Quarterly report pursuant to Section 13 or 15(d)

INVESTMENT IN AL MASANE AL KOBRA MINING COMPANY ("AMAK")

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INVESTMENT IN AL MASANE AL KOBRA MINING COMPANY ("AMAK")
 3 Months Ended
Mar. 31, 2015
INVESTMENT IN AL MASANE AL KOBRA MINING COMPANY ("AMAK") [Abstract]  
INVESTMENT IN AL MASANE AL KOBRA MINING COMPANY ("AMAK")
15. INVESTMENT IN AL MASANE AL KOBRA MINING COMPANY (“AMAK”)

As of March 31, 2015, and December 31, 2014, the Company had a non-controlling equity interest (35%) of approximately $53.1 million and $53.0 million, respectively. This investment is accounted for under the equity method. There were no events or changes in circumstances that may have an adverse effect on the fair value of our investment in AMAK at March 31, 2015.

AMAK’s financial statements were prepared in the functional currency of AMAK which is the Saudi Riyal (SR).  In June 1986 the SR was officially pegged to the U. S. Dollar (USD) at a fixed exchange rate of 1 USD to 3.75 SR.

The summarized results of operation and financial position for AMAK are as follows:

Results of Operations

   
Three Months Ended
March 31,
  
   
2015
    
2014
  
   
(Thousands of Dollars)
  
Sales
  
$
5,301
    
$
267
  
Gross Profit
    
1,712
      
639
  
General, administrative and other expenses
    
2,501
      
2,588
  
Net Loss
  
$
(789
)
  
$
(1,949
)


 
Financial Position

   
March 31,
    
December 31,
  
   
2015
    
2014
  
   
(Thousands of Dollars)
  
Current assets
  
$
31,420
    
$
17,782
  
Noncurrent assets
    
263,765
      
265,584
  
Total assets
  
$
295,185
    
$
283,366
  
                 
Current liabilities
  
$
26,597
    
$
23,034
  
Long term liabilities
    
76,644
      
67,598
  
Shareholders' equity
    
191,944
      
192,734
  
   
$
295,185
    
$
283,366
  

The equity in the income or loss of AMAK reflected on the consolidated statement of income for the three months ended March 31, 2015, and 2014, is comprised of the following:

   
Three months ended
March 31,
  
   
2015
    
2014
  
   
(Thousands of Dollars)
  
Company’s share of loss reported by AMAK
  
$
(278
)
  
$
(687
)
Amortization of difference between Company’s investment in
  AMAK and Company’s share of net assets of AMAK
    
337
      
337
  
Equity in income (loss) of AMAK
  
$
59
    
$
(350
)

See our Annual Report on Form 10-K for the year ended December 31, 2014, for additional information.