Saudi Arabian Mining Co. · TADAWUL:1211
Saudi Arabian Mining — Q1 2021 Earnings Presentation
35 slides from Saudi Arabian Mining's earnings presentation, 2021
Slide 1: Growing a Saudi Global Mining Giant
Growing a Saudi Global Mining Giant Saudi Arabian Mining Company (Ma’aden) Investor Presentation – Q1 2021 Results
Slide 2: Frederik Michaelsen, Senior Investor Relations Advisor
Growing a Saudi Global Mining Giant Frederik Michaelsen Senior Investor Relations Advisor
Slide 3: Disclaimer
Disclaimer 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
Slide 4: Abdulaziz A. Al Harbi, Chief Executive Officer
Abdulaziz A. Al Harbi Chief Executive Officer (A) Page 4
Slide 5: Ma'aden's 2025 Strategy
Ma’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
Slide 6: Ma'aden outperformed peers and the market
Ma’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 12
Slide 7: Health, Safety, Security & Environment (HSSE)
Health, Safety, Security & Environment (HSSE) Page 7
Slide 8: EHSS Performance
EHSS Performance Ma’aden compares favorably with peers Total Recordable Injury Rate (TRIR) Benchmarking TRIR: Recordable Injuries X 200,000 Manhours worked Page 8
Slide 9: Q1 2021 Update
Q1 2021 Update Page 9
Slide 10: Q1 2021 - Financial Performance Update
Q1 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
Slide 11: Q1 2021 - Production Update
Q1 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 dow
Slide 12: Market Prices & Outlook
Market Prices & Outlook Page 12
Slide 13: Phosphate & Ammonia Prices
Phosphate & 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 13
Slide 14: Aluminum & Alumina Prices
Aluminum & 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 14
Slide 15: Gold & Copper Prices
Gold & 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 15
Slide 16: Yaser A. Barri, SVP Finance & CFO
Yaser A. Barri SVP, Finance & Chief Financial Officer (A) Page 16
Slide 17: Q1 2021 - Financial Performance
Q1 2021 - Financial Performance Page 17
Slide 18: Q1 2021 - Consolidated Key Financial Results
Q1 2021 - Consolidated Key Financial Results Page 18
Slide 19: Q1-21 net profit higher by 37% compared to Q4-20
Q1-21 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 profi
Slide 20: Q1-21 net profit compared to Q1-20 net loss
Q1-21 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 -
Slide 21: Q1 2021 - Consolidated Sales and EBITDA by Segment
Q1 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
Slide 22: Quarterly EBITDA and EBITDA margins
Quarterly 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 Pag
Slide 23: Q1 2021 - Consolidated statement of cash flows
SRmn Q1 2021 - Consolidated statement of cash flows Healthy cash flow from operating activities Page 23
Slide 24: Financial Ratios
SRmn Financial Ratios Page 24
Slide 25: Q1 2021 - Operational Performance
Q1 2021 - Operational Performance Page 25
Slide 26: Phosphate & Ammonia: Production & Sales in Q1 2021
Phosphate & 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) Produc
Slide 27: Aluminum & Alumina: Production & Sales in Q1 2021
Aluminum & 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 Product
Slide 28: Gold & Copper: Production & Sales in Q1 2021
Gold & 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 28
Slide 29: Updates on Ma'aden's Projects
Updates on Ma’aden’s Projects Page 29
Slide 30: Updates on Ma'aden's Projects
SRmn 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.
Slide 31: Q&A
Q&A Page 31
Slide 32: Thank You
Growing a Saudi Global Mining Giant Thank You
Slide 33: Appendix
Appendix Page 33
Slide 34: COVID-19 Update
COVID-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
Slide 35: Debt repayment profile
SRmn Debt repayment profile Page 35
Saudi Arabian Mining Company (Ma'aden) — Q1 2021 Earnings Presentation on 6ix