RIYADH: Saudi Arabian Mining Co., known as Ma’aden’, saw its shares price hitting its highest level since the company went public on the back of its plans to expand production capacity.

Ma’aden’s share price, which opened at SR39.25 ($10.5) in 2022, climbed to SR80 on Oct. 24, surging 104 percent.

In March, the state-owned firm announced plans to increase production capacity and invest in exploration to tap into the Kingdom’s $1.3 trillion mineral reserves — something economist Ali Alhazmi believes made Ma’aden shares lucrative, further leading to high performance.

Speaking to Arab News, Alhazmi explained that one of the reasons could be attributed to Ma’aden turning into a profitable company last year, reaching SR5.2 billion, compared to SR280 million in losses in 2020.

“By the end of 2022, Ma’aden will achieve SR9 billion in profit, a growth of 50 percent from 2021,” Alhazmi predicted.

The other reason could relate to its plan to double its capital by distributing one bonus share for each share to shareholders, which has attracted investors to buy Ma’aden shares.

“The beginning of the third line of its ammonia production also helped the company’s fortune, especially when there was a considerable shortage of raw materials for fertilizer,”  CEO of Rassanah Capital Abdullah AlRebdi told Arab News.

The ammonia plant expansion is set to increase capacity by over 1 million tons, with total production reaching 3.3 million tons. This will make Ma’aden one of the largest ammonia producers east of the Suez Canal.

The company’s net profit increased over threefold to SR6.2 billion in the first half of 2022, from SR1.9 billion a year earlier.

Analysts expect Ma’aden to maintain its solid performance throughout 2022, owing to its expansion plans and gold mining projects in Mansoura and Masarrah.

As one of the fastest-growing mining companies worldwide, Ma’aden has a market capitalization of over SR100 billion and is one of the Kingdom’s 10 most prominent players.