AMAK Reports 54% Decline in Profits to SAR 15 Million in Q1

Almasane Alkobra Mining Company (AMAK) has disclosed a net profit decrease to 15 million riyals during the first quarter of 2024, compared to 33 million riyals in the corresponding quarter of the previous year, marking a 54% decline. This announcement follows the release of estimated financial results for the period ending on March 31, 2024 (3 months).

Operating profit for Q1 2024 stood at 18 million riyals, reflecting a 52% decrease from 37 million riyals in the same quarter of the previous year.

Earnings per share for Q1 2024 amounted to 0.17 riyals, down from 0.37 riyals in the corresponding quarter of the previous year.

The decline in revenues during the current quarter by SAR 9 million (6%) compared to the same quarter of the last year is attributed to a decrease in Zinc prices and quantities sold for gold, despite an increase in quantities sold for Copper.

The decrease in net profit during the current quarter by SAR 17 million (53%) compared to the same quarter of the last year is primarily due to a decrease in gross profit by SAR 14 million (28%), driven by a decrease in revenues and an increase in the cost of sales, general and administrative expenses, and other income despite a decrease in zakat expenses.

Revenue increase during the current quarter by SAR 20 million (17%) compared to the previous quarter is attributed to higher prices of Copper and Gold, as well as an increase in quantities sold for both metals.

Net profit in the current quarter increased by SAR 9 million (149%) compared to the previous quarter, driven by a rise in gross profit and a decrease in general and administrative expenses, despite an increase in selling and marketing expenses and zakat expenses.

Earnings per share are calculated by dividing the profit after zakat and taxes by the weighted average number of ordinary shares outstanding during the period, amounting to 88,246,975 shares (as of March 31, 2023: 88,360,619 shares).