AMAK’s Q4 profit rises on higher output, improved efficiency: CEO

Almasane Alkobra Mining Co.’s (AMAK) Q4 2024 net profit increase to SAR 41 million was driven by higher production, improved operational efficiency and the start of commercial production at Moyeath processing plant, CEO Geoffrey MacDonald Day told Argaam.

In an interview with Argaam, Day said that higher base metal prices, lower processing costs and efficient cost management collectively boosted profitability in the last quarter of 2024.

When asked about the 31% quarter-on-quarter decline in Q4 2024 net profit, the CEO clarified that the start of commercial production at the Moyeath project in mid-September led to higher revenues, but also increased the cost of sales due to depreciation and amortization expenses for the new plant.

He pointed out that sales from Moyeath plant in Q3 2024 were recorded as part of the operating trials, while the fourth quarter of last year witnessed full commercial production with associated costs.

Moreover, zinc contributed about 35% to AMAK’s Q4 2024 revenues, while gold accounted for nearly 34%, copper (30%), and silver (1%).

Below is the breakdown of the company’s sales:

Commenting on Q1 2025 forecasts, the CEO stressed that the company previously announced periodic maintenance shutdown of Al Masane and Moyeath mine processing plants for five weeks starting Jan. 1. He expects production in February and March to be similar to the average monthly production in Q4 2024.

Day forecast metal prices to remain high, noting that the impact of potential tariffs in the US remains uncertain.

According to Argaam’s data, AMAK’s net profit rose to SAR 177.9 million in 2024, from SAR 54.6 million a year earlier. Q4 net profit stood at SAR 41.2 million.