AMAK reports 181% rise in net profit for nine months

AMAK is a pioneer in the Saudi mining industry.
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Almasane Alkobra Mining Co., a pioneer in the Saudi mining industry and one of the largest producers of zinc, copper, gold and silver, reported robust financial results for the period ending September 2024, with net profit rising by 181 percent year on year to SR137 million ($36.4 million), compared to SR49 million in the same period last year.

AMAK’s current period growth is primarily attributed to a 108 percent year-on-year  increase in gross profit, reaching SR198 million. This strong performance was driven by higher prices for copper, zinc, and gold, coupled with increased sales volumes of copper and zinc. The company also benefited from reduced financing costs and enhanced operational efficiencies, further strengthening its financial performance.

Financial highlights for the period ending Sept. 30:

• Revenue: SR554 million, up 48 percent from SR373 million in the same period last year.

• Gross income: SR198 million, an increase of 108 percent from SR95 million in the prior-year period.

• Operating income: SR149 million, up 183 percent from SR53 million in the same period last year.

• Net income: SR137 million, a 181 percent rise from SR49 million in the same period last year.

• Earnings per share: SR1.55, up from SR0.55 in the same period last year.

“AMAK’s solid financial performance in the current period ending Sept. 30, 2024 builds on our outstanding results from the first nine months of the year and highlights the company’s resilience and strategic focus on production enhancement and operational efficiency,” said Geoffery Day, CEO of AMAK. “With our new growth strategy, we are confident that 2024 will be a record year for AMAK.”

As of the end of September, AMAK’s shareholders’ equity (excluding minority interest) reached SR1.2 billion. 

This growth reflects the company’s commitment to strengthening its financial foundation and consistently delivering value to shareholders.

AMAK’s strong financial performance in both Q3 and the first nine months of 2024 underscores the company’s resilience and strategic emphasis on production growth and operational efficiency. Building on this momentum, AMAK recently unveiled a comprehensive growth strategy aimed at increasing production capacity and enhancing its presence in the mining industry. Central to this strategy is the expansion of its processing plant, which is expected to significantly boost output in the coming years.

These initiatives, along with the appointment of new leadership, position AMAK to capitalize on favorable market trends, deliver long-term value to shareholders, and contribute to the broader development of Saudi Arabia’s mining sector in alignment with the Kingdom’s Vision 2030.