Riyadh – Mubasher: Saudi Arabian Mining Company (Maaden) reported SAR 739.46 million in net losses during 2019, against a net profit of around SAR 1.85 billion in 2018, as shown by the company’s annual financial results.
Turning to losses resulted from the decrease in the average realized prices of all products except gold, as well as lower sales volume of ammonia, aluminium, and gold despite an increase in sales volume of all other products.
Moreover, the company witnessed a decrease in the share of net profit of the joint venture (SAMAPCO) despite an increase in income from time deposits and other income, according to the company’s statement to the Saudi Stock Exchange (Tadawul) on Thursday.
The commencement of commercial operations of Ma’aden Wa’ad Al-Shamal Phosphate Company and Ma’aden Rolling Company in December 2018 affected the results of 2019 and contributed to the increase in sales costs by 66%.
Sales, marketing, and logistic expenses also rose by 83%, while general and administrative expenses went up by 21%, exploration and technical services expenses grew by 89%, and finance cost increased by 37%.
Maaden applied IFRS 16 since 1 January 2019, the initial application resulted in recognition of an estimated additional SAR 1.292 billion of right-of-use assets with a corresponding additional SAR 1.292 billion of lease liabilities.
However, the application of IFRS 16 did not have a material impact on the consolidated statement of profit or loss, the company noted.
The company’s board of directors has recommended not to distribute cash dividends to shareholders for last year.
Last November, Maaden raised its capital by 5.32% to around SAR 12.3 billion from about SAR 11.684 billion.
