Saudi Arabian Mining Company (Maaden) announces its interim financial results for the period ended 31-03-2026 (Three months)

This increase in net profit was partially offset by a SAR 66 million (2%) reduction in gross profit, mainly reflecting higher cost of sales associated with lower sales volumes in the phosphate and aluminum business units, impacted by current ongoing challenges affecting logistics and market flows. Profitability was also affected by higher net operating expenses, lower finance income, a share of net loss from equity accounted investments, and higher severance fees.

Higher net operating expenses during the current quarter were mainly attributable to exploration expenditure, supporting the Company’s long‑term growth and resource development strategy. The share of loss from the equity‑accounted investment primarily relates to a one‑off impairment recognized by Manara Minerals Investment Company for its investment in Vale Base Metals Limited which was partially offset by share of profit from Maaden Barrick Copper Company and Aluminium Bahrain B.S.C. The increase in severance fees was mainly due to improved profitability in the gold business unit, supported by higher gold prices during the quarter.

The impact on net profit was partially offset by continued cost discipline and several supportive factors, including lower operating expenses, higher other operating income in the phosphate business unit reflecting the recognition of one‑off insurance proceeds of SAR 375 million, lower finance costs, and reduced net zakat, income tax, and severance fees expenses.

Lower operating expenses during the quarter were mainly driven by reduced controllable general and administrative costs, as well as the absence of a one‑off expected credit loss allowance of SAR 381 million, recognized in the previous quarter relating to Maaden’s operations in Africa. In addition, lower selling, marketing and logistics expenses reflected reduced sales volumes. The decrease in severance charges was primarily attributable to the absence of a one‑off deferred severance expense of SAR 624 million related to aluminum business unit in the previous quarter.