Amak Mining Company recorded profits of 60 million Saudi Riyals (16 million USD) in the first quarter of 2026, marking an 8.8% increase compared to its profits of 55 million Riyals (14 million USD) in the first quarter of 2025.
According to the financial results published on the (Tadawul) platform on Wednesday, Amak attributed this growth to an increase in gross profit by 4 million Riyals (1 million USD), driven by a reduction in direct costs, despite the rise in financing costs.
Event Details
Despite the increase in profits, the company's revenues experienced a slight decline of 0.62%, achieving 218 million Riyals (58.2 million USD) compared to 219 million Riyals (58.6 million USD) in the first quarter of 2025. This decline is attributed to a drop in revenues from copper and zinc sales due to reduced sales volumes caused by the temporary shutdown of the company's processing plant, which was announced in January 2026, despite improvements in metal prices.
On a quarterly basis, profits in the first quarter of the current year decreased compared to the last quarter of 2025, where the company achieved 70.9 million Riyals (18.9 million USD) in the last quarter, representing a 15% decrease due to a decline in gross profit by 31 million Riyals (8 million USD) and an increase in selling and marketing expenses.
Background & Context
Founded in 2008, Amak is considered one of the leading companies in the mining sector in Saudi Arabia. The company focuses on the extraction of base metals such as copper and zinc, playing a significant role in supporting the national economy by providing essential raw materials for various industries.
These results come amid the Kingdom's efforts to enhance the mining sector as part of Vision 2030, which aims to diversify the economy and reduce dependence on oil. The Saudi government seeks to develop mining infrastructure and increase investments in this vital sector.
Impact & Consequences
The financial results of Amak highlight the importance of cost-reduction strategies in enhancing profits, even amid the challenges faced by the company. These results also reflect the company's ability to adapt to changing economic conditions in the market.
These positive results are expected to boost investor confidence in the mining sector in the Kingdom, potentially leading to increased foreign and domestic investments in this field. Additionally, the improvement in metal prices may contribute to enhancing the company's financial performance in the upcoming periods.
Regional Significance
Amak's results serve as a positive indicator of growth in the mining sector in the region, as many Arab countries seek to develop their mineral resources. These results also reflect the regional trend towards economic diversification and enhancing sustainability across various sectors.
Amid global economic challenges, companies like Amak may play a pivotal role in supporting the national economy and fostering growth in the region, contributing to achieving sustainable development goals.
In conclusion, Amak remains a model for achieving growth and profitability amid challenges, reflecting the strength of the mining sector in Saudi Arabia.