Mari Energies Ltd. (MARI) has announced that its wholly-owned subsidiary, Mari Minerals (Pvt.) Limited (MariMinerals) has entered into a definitive agreement with Sanjrani Mining Company (Pvt.) Limited (SMC) will acquire an 87.5% working interest and operatorship in multiple mineral exploration licenses in the Chaghi district, Baluchistan. This marks MariMinerals’ second acquisition within the region since the company’s inception. The expansion presents a significant opportunity for MARI to unlock substantial untapped copper and gold deposits, especially amid the natural decline of major oil and gas reserves in Pakistan.
Key Highlights
Sanjrani Mining Company (SMC) is a leading mining company involved in the exploration and extraction of mineral resources, mainly in Sindh and Baluchistan. The company’s major projects are the Sadiq Sanjrani Coal Mine in Hyderabad, the Sanjrani Coal Mine in Larkana, the Iron Ore Mine at Saindak, the Siah Diq project and the Lead Mine in the Washaab area.
§ This highlights MariMinerals’ second acquisition since its inception. Earlier in January 2025, the company announced a definitive agreement with Siahkoh Mining Development (SMC-Private) Limited (SMD) to acquire a 5% stake—albeit a minor one—in Kohesultan Mining Company (Pvt.) Limited. Moreover, in July 2024, the company was awarded two regional exploration licenses.
§ MariMinerals’ aggressive expansion in the region highlights its vast resource potential, which could offer a significant upside to MARI’s earnings in the future, particularly as MARI’s hydrocarbon reserves in Mari D&P (its major asset) continue to decline. Notably, the mining region is also home to the Reko Diq, one of the largest undeveloped gold-copper deposits in the world.
§ This marks MARI’s second foray into the mineral mining sector. Previously, the company entered a joint venture with YB Pakistan (sponsors of Lucky Cement) and Liberty Mills through a new company called National Resources Ltd. (NRL), which had initially secured a license to develop the Reko Diq mine. However, in 2021, the license was revoked and later awarded to Barrick Gold and state-owned E&P companies.
This venture underscores MARI’s strong commitment to diversifying its operations. MARI is also expanding its footprint in data centres and cloud computing, having invested PKR10bn in cloud computing operations during 2QFY25. These diversification efforts, if successful, present substantial upside potential for the stock. However, the significant capital expenditure required for mine development, along with the ongoing investment in its high-potential Bannu West field, may lead to dividend cuts in the near term. As a result, we maintain a Sell stance on the stock with a TP of PKR570/sh. The stock currently trades at a P/E of 10.3x vs. overall market PE of 6.0x and sector average PE of 5.4x.
Courtesy – IMS Research
