The Major Mining Company, known as 'AMAK', is one of the most prominent newcomers to the Saudi financial market (Tadawul). Established to meet the Kingdom's ambitions in developing the mining sector under Vision 2030, AMAK focuses on the exploration and extraction of strategic minerals such as gold and phosphate. The company's activities are concentrated in the Najran region of southern Saudi Arabia, where it exploits significant mineral reserves and works on developing integrated mining projects that align with sustainability standards and modern technology. With the listing of AMAK's shares (symbol: 1322) on Tadawul, the company has become a focal point for investors interested in the natural resources sector, especially amid government initiatives to support this vital sector. This article will cover all aspects related to AMAK, from its inception and operational activities to its financial performance, news, and strategic goals, along with an in-depth analysis of the competitive environment, challenges, and future opportunities. We will also review key financial indicators and answer the most common questions about the company, adhering to neutrality standards and refraining from providing any investment recommendations, concluding with the importance of consulting financial specialists before making any decisions.
Overview of AMAK
The Major Mining Company (AMAK) was established in 2007 as part of initiatives to develop the mining sector in Saudi Arabia. Its headquarters is located in Najran, southern Saudi Arabia, and the company holds full government licenses for the exploration and extraction of minerals. Since its inception, AMAK has focused on precious and industrial metals, prioritizing gold and phosphate. The listing of AMAK's shares (symbol: 1322) on the Saudi financial market (Tadawul) in late 2023 or early 2024 has enhanced its position among local mining companies. The company is owned by a group of prominent Saudi investors and some strategic partners, relying on the latest technologies in exploration and production. In addition to gold and phosphate, the company has future plans to expand its activities to other minerals such as copper and aluminum. Its diverse organizational structure and technical expertise make AMAK a promising player in the rapidly growing mining sector in the Kingdom.
Operational Activities and Core Projects
AMAK's activities are distributed among exploration, mining, and processing, focusing on operating gold and phosphate mines in the Najran region. Its key projects include:
- Gold Mines: These include the Najd Mine and other nearby locations, where gold is extracted alongside accompanying minerals such as silver and copper.
- Phosphate Reserves: The company benefits from abundant phosphate at the Khneiqah mine and works on marketing it for local and international fertilizer industries.
- Other Minerals: Plans are in place to explore copper and aluminum, which may be done in collaboration with local or international technical partners if economically viable.
AMAK places great importance on local processing of minerals, enhancing added value and creating local job opportunities. The company is also committed to applying safety and environmental standards in all its operations and continuously developing its infrastructure to meet local and global demand.
Organizational Structure and Company Ownership
AMAK has a diverse ownership structure that includes major Saudi investors alongside strategic partners. The company was originally established as an investment project by a group of local businessmen, and over time attracted technical and financial partners to support its expansion. With its listing on Tadawul, the scope of contributions has expanded to include individual and institutional investors from within and outside the Kingdom. The board of directors includes expertise in mining and financial management, overseeing the implementation of the company's overall strategy. AMAK is committed to governance and transparency standards, regularly disclosing its financial results and news through official channels such as Tadawul and the company's website. This structure allows the company to attract more capital and sector expertise, providing a strong foundation for future growth.
Key Financial Data for 2024 – 2025
Given AMAK's recent listing, its financial data is still evolving, but key indicators can be observed up to early 2025:
- Share Price: Ranged between 10 and 15 SAR during 2024, with fluctuations linked to the company's results and market movements.
- Market Capitalization: Estimated at around 6 billion SAR based on the average share price and the number of issued shares (approximately 500 million shares), with fluctuations between 5 and 8 billion SAR depending on prices.
- Price-to-Earnings (P/E) Ratio: Due to the company's novelty and high initial operating costs, the ratio may be high (between 20 and 40 or more), or unavailable if no net profits are achieved.
- Dividends: AMAK has not announced any cash dividends until the end of 2024, as profits are reinvested in mine development.
- Revenues: Estimates indicate revenues in the hundreds of millions of SAR in 2024, with growth expected as full commercial production begins.
- Net Profit: The company may achieve limited initial profit or record operational losses due to high capital expenditures.
- Debt: AMAK is expected to rely on bank financing or bond issuance to support its projects, alongside subscribed capital.
It is always advisable to review official quarterly and annual reports for accurate and updated figures.
AMAK Share Price Development and Performance on Tadawul
Since AMAK's share (1322) was listed on the Saudi financial market, the stock has experienced relatively limited fluctuations. The offering price was set around 10 SAR, and at the start of trading, the share rose to levels exceeding 15 SAR at certain times, before stabilizing around an average of 12 SAR for most of 2024. These movements reflect the nature of newly listed companies, where liquidity and volumes are influenced by market expectations and the company's quarterly results. The daily trading volume is lower than that of leading stocks due to the stock's novelty, but as the company's activities expand and media coverage increases, interest in AMAK's shares is expected to grow in the future. The market capitalization changes with fluctuations in the share price and the number of issued shares, placing AMAK in the mid-cap category within the Saudi mining sector.
