Aluminum hits sulfur boost Maaden's 4-year revenue high
Saudi Arabian Mining Company (Ma'aden), the largest mining and minerals company in the Middle East, achieved profits higher than analyst expectations during the second quarter of 2026. This was driven by diversification of its activities and rising commodity prices. The company's revenues reached 10.9 billion riyals, the highest in four years, supported by increased sales in the aluminum and gold sectors, despite a decline in phosphate revenue due to rising costs and production restrictions. The company's profits surged by 13% quarter-over-quarter, supported by lower financing costs and a more than 50% rise in aluminum prices. This resulted in record revenues in the aluminum sector of approximately 3.8 billion riyals, up 49%. Meanwhile, phosphate revenues fell by about 1%, despite higher prices, due to decreased production. Conversely, gold revenues increased by 34%, with higher production and prices, and gold production from the "Al-Rajum" mine is expected to commence by the end of 2028. Despite the rise in metal prices, this was not fully reflected in operating profits, due to increased costs related to supply chain disruptions and higher sulfur prices, which pushed cost of sales to the highest level in three years. Additionally, lower interest rates contributed to supporting Ma'aden's net profits, reaching around 2.2 billion riyals, surpassing expectations. The decline in financing costs positively impacted profit improvements. The company anticipates that geopolitical tensions and their impact on markets will continue, with ongoing growth expected in the aluminum and gold sectors. It has also adjusted its production expectations for some products due to higher sulfur prices and changing market conditions.
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