Saudi Arabian Mining, d/b/a Ma'aden, recently announced its financial results for 2024, showcasing the company's resilience and growth amid fluctuating commodity prices. The mining titan reported an impressive revenue of 32.55 billion Saudi riyals, a notable increase from 29.27 billion riyals in 2023.
This remarkable performance is largely attributed to surging commodity prices and increased sales volumes across all business ventures. In terms of profitability, Ma'aden's net profit reached 2.87 billion riyals, effectively doubling from 1.58 billion riyals the previous year. This surge in profits underscores the efficiency improvements and strategic initiatives implemented across various sectors of the business. The phosphate segment continued to be the backbone of Ma'aden's revenue, contributing significantly with a 2% rise in sales, totaling 17.77 billion riyals.
Meanwhile, the aluminum, base metals, and new minerals divisions reported particularly strong gains, with revenues soaring 14% to 10.06 billion riyals and an impressive 49% jump to 4.46 billion riyals, respectively. The solid performance of Ma'aden can be attributed to favorable commodity pricing dynamics and growth in volumes across its product lines, although there were exceptions noted in ammonia and flat rolled products.
Additionally, a decline in raw material costs and reduced depreciation expenses have also played a crucial role in enhancing profitability. It is noteworthy that the previous year’s figures were weighed down by one-off industrial utility charges. Moreover, the mining company benefitted from a substantial 563 million-riyal insurance claim linked to the relining of a smelter plant, which, despite being somewhat offset by a 192 million-riyal severance charge, contributed positively to its overall financial standing.
However, it is essential to mention that the company faced pressures from increased finance costs, a lesser share of joint-venture profits, and rising operating expenses, including provisions for credit losses, which tempered the notable gains. Looking towards the future, Ma'aden has maintained a positive outlook for 2025, as they have lifted production guidance for both phosphate and aluminum segments.
The company has earmarked capital expenditure expected to range between 8.55 billion and 10.55 billion riyals, with approximately 70% allocated towards growth-oriented projects. Bob Wilt, Chief Executive Officer of Ma'aden, heralded 2024 as a "standout" year, marking it as one of the strongest years in the company’s recorded financial history.
He commented on the future, stating, "Looking ahead, 2025 will see continued acceleration of our exploration program, a dedicated focus on integrating technology to make our business faster and more efficient, and a continued drive to develop and attract the best talent as we build the future leaders of the mining industry.".