Saudi Arabian Mining Company (Ma'aden) - Investor Presentation - Q1 2021 Results
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Growing a Saudi Global
Mining Giant
Saudi Arabian Mining Company (Ma’aden)
Investor Presentation – Q1 2021 ResultsGrowing a Saudi Global
Mining Giant
Frederik Michaelsen
Senior Investor Relations AdvisorDisclaimer
This presentation contains statements that are, or may be deemed to be, forward looking statements, including statements about the beliefs and expectations of the
Saudi Arabian Mining Company Ma’aden (the "Company"). These statements are based on the Company's current plans, estimates and projections, as well as its
expectations of external conditions and events. Forward-looking statements involve inherent risks and uncertainties and speak only as of the date they are made. As a
result of these risks, uncertainties and assumptions, a prospective investor should not place undue reliance on these forward-looking statements. A number of important
factors could cause actual results or outcomes to differ materially from those expressed in any forward-looking statements. The Company is not obliged to, and does not
intend to, update or revise any forward- looking statements made in this presentation whether as a result of new information, future events or otherwise.
This communication has been prepared by and is the sole responsibility of the Company. It has not been reviewed, approved or endorsed by any financial advisor, lead
manager, selling agent, receiving bank or underwriter retained by the Company and is provided for information purposes only. In addition, because this communication
is a summary only, it may not contain all material terms and in and of itself should not form the basis for any investment decision.
The information and opinions herein are believed to be reliable and have been obtained from sources believed to be reliable, but no representation or warranty, express
or implied, is made with respect to the fairness, correctness, accuracy, reasonableness, or completeness of the information and opinions. There is no obligation to
update, modify or amend this communication or to otherwise notify you if any information, opinion, projection, forecast or estimate set forth herein, changes or
subsequently becomes inaccurate.
You are strongly advised to seek your own independent advice in relation to any investment, financial, legal, tax, accounting, or regulatory issues discussed herein.
Analyses and opinions contained herein may be based on assumptions that if altered can change the analyses or opinions expressed. Nothing contained herein shall
constitute any representation or warranty as to future performance of any financial instrument, credit, currency, rate, or other market or economic measure.
Furthermore, past performance is not necessarily indicative of future results. The Company disclaims liability for any loss arising out of or in connection with your use of,
or reliance on, this communication.
These materials may not be published, distributed or transmitted and may not be reproduced in any manner whatsoever without the explicit consent of Ma’aden’s
management. These materials do not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction.
Non-IFRS financial measures
Some of the financial information included in this presentation is derived from Ma’aden consolidated financial statements but are not terms defined within the
International Financial Reporting Standards (IFRS) as applied In the Kingdom of Saudi Arabia. Such information is provided as the Company believes they are useful
measures for investors. A reconciliation of this information with the consolidated financial statements is included in the presentation
Page 3Abdulaziz A. Al Harbi
Chief Executive Officer (A)
Page 4Ma’aden’s 2025 Strategy
“Sustainable mining champion with global presence”
Pillar 1: Operational, capital and Pillar 2: National mining Foundations : Sustainability and
Pillar 3: Global presence
commercial excellence champion capability building
• Enhance competitiveness • Grow sustainably phosphate, • Leverage world-class mineral • Build best-in-class safety
• Enhancing profitability and aluminum, gold and base deposits in Saudi Arabia to culture and practices across
commercial return in line metals in Saudi Arabia grow as a global industry the organization and foster a
with the profitability of • Grow in specific industrial leader zero-harm environment
international companies minerals • Strengthening capabilities
• Leverage digital technology • Leading the development of and preparing leaders in all
and lean manufacturing to the Saudi mining sector core business units to
improve efficiency levels achieve Ma’aden’s aspiration
across all company assets for growth
• Lead stewardship of the
mining industry in Saudi
Arabia and its ecosystem
Page 5Ma’aden’s outperformed peers and the market
Share price returns (indexed to 100) Ma’aden 2019 Equity
increase (Debt for Annualized return since the IPO
260% Ma’aden 2014 Equity swap) (in percent)
240% Rights issue
250 M Share
220%
200%
180%
Ma’aden 11.1%
160%
Mining Giants1 10.0%
140% Ma’aden
IPO
120% Pure players2 7.4%
100%
80% Saudi INDEX 3.0%
60%
40%
20%
0%
TASI Mining Giants1 Pure players2 MAADEN
1 Includes Anglo American, BHP, Glencore, Rio Tinto, Vale, Vedanta 2 Includes Aluminum Corp of China, Rusal, Mosaic, Phosagro, Barrick, GoldFields, Newmont
Page 6Health, Safety, Security &
Environment (HSSE)
Page 7EHSS Performance
Ma’aden compares favorably with peers
Total Recordable Injury Rate (TRIR) Benchmarking
TRIR: Recordable Injuries X 200,000
Manhours worked
Page 8Q1 2021 Update
Page 9Q1 2021 - Financial Performance Update
Ma’aden recorded a net profit of SR848mn in Q1-21
• Sales reached SR5.5bn, down 2% q-o-q, due to lower sales volume of all products (except
Financial gold and FRP), partially offset by increase in commodity prices of all products (except gold)
Performance Sales was up 25% y-o-y, because of higher prices of all products, combined with the higher
volumes of FRP, primary aluminum and alumina along with Meridian higher sales.
