Maaden becomes profitable of 5.2 billion riyals in 2021 and recommends 100% capital increase

Saudi Arabian mining company “Maaden” made a net profit of around 5.23 billion riyals in 2021, compared to losses of around 208.98 million riyals in 2020.

Ma’aden claimed in a statement in “Saudi Tadawul” today, Sunday, that the increase in net profit in 2021, on an annual basis, is due to the increase in average selling prices achieved for all products except products in industrial metal, and the increase in the net profit of the joint ventures venture belonging to the Maaden Company, in addition to the decrease in the costs represented in general and administrative expenses of 3%, exploration and technical services expenses of 30% and the cost of financing of 27%.

Maaden’s total revenues were approximately 26.77 billion riyals in 2021, up from 18.6 billion riyals in 2020, an increase of 44%.

In a separate statement, Maaden announced the recommendation of its board of directors, at the extraordinary general meeting, to increase its capital by 100%, granting free shares through a capitalization of approximately 12.306 billion riyals, from retained earnings and part of the statutory reserve; By assigning a free share for each share owned by the shareholders.

Maaden added that the capital after the increase becomes 24.6 billion riyals instead of 12.3 billion riyals before the increase, an increase of 100%.

The number of shares in the company becomes approximately 2.46 billion shares, compared to approximately 1.23 billion shares before the increase.

The company aims to increase the capital to strengthen the capital base of the company; This helps to strengthen future growth plans.

The increase will take place through the capitalization of retained earnings and part of the legal reserve for an amount of 12.3 billion riyals.

The date of eligibility for shareholders holding shares is at the end of the negotiations on the day of the extraordinary shareholders ‘meeting of the company, which will be subsequently determined, and of those who are registered in the shareholders’ register of the company at the Company Securities Deposit Center “Il Depository Center ”at the end of the second trading day following the date of the extraordinary general meeting.

Saudi Arabian mining company “Maaden” has announced that it will not distribute dividends in cash to shareholders for fiscal year 2021.