Q2 2026 Saudi Arabian Mining Co Earnings Call

August 10, 2026

Abdulaziz Al-Harbi: Joining us. My name is Abdulaziz Al-Harbi. All participants in today's call will be in a listening mode. Once the call has been concluded, the presentation and all relevant material will be available on our website. Please refer to our disclaimer in the second slide, which applies to all disclosures in today's presentation. Kindly note that all discussed figures in the presentation are in US dollar unless otherwise stated. I am joined today by our CEO, Robert Wilt, and our CFO, Gilberto Antoniazzi. They will take us over Ma'aden's Q2 operational and financial highlights. Participants will be muted during the presentation. We will open the floor for your questions at the end of the presentation. However, the chat function is open. Please post your questions during the call. We hope to go through as much as possible on today's presentation.

Speaker #1: Thank you for joining us. My name is Abdulaziz Naim. All participants in today’s call will be in listen-only mode. Once the call has concluded, the presentation and relevant material will be available on our website.

Speaker #1: Please refer to our disclaimer in the second slide, which applies to all disclosures in today's presentation. Kindly note that all figures discussed in the presentation are in US dollars, unless otherwise stated.

Speaker #1: I'm joined today by our CEO, Bob Welt, and our CFO, Gilberto Antoniazi. They will take us through Ma'aden Q2 operational and financial highlights.

Speaker #1: Participants will be muted during the presentation. We will open the floor for your questions at the end of the presentation. However, the chat function is open.

Speaker #1: Please post your questions during the call. We hope to go through as much as possible in today's presentation. If you have any follow-up questions, please email them to us.

Abdulaziz Al-Harbi: If you have any follow-up questions, please email them to us. With that, I will hand it over to Bob.

Speaker #1: With that, I'll hand it over to Bob.

Speaker #2: Thank you, Abdulaziz, and thank you to all participants on the call for joining us today. Let me start with a few key operational highlights.

Robert Wilt: Thank you, Abdulaziz. Thank you to all participants on the call for joining us today. Let me start with a few key operational highlights. The establishment of the alternative supply chains to supply our customers was obviously the major accomplishment and really the theme of the quarter. What Team Ma'aden has done is truly remarkable, continuous problem-solving every day. The fact that we have done so safely is a credit to our people and the culture we are building. The safety stats are in the appendix and show continued improvement. I would highlight that the H1 of this year is our statistically safest half-year on record. It just goes to show what continued focus and care of our employees has done in these times and what an impact our leaders are making. Our growth projects remain on schedule despite the current situation as well.

Rob Wilt: Thank you, Abdulaziz. Thank you to all participants on the call for joining us today. Let me start with a few key operational highlights. The establishment of the alternative supply chains to supply our customers was obviously the major accomplishment and really the theme of the quarter. What Team Ma'aden has done is truly remarkable, continuous problem-solving every day. The fact that we have done so safely is a credit to our people and the culture we are building. The safety stats are in the appendix and show continued improvement. I would highlight that the H1 of this year is our statistically safest half-year on record. It just goes to show what continued focus and care of our employees has done in these times and what an impact our leaders are making. Our growth projects remain on schedule despite the current situation as well.

Speaker #2: The establishment of the alternative supply chains to supplier customers was obviously the major accomplishment, and really the theme of the quarter. What Team Ma'aden has done is truly remarkable: continuous problem-solving every day.

Speaker #2: The fact that we've done so safely is a credit to our people and the culture we are building. The safety stats are in the appendix and show continued improvement, but I would highlight that the first half of this year is our statistically safest half-year on record.

Speaker #2: It just shows what continued focus and care of our employees has done in these times, and what an impact our leaders are making. Our growth projects remain on schedule despite the current situation as well.

Speaker #2: Both the small mines we shut down voluntarily in Q1 to improve the safety environment and culture are back in operation, and we are taking steps to further expand the reach of our global phosphate business by launching a further presence in Asia.

Robert Wilt: Both the small mines we shut down voluntarily in Q1 to improve the safety environment and culture are back in operation. We are taking steps to further expand our reach of our global phosphate business by launching a further presence in Asia. I want to take you through some key themes for the quarter on the next page. First, as I said, I could not be prouder of the team's accomplishment to establish alternate supply chains. We are now able to service our customers up to full capacity. The supply chain is agile, and we now have several options and routes to get products to market. Secondly, sulfur prices have continued to increase as much of the global supply originates from the Gulf. This is obviously a pressure to our margins. Additionally, we had sulfur constraints that impacted our phosphate production in the Q1 or Q2.

Rob Wilt: Both the small mines we shut down voluntarily in Q1 to improve the safety environment and culture are back in operation. We are taking steps to further expand our reach of our global phosphate business by launching a further presence in Asia. I want to take you through some key themes for the quarter on the next page. First, as I said, I could not be prouder of the team's accomplishment to establish alternate supply chains. We are now able to service our customers up to full capacity. The supply chain is agile, and we now have several options and routes to get products to market. Secondly, sulfur prices have continued to increase as much of the global supply originates from the Gulf. This is obviously a pressure to our margins. Additionally, we had sulfur constraints that impacted our phosphate production in the Q1 or Q2.

Speaker #2: I want to take you through some key themes for the quarter on the next page. First, as I said, I could not be prouder of the team's accomplishment to establish alternate supply chains.

Speaker #2: We are now able to service our customers at full capacity. The supply chain is agile, and we have several options and routes to get products to market.

Speaker #2: Secondly, sulfur prices have continued to increase, as much of the global supply originates from the Gulf. This is obviously a price pressure to our margins.

Speaker #2: Additionally, we had sulfur constraints that impacted our phosphate production in the first quarter — or second quarter. Third, our business today is stronger than it was before and is operating normally.

Robert Wilt: Third, our business today is stronger than it was before and operating normally. We are largely self-reliant in country. I want to remind you that we have a differentiated phosphate business. Our rock, gas, sulfur are all onshore, which adds to our resilience. In our aluminum business, our bauxite refinery, energy, and smelter are all in the same country, highlighting the strength of our business model. Our production remains on track. Speaking of production, we delivered good operational performance in Q2. In phosphate, as mentioned, we had a production disruption due to temporary sulfur constraints. We used the time wisely to move forward some maintenance we had planned for the H2. Although not shown on the page, our ammonia production currently is largely for captive use only.

Rob Wilt: Third, our business today is stronger than it was before and operating normally. We are largely self-reliant in country. I want to remind you that we have a differentiated phosphate business. Our rock, gas, sulfur are all onshore, which adds to our resilience. In our aluminum business, our bauxite refinery, energy, and smelter are all in the same country, highlighting the strength of our business model. Our production remains on track. Speaking of production, we delivered good operational performance in Q2. In phosphate, as mentioned, we had a production disruption due to temporary sulfur constraints. We used the time wisely to move forward some maintenance we had planned for the H2. Although not shown on the page, our ammonia production currently is largely for captive use only.

Speaker #2: We are largely self-reliant in-country. I want to remind you that we have a differentiated phosphate business. Our rock, gas, and sulfur are all onshore, which adds to our resilience.

Speaker #2: In our aluminum business, our bauxite refinery energy and smelter are all in the same country, highlighting the strength of our business model. We will look to ramp up our export ammonia as soon as the situation allows.

Speaker #2: But our production remains on track. Speaking of production, we delivered good operational performance in Q2. In phosphate, as mentioned, we had a production disruption due to temporary sulfur constraints.

Speaker #2: We used the time wisely to move forward some maintenance we had planned for the second half. Although not shown on the page, our ammonia production currently is largely for captive use only.

Speaker #2: Aluminum performance was stable and prompted a safety review of our two smaller mines in Q2. Both assets are back in production and contributing to improved gold production.

