Saudi Arabian Mining Co. — Earnings Release 2017

Feb 1, 2018

SAUDI ARABIAN MINING COMPANY (MAADEN) ANNOUNCES THE AUDITED CONSOLIDATED ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED DECEMBER 31, 2017

1211 · 01/02/2018 08:22:15 · Announcement #49303 · View on Saudi Exchange

SAUDI ARABIAN MINING COMPANY (MAADEN) ANNOUNCES THE AUDITED CONSOLIDATED ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED DECEMBER 31, 2017

Element	Current year	Previous year	% Change
Net profit (loss)	714,841,886	-10,739,221	-
Earning or loss per share, Riyals	0.61	-0.01	-
Gross profit (loss)	3,932,294,967	2,020,558,008	94.61
Operational profit (loss)	2,435,054,773	612,584,119	297.51

*All figures are in Saudi Arabia, Riyals

Element	EXPLAINATION
Reasons of annual financial results	The reasons for the increase in net profit are as follows: Compared to the previous year, sales revenues increased by 28% mainly driven by higher sales volumes of all products and the increase in the average realized prices of all products except ammonia, and the increase in the share of the net profit of the jointly controlled entity (Maaden Barrick Copper Company) due to higher copper prices coupled with full year operations compared to 6 months last year. The increase in sales revenues was offset by an increase in cost of sales by 10%; selling, marketing and logistic expenses, general and administrative expenses, and exploration and technical services expenses also increased by 30%, 18% and 26% respectively from the previous year. Finance costs increased by 82% due to non-capitalisation of finance cost associated with aluminium projects, and costs associated with the refinancing of Maaden Aluminium company debt. Income from time deposits decreased by 49%, in addition to the increase in the zakat and income tax expenses. Net profit benefited from the decrease in the write-off of plants and equipment by 22%, and the decrease in impairment of capital work-in-progress by 16%.
Reclassifications in annual financial results	Certain comparative figures of the previous year have been reclassified, wherever necessary, to conform with the current years presentation. Such reclassifications did not affect either the net worth or the net income of the Group for the previous year.
Other notes	Sales revenues for the year ended 31 December 2017 amounted to SR 12,085,934,170 an increase of 28% compared to SR 9,463,857,096 for the year ended 31 December 2016. The total equity attributable to shareholders of the parent company as at 31 December 2017 amounted to SR 26,097,516,935 an increase of 3% as compared to SR 25,342,013,804 as at 31 December 2016. The total comprehensive income for the year ended December 31, 2017 amounted to SR 830,414,668 compared to a total comprehensive loss of SR (146,101,859) for the year ended December 31, 2016. 2016 comparative figures have been restated to comply with the implementation of IFRS reporting. Attached is a summary report of the financial results and latest developments in the group. The consolidated financial statements will be available on the Maaden website and through Maaden Investor Relations application for smart devices after being published on Tadawul website. http://www.maaden.com.sa/en/investor/investor

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