RIYADH:聽黑料社区n Mining Co., known as Ma鈥檃den, ranked fifth among the top share price gainers this year on the Saudi stock index TASI buoyed by strong results and a thriving mineral sector.
Ma鈥檃den鈥檚聽share price in 2022 opened at SR39.25 ($10.5) and climbed to SR59 on Aug. 4, surging聽53 percent.
A booming mineral industry fueled this rise in 黑料社区 as, in recent years, the Kingdom has shifted its focus toward discovering and extracting minerals and metals to support its mining industry.
There is over $3-trillion worth of minerals to be exploited in the Kingdom, which opens huge opportunities for minerals companies,聽Peter Leon, a partner in Johannesburg-based law firm Herbert Smith Freehills told reporters in February.
Leon advised the Kingdom鈥檚 Ministry of Industry and Mineral Resources on drafting its new mining聽law.
Khalid Almudaifer, vice minister of MIMR, told Arab News earlier this year聽that the ministry had established the mining sector鈥檚 infrastructure, allowing the Kingdom to leapfrog in both mining and sustainable mining.
FASTFACTS
鈥 The company鈥檚聽share price in 2022 opened at SR39.25 ($10.5) and climbed to SR59 on Aug. 4, surging聽53 percent.
鈥 Ma鈥檃den reported a聽185 percent聽surge in profit during the first quarter of 2022, hitting SR2.17 billion.
鈥 The mining company has a market capitalization of over SR100 billion.
As the Kingdom revealed that it could be sitting on untapped mineral deposits worth $1.3 trillion, Almudaifer added that the $1.3 trillion estimate of untapped minerals is only a starting point and that underground minerals are likely worth even more.
In March, the state-owned firm announced its plans to increase production capacity and invest in exploration to tap into $1.3 trillion mineral reserves, a reason economist Ali Alhazmi believes that made Ma鈥檃den shares lucrative, further leading to high performance.
Speaking to Arab News, Alhazmi explained that one of the reasons could be attributed to Ma鈥檃den turning into probability last year, reaching SR5.2 billion, compared to SR280 million in losses in 2020.
The other reason could relate to its plan to double its capital by distributing three shares to shareholders, which has attracted investors to buy Ma鈥檃den shares.
According to Abdullah AlRebdi, CEO of Rassanah Capital, the beginning of the third line of its ammonia production also helped the company鈥檚 fortune, especially when there was a considerable shortage of raw material for fertilizer. It is worth mentioning that the ammonia plant expansion is set to add over 1 million tons of ammonia production to reach 3.3 million tons, making Ma鈥檃den one of the largest ammonia producers east of the Suez Canal.
Ma鈥檃den reported a聽185 percent聽surge in profit during the first quarter of 2022, hitting SR2.17 billion, amid a jump in commodity prices.
Analysts expect Ma鈥檃den to maintain its solid performance throughout 2022, owing to its expansion plans and gold mining projects in Mansoura and Masarrah.
鈥淏y the end of 2022, Ma鈥檃den will achieve SR9 billion in profit, a growth of聽50 percent聽from 2021,鈥 Alhazmi predicted.
As one of the fastest-growing mining companies worldwide, Ma鈥檃den has a market capitalization of over SR100 billion and is one of the Kingdom鈥檚 10 most prominent players.