Robert Wilt: Aluminum performance was stable. Post a safety review of our two smaller mines in Q2, both assets are back in production and accounting for improved gold production. You'll notice we have renamed the segment to Gold and Growth Minerals. It also reflects where we're looking to grow in rare earths, copper, and other high-demand metals. Financial results, we generated over $2.9 billion of revenue during the quarter, up 16% year on year. EBITDA came in at just under $1 billion, up 3% year on year. On a sustaining run rate, free cash flow basis, the business generated $550 million of cash, excluding working capital during the quarter. This performance demonstrates the benefits of Ma'aden's portfolio of businesses. Where we had lower production in phosphate, our other two businesses filled the gap.

Rob Wilt: Aluminum performance was stable. Post a safety review of our two smaller mines in Q2, both assets are back in production and accounting for improved gold production. You'll notice we have renamed the segment to Gold and Growth Minerals. It also reflects where we're looking to grow in rare earths, copper, and other high-demand metals. Financial results, we generated over $2.9 billion of revenue during the quarter, up 16% year on year. EBITDA came in at just under $1 billion, up 3% year on year. On a sustaining run rate, free cash flow basis, the business generated $550 million of cash, excluding working capital during the quarter. This performance demonstrates the benefits of Ma'aden's portfolio of businesses. Where we had lower production in phosphate, our other two businesses filled the gap.

Speaker #2: You'll notice we have renamed the segment to Gold and Growth Minerals. This reflects the foundation of this business, which is gold, but it also reflects where we're looking to grow—in rare earths, copper, and other high-demand metals.

Speaker #2: Regarding our financial results, we generated over $2.9 billion of revenue during the quarter, up 16% year on year. EBITDA came in at just under $1 billion, up 3% year on year.

Speaker #2: On a sustaining run-rate free cash flow basis, the business generated $550 million of cash, excluding working capital, during the quarter. This performance demonstrates the benefits of modern portfolio businesses.

Speaker #2: Where we had lower production in phosphate, our other two businesses filled the gap. The margin in the business declined on the back of production, raw material, and logistics costs in phosphate, as would be expected. Now, I'd like to update you on our current growth projects.

Robert Wilt: The margin in the business declined on the back of production, raw material, and logistics costs in phosphate, as would be expected. Now I'd like to update you on our current growth projects. Phosphate 3 Phase 1 remains on track to begin commissioning by the end of the year. The teams have worked valiantly throughout the situation. The project will add another 1.5 million tons of granulated capacity to our business. We expect full commissioning and the contribution to the bottom line next year. I want to point out the huge industrial scale of this project. We currently have 46 million safe man-hours from our 14,000 plus employees and contractors on site. In terms of our other growth projects, all of our projects remain on schedule. At our Ad Duwayhi gold mine, we are advancing construction.

Rob Wilt: The margin in the business declined on the back of production, raw material, and logistics costs in phosphate, as would be expected. Now I'd like to update you on our current growth projects. Phosphate 3 Phase 1 remains on track to begin commissioning by the end of the year. The teams have worked valiantly throughout the situation. The project will add another 1.5 million tons of granulated capacity to our business. We expect full commissioning and the contribution to the bottom line next year. I want to point out the huge industrial scale of this project. We currently have 46 million safe man-hours from our 14,000 plus employees and contractors on site. In terms of our other growth projects, all of our projects remain on schedule. At our Ad Duwayhi gold mine, we are advancing construction.

Speaker #2: Phosphate 3 Phase 1 remains on track to begin commissioning by the end of the year. The teams have worked valiantly throughout the situation. The project will add another 1.5 million tons of granulated capacity to our business, and we expect full commissioning and the contribution to the bottom line next year.

Speaker #2: I want to point out the huge industrial scale of this project. We currently have 46 million safe man-hours from our 14,000-plus employees and contractors on site.

Speaker #2: In terms of our other growth projects, all of our projects remain on schedule. At our Air Zoom Gold Mine, we are advancing construction in Q2.

Speaker #2: We had our first blast at the mine and poured our first concrete. We expect first gold in late 2028. In aluminum recycling, we have started early works, our EPCM contractor has been awarded, and major permitting is in place.

Robert Wilt: In Q2, we had our first blast at the mine and poured our first concrete. We expect first gold in late 2028. In aluminum recycling, we have started early works. Our EPCM contractor is awarded. Major permitting is in place. In gold, it remains our ambition to produce over 1 million ounces of gold per year by the end of the decade. To advance that ambition, we expect to be in position to announce FID on the first and next stage of our Mansourah Massarah cluster project. We anticipate a regional district that could approach Tier 1 status at Mansourah Massarah. The next stage will involve building a 4 million ton mill, which we can then copy and paste to the next one. This will serve as the regional potential to tap the resources we have previously announced at Mansourah Massarah.

Rob Wilt: In Q2, we had our first blast at the mine and poured our first concrete. We expect first gold in late 2028. In aluminum recycling, we have started early works. Our EPCM contractor is awarded. Major permitting is in place. In gold, it remains our ambition to produce over 1 million ounces of gold per year by the end of the decade. To advance that ambition, we expect to be in position to announce FID on the first and next stage of our Mansourah Massarah cluster project. We anticipate a regional district that could approach Tier 1 status at Mansourah Massarah. The next stage will involve building a 4 million ton mill, which we can then copy and paste to the next one. This will serve as the regional potential to tap the resources we have previously announced at Mansourah Massarah.

Speaker #2: And in gold, it remains our ambition to produce over 1 million ounces of gold per year by the end of the decade. To advance that ambition, we expect to be in a position to announce FID on the first and next stages of our Nasser or Mansara cluster project.

Speaker #2: We anticipate a regional district that could approach Tier 1 status at Nasser or Mansara. The next stage will involve building a 4-million-ton mill, which we can then copy and paste to the next one.

Speaker #2: This will serve as the regional potential to tap the resources we have previously announced at Nasser of Mansara. We will keep you updated on these exciting developments.

Robert Wilt: We will keep you updated on these exciting developments. Let me hand it over to Gilberto to walk us through the financials.

Rob Wilt: We will keep you updated on these exciting developments. Let me hand it over to Gilberto to walk us through the financials.

Speaker #2: Now, let me hand it over to Gilberto to walk us through the financials.

Speaker #3: Thank you, Bob. During the launch of the financial results, as usual, I will walk you through the quarter in three steps. First, I will anchor the commodity operating context that shaped the period.

Gilberto Antoniazzi: Thank you, Bob. Turning now to the financial results. As usual, I will walk you through the quarter in three steps. First, I will anchor the commodity operating context that shaped the period. Second, I will explain the year-on-year EBITDA bridge and how price and volume moved through the quarter, with specific emphasis on the themes Bob highlighted earlier in his presentation. Third, I will translate EBITDA into cash and close with balance sheet strength and segment performance. Starting with the market backdrop. Commodity fundamentals remain supported across our portfolio. We have seen some moderation towards the end of the quarter in both gold and aluminum, I note that we are still enjoying very robust pricing as compared to historical levels. That pricing specifically has continued the upward trajectory we have seen over the last several periods as the market supply there has become constrained.

Speaker #3: Second, I will explain the year-on-year EBITDA bridge and how price and volume moved through the quarter, with specific emphasis on the themes Bob highlighted earlier in his presentation.

Speaker #3: Third, I will translate EBITDA into cash, and close with balance sheet strength and segment performance. Starting with the market backdrop: commodity fundamentals remain supportive across our portfolio.

Speaker #3: We have seen some moderation towards the end of the quarter in both gold and aluminum. But I note that we are still enjoying very robust pricing compared to historical levels.

Speaker #3: That price is specifically has continued the upward trajectory, we had seen over the last several periods. As the market supply there has become constrained.

Speaker #3: With that context, let me turn to how those market conditions translated into EBITDA performance. In the quarter, reduced volumes and increased costs slightly offset increased pricing.

