Saudi Maaden Q3 net down, but higher gold revenue helps

Minerals firm Saudi Arabian Mining Co (Maaden) posted a 23 per cent fall in third-quarter net profit on tax provisions but saw operating income improve due to higher gold revenues.

Maaden posted a net profit of 49 million riyals ($13.07m) in the quarter, compared with 64 million riyals in the same period last year, Maaden said in a statement.

The company, a major mining player in the Middle East which floated in July 2008, attributed the loss to provisions for the Islamic tax of zakat.

But quarterly operational profit came in at 21m riyals, compared with a loss of 28 million riyals for the same period last year, thanks to rising gold revenues.

In July, the company said it would develop new mines and explore others to compensate for declining gold output.

Maaden, in which the Saudi government is the largest shareholder, produced 146,000 ounces of gold in 2008, up from 143,000 ounces in 2007.

The company plans to start production at its $3 billion phosphate and fertilizers plant, a joint-venture with Saudi Basic Industries Corp, in 2010.

In May, Maaden said it would continue with its plan to develop a 740,000 tonne-per-year aluminium smelter project after Rio Tinto Alcan abandoned its 49 per cent stake.

Maaden reduced the cost of the project by 20 percent to $8 billion and is open to an investment stake of 49 percent.