AMAK
Almasane Alkobra Mining Co.
As of: Mar 26, 2026
Company Profile
Al Masane Al Kobra Mining Company (AMAK) is a Saudi Joint Stock Company engaged in the mining of non-ferrous metal ores (aluminium, copper, and lead) and precious metals (gold, silver, and platinum group), as well as wholesaling precious metals and gemstones. The Company generates revenue by producing zinc and copper concentrates and gold and silver dores from its three operational mines: Al Masane underground mine, Moyeath underground mine, and Mount Guyan mine. AMAK is listed on the Saudi Stock Exchange (Tadawul) and operates under licenses from the Ministry of Industry and Mineral Resources.
The Story
AMAK is a high-growth mining operator leveraging a diversified portfolio of base and precious metals to deliver robust margins and consistent value creation.
Source: Annual 2025 (2026-03-19)
Performance & Distributions
Market Pricing Multiples
Growth Story
AMAK has demonstrated exceptional top-line momentum, with TTM revenue reaching SAR 1.03 billion, a substantial increase from SAR 487.9 million in FY 2023. This trajectory is fueled by the operational ramp-up of the Moyeath and Mount Guyan mines. The company’s sustainable growth rate of 10.18% is underpinned by a high five-year average reinvestment rate of 86.84%, reflecting a strategic commitment to expanding its resource base. With TTM capital expenditures of SAR 226.6 million, AMAK is aggressively converting its mineral licenses into productive capacity, particularly as it integrates new infrastructure like the SAR 87 million electricity transmission station project to optimize long-term operational efficiency.
Profitability Dynamics
The company’s financial performance is characterized by strong value creation, evidenced by a five-year average ROIC of 11.72% which comfortably exceeds its WACC of 8.76%. This positive spread of nearly 3% indicates that AMAK is generating returns above its cost of capital. Profitability is further highlighted by a robust TTM operating margin of 35.81%, driven largely by the high-margin precious metals segment, which contributed SAR 512.5 million to revenue. While heavy reinvestment in mine development impacts immediate free cash flow, the underlying operating income of SAR 367.5 million demonstrates a highly efficient extraction model capable of generating significant internal capital.
Risk & Capital Structure
Risk Factors
AMAK maintains a conservative leverage profile with a gearing ratio of just 2.21% as of late FY 2025, significantly lower than the 4.93% seen in FY 2024. However, as an unhedged producer, the company is highly sensitive to commodity price volatility; a 10% shift in gold prices alone could impact pre-tax profit by approximately SAR 52.5 million. Operational risks include the inherent uncertainty of ore reserve estimates and environmental rehabilitation obligations, currently provisioned at SAR 34.1 million. Furthermore, the company faces concentration risk with only two primary customers and is planning a SAR 680 million rights issue to fund future growth, which will alter the capital structure.
Governance Disclosures
We track 10 key governance and oversight matters for this company in our database.
CEO Equity-Settled Incentive Plan
The Chief Executive Officer is entitled to long-term equity-settled incentives of 20,000 shares per annum based on performance-based vesting conditions.
Related Party Procurement Transactions
The company engaged in commercial transactions with Najran Mineral Water (SAR 97,979) and previously with Najran Cement (SAR 281,993 in 2024), which are identified as other related parties.
Research Report
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