Gilberto Antoniazzi: With that context, let me turn to how those market conditions translated into EBITDA performance. In the quarter, reduced volumes and increased costs slightly offset increased pricing. We started from $1 billion EBITDA in Q2 2025. Sales and volumes were a headwind of $214 million, driven by reduced shipments of both ammonia and DAP. Price, however, driven by favorable conditions, contributed $696 million. This is broadly half phosphate and half aluminum. Costs were a $543 million headwind. On a year-over-year comparison, sulfur contributed approximately $250 million to costs, with increased logistics contributing a meaningful portion of the balance. The other principally relates to investments we have in JVs. Putting that all together, EBITDA for Q2 2026 was $1,040,000, representing a 3% year-on-year increase. On this slide, we walk from EBITDA to sustaining run rate free cash flow. Starting at $971 million of EBITDA, excluding non-cash items.

Speaker #3: We started from $1 billion EBITDA in Q2 2025. Sales and volumes were a headwind of $214 million, driven by reduced shipments of both ammonia and DAP.

Speaker #3: Price, however, driven by favorable conditions, contributed 696 million. This is broadly half phosphate and half aluminum. Costs were 543 million headwind. On a year-over-year, comparison sulfur contributed approximately 250 million to costs, with increased logistics contributing a mini proportion of the balance.

Speaker #3: The other principally relates to investments we have in JVs.

Speaker #2: Putting that all together, EBITDA for Q2 2026 was $1.04 billion, representing a 3% year-on-year increase.

Speaker #3: On this slide, we walk from EBITDA to sustaining run-rate free cash flow. Starting at $971 million of EBITDA, excluding non-cash items. Working capital was the primary swing factor in the quarter.

Gilberto Antoniazzi: Working capital was the primary swing factor in the quarter. The phosphate business successfully sold the inventory buildup they had at the end of the first quarter. That inventory and other sales has now translated into close to $750 million of receivables as our alternative supply chain fully geared up at the end of the quarter. We had an outflow of $305 million related to financing payments and taxation, and $71 million of net dividends to Ma'aden. After accounting for exploration and sustaining capital, $87 million of exploration and $274 million of sustaining CapEx, the business delivered $550 million of sustaining run rate free cash flow, excluding working capital. As compared to the same period last year, we did have lower cash generation, driven largely by changes in the business mix and higher sustaining CapEx spend in this quarter.

Speaker #3: The phosphate business successfully sold the inventory build-up they had at the end of the first quarter. That inventory and other sales have now translated into close to $750 million of receivables, as our alternative supply chain fully geared up at the end of the quarter.

Speaker #3: We had an outflow of $305 million related to financing payments and taxation, and $71 million of net dividends to Ma'aden. After accounting for exploration and sustaining capital—$87 million of exploration and $274 million of sustaining capex—the business delivered $550 million of sustaining run-rate free cash flow, excluding working capital.

Speaker #3: Compared to the same period last year, we did have lower cash generation, driven largely by changes in the business mix and higher sustaining capex spend in this quarter.

Speaker #3: However, the key message here is that the underlying cash generation remains strong. The business has successfully managed the inventory build-up of the first quarter, and the receivables will swing into cash inflow shortly.

Gilberto Antoniazzi: The key message here is that the underlying cash generation remains strong. The business has successfully managed the inventory buildup of Q1, and the receivables will swing into cash inflow shortly. We ended the quarter with a strong liquidity position. Cash and cash equivalents were $3.2 billion, which is 15% higher than last year. In addition, we have available liquidity facilities of approximately $4.1 billion that remain not drawn. The business has de-leveraged by approximately 10% on a net basis as compared to the same period last year, and leverage remains conservative. Net debt to EBITDA was 1.3 and below our guided range of 2 to 3 times. The balance sheet has no material near-term maturities until the end of the decade. All of this well-positioned Ma'aden to advance its growth capital plan.

Speaker #3: We ended the quarter with a strong liquidity position. Cash and cash equivalents were $3.2 billion, which is 15% higher than last year. In addition, we have available liquidity facilities of approximately $4.1 billion remaining.

Speaker #3: Not drawn. The business has leverage of approximately 10% on a net basis, as compared to the same period last year. Leverage remains conservative.

Speaker #3: Net debt to EBITDA was 1.3, and below our guided range of 2 to 3 times. The balance sheet has no material near-term maturities until the end of the decade.

Speaker #3: All of this has well-positioned Ma'aden to advance its growth capital plan. With the balance sheet covered, I will now turn to the segment performance, starting with phosphate.

Gilberto Antoniazzi: With the balance sheet covered, I will now turn to the segment performance, starting with Phosphate. In Phosphate, the team has navigated significant complexity and established a fully fledged alternative supply chain to meet their customer commitments. Production was impacted by short-term supply constraints in sulfur. That production decreased to 1.2 million tons, down 28% year-on-year. The business did ship in excess of 1.5 million tons of production in this quarter. Ammonia production was 267,000 metric tons, as the business focuses on producing only for its captive needs. On pricing, both realized DAP and ammonia price was significantly up on a year-on-year basis. Financially, revenue was $1.3 billion, broadly flat year-on-year, and up 29% on the quarter, as inventory build-up in Q1 was resolved. EBITDA came out at $328 million.

Speaker #3: In phosphate, the team has navigated significant complexity in establish a fully fledged alternative supply chain. To meet their customer commitments. Production was impacted by short-term supply constraints in software.

Speaker #3: That production decreased to 1.2 million tons, down 20%, or 28% year-on-year. The business did ship in excess of 1.5 million tons of production in this quarter.

Speaker #3: Ammonia production was 267,000 metric tons, as the business focuses on producing only for its captive needs. On pricing, both realized that ammonia price was significantly up on a year-on-year basis.

Speaker #3: Financially, revenue was $1.3 billion, broadly flat year-on-year, and up 29% on the quarter, as the inventory build-up in Q2 and Q1 was resolved. EBITDA came out at $328 million. The quarter included additional sulfur costs as compared to last year of approximately $250 million, and approximately $100 million compared to last quarter.

Gilberto Antoniazzi: The quarter included additional sulfur costs as compared to last year of approximately $250 million, and approximately $100 million compared to last quarter. The margin in the quarter also includes the impact of increased logistic costs, which are most notable in the Phosphate business. On the sequential margin comparison, it's important to remember the one-off $+100 million of insurance reimbursement included in Phosphate's Q1 results. Let me now move to Aluminum. In Aluminum, the business had its best quarter in history, and it's the first time that we have exceeded a billion dollars of revenue in the quarter. The EBITDA is the best we have achieved to date. On our realized prices, aluminum averaged $3,916 per metric ton, up 51% year-on-year and up 19% sequentially. The business also benefited from increased regional premium for aluminum. The alumina realized price was $315 per metric ton.

Speaker #3: The margin in the quarter also includes the impact of increased logistics costs, which are almost most notable in the phosphate business. On the sequential margin comparison, it's important to remember the one-off positive $100 million of insurance reimbursement included in phosphates Q1 results.

Speaker #2: Let me now move to aluminum.

Speaker #3: In aluminum, the business had its best quarter in history. And it's the first time that we have exceeded a billion dollars of revenue in the quarter.

Speaker #3: The EBITDA is the best we have achieved to date, and on a realized basis, aluminum averaged $3,915 per metric ton—up 51% year-on-year, and up 19% sequentially.

Speaker #3: The business also benefited from increased regional premiums for aluminum. The alumina realized price was $315 per metric ton, flat to last quarter, but slightly down from elevated 2025 levels.

