourah / Massarah mines is being finalized.

The Q2 healthy results were attributed to continued focus on efficiency, productivity and throughput, reduced cash cost in all our products and a continuous rise in profit margins.

As for aluminum, cash costs saw a steep decline, by lower fixed costs through strong control measures, reduction in some raw material consumption, and notably lower cost of alumina

The Kingdom’s largest mining firm added that it has a strong pipeline of attractive new projects and that its first Ammonium Phosphate fertilizer was produced from Wa’ad Al Shamal plant in July 2017.

Maaden, however, said there are some concerns for the remaining of the year, particularly in Diammonium Phosphate (DAP).