The Saudi Arabian Mining Company (Maaden) achieved a net profit of 5.23 billion riyals in 2021, compared to losses of about 208.98 million riyals in 2020.
According to Arabiya Net, the company said in a statement that the increase in net profit in 2021, on an annual basis, is due to the increase in the average selling prices achieved for all products except for products Industrial minerals, an increase in the net profit of joint ventures belonging to Maaden, in addition to a decrease in costs represented in general and administrative expenses by 3%, exploration and technical services expenses by 30% and the cost of financing by 27%.
Maaden's total revenues amounted to about 26.77 billion riyals in 2021, compared to 18.6 billion riyals in 2020, an increase of 44%.
In a separate statement, Maaden announced the recommendation of its board of directors, to the extraordinary general assembly, to increase its capital by 100% by granting free shares through a capitalization of about 12.306 billion SAR, from retained earnings and part of the statutory reserve; By granting a bonus share for every share held 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 the company's shares becomes about 2.46 billion shares, compared to about 1.23 billion shares before the increase.
The company's capital increase aims to strengthen the company's capital base; This contributes to enhancing future growth plans.
The increase will be through the capitalization of retained earnings and part of the statutory reserve at an amount of 12.3 billion riyals.
The eligibility date for the shareholders owning shares is at the end of trading on the day of the company's extraordinary general assembly, which will be determined later and who are registered in the company's shareholders register with the Securities Depository Center Company, the Depository Center at The end of the second trading day following the date of the Extraordinary General Assembly.
The Saudi Arabian Mining Company, Ma'aden, announced that it will not distribute cash dividends to shareholders for the fiscal year 2021.