Gilberto Antoniazzi: Flat to last quarter, slightly down from elevated 2025 levels. Unit costs in alumina are expected to normalize to longer-term levels, where Aluminum cash production costs remain well controlled. Revenue for the segment was just over a billion dollars, reflecting the supportive price environment, leading to an EBITDA performance of $411 million. More than double the level last year, and up 53% versus Q1. Lastly, this is a business where we're looking to grow in future. We are confident in that ambition given the materially improved operational performance here. Primary metal production is up almost 15% over the past two years. Current efficiency increased by 2.5% over the past two years, and the list goes on. Let me now turn to Gold and Growth Minerals.

Speaker #3: Unit costs in alumina are expected to normalize to longer-term levels, while aluminum cash production costs remain well controlled. Revenue for the segment was just over $1 billion, reflecting the supported price environment, leading to an EBITDA performance of $411 million.

Speaker #3: More than double the level last year, and up 53% versus Q1. Lastly, this is a business where we're looking to grow in the future. We are confident in that ambition, given the materially improved operational performance here.

Speaker #3: Primary metal production is up almost 15% over the past two years. Current efficiency increased by 2.5% over the past two years, and the list goes on.

Speaker #2: Let me now turn to gold and growth metals.

Speaker #3: In gold, following a voluntary safety stoppage at two of our smaller mines and a third-party assessment to understand safety gaps in Q1, all our mines are back in operation.

Gilberto Antoniazzi: In gold, following a voluntary safe pit stoppage at two of our smaller mines, and third-party assessment to understand safety gaps in Q1, all our mines are back in operation. Production was 119,000 ounces, up 10% year-on-year and 14% sequentially. Realized gold prices averaged $4,413 per ounce, up 33% year-on-year, but down 8% sequentially. As a result, revenue increased to $523 million, up 34% year-on-year, and taking advantage of increased production, and up 4% versus Q1, despite slightly lower prices. AISC came at $1,236 per ounce, an increase versus Q1 driven by an inclusion of temporarily closed operations at two of our mines, but it's still lower than the same period last year. EBITDA was $334 million, up 46% year-on-year, but 12% lower than Q1.

Speaker #3: Production was 119,000 ounces, up 10% year-on-year and 14% sequentially. Realized gold prices averaged $4,413 per ounce, up 33% year-on-year but down 8% sequentially.

Speaker #3: As a result, revenue increased to $523 million, up 34% year-on-year. We took advantage of increased production, and revenue was up 4% versus Q1, despite slightly lower prices.

Speaker #3: ASIC came in at $1,236 per ounce and increased versus Q1, driven by the inclusion of temporarily closed operations at two of our mines, but it is still lower than the same period last year.

Speaker #3: EBITDA was $334 million, up 46% year-on-year, but 12% lower than Q1. I note that in the quarter, we spent close to $90 million on exploration in that business, which is bearing fruit but is somewhat masking the excellent bottom-line performance the business has achieved.

Gilberto Antoniazzi: I note that in the quarter, we spent close to $90 million on exploration in that business, which is bearing fruits, but is somewhat masking the excellent bottom-line performance the business has achieved. I will now hand back to Bob for the outlook.

Speaker #3: I will now hand back to Bob for the outlook.

Speaker #2: Thank you, Humberto. Turning to guidance, as the situation has evolved, I want to refresh the market with our current outlook. In our ammonia business, we're going to withdraw that guidance until we have more clarity on the situation.

Robert Wilt: Thank you, Gilberto. Turning to guidance, as the situation has evolved, I want to refresh the market with our current outlook. In our ammonia business, we're going to withdraw that guidance until we have more clarity on the situation. Rest assured, the ammonia assets can ramp up production on very short notice. For the phosphate business, the upper end of the guidance was based on possible pre-commissioning production from Phosphate 3 before the end of the year. Due to the situation, we have now effectively eaten into the buffer we established for ourselves. Our new guidance reflects the output and sulfur constraints we had in Q2, and is now revised to 6,000 to 6,500 metric tons. On the other hand, our gold and aluminum businesses are performing well and tracking to the upper end of the guidance, which we will maintain.

Rob Wilt: Thank you, Gilberto. Turning to guidance, as the situation has evolved, I want to refresh the market with our current outlook. In our ammonia business, we're going to withdraw that guidance until we have more clarity on the situation. Rest assured, the ammonia assets can ramp up production on very short notice. For the phosphate business, the upper end of the guidance was based on possible pre-commissioning production from Phosphate 3 before the end of the year. Due to the situation, we have now effectively eaten into the buffer we established for ourselves. Our new guidance reflects the output and sulfur constraints we had in Q2, and is now revised to 6,000 to 6,500 metric tons. On the other hand, our gold and aluminum businesses are performing well and tracking to the upper end of the guidance, which we will maintain.

Speaker #2: But rest assured, the ammonia assets can wrap up production on very short notice. For the phosphate business, the upper end of the guidance was based on possible pre-commissioning production from Phosphate 3 before the end of the year.

Speaker #2: Due to this situation, we have now effectively eaten into the buffer we established for ourselves. Our new guidance reflects the output and sulfur constraints we had in the second quarter, and is now revised to 6,000 to 6,500 metric tons.

Speaker #2: 1,000 metric tons. On the other hand, our gold and aluminum businesses are performing well and tracking to the upper end of the guidance, which we will maintain.

Speaker #2: I'll now turn it back to Bill Aziz for Q&A.

Robert Wilt: I'll now turn it back to Abdulaziz for Q&A.

Rob Wilt: I'll now turn it back to Abdulaziz for Q&A.

Speaker #4: Thank you, Bob. Thank you, Humberto. Now we'll open the floor for questions. I see a few people raising their hands. I'll start with Jason from Bank of America.

Abdulaziz Al-Harbi: Thank you, Bob. Thank you, Gilberto. We'll open the floor for the questions. I see a few people raising their hands. I'll start with Jason from Bank of America. Jason, you are unmuted. Please unmute yourself and ask your question.

Speaker #4: Jason, you are unmuted. Please go ahead and ask your question.

Speaker #5: Can you hear me? Can you hear me, guys?

[Metals and Mining Research Analyst] (Bank of America): Can you hear me, guys?

Speaker #1: Yes, we can hear you.

Jason Fairclough: Can you hear me, guys?

Speaker #4: Go ahead.

Speaker #5: Great. So, look, just a little bit of color, please, in terms of where we are post the war impact. I mean, obviously, Q2 was negatively impacted by the events in the Middle East, particularly, it seems, in the phosphate business.

Abdulaziz Al-Harbi: Yes, we can hear you. Go ahead.

Rob Wilt: Yes, we can hear you.

Abdulaziz Al-Harbi: Go ahead.

[Metals and Mining Research Analyst] (Bank of America): Great. Look, just a little bit of color, please, in terms of where we are post the war impact. Obviously Q2 was negatively impacted by the events in the Middle East, particularly it seems in the phosphate business. I guess I'm thinking about the disruptions. Where are we now, what is the path back to normal? If 10 was, for example, as bad as it got, and zero is 100% normal, where are we now, Bob, and how long before we get back to zero or one?

Jason Fairclough: Great. Look, just a little bit of color, please, in terms of where we are post the war impact. Obviously Q2 was negatively impacted by the events in the Middle East, particularly it seems in the phosphate business. I guess I'm thinking about the disruptions. Where are we now, what is the path back to normal? If 10 was, for example, as bad as it got, and zero is 100% normal, where are we now, Bob, and how long before we get back to zero or one?

Speaker #5: And I guess I’m thinking about the disruptions—where are we now, and then what is the path back to normal? So if 10 was, for example, as bad as it got and 0 is 100% normal, where are we now, Bob, and how long before we get back to 0 or 1?

Speaker #2: Well, Jason, I would say you read the newspapers as well as we do, and we monitor the situation pretty closely. Obviously, our major supply route was based on the Arabian Gulf and the Strait of Hormuz, which remains checkered at best.

