AMAK to maintain production levels, control costs in Q3 2022: CEO

CEO Yahia M. Al-Shangiti. 

 Al Masane Al Kobra Mining Co. (AMAK) is expected to maintain the same production levels and control costs during the third quarter of this year, said Chief Executive Officer Yahia M. Al-Shangiti.

 All of the company's products are sold outside the Kingdom. The company sells gold in Switzerland, Zink and copper in China, with sales according to received offers, the top official told Argaam, in an interview.

Commenting on financial results for the second quarter, the CEO stated that the decline in net profit was due to the drop in realized prices of most metals, despite the increase in production and sales volumes. This was also coupled with the rise in cost of selling, depreciation fees, financial cost of utilization, and tax. 

Average selling prices fell by 16%, said Al-Shangiti, adding that the company's revenues are mainly generated from the commodities it produces, with copper contributing about 38% of total revenues, Zink (27%), gold (34%), and silver (1%).

Analyst forecasts refer to a decline in gold and copper prices, he noted.

The company earlier reported a net profit after Zakat and tax of SAR 82.2 million in the first six months of 2022, a decline of 11% from SAR 92.8 million a year earlier, according to Argaam's data.