Comparison of AMAK with Competitors in the Mining Sector
The mining sector in Saudi Arabia is a strategic sector experiencing rapid growth, with AMAK competing against major players such as:
- Ma’aden: The largest national mining company, operating massive gold, phosphate, and aluminum mines, representing the main benchmark in the local market.
- SABIC (Wa’ad): Focuses on phosphate and fertilizers, directly competing in the same industrial sector.
- International Mining Companies: Such as Barrick Gold and others that may enter the market through partnerships or joint ventures.
- Emerging Local Mining Companies: Competing for market shares in gold and other mineral ores.
AMAK's strengths include its natural resources in Najran and government support, while high capital requirements and advanced technology needs pose significant challenges. Success in facing competition depends on the company's ability to achieve efficient commercial production and adopt modern exploration and extraction technologies.
Analysis of the Mining Sector in Saudi Arabia and Available Opportunities
The mining sector is one of the pillars of Vision 2030 in Saudi Arabia aimed at diversifying national income sources. The Kingdom possesses vast reserves of minerals such as gold, phosphate, and bauxite, and the government provides incentives and exemptions to encourage investment in this sector. AMAK benefits from this supportive environment by obtaining the necessary licenses and infrastructure to operate mines. The local demand for gold and fertilizers opens up significant marketing opportunities, and the potential for export enhances growth prospects. The sector faces challenges such as global commodity price fluctuations, the need for sustainable financing, and the adoption of modern technologies, but companies capable of managing these risks will achieve good growth over time.
AMAK's Growth and Future Expansion Strategy
AMAK aims to achieve a comprehensive growth strategy based on several axes:
- Increasing production: Completing the operation of existing mines and gradually raising production capacity.
- Geographic expansion: Obtaining new licenses in mineral-rich areas and exploring new minerals such as gold and copper.
- Partnerships: Building strategic partnerships with local and international companies to secure funding and modern technologies.
- Sustainability: Focusing on reducing environmental impact and increasing efficiency in energy and water use in operational processes.
- Workforce development: Investing in training and hiring national talents in the mining sector.
This strategy aims to transform AMAK into a leading mining company in the region, with the ability to compete locally and regionally.
Operational Challenges and Risks in the Mining Industry
AMAK, like other emerging mining companies, faces a range of challenges:
- High capital costs: Mining operations require significant investments in infrastructure and equipment.
- Fluctuating mineral prices: The company's profitability depends on global gold and phosphate prices, making income susceptible to volatility.
- Environmental risks: The company must comply with strict environmental standards and minimize the environmental impact of its operations.
- Competition: The presence of major companies like Ma’aden imposes ongoing competitive pressure.
- Financing: Securing adequate financing for expansion projects is a challenge, especially in the early stages before achieving strong cash flows.
Managing these challenges requires advanced technical and managerial expertise, along with adopting flexible financial policies.
Latest News and Developments of AMAK (2024 – 2025)
Recently, several important developments have occurred in AMAK's journey:
- Issuance of the prospectus and successful IPO in 2023, allowing the company to raise capital for its projects.
- Listing of the company's shares on Tadawul under symbol 1322, achieving relative stability in the share price despite some fluctuations.
- Holding the first ordinary general assembly in May 2025, where performance reports and future strategies were discussed.
- Notable progress in building processing plants and expanding phosphate and gold mines.
- Exploring collaboration opportunities with foreign companies to adopt environmentally friendly technologies.
- Continued focus on sustainability and social responsibility in all company projects.
These developments reflect AMAK's commitment to achieving its operational and financial objectives and responding to market and investor demands.
Dividend Policy and Shareholder Profits
As of the end of 2024, AMAK has not announced any cash dividends to shareholders, which is common in emerging mining companies that prefer to reinvest profits to support expansion. The board typically announces a dividend policy after stabilizing cash flows and starting to achieve regular operating profits. The company is expected to consider partial dividends in the future, possibly in 2025 or 2026, depending on financial performance. Shareholders should monitor official data and announcements from the company for any changes in the dividend policy.
Sustainability and Social Responsibility at AMAK
AMAK prioritizes sustainability and social responsibility within its strategic framework. The company implements advanced environmental management systems (such as ISO 14001) and seeks to reduce water and energy consumption in operational processes. It also focuses on employing and training national talents and contributing to the development of local communities surrounding mining areas. The company is committed to disclosing its efforts in this area in its annual reports and intends to enhance its environmental and social programs in parallel with its production expansion.
