The Saudi Arabian Mining Co (Maaden), the country’s largest miner, posted a loss in the third quarter of 2019 due to higher expenses related to the commencement of operations at two of its affiliates.
Net loss after Zakat and Tax stood at 92.04 million riyals in the third quarter ended September 30, compared to a profit after Zakat and Tax of about SAR 415 million, a year earlier.
Maaden’s shares on the Saudi Stock Exchange were down 2.11 percent by midday trading on Wednesday.
The company started producing from the Maaden Wa’ad Al-Shamal Phosphate Company and Maaden Rolling Company in December.
This led to a 71 percent surge in its cost of sales and a 44 percent jump in its selling, marketing and logistic expenses. Other expenses also increased.
Results were also affected by a fall in prices of all products, except gold and a decrease in the sales volume of ammonia, aluminum and alumina, the company said in a statement.
The miner reported a decrease in its share of net profit from its SAMAPCO joint venture with the Sahara Petrochemical Co.
Revenue of the diversified miner jumped nearly 27 percent to SAR 4.3 billion, from a year earlier.