AMAK: Higher logistics costs had no material impact

AMAK CEO Geoffrey Day said the company benefited from a higher average realized gold selling price, up about 12% from 2025.

Geoffrey Day, CEO of Al Masane Al Kobra Mining Co. (AMAK), said escalating geopolitical tensions in parts of the Middle East disrupted transport networks, raising freight and logistics costs due to inflationary pressures.

In an interview with Argaam, Day said the management concluded these developments had no material impact on the group’s operations or financial performance, as its core business continued without interruption.

The CEO said sales volumes of copper, zinc, gold and silver declined year-on-year (YoY), while higher realized prices across all metals partially offset the impact of lower volumes.

The net effect was an 8% year-on-year (YoY) decline in revenue, driven by lower sales volumes across all metals, he added.

Day said lower sales volumes were mainly due to the temporary suspension of base metals processing at the Al Masane mine during the first and second quarters of 2026, adding that production gradually stabilized and operating performance improved after operations resumed in May.

He said that although gold prices were volatile in the second quarter, the company benefited from a higher average realized gold selling price, up about 12% from 2025.

Based on current production levels, prevailing commodity prices and expectations of normal operating conditions, AMAK expects stronger financial and operational performance in the second half of 2026 than in the first half, Day said.

According to data available with Argaam, AMAK’s first-half 2026 net profit fell 26% to SAR 94.8 million from SAR 128.3 million a year ago. The second-quarter net profit declined to SAR 34.7 million.