Robert Wilt: Well, Jason, I would say you read the newspapers as well as we do, we monitor the situation pretty closely. Obviously, our major supply route was based on the Arabian Gulf and the Strait of Hormuz, which remains checkered at best. We have alternate supply chains west and south, we will continue to maintain those and monitor them closely. We have resumed a this is the new normal and business as usual approach with the alternatives, we will continue to manage the situation closely and deal with what is thrown at us.

Rob Wilt: Well, Jason, I would say you read the newspapers as well as we do, we monitor the situation pretty closely. Obviously, our major supply route was based on the Arabian Gulf and the Strait of Hormuz, which remains checkered at best. We have alternate supply chains west and south, we will continue to maintain those and monitor them closely. We have resumed a this is the new normal and business as usual approach with the alternatives, we will continue to manage the situation closely and deal with what is thrown at us.

Speaker #2: So we have alternate supply chains—West and South—and we will continue to maintain those and monitor them closely. But we have resumed a, 'This is the new normal and business as usual' approach with the alternatives, and we will continue to manage the situation closely and deal with what is thrown at us.

Speaker #5: So just to follow up, is the main impact here in the phosphates business? Is that the big one which is really challenging you?

[Metals and Mining Research Analyst] (Bank of America): Just to follow up, is the main impact here in the phosphates business? Is that the big one which is really challenging you?

Jason Fairclough: Just to follow up, is the main impact here in the phosphates business? Is that the big one which is really challenging you?

Speaker #2: Yes. I mean, our ammonia plants are located on the Gulf. They're currently curtailed, except for captive use. There's no alternative way to ship ammonia gas.

Robert Wilt: Yes. Our ammonia plants are located on the Gulf. They're currently curtailed except for captive use. There's no alternative way to ship ammonia gas.

Rob Wilt: Yes. Our ammonia plants are located on the Gulf. They're currently curtailed except for captive use. There's no alternative way to ship ammonia gas.

Speaker #5: Okay. And in terms of the other divisions then—so, aluminum, gold—you say that the impact there is much more limited?

[Metals and Mining Research Analyst] (Bank of America): Okay. In terms of the other divisions then, aluminium, gold, would you say that the impact there is much more limited?

Jason Fairclough: Okay. In terms of the other divisions then, aluminium, gold, would you say that the impact there is much more limited?

Speaker #2: Limited or non-existent.

Speaker #5: Okay. And in terms of this being the new normal for phosphates, does that mean we should be structurally baking in, say, another $100 per ton in higher costs?

Robert Wilt: Limited or nonexistent.

Rob Wilt: Limited or nonexistent.

[Metals and Mining Research Analyst] (Bank of America): Okay. In terms of this being the new normal for phosphates, does that mean we should be structurally baking in, say, another $100 a ton higher costs? How do we think about what this new normal does to your cost base?

Jason Fairclough: Okay. In terms of this being the new normal for phosphates, does that mean we should be structurally baking in, say, another $100 a ton higher costs? How do we think about what this new normal does to your cost base?

Speaker #5: I mean, how do we think about what this new normal does to your cost base?

Speaker #2: I think, follow the sulfur market, and that will answer your question.

Robert Wilt: I think follow the sulfur market, and that will answer your question.

Rob Wilt: I think follow the sulfur market, and that will answer your question.

Speaker #5: Okay. All right. I appreciate the call. Thanks, guys.

[Metals and Mining Research Analyst] (Bank of America): Okay. All right. Appreciate the call. Thanks, guys.

Jason Fairclough: Okay. All right. Appreciate the call. Thanks, guys.

Speaker #4: Thank you, Jason. Thank you for the question. Moving on, we have Yusuf Husseini. Please, you are unmuted. Unmute yourself and ask your question.

Abdulaziz Al-Harbi: Thank you, Jason. Thank you for your question. Moving on. We have Yousuf Husaini. Please, you are unmuted. Unmute yourself and ask your question.

Speaker #6: Hi, good afternoon. Thank you so much for the comprehensive presentation. I just have a couple of questions, mainly regarding the phosphate division. I want to understand—are we back to full production now?

[Analyst]: Hi.

Yousef Husseini: Hi.

Abdulaziz Al-Harbi: Yeah. Go ahead.

[Analyst]: Good afternoon. Yeah. Thank you so much for the comprehensive presentation. Just a couple of questions from me, mainly on the Phosphate division. I want to understand, are we back to full production now? Have you guys managed to resolve the sulfur logistic issues you were suffering from during Q2? That's the first part. The second part, obviously there was massive margin pressure this quarter in phosphates. You guys talked about why, mostly logistics, raw materials, et cetera. I was just wondering, I'm sure also the lower production had an impact on your fixed cost absorption as well during the quarter. So, of that 20% margin decline, how much of that is coming just from higher sulfur logistics, and thus is sustainable into 3Q?

Yousef Husseini: Good afternoon. Yeah. Thank you so much for the comprehensive presentation. Just a couple of questions from me, mainly on the Phosphate division. I want to understand, are we back to full production now? Have you guys managed to resolve the sulfur logistic issues you were suffering from during Q2? That's the first part. The second part, obviously there was massive margin pressure this quarter in phosphates. You guys talked about why, mostly logistics, raw materials, et cetera. I was just wondering, I'm sure also the lower production had an impact on your fixed cost absorption as well during the quarter. So, of that 20% margin decline, how much of that is coming just from higher sulfur logistics, and thus is sustainable into 3Q?

Speaker #6: Have you managed to resolve the sulfur logistics issues you were experiencing during the second quarter? That's the first part. And then the second part—obviously, there was significant margin pressure this quarter in phosphates.

Speaker #6: You guys talked about why—mostly logistics, raw materials, et cetera. I was just wondering, I'm sure also the lower production had an impact on your fixed cost absorption as well during the quarter.

Speaker #6: So, of that 20% margin decline, how much of that is coming just from higher sulfur logistics and thus is sustainable into Q3? And how much of that was more sort of a production impact, that some of that could disappear given you should be operating at higher rates now?

[Analyst]: How much of that was more sort of a production impact that some of that could disappear given you should be operating at higher rates now? Thank you so much.

Yousef Husseini: How much of that was more sort of a production impact that some of that could disappear given you should be operating at higher rates now? Thank you so much.

Speaker #6: Thank you so much.

Speaker #2: I'll take the first part, and then Joberto, you can answer the hard part. So, we had reached full production—back to full production in phosphate—at periods during the last couple of weeks. But obviously, there are alternative sources of consternation and threat that have emerged.

Robert Wilt: I'll take the first part, then Gilberto can answer the hard part. We have reached back to full production in phosphate at periods during the last couple of weeks, obviously there are alternative sources of consternation and threat have emerged. We have the ability to see full production in phosphate, but it's tentative based on geopolitical situation.

Rob Wilt: I'll take the first part, then Gilberto can answer the hard part. We have reached back to full production in phosphate at periods during the last couple of weeks, obviously there are alternative sources of consternation and threat have emerged. We have the ability to see full production in phosphate, but it's tentative based on geopolitical situation.

Speaker #2: So we have the ability to see full production in phosphate, but it's tentative, based on the geopolitical situation.

Speaker #6: And regarding your question on the margin, first thing, I'll just remind ourselves that in Q1, the phosphate business was benefited by an insurance reimbursement of $100 million.

Gilberto Antoniazzi: Yousef, regarding your question on the margin, first thing I'd like us to remind ourselves that in Q1, the phosphate business was benefited by an insurance reimbursement of $100 million. If you would exclude that in Q1, we highlighted that in our call, the margin Q1 would be about approximately 35%. Excluding that one-time insurance impact of $100 million, going from 35% to 24% this quarter is primarily driven by the higher cost of sulfur and logistics, and slightly lower production. All right? The real decline on margin is driven by sulfur. That's the primary impact for us.