• EBITDA reached SR2.2bn, up 10% q-o-q, mainly due to lower operating expenses despite
lower sales. EBITDA was up 101% y-o-y, due to the higher sales, lower selling & marketing
and exploration expenses.
• Net profit reached SR0.85bn, up 37% q-o-q, mainly due to higher EBITDA and higher share
in net income of JV coupled with exchange gain of Meridian. Q1-21 turned into net profit from
net loss of SR0.64bn in Q1-20, mainly due to higher EBITDA, higher share in JV net income
and lower finance cost, partially offset by higher zakat & tax and lower income from time
deposits.
• Cash generated from operations was SR1.4bn; down 35% q-o-q
• Working capital stood at SR5.1bn; up 11% q-o-q due to higher inventories, receivables and
lower payables
Page 10Q1 2021 - Production Update
• Ammonium Phosphate production was 1,071kt (down 1% y-o-y and down 19% q-o-q)
Production
• Ammonia production was 498kt (down 14% y-o-y and down 17% q-o-q)
• Aluminum production was 256kt (up 4% y-o-y and down 2% q-o-q)
• Alumina production was 441kt (up 4% y-o-y and down 3% q-o-q)
• Flat Rolled Products production was 73kt (down 1% y-o-y and down 1% q-o-q)
• Gold production was 97koz (down 14% y-o-y and up 8% q-o-q)
• Copper production was 17kt (up 7% y-o-y and up 3% q-o-q)
Page 11Market Prices & Outlook
Page 12Phosphate & Ammonia Prices
Both, Phosphate and Ammonia prices increased drastically
$600 $450
$500 $400
$400 $350
$300 $300
$200 $250
$100 $200
$0 $150
DAP Ammonia
(Avg. KSA FOB) (Avg. ME FOB)
Page 13Aluminum & Alumina Prices
Prices continues to climb higher
$2,500 $650
$600
$2,300
$550
$2,100 $500
$450
$1,900
$400
$1,700 $350
$300
$1,500
$250
$1,300 $200
LME 3-month Aluminum Price Alumina Price Index (API)
Page 14Gold & Copper Prices
Gold slightly down, Copper continued to rise
$2,000 $9,000
$1,900
$8,500
$1,800
$8,000
$1,700
$7,500
$1,600
$1,500 $7,000
$1,400
$6,500
$1,300
$6,000
$1,200
$5,500
$1,100
$1,000 $5,000
Gold in $/oz Copper in $/kt
Page 15Yaser A. Barri
SVP, Finance & Chief Financial Officer (A)
Page 16Q1 2021 - Financial Performance
Page 17Q1 2021 - Consolidated Key Financial Results
Page 18Q1-21 net profit higher by 37% compared to Q4-20
SRmn
Movement in net profit by line items (q-o-q)
Profit / (Loss) attributed to the shareholders’ of parent co.
Profit / (Loss) attributed to minority interest
848
376
-473
617 365
-38
761
572
45 87
Net profit Price Sales vol. Finance Others Net profit
Q4-20 effect effect cost Q1-21
Page 19Q1-21 net profit compared to Q1-20 net loss
SRmn
Movement in net profit/ (loss) by line items (y-o-y)
Profit / (Loss) attributed to the shareholders’ of parent co.
Profit / (Loss) attributed to minority interest
848
200
188
761
151
87
-353 946
Sales vol. Finance Others Net profit
effect cost Q1-21
-284
-638
Net loss Price
Q1-20 effect
Page 20Q1 2021 - Consolidated Sales and EBITDA by Segment
Consolidated Phosphate
vs. vs. vs. vs.
Q1-21 LY Qtr. Prev. Qtr. Q1-21 LY Qtr. Prev. Qtr.
Sales (SRmn) 5,450 25% -2% Sales (SRmn) 2,697 41% -5%
EBITDA* (SRmn) 2,193 101% 9% EBITDA* (SRmn) 1,000 544% 0%
EBITDA margin 40% 15% 4% EBITDA margin 37% 29% 2%
50% of Group EBITDA
Aluminium Gold
vs. vs. vs. vs.
