Saudi Arabian Mining Company (Maaden) [1211.SE] has announced that it is developing a third phosphate fertiliser project that is expected to cost SAR24bn and will have a production capacity of 3mn tonnes per year. The company added that the project will be implemented in several phases, and that full capacity would be reached by 2024. The release noted that the project is still subject to the completion of feasibility studies and necessary consents. We expect this is likely to be taken positively by the market, as it adds further upside to Maaden's long-term story, but from a fundamental perspective, we think at these levels valuation is full especially as: i) P/E multiples are very elevated (2017 P/E of c47x) and appear to be pricing in the long-term growth potential of the stock; ii) we do not know how this new project will be financed, and Maaden’s balance sheet is already highly leveraged, so it is possible the company would have to raise further equity; and iii) phosphate fertiliser markets remain extremely weak, with prices at very low levels. (Tadawul, Yousef Husseini)   Maaden: SAR39.69 as of 29 November 2016, Rating: Neutral, FV: SAR30.00 per share, MCap: USD12,367mn, MAADEN AB / 1211.SE