Speaker #6: So, if you exclude that, in Q1—as we highlighted in our call—the margin in Q1 would have been approximately 35%. Excluding that one-time insurance impact of $100 million, the move from 35% in Q1 to 24% this quarter is primarily driven by the higher cost of sulfur and logistics.

Speaker #6: And slightly lower production, all right? But the real decline in margins is driven by sulfur—that's the primary impact for us. Okay, perfect. Very clear.

Speaker #6: And just to confirm something you mentioned as well, Bob, just to be sure, you guys are confident you can sell everything you produce this quarter, right?

[Analyst]: Okay. Perfect. Very clear. Just to confirm something you mentioned as well, Bob, just to be sure, you guys are confident you can sell everything you produce this quarter, right? Production is the main constraint, not volume, on that specifically.

Yousef Husseini: Okay. Perfect. Very clear. Just to confirm something you mentioned as well, Bob, just to be sure, you guys are confident you can sell everything you produce this quarter, right? Production is the main constraint, not volume, on that specifically.

Speaker #6: Production is the main constraint, not volume—on that specifically.

Speaker #2: Absolutely.

Speaker #6: Perfect. Thank you so much. Very clear.

Robert Wilt: Absolutely.

Gilberto Antoniazzi: Absolutely.

[Analyst]: Perfect. Thank you so much. Very clear.

Yousef Husseini: Perfect. Thank you so much. Very clear.

Speaker #4: Thank you, Yusuf, for the question. Now, moving on. Ravi, you are unmuted. Please unmute yourself and ask your question. Ravi?

Abdulaziz Al-Harbi: Thank you, Yousuf, for your question. Now moving on. Ravi, you are unmuted. Please unmute yourself and ask your question. Ravi?

Speaker #7: Hi. Sorry, can you guys hear me now? Yeah. Thank you. So, three questions. Firstly, on aluminum—your realized price of $3,900-plus per ton was quite impressive; it's almost a $400 per ton premium over the average LME benchmark.

[Company Representative] (Standard Chartered): Hi. Sorry. Can you guys hear me now?

[Analyst 1]: Hi. Sorry. Can you guys hear me now?

Abdulaziz Al-Harbi: Yes, we can. Go ahead.

[Company Representative] (Standard Chartered): Yeah. Three questions. Firstly, on aluminum, your realized price of $3,900 plus per ton was quite impressive. It's almost a $400 per ton premium over the average LME benchmark. Very casually, I think it's probably one of the highest premiums you have achieved. Was there something special that you did this quarter in terms of placing your sales to get that much of a premium over the benchmark for aluminum this quarter? That's the first question. Secondly, on sulfur, I fully appreciate you can't give a cost guidance on sulfur because of where the market is, but is there any way you can look at longer-term contracts or lower than spot?

[Analyst 1]: Yeah. Three questions. Firstly, on aluminum, your realized price of $3,900 plus per ton was quite impressive. It's almost a $400 per ton premium over the average LME benchmark. Very casually, I think it's probably one of the highest premiums you have achieved. Was there something special that you did this quarter in terms of placing your sales to get that much of a premium over the benchmark for aluminum this quarter? That's the first question. Secondly, on sulfur, I fully appreciate you can't give a cost guidance on sulfur because of where the market is, but is there any way you can look at longer-term contracts or lower than spot?

Speaker #7: That, from just very casually, I think it's probably one of the highest premiums you have achieved. Was there something special that you did this quarter in terms of placing your sales to kind of get that much of a premium over the benchmark for aluminum this quarter?

Speaker #7: That's the first question. Secondly, on sulfur, I fully appreciate you can't give cost guidance on sulfur because of where the market is, but is there any way you can look at longer-term contracts or kind of lower-than-spot timing? It may not be perfect trying to sign contracts at the peak of the sulfur price, probably, but is there a strategic change in the way you would think about sourcing your sulfur going forward?

[Company Representative] (Standard Chartered): Timing may not be the perfect, trying to sign contracts on at the peak of the sulfur price, probably. Is there a strategic change in the way you would think about sourcing your sulfur going forward? Thirdly, just clarifying there is no impact of the conflict on your sourcing of equipment, et cetera, for the growth projects. The growth projects timeline has not been affected at all and all the disruptions you have been able to manage it yourself. Thank you.

[Analyst 1]: Timing may not be the perfect, trying to sign contracts on at the peak of the sulfur price, probably. Is there a strategic change in the way you would think about sourcing your sulfur going forward? Thirdly, just clarifying there is no impact of the conflict on your sourcing of equipment, et cetera, for the growth projects. The growth projects timeline has not been affected at all and all the disruptions you have been able to manage it yourself. Thank you.

Speaker #7: And thirdly, just to clarify, there is no impact from the conflict on your sourcing of equipment, etc., for the growth projects. And the growth projects' timeline has not been affected at all, and you have been able to manage all the disruptions yourselves.

Speaker #7: Thank you.

Speaker #6: On aluminum, in terms of the price achieved in Q2, indeed, it was a very meaningful premium vis-à-vis the prior quarter. What is driving this is the curtailment of supply in the GCC region.

[Analyst]: On the aluminum, in terms of the price achieved in Q2, indeed, it was a very meaningful premium vis-a-vis prior quarter. What is driving this is the curtailment of supply in the GCC region. As you know, there has been some issues in other producers, and that has allowed us to capture some value in the marketplace. That's the story looking to Q2. Looking forward, I believe our assessment is that the recovery on some other aluminum producers are faster than anticipated. We will see if that premium will maintain or not.

Rob Wilt: On the aluminum, in terms of the price achieved in Q2, indeed, it was a very meaningful premium vis-a-vis prior quarter. What is driving this is the curtailment of supply in the GCC region. As you know, there has been some issues in other producers, and that has allowed us to capture some value in the marketplace. That's the story looking to Q2. Looking forward, I believe our assessment is that the recovery on some other aluminum producers are faster than anticipated. We will see if that premium will maintain or not.

Speaker #6: As you know, there have been some issues with other producers, and that has allowed us to capture some value in the marketplace. So that's kind of the story.

Speaker #6: Looking to Q2, looking forward, I believe our assessment is that the recovery for some other aluminum producers is faster than anticipated. So we will see if that premium will be maintained or not.

Speaker #2: And on the sulfur contract, we do have a long-term supply agreement with a major oil supplier here in the country, and it's market-based. So that is a strategic enabler.

Robert Wilt: On the sulfur contract, we do have a long-term supply agreement with a major oil supplier here in the country, it's market-based. That is a strategic enabler, the surety of supply. It is attached to market pricing. When the market goes up like it did, we feel the effects. The impact on the equipment supply, that's why I'm so proud of our project delivery teams and logistics and supply teams. They've managed to get the equipment here. There have been some delays. They've worked alternate supply chains, alternate suppliers. As I said, we went into the crisis with a little bit of buffer in the schedule. That buffer has been eaten up. We don't anticipate any significant delays.

Rob Wilt: On the sulfur contract, we do have a long-term supply agreement with a major oil supplier here in the country, it's market-based. That is a strategic enabler, the surety of supply. It is attached to market pricing. When the market goes up like it did, we feel the effects. The impact on the equipment supply, that's why I'm so proud of our project delivery teams and logistics and supply teams. They've managed to get the equipment here. There have been some delays. They've worked alternate supply chains, alternate suppliers. As I said, we went into the crisis with a little bit of buffer in the schedule. That buffer has been eaten up. We don't anticipate any significant delays.

Speaker #2: The surety of supply, but it is attached to market pricing. So when the market goes up, like it did, we feel the effects. And the impact on the equipment supply—that's why I'm so proud of our project delivery teams and logistics and supply teams.

