| FINANCIAL STATEMENTS |
AL MASANE AL KOBRA MINING COMPANY
Balance Sheets
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December 31, |
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2018 |
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2017 |
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(Expressed in Saudi Riyals) |
ASSETS |
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Current assets: |
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Cash and cash equivalents |
31,510,496 |
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32,325,537 |
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Accounts receivable |
16,235,035 |
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8,213,816 |
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Inventories |
45,871,120 |
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27,226,932 |
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Advances to shareholders (Note 1) |
52,562,028 |
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— |
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Advances to contractors and other |
19,168,765 |
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19,731,780 |
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Total current assets |
165,347,444 |
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87,498,065 |
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Non-current assets: |
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Property and equipment, net |
634,856,075 |
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693,801,671 |
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Development costs, net |
155,281,525 |
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191,528,180 |
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Deferred mine closure costs |
5,955,999 |
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6,700,499 |
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Total non-current assets |
796,093,599 |
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892,030,350 |
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961,441,043 |
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979,528,415 |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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Current liabilities: |
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Accounts payable and accrued liabilities |
28,756,945 |
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22,672,618 |
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Zakat and income tax liability |
5,400,000 |
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3,516,673 |
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Due to shareholders |
— |
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|
453,816 |
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Capital lease obligation, current portion |
193,206 |
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— |
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Long-term debt, current portion |
30,000,000 |
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65,000,000 |
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Total current liabilities |
64,350,151 |
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91,643,107 |
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Non-current liabilities |
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Provision for mine closure costs |
16,063,136 |
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15,519,938 |
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Capital lease obligation, net of current portion |
359,811 |
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— |
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Long-term debt, net of current portion and |
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deferred finance costs |
266,258,712 |
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229,082,810 |
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End-of-service indemnities |
3,649,889 |
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2,518,529 |
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Deferred income taxes |
3,792,785 |
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11,017,714 |
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Total non-current liabilities |
290,124,333 |
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258,138,991 |
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AL MASANE AL KOBRA MINING COMPANY
Balance Sheets - (Continued)
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December 31, |
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2018 |
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2017 |
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(Expressed in Saudi Riyals) |
Commitments and contingencies (Note 14) |
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Shareholders' equity |
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Share capital |
820,000 |
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780,000 |
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Share premium |
— |
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37,546 |
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Accumulated deficit |
(213,033 |
) |
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(187,800 |
) |
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Total shareholders' equity |
606,967 |
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|
629,746 |
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961,441 |
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|
979,528 |
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AL MASANE AL KOBRA MINING COMPANY
Statements of Operations
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December 31, |
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2018 |
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2017 |
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2016 |
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(Expressed in Saudi Riyals) |
Revenues |
263,377,273 |
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136,629,881 |
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37,202,504 |
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Costs of revenues |
255,313,296 |
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162,388,373 |
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101,743,839 |
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Operating income (loss) |
8,063,977 |
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(25,758,492 |
) |
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(64,541,335 |
) |
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General and |
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administrative expenses |
29,475,998 |
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28,299,733 |
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26,957,555 |
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Loss from operations |
(21,412,021 |
) |
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(54,058,225 |
) |
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(91,498,890 |
) |
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Other income (expense) |
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Gain on forgiveness of liabilities and |
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spare parts (Note 8) |
— |
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— |
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65,345,250 |
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Finance charges |
(5,969,821 |
) |
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(6,103,680 |
) |
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(6,043,410 |
) |
Other income |
323,575 |
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893,524 |
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260,953 |
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(5,646,246 |
) |
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(5,210,156 |
) |
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59,562,793 |
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Loss before Zakat and income tax |
(27,058,267 |
) |
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(59,268,381 |
) |
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(31,936,097 |
) |
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Zakat and income tax benefit (expense) |
1,824,929 |
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(3,627,193 |
) |
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(3,596,244 |
) |
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Net loss |
(25,233,338 |
) |
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(62,895,574 |
) |
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(35,532,341 |
) |
AL MASANE AL KOBRA MINING COMPANY
Statements of Changes in Shareholders' Equity
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(Expressed in Saudi Riyals) |
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Retained |
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Earnings |
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Share |
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Share |
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(Accumulated |
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Capital |
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Premium |
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Deficit) |
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Total |
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Balance at December 31, 2015 |
740,000,000 |
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— |