Importance of Reviewing Official Financial Data and Transparency
As a listed company on Tadawul, AMAK is committed to regular disclosure of its financial and operational data. Investors and those interested in the mining sector are advised to review the official quarterly and annual reports issued by the company through its website or the Tadawul platform. These reports provide accurate details about revenues, profits, expenses, dividends, and financial obligations. Transparency in disclosure enhances investor confidence and allows them to evaluate the company objectively, away from rumors or forecasts not based on official sources.
General Recommendations on Investing in Mining Stocks
The mining sector is characterized by high risks and returns, requiring investors to conduct thorough research on the company and its financial and operational performance. Investing in AMAK shares or other mining companies should be based on an objective analysis of official data, considering the risks associated with commodity price volatility and high operating costs. This article does not provide any investment recommendations, and it is always advisable to consult a licensed financial advisor before making any financial decisions related to investing in stocks or highly volatile sectors.
Conclusion
The Major Mining Company (AMAK) has emerged as a promising player in the Saudi mining sector, benefiting from its geographically rich mineral resources and ongoing government support. Despite challenges related to high costs and fluctuating mineral prices, the company continues to implement its strategic projects and develop its infrastructure with the aim of achieving sustainable growth. With its recent listing on Tadawul, AMAK is now under the watchful eye of individual and institutional investors, making it increasingly important to monitor its financial data and official disclosures to understand its performance developments. The SIGMIX platform always reminds that investing in company stocks, especially in emerging sectors, requires careful study and consultation with a licensed financial advisor to ensure that financial decisions are based on reliable data and objective analysis. For more analyses and updated financial data, you can visit AMAK's (1322) page on Tadawul or the SIGMIX platform.
Frequently Asked Questions
The Major Mining Company (AMAK) is a newly listed Saudi company on the Saudi financial market (Tadawul) under the symbol 1322. AMAK focuses on the exploration and mining of minerals, especially gold and phosphate. Its activities include geological exploration, drilling, mining, and operating mineral processing plants to produce ores used in local industries or for export. AMAK was established as part of the Kingdom's efforts to enhance the mining sector within the framework of Vision 2030.
AMAK was established in 2007 by a group of Saudi investors after obtaining the necessary government licenses. After years of exploration and development, the company issued a prospectus and offered its shares for public subscription. AMAK's shares were listed on the Saudi financial market (Tadawul) in late 2023 or early 2024, making it one of the newest companies in the Saudi mining sector.
AMAK's shares are traded on the Saudi financial market under the symbol 1322 (AMAK). At the time of the initial public offering, the number of shares issued was approximately 500 million shares. The exact number of shares can be verified through the official prospectus or the Tadawul website, where this data is updated whenever there are changes in capital.
As of May 2025, the price of AMAK's shares ranged between approximately 10 and 15 SAR, with an average trading around 12 SAR for most periods. Based on this price and the number of shares (500 million shares), the company's market capitalization is estimated at around 6 billion SAR. These figures are approximate and change according to market movements, and it is advisable to check the Tadawul platform for the accurate price at any time.
As a newly listed company, AMAK is still in its early growth stages and incurs high exploration and operational costs. Its price-to-earnings (P/E) ratio may be high or unavailable if it has not achieved net profits. If limited initial profits are achieved, the ratio may range between 20 and 40 or more, reflecting market expectations for future profit growth. It is advisable to follow quarterly financial data for accurate figures.
As of the end of 2024, AMAK has not announced any cash dividends, as it prefers to reinvest profits in mine and infrastructure development. Typically, mining companies begin distributing dividends after achieving financial stability and regular cash flows, which may occur in the coming years depending on the company's performance and the board's decisions.
AMAK primarily competes with Ma’aden (the largest national mining company) and SABIC (Wa’ad) in the phosphate sector. There are also international mining companies like Barrick Gold and other emerging local companies. Companies compete in gold, phosphate, and other strategic minerals, with superiority depending on production volume and technologies used.
AMAK faces challenges such as high capital costs required for mine development, global mineral price fluctuations, environmental compliance requirements, and competition from large companies like Ma’aden. Securing adequate financing also poses a challenge in the early stages before achieving stable cash flows. Managing these risks requires advanced technical and financial expertise and flexible policies.
Key developments in 2024-2025 include: successful IPO and listing of the shares on Tadawul, holding the first general assembly, progress in gold and phosphate processing projects, exploring new technical and environmental partnerships, and focusing on sustainability and localization programs. Investors are also awaiting the release of quarterly financial reports to monitor the company's actual performance.
AMAK focuses on increasing production from gold and phosphate mines, expanding into new mining areas, building strategic partnerships, developing infrastructure, and enhancing social and environmental responsibility programs. The company aims to achieve sustainable growth and increase its market share within the sector, while adhering to transparency and governance standards.
AMAK's performance can be monitored through the official quarterly and annual reports published on the Tadawul website and the company's website. These reports include details about revenues, profits, expenses, dividends, and financial obligations. Platforms like Argaam and SIGMIX also provide additional analyses on the company's developments and news.