Saudi Arabian Mining Co. (Ma’aden) reported a 91% year-on-year (YoY) decline in its Q2 2023 net profit to 350.9 million riyals ($93.52 million) on higher finance costs and lower average sales prices except for gold.

Revenue stood at SAR6.9 billion in Q2 2023, down 41.3%, compared to SAR11.8 billion in the prior period, the miner said in a regulatory disclosure on the Saudi stock exchange on Sunday.

Finance costs surged 89% year-on-year (YoY) due to increased SIBOR and LIBOR rates. Exploration and technical services expenses also surged by 116% YoY.

Moreover, the share in net profit of joint ventures attributable to Ma’aden fell 59% YoY.

The mining major’s first-half 2023 net profit declined 88% to SAR 770.36 million, compared to SAR 6.2 billion in the same period last year.

Revenue fell 28% YoY to SAR 15.01 billion due to lower average sale prices besides gold.

In June, shareholders of Ma’aden greenlighted a 50% capital raise to SAR 36.91 billion from SAR 24.61 billion by granting one bonus share for every two shares.

(Editing by Seban Scaria seban.scaria@lseg.com)