Speaker #2: They've managed to get the equipment here. There have been some delays, but they've worked with alternate supply chains and alternate suppliers, and as I said, we went into the crisis with a little bit of buffer in the schedule.

Speaker #2: That buffer has been eaten up, but we don't anticipate any significant delays.

Speaker #7: Thank you.

[Company Representative] (Standard Chartered): Thank you.

[Analyst 1]: Thank you.

Speaker #4: Thank you, Ravi. Moving on, I have Ali Abbas. You are unmuted. Please unmute yourself and ask your question.

Abdulaziz Al-Harbi: Thank you, Ravi. Moving on. I have Ali Abbas. You are unmuted. Please unmute yourself and ask your question.

Speaker #6: Gentlemen, congratulations on the results in what are certainly difficult circumstances. I just wanted to get a bit more color on the alternative supply routes that you're using.

[Analyst]: Gentlemen, congratulations on the results in what are certainly difficult circumstances. I just wanted to get a bit more color on the alternative supply routes that you're using. In terms of how much of your product could go through these alternative supply chains, can we expect at some point to get up to 100%? Is it just a cost issue, or is it there are capacity constraints? If the Bab el-Mandeb Strait were to be blockaded, is that additional problems from your perspective, or are you not using that at all? I don't know how much you could share around that. Then, I guess on the other side of the equation, how are customers reacting to the situation? Should we expect fertilizer shortages in the next few quarters from a customer perspective?

[Analyst 2]: Gentlemen, congratulations on the results in what are certainly difficult circumstances. I just wanted to get a bit more color on the alternative supply routes that you're using. In terms of how much of your product could go through these alternative supply chains, can we expect at some point to get up to 100%? Is it just a cost issue, or is it there are capacity constraints? If the Bab el-Mandeb Strait were to be blockaded, is that additional problems from your perspective, or are you not using that at all? I don't know how much you could share around that. Then, I guess on the other side of the equation, how are customers reacting to the situation? Should we expect fertilizer shortages in the next few quarters from a customer perspective?

Speaker #6: In terms of how much of your product can go through these alternative supply chains, can we expect at some point to get up to 100%?

Speaker #6: Is it just a cost issue, or are there capacity constraints? And if the bottleneck were to go straight, or were to be blockaded, then are there additional problems from your perspective, or are you not using that at all?

Speaker #6: I don't know how much you could share around that. And then, I guess, on the other side of the equation, how are customers reacting to the situation, and should we expect fertilizer shortages in the next few quarters from a customer perspective?

Speaker #2: Well, obviously, I cannot reveal the exact locations of our alternative supply routes, but last quarter we nearly shipped 100% of our phosphate production via alternative supply routes.

Robert Wilt: I obviously cannot reveal the exact locations of our alternative supply routes, but last quarter, we nearly shipped 100% of our phosphate production via alternative supply routes. Yes, we do have multiple contingencies in place where any significant strategic choke point would be impacted. As far as customers, we're working very closely with our customers, extending terms, helping source logistics, et cetera. Given that everybody can't do that, there is a shortage of phosphate in the market. That's why we are so confident we can fulfill all our orders, and there won't be any impact to our sales.

Rob Wilt: I obviously cannot reveal the exact locations of our alternative supply routes, but last quarter, we nearly shipped 100% of our phosphate production via alternative supply routes. Yes, we do have multiple contingencies in place where any significant strategic choke point would be impacted. As far as customers, we're working very closely with our customers, extending terms, helping source logistics, et cetera. Given that everybody can't do that, there is a shortage of phosphate in the market. That's why we are so confident we can fulfill all our orders, and there won't be any impact to our sales.

Speaker #2: And yes, we do have multiple contingencies in place if any significant strategic chokepoint were to be impacted. As for customers, we're working very closely with them—extending terms, helping source logistics, et cetera.

Speaker #2: And given that everybody can't do that, there is a shortage of phosphate in the market. That's why we are so confident we can fulfill all orders and there won't be any impact to our sales.

Speaker #6: Thank you very much. Yes, I appreciate the sensitivity around the routes, but just when I look at the numbers, I see a 30%—or 28%—decline in phosphate volumes.

[Analyst]: Thank you very much. Yes, I appreciate the sensitivity around the routes. Just when I look at the numbers, I see a 30% or 28% decline in phosphate volumes. What you're saying is that's not because of logistics constraints, because you were able to ship whatever you were able to do, or can you just clarify that for me, please?

[Analyst 2]: Thank you very much. Yes, I appreciate the sensitivity around the routes. Just when I look at the numbers, I see a 30% or 28% decline in phosphate volumes. What you're saying is that's not because of logistics constraints, because you were able to ship whatever you were able to do, or can you just clarify that for me, please?

Speaker #6: So what you’re saying is, that’s not because of logistics constraints, because you were able to ship whatever you were able to do? Or can you just clarify that for me, please?

Speaker #2: That shortage was due to sulfur shortages that impacted our production ability, and phosphate.

Robert Wilt: The shortage was due to sulfur shortages that impacted our production ability in phosphate.

Rob Wilt: The shortage was due to sulfur shortages that impacted our production ability in phosphate.

Speaker #6: But I thought on sulfur, you said you have a shortage of supply, and it's more a pricing issue. Because it's not—okay, I imagine.

[Analyst]: I thought on sulfur, you said you have surety of supply and it's more a pricing issue because of Saudi Arabia, I imagine.

[Analyst 2]: I thought on sulfur, you said you have surety of supply and it's more a pricing issue because of Saudi Arabia, I imagine.

Speaker #2: Long term, we have surety of supply.

Speaker #6: Got it. Okay.

Robert Wilt: Long-term, we have surety of supply.

Rob Wilt: Long-term, we have surety of supply.

Speaker #2: Sulfur is a byproduct of the oil and gas complex, which was impacted in the period.

[Analyst]: Right. Okay.

[Analyst 2]: Right. Okay.

Robert Wilt: Sulfur is a byproduct of the oil and gas complex, which was impacted in the period.

Rob Wilt: Sulfur is a byproduct of the oil and gas complex, which was impacted in the period.

Speaker #6: Got it. Well, that's very clear. Thank you for the clarification. I appreciate that.

[Analyst]: All right. No, that is very clear. Thank you for the clarification. Appreciate that.

[Analyst 2]: All right. No, that is very clear. Thank you for the clarification. Appreciate that.

Speaker #4: Thank you. Moving on. Gorman, you are unmuted. Please unmute yourself and ask your question.

Abdulaziz Al-Harbi: Thank you. Moving on. Gorman, you are unmuted. Please unmute yourself and ask your question.

Speaker #5: Thank you so much. I just wanted to ask if we look longer term in the Strait of Hormuz remains blockaded, preventing ammonia shipments to go through.

[Analyst]: Thank you so much. I just wanted to ask if we look longer term and the Strait of Hormuz remains blockaded, preventing ammonia shipments to go through, would you be looking at or considering building alternative infrastructure, say on the Red Sea, to allow those exports and that production to resume?

[Analyst 3]: Thank you so much. I just wanted to ask if we look longer term and the Strait of Hormuz remains blockaded, preventing ammonia shipments to go through, would you be looking at or considering building alternative infrastructure, say on the Red Sea, to allow those exports and that production to resume?

Speaker #5: Would you be looking at or considering building alternative infrastructure, say on the Red Sea, to allow those exports and that production to resume?

Speaker #2: We really can't talk about our short-term or long-term strategic alternatives as to supply routes at this time.

Robert Wilt: We really can't talk about our short-term or long-term strategic alternatives as to supply routes at this time.

Rob Wilt: We really can't talk about our short-term or long-term strategic alternatives as to supply routes at this time.

Speaker #5: No worries. Thank you.

Speaker #4: Thank you. Moving on. Anas, I see that you have raised your hand. You are unmuted. Please unmute yourself and ask your question. Anas?

