What's Happening?
Maaden, the Saudi state-owned mining company, announced a significant increase in its net profit for 2025, driven by higher commodity prices. The company's revenue rose by 19% to SAR39 billion ($10.4 billion), largely due to record production levels of phosphate
and aluminum, as well as increased prices for its main output commodities. The inclusion of Aluminium Bahrain (Alba) in the results also contributed to the revenue growth. Maaden's net profit attributable to shareholders surged by 156% to SAR7.3 billion. The fourth-quarter revenue increased by 7% year-on-year to SAR10.6 billion, with a quarterly net profit of SAR1.7 billion, contrasting with a net loss of SAR106 million the previous year. The average realized price of gold increased by 46% year-on-year, while alumina prices fell by 13% and aluminum prices rose by 8%.
Why It's Important?
The substantial profit increase for Maaden highlights the impact of rising commodity prices on the mining industry, particularly in the Gulf region. This development underscores the strategic importance of mineral resources in Saudi Arabia's economic diversification efforts, as outlined in its Vision 2030 plan. The increased profitability of Maaden may attract further investment into the sector, bolstering the country's position as a key player in the global minerals market. Additionally, the company's plans to invest $110 billion over the next decade could significantly enhance its production capabilities and contribute to the region's economic growth.
What's Next?
Maaden has set a capital expenditure guidance of SAR15.5 billion for 2026, with SAR12.6 billion allocated for growth projects. This includes the completion and commissioning of phase 1 of the Phosphate 3 project and further progress at the Ar Rjum gold project in Mecca province. The company's ambitious investment plans are expected to drive further growth and solidify its position in the global mining industry. Stakeholders, including the Public Investment Fund, which owns a significant portion of Maaden, will likely monitor these developments closely.
