RIYADH: Saudi Arabian Mining Co., widely known as Ma’aden, achieved a net profit of SR2 billion ($532 million) in the first half of 2024, marking a striking 160 percent increase compared to the same period in 2023. This surge in profitability was driven by several key factors. A major contributor to this financial success was the significant boost in sales volume, according to a Tadawul statement. The company’s robust performance in primary aluminum and gold sales played a crucial role in driving up revenues. Ma’aden also benefited from reductions in raw material costs and lower depreciation expenses, which further enhanced its profitability. The company also saw a favorable impact from several one-off financial adjustments. An insurance claim related to the relining of pots within its smelter plants, amounting to SR469 million, provided a substantial financial cushion. Furthermore, Ma’aden was positively impacted by the absence of the one-off severance charge of SR192 million that had affected its profitability in the previous year. Despite these gains, the rise in net profits was somewhat tempered by a few challenges. The overall decline in commodity market prices for most of Ma’aden’s products, with the notable exception of gold and alumina, put pressure on the company’s revenue. Additionally, the company faced increased income taxes and zakat, which also offset some of the profit gains. Operationally, Ma’aden continued to make significant strides in its strategic initiatives. The Phosphate 3 project, an ambitious expansion effort, saw progress with construction activities well underway. Meanwhile, the company was moving forward with plans for a new aluminum recycling plant at Ras Al-Khair, aimed at enhancing its sustainability efforts. The successful completion of Ma’aden’s investment in Vale Base Metals through its joint venture, Manara, was another highlight, positioning the company to benefit from the growing demand for green metals. “We delivered a strong first half of 2024, demonstrating our ability to realize the benefits of operational efficiencies in a stable environment,” Ma’aden CEO Bob Wilt said. “Our large-scale Phosphate 3 project is progressing, with construction underway, and we are moving forward with a new aluminum recycling plant at Ras Al-Khair.” He said: “Additionally, the successful completion of our investment in Vale Base Metals through Manara, is set to increase our exposure to green metals.” Throughout this period, Ma’aden remained committed to its strategic goals, including a focus on operational efficiencies and technological innovation. The company is actively advancing one of the world’s largest greenfield exploration programs, which is expected to drive future mineral discoveries. “Our strategic partnerships and technology-led innovation programs are fast-tracking mineral discoveries through the world’s largest greenfield exploration program of its kind,” Wilt added. Financially, Ma’aden reported net revenues of SR14.53 billion for the first six months of 2024. This represented a slight decline of 3.19 percent from the previous year, primarily due to lower commodity prices, although higher sales volumes of primary aluminum and gold helped mitigate this drop. In terms of credit ratings, Ma’aden’s strong business profile was affirmed by Moody’s Investor Service in August 2023, which assigned the company a Baa1 long-term issuer rating with a stable outlook. This rating reflects Ma’aden’s solid standalone credit strength and the anticipated support from the Kingdom’s sovereign wealth fund, which remains the company’s majority shareholder. Overall, Ma’aden’s impressive performance and strategic advancements underscore its commitment to leading the mining sector and contributing to Saudi Arabia’s economic diversification goals, particularly in developing mining as a critical pillar of the Kingdom’s industry.