[Analyst]: No worries. Thank you.

[Analyst 3]: No worries. Thank you.

Abdulaziz Al-Harbi: Thank you, Morgan Glenn. Anas, I see that you raised your hand. You are unmuted. Please unmute yourself and ask your question. Anas?

Speaker #7: Yeah. Can you hear me?

Speaker #4: Yes, go ahead.

Anas Aljarbou: Yeah. Can you hear me?

Anas Aljarboua: Yeah. Can you hear me?

Speaker #7: Yeah. Thank you, gentlemen, and congratulations on the great set of results. This is Anas El Jarboud from Mark Capital. I have two questions, regarding the aluminum segment.

Abdulaziz Al-Harbi: Yes, go ahead.

Anas Aljarbou: Yeah. Thank you, gentlemen, and congratulations on the great set of results. This is Anas Aljarbou from Manas Mark Capital. I have two questions regarding the aluminum segment. The performance from the aluminum was really decent, and I think I just want to highlight something, or if you can highlight the FRP performance. Historically, you've been at a run rate of around 30% to 40% max in the FRP. When it comes to the domestic and international sales, it's usually 50% domestic. Has been there any significant change during this quarter when it comes to the segmentation between the FRP and the aluminum and also on the domestic and international sales when it comes to aluminum?

Anas Aljarboua: Yeah. Thank you, gentlemen, and congratulations on the great set of results. This is Anas Aljarbou from Manas Mark Capital. I have two questions regarding the aluminum segment. The performance from the aluminum was really decent, and I think I just want to highlight something, or if you can highlight the FRP performance. Historically, you've been at a run rate of around 30% to 40% max in the FRP. When it comes to the domestic and international sales, it's usually 50% domestic. Has been there any significant change during this quarter when it comes to the segmentation between the FRP and the aluminum and also on the domestic and international sales when it comes to aluminum?

Speaker #7: So, the performance from the aluminum was really decent, and I think I just want to highlight something—or if you can highlight the FRB performance.

Speaker #7: So, historically, we've been at a run rate of around 30% to 40% max in the FRB. And when it comes to domestic and international sales, it's usually 50% domestic.

Speaker #7: Has been there any significant change during this quarter when it comes to the segmentation between the FRB and the aluminum? And also, on the domestic and international sales, when it comes to aluminum?

Speaker #6: Anas, thank you for the question. So from a segmentation in terms of sales and revenue of shipments too, there has been no major difference change on our composition of revenue for aluminum business.

Gilberto Antoniazzi: Anas, thank you for the question. From a segmentation in terms of sales and revenue of shipments too, there has been no major difference change on our composition of revenue for aluminum business. It remains pretty much the same it was Q1.

Speaker #6: So it remains pretty much the same it was Q1.

Speaker #7: And that’s also when it comes, so I would assume more than 50% of the revenue came from the domestic market.

Anas Aljarbou: I would assume more than 50% of the revenue came from the domestic market.

Anas Aljarboua: I would assume more than 50% of the revenue came from the domestic market.

Speaker #6: I would say actually more than that comes from the domestic market. And the remaining portion of it remains in the GCC area, in the Gulf.

Gilberto Antoniazzi: I would say actually more than that comes from the domestic market, and the remaining portion of it remains in the GCC area, in the Gulf. Our largest market is certainly by far the Kingdom.

Speaker #6: Our largest market is certainly, by far, the Kingdom.

Speaker #7: Okay. Thank you very much.

Anas Aljarbou: Okay. Thank you very much.

Anas Aljarboua: Okay. Thank you very much.

Speaker #4: Thank you, Anas. I see your question in the chat. So, one question here is: There is a healthy cash flow in Ma’aden. Are we planning to distribute any dividends soon?

Abdulaziz Al-Harbi: Thank you, Anas. I see a few questions in the chat. One question here is, there is a healthy cash flow in Ma'aden. Are you planning to distribute any dividend soon?

Speaker #2: Thanks for the question. At the last as of the last board meeting, what we discussed, dividend policy, we continue to realize the growth opportunities available to us, and we will continue to invest in growth rather than just dividends.

Robert Wilt: Thanks for the question. As of the last board meeting where we discussed dividend policy, we continue to realize the growth opportunities available to us, and we will continue to invest in growth rather than just dividends.

Rob Wilt: Thanks for the question. As of the last board meeting where we discussed dividend policy, we continue to realize the growth opportunities available to us, and we will continue to invest in growth rather than just dividends.

Speaker #4: And that notion also second question about the CAPEX and the growth. Are we maintaining the same guidance of the CAPEX for this quarter?

Abdulaziz Al-Harbi: In that motion also, second question about the CapEx and the growth. Are you maintaining the same guidance of the CapEx for this quarter?

Speaker #6: Yes, we are maintaining the same guidance for growth and sustaining CAPEX. Actually, we haven't provided guidance for quarter, just for the full year. And you will see some ramp-up of spending in the second half of the year.

Gilberto Antoniazzi: Yes, we are maintaining the same guidance for growth, and sustaining CapEx. Actually, we haven't provided a guidance for quarter, just for the full year, and you will see some ramp-up of spending in the H2 of the year as expected.

Speaker #6: As expected.

Speaker #4: Thank you. Moving on. Youssef, I see that you raised your hand again. Do you have a follow-up question?

Abdulaziz Al-Harbi: Thank you, Gilberto. Moving on. Youssef, I see that you raised your hand again. Do you have a follow-up question?

Speaker #7: Yes. I just had thank you guys so much. One quick follow-up. I forgot to ask about how does the inventory look at the DAP side?

[Analyst]: Yes, I just had, thank you guys so much, one quick follow-up I forgot to ask about. How does the inventory look at the DAP side? Because obviously you guys sold looks like something like 300,000 tons. Was just wondering if there's any leftover for you to push in the Q3 as well, or it's pretty much done. Thank you.

Yousef Husseini: Yes, I just had, thank you guys so much, one quick follow-up I forgot to ask about. How does the inventory look at the DAP side? Because obviously you guys sold looks like something like 300,000 tons. Was just wondering if there's any leftover for you to push in the Q3 as well, or it's pretty much done. Thank you.

Speaker #7: Because obviously, you guys sold, it looks like, something like 300,000 tons. I was just wondering if there's any leftover for you to push in the third quarter as well, or is it pretty much done?

Speaker #7: Thank you.

Speaker #6: No, I think we're very proud of what we have done in Q2 in terms of moving inventory and realize over 1.5 million metric tons of revenue of shipments.

Gilberto Antoniazzi: No, I think we're very proud of what we have done in Q2 in terms of moving inventory and realized over $1.5 million metric tons of revenue of shipments. We're in a very good, comfortable position with inventory right now. We feel good about it. Just to conclude, as we keep shipping and increase the shipments that we are, it's going to be even easier for us to move the inventory that we still have here.

Speaker #6: And we're in a very good, comfortable position with the inventory right now, so we feel good about it. And just to conclude, as we continue shipping and increase shipments, as we are, it's going to be even easier for us to move that inventory that we still have here.

Speaker #4: I don't see any more questions. I don't see any more hands raised. With that, I'm going to conclude today's presentation. Thank you all for attending the call.

Abdulaziz Al-Harbi: I don't see any more questions. I don't see any more hands raised. With that, I'm going to conclude today presentation. Thank you all for attending the call. All material will be uploaded shortly on the website. If you have any follow-up questions, please do not hesitate to share them with us via email in invest@maaden.com. I'll conclude today's call. Thank you all for attending, and goodbye.

Speaker #4: All material will be uploaded shortly on the website. If you have any follow-up questions, please do not hesitate to share them with us via email at invest@maaden.com.

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Q2 2026 Saudi Arabian Mining Co Earnings Call

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