CEO said Major mining factories “Amak” Yahya Al-Shanqiti said that the company produces copper, zinc and gold, and copper metal declined by 30% in the second quarter of 2022, while it decreased by an average of 16% during the first half of 2022, and gold declined by 6% in the second quarter of this year.
Yahya Al-Shanqiti added in an interview with Al-Arabiya, today, Thursday, that most analysts believe that prices are in a downturn, and we expect gold prices to improve in the third quarter of 2022, due to the increase in the US interest rate and the inflation rate, but copper remains the same until the end of the year, as well as Zinc price stability.
He explained that accordingly, AMAC controls production and costs, and has a great opportunity to control labor and chemicals, and has a stock of between 7 and 8 months that will benefit it until the end of the year.
Yahya Al-Shanqiti said that copper represents 38% of its products, zinc 27%, gold 34%, in addition to silver 1%.
The CEO of AMAC added that it is implementing an expansion of the Al-Masani mine with investments of 300 million riyals.
He explained that the financing of the expansion will be from the proceeds of the remaining subscription, of which 600 million riyals, of which 296 million riyals are for the expansion of the Al-Masani mine, and 121 million riyals for exploration and other purposes, especially as new licenses are in the process of entering into exploration licenses.
The company had announced a project to develop the Ma’idh ore deposit at an amount of 296.2 million riyals.
Regarding the cash dividends, Yahya Al-Shanqiti said that the general assembly authorized the board of directors to distribute cash dividends, and this depends on the company’s financial position and cash flows. The board of directors will meet quarterly or 6 semi-annually to discuss the possibility of approving cash dividends.
The net profit of the Grand Factories Company for Mining “AMAC” in the second quarter fell 30% to 40 million riyals on an annual basis.