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(89,372,188 |
) |
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650,627,812 |
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Issuance of share capital and premium |
40,000,000 |
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37,546,420 |
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— |
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77,546,420 |
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Net loss |
— |
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— |
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(35,532,341 |
) |
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(35,532,341 |
) |
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Balance at December 31, 2016 |
780,000,000 |
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37,546,420 |
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(124,904,529 |
) |
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692,641,891 |
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Net loss |
— |
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— |
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(62,895,574 |
) |
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(62,895,574 |
) |
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Balance at December 31, 2017 |
780,000,000 |
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37,546,420 |
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(187,800,103 |
) |
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629,746,317 |
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Issuance of share premium |
— |
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2,453,580 |
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— |
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2,453,580 |
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Conversion of share premium to share capital |
40,000,000 |
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(40,000,000 |
) |
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— |
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— |
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Net loss |
— |
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— |
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(25,233,338 |
) |
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(25,233,338 |
) |
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Balance at December 31, 2018 |
820,000,000 |
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— |
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(213,033,441 |
) |
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606,966,559 |
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AL MASANE AL KOBRA MINING COMPANY
Statements of Cash Flows
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December 31, |
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2018 |
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2017 |
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2016 |
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(Expressed in Saudi Riyals) |
Cash flows from operating activities: |
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Net loss |
(25,233,338 |
) |
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(62,895,574 |
) |
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(35,532,341 |
) |
Adjustments to reconcile net loss to net cash |
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provided by (used in) operating activities: |
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Depreciation and amortization |
125,507,864 |
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83,547,586 |
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43,768,238 |
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Accretion of deferred mine closure costs |
543,198 |
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524,829 |
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507,081 |
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Amortization of deferred finance costs |
2,175,902 |
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1,610,733 |
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2,147,644 |
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Gain on forgiveness of liabilities |
— |
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— |
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(65,345,250 |
) |
Deferred income taxes |
(7,224,929 |
) |
|
417,966 |
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1,718,258 |
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Changes in operating assets and liabilities: |
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Accounts receivable |
(8,021,219 |
) |
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(8,213,816 |
) |
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28,351,618 |
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Inventories |
(18,644,188 |
) |
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(11,351,752 |
) |
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15,754,952 |
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Advances to contractors and other |
563,016 |
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(3,944,995 |
) |
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(6,186,357 |
) |
Accounts payable and accrued liabilities |
6,084,327 |
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9,638,009 |
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3,511,632 |
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Zakat and income tax liability |
1,883,327 |
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1,583,048 |
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|
679,206 |
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Pre-export advance payment |
— |
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— |
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(9,150,880 |
) |
End-of-service indemnities |
1,131,360 |
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1,037,893 |
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(264,797 |
) |
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Net cash provided by (used in) operating activities |
78,765,320 |
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11,953,927 |
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(20,040,996 |
) |
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Cash flows from investing activities: |
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Additions to property and equipment |
(28,945,309 |
) |
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(31,550,443 |
) |
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(29,246,001 |
) |
AL MASANE AL KOBRA MINING COMPANY
Statements of Cash Flows - (Continued)
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December 31, |
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2018 |
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2017 |
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2016 |
|
(Expressed in Saudi Riyals) |
Cash flows from financing activities: |
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Issuance of share capital and premium |
2,453,580 |
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— |
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|
75,092,840 |
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Payments on capital lease obligations |
(72,788 |
) |
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— |
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— |
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Payments on long-term debt |
— |
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(5,000,000 |
) |
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— |
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Net advances from (to) shareholders |
(53,015,844 |
) |
|
403,147 |
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|
299,231 |
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Net cash provided by (used in) financing activities |
(50,635,052 |
) |
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(4,596,853 |
) |
|
75,392,071 |
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Increase (decrease) in cash and cash equivalents |
(815,041 |
) |
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(24,193,369 |
) |
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26,105,074 |
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Cash and cash equivalents, beginning of year |
32,325,537 |
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56,518,906 |
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30,413,832 |
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Cash and cash equivalents, end of year |
31,510,496 |
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32,325,537 |
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56,518,906 |
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Supplemental cash flow information |
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Cash paid for interest |
3,927,778 |
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3,686,000 |
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3,895,766 |
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Cash paid for Zakat and income tax |
3,212,813 |
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1,626,179 |
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1,198,780 |
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Supplemental disclosure of non-cash items |
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Assets acquired through capital lease obligations |
625,805 |
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— |
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— |
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