Saudi Arabian Mining Co (Ma'aden) has reported a revenue of SR2.72 billion ($725.2 million) during the first quarter of this year, up 20 per cent year-on-year.

The sales growth was due to increase in sales volume of all products, and the increase of the average realised prices of aluminium by 18 per cent and gold by 3 per cent, compared to the same quarter last year, said the company.

The revenue was 5 per cent above the estimate of SR2.6 billion ($693.25 million) by  Al-Rajhi Capital, said a report.

A sharp improvement in cost of sales saw its gross margin improve to 34 per cent in Q1 of this year, as compared to an average of 22 per cent in the last eight quarters, said the report.

Lower selling expenses were offset by higher than expected financing expenses, it said.

Ma’aden’s net profit came at SR276 million ($73.5 million), significantly higher than the estimate of SR107 million ($28.53 million). - TradeArabia News Service