Q1-21 LY Qtr. Prev. Qtr.
Q1-21 LY Qtr. Prev. Qtr.
Sales (SRmn) 2,113 20% 2% Sales (SRmn) 640 -7% 2%
EBITDA* (SRmn) 865 39% 21% EBITDA* (SRmn) 328 5% 12%
EBITDA margin 41% 6% 7% EBITDA margin 51% 6% 4%
35% of Group EBITDA 15% of Group EBITDA
Page 21Quarterly EBITDA and EBITDA margins
Highest EBITDA since Q1 2017; EBITDA margins continue to rise
55% 53%
52% 50% 51%
47%
43% 44%
40%
36%
33% 33% 32%
30% 29%
25% 27%
2,193
1,966 2,003
1,815 1,727
1,681
1,428 1,504 1,345 1,541 1,392 1,310 1,439 1,416 1,470
1,091 1,069
EBITDA (mn SR) EBITDA Margin
Page 22SRmn
Q1 2021 - Consolidated statement of cash flows
Healthy cash flow from operating activities
Page 23SRmn
Financial Ratios
Page 24Q1 2021 - Operational Performance
Page 25Phosphate & Ammonia: Production & Sales in Q1 2021
Ammonium Phosphate Fertilizer Ammonia
1,800 700
577 598
1,500 1,328 1,320 600
1,197
498
1,200 1,081 1,071 1,080 500
400 347 330
900 269
300
600
200
300 100
0 0
Q1 2020 Q4 2020 Q1 2021 Q1 2020 Q4 2020 Q1 2021
Production (in kmt) Sales (in kmt) Production (in kmt) Sales (in kmt)
Page 26Aluminum & Alumina: Production & Sales in Q1 2021
Aluminum Alumina
265 500 426 455 441
260 260
260 256 256 400
255
249 300
250 245
200
245 105
240 100 35 42
235 0
Q1 2020 Q4 2020 Q1 2021 Q1 2020 Q4 2020 Q1 2021
Production (in kmt) Sales (in kmt) Production (in kmt) Sales (in kmt)
Flat Rolled Products
90 81
77 78
80 74 74 73
70
60
50
40
Q1 2020 Q4 2020 Q1 2021
Production (in kmt) Sales (in kmt)
Page 27Gold & Copper: Production & Sales in Q1 2021
Gold Copper
18.8
150 20.0 16.5 16.8 17.0
113 116 15.9 15.0
90 89 97 96 15.0
100
10.0
50
5.0
0 0.0
Q1 2020 Q4 2020 Q1 2021 Q1 2020 Q4 2020 Q1 2021
Production (in koz) Sales (in koz) Production (in kmt) Sales (in kmt)
Page 28Updates on Ma’aden’s Projects
Page 29SRmn
Updates on Ma’aden’s Projects
Ammonia III
• Expected to produce 1,1kmt p.a.
• US$1,113mn Budget
• Completion: Q4 2021 (20kmt) and full operational Q1 2022
MMGP
• Expected to produce 250k ounces of gold p.a.
• US$880mn Budget
• Completion: Q2 2022
Phosphate III
• Expected to produce 3,0kmt p.a.
• US$4,219mn Budget
• Completion: 2025 (Phase 1)
Remediation at Wa’ad Al-Shamal
• Phosphate production to improve from 2.8kmt in 2021 to 3.1kmt in 2025
Page 30Q&A
Page 31Growing a Saudi Global
Mining Giant
Thank YouAppendix
Page 33COVID-19 Update
Infection rate is only 0.17%
3.00
2.50
2.00
1.50
1.00
0.50
0.00
7-Mar
3-Jan
20-Sep
13-Dec
9-Aug
7-Feb
27-Dec
28-Feb
14-Mar
8-Nov
28-Mar
14-Feb
19-Jul
29-Nov
20-Dec
5-Jul
6-Sep
17-Jan
4-Oct
31-Jan
21-Feb
18-Oct
1-Nov
16-Aug
14-Jun
28-Jun
2-Aug
24-Jan
13-Sep
21-Mar
15-Nov
10-Jan
6-Dec
26-Jul
27-Sep
23-Aug
11-Oct
21-Jun
12-Jul
25-Oct
22-Nov
30-Aug
Overall Direct Contractors
Infection rate is the percentage of the overall workforce with an active COVID-19 infection.
This is calculated by the following formula:
# of Active Infections X 100 = Rate of Infection
Workforce
(The provided data included all Maaden Affiliates Employees including contractor count. The total number is approx. 22,000)
Page 34SRmn
Debt repayment profile
Page 35You can also read
