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MarketScreener Homepage  >  Equities  >  Saudi Arabian Stock Exchange  >  Saudi Arabian Mining Company (Ma'aden)    1211   SA123GA0ITH7

SAUDI ARABIAN MINING COMPANY (MA'ADEN)

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Saudi miner Ma'aden actively looking for overseas investments - CEO

10/25/2018 | 11:37am EST

RIYADH (Reuters) - Saudi Arabian Mining Co (Ma'aden), the Gulf's largest miner, is actively looking for investment opportunities overseas that would complement and strengthen its business inside the kingdom, the company's chief executive said on Thursday.

Ma'aden, which mines gold and copper and has in recent years expanded into the production of aluminium and phosphates, is key to Saudi Arabia's plan to diversify its economy away from hydrocarbons. The government aims to more than triple mining's contribution to the nation's economic output by 2030.

The company, which is 65 percent owned by the kingdom's Public Investment Fund, is looking for joint ventures and acquisitions in Latin America, India and other countries to boost its operations in phosphate fertilisers and base metals.

"Our strategy outside the kingdom will include us looking at options in organic investments, joint ventures and potentially acquisitions where we see good value and where we see good fit with Ma'aden's existing business," Darren Davis told Reuters on the sidelines of an investment conference in Riyadh.

"We continue to be very bullish on copper," he said, adding that the company plans to boost its presence in countries where there are good copper deposits as way to gain the skills needed to develop its domestic operations.

Saudi Arabia's efforts to build an economy that does not rely on oil and state subsidies involves a shift towards mining vast untapped reserves of bauxite, the main source of aluminium, as well as phosphate, gold, copper and uranium.

Asked about the potential timing of investments, Davis said he would like to see something next year or maybe even sooner, adding that acquisitions will mostly be paid for with cash. The company had 3.8 billion riyals of cash and cash equivalents at the end of September, according to financial statements posted on the Saudi stock exchange website.

Earlier this week, Ma'aden said it signed a contract with South Korea's Daelim Industrial to build a third ammonia plant at a cost of about 3.35 billion riyals ($893 million) in Ras al-Khair, on the kingdom's Gulf coast. That is just one of several plants Ma'aden plans to develop for a third phosphate complex estimated to cost 24 billion riyals.

Ma'aden, which is the world's third biggest producer of phosphate, is likely to start the first phase of this mega project in 2023, he said.

Earlier on Thursday, Ma'aden said its third quarter net profit rose to 518.8 million riyals from 262.6 million a year ago, backed partly by an increase in average realised prices of all its products except gold.

Davis said he was optimistic about the company's outlook, especially in 2019 when it will operate at full capacity, although he said its debt - long-term borrowing totalled 49.8 billion riyals at the end of September - may weigh on results. Uncertainty over global trade could also dampen growth in the commodity business for some time, he added.

Ma'aden also plans to shift its financing strategy over the medium term away from bank loans, which have been its main source of financing, to the bond market, including sukuk issues, Davis said.

(Reporting by Marwa Rashad; Editing by Kirsten Donovan)

By Marwa Rashad


© Reuters 2018
Stocks mentioned in the article
ChangeLast1st jan.
BASE CO., LTD. 1.54% 5920 End-of-day quote.118.99%
BASE,INC. -1.47% 9360 End-of-day quote.433.33%
GOLD 0.06% 1810.27 Delayed Quote.19.20%
SAUDI ARABIAN MINING COMPANY (MA'ADEN) -0.60% 41.2 End-of-day quote.-7.21%
SHIFT, INC. 3.39% 15270 End-of-day quote.91.35%
SILVER 0.37% 23.2654 Delayed Quote.31.05%
THE GLOBAL LTD. 12.81% 273 End-of-day quote.-42.04%
WORLD CO., LTD. -0.97% 1324 End-of-day quote.-50.80%
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Financials
Sales 2020 17 469 M 4 658 M 4 658 M
Net income 2020 -645 M -172 M -172 M
Net Debt 2020 44 088 M 11 756 M 11 756 M
P/E ratio 2020 -78,5x
Yield 2020 -
Capitalization 50 700 M 13 519 M 13 519 M
EV / Sales 2020 5,43x
EV / Sales 2021 5,12x
Nbr of Employees -
Free-Float 32,8%
Chart SAUDI ARABIAN MINING COMPANY (MA'ADEN)
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Saudi Arabian Mining Company (Ma'aden) Technical Analysis Chart | 1211 | SA123GA0ITH7 | MarketScreener
Technical analysis trends SAUDI ARABIAN MINING COMPANY (MA'ADEN)
Short TermMid-TermLong Term
TrendsBullishNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus UNDERPERFORM
Number of Analysts 9
Average target price 34,89 SAR
Last Close Price 41,20 SAR
Spread / Highest target 18,9%
Spread / Average Target -15,3%
Spread / Lowest Target -46,6%
EPS Revisions
Managers
NameTitle
Mosaed bin Sulaiman Al-Ohali Chief Executive Officer
Yasir bin Othman Al-Rumayyan Non-Executive Chairman
Khaled Al-Khattaf Chief Financial Officer & Senior Vice President
Khalid bin Saleh Al-Mudaifer Non-Executive Director
Sulaiman Abdulrahman Al-Gwaiz Deputy Chairman
Sector and Competitors