The shares of Saudi Arabia’s state miner rose as much as 8.3% on Sunday after it announced a profit and plans to boost its capital by $3.3 billion amid a surge in commodity prices.
Maaden, as Saudi Arabian Mining Co. is known, will offer 1 bonus share for each held, according to a statement. That will double its capital to 24.6 billion riyals ($6.6 billion) and will “boost the future growth plans,” the company said.
Commodity prices have climbed in the past year on booming demand, fueled by trillions of dollars in government stimulus and the global economic rebound from the coronavirus pandemic.
The increase in prices helped Maaden return to profit after two years of losses. It made net income of 5.23 billion riyals ($1.4 billion) in 2021, up from a loss of 209 million riyals a year earlier. It opted against a cash dividend for 2021 “based on the company’s need to continue funding its current and future projects.”
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