Saudi Arabian Mining Swings to a Net Profit

Saudi Arabian Mining Co. (Maaden) swung to a net profit of 27.4 million riyals ($7.3 million) in the third-quarter on increasing sales and prices, but the results missed analyst forecasts.

Maaden made a net profit of 27.4 million riyals in the third quarter, compared with a loss of 200,000 riyals in the same period a year earlier, the firm said in a bourse statement on Tuesday.

The reason for the rise in net profit for the third-quarter... is the rise in average prices of gold as well as the increase in sales, the statement said.

Two analysts surveyed by Reuters expected the firm to post a net profit of 88 million or 90 million riyals for the third quarter.

The firm made an operational profit of 69 million riyals, compared with a loss of 2.5 million riyals in the previous year.

The state-controlled minerals firm, which has annual gold production of around 140,000 to 150,000 ounces, plans to more than double production to 400,000 ounces per year by 2015, it said in May.