Riyadh – Mubasher: Saudi Arabian Mining “Ma’aden” said that 2017 needs a close watch as increased input prices like aluminum and coal may bring some closures as per CRU.
The company expected in a report published on Tadawul on Wednesday that the floor price of aluminum may stand at $ 1,600 per ton in 2017.
Demand growth will range from 2.7% to 4% in 2017, in-line with the level of growth in 2016, the report said.
Ma’aden sees some positives like recent US trade policy limiting Chinese exports, higher US spending and inflation may support prices in spite of weak fundamentals in China.
Aluminum acquired 45% of the company's revenues, phosphate 44% and precious metal represented only 11%.
Moreover, aluminum segment increased its contribution significantly to the EBITDA from 34% to 50% in 2016 at the increased efficiency, better cost performance and 100% alumina from its own refinery, Ma’aden added.
The company achieved a net profit of SAR 15.67 million in Q4-16 against losses of SAR 5.688 million in the same period in 2015.
