| FINANCIAL STATEMENTS |
AL MASANE AL KOBRA MINING COMPANY
Balance Sheets
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December 31, |
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2019 |
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2018 |
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(Expressed in Saudi Riyals) |
ASSETS |
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Current assets: |
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Cash and cash equivalents |
52,244,794 |
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31,510,496 |
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Accounts receivable |
29,643,472 |
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16,235,035 |
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Inventories |
35,277,340 |
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45,871,120 |
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Advances to shareholders (Note 1) |
2,859,341 |
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52,562,028 |
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Advances to contractors and other |
50,053,018 |
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19,168,765 |
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Total current assets |
170,077,965 |
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165,347,444 |
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Non-current assets: |
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Property and equipment, net |
610,634,432 |
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634,856,075 |
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Development costs, net |
121,267,664 |
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155,281,525 |
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Deferred mine closure costs |
5,211,505 |
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5,955,999 |
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Total non-current assets |
737,113,601 |
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796,093,599 |
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907,191,566 |
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961,441,043 |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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Current liabilities: |
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Accounts payable and accrued liabilities |
40,418,619 |
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28,756,945 |
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Zakat and income tax liability |
10,932,026 |
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5,400,000 |
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Capital lease obligation, current portion |
2,318,301 |
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193,206 |
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Long-term debt, current portion |
50,000,000 |
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30,000,000 |
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Total current liabilities |
103,668,946 |
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64,350,151 |
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Non-current liabilities |
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Provision for mine closure costs |
16,625,347 |
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16,063,136 |
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Capital lease obligation, net of current portion |
3,898,002 |
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359,811 |
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Long-term debt, net of current portion and |
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deferred finance costs |
267,933,847 |
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266,258,712 |
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End-of-service indemnities |
4,880,892 |
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3,649,889 |
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Deferred income taxes |
4,217,658 |
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3,792,785 |
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Total non-current liabilities |
297,555,746 |
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290,124,333 |
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AL MASANE AL KOBRA MINING COMPANY
Balance Sheets - (Continued)
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December 31, |
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2019 |
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2018 |
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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 |
820,000,000 |
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820,000,000 |
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Share premium |
(74,713,350 |
) |
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— |
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Accumulated deficit |
(239,319,776 |
) |
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(213,033,441 |
) |
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Total shareholders' equity |
505,966,874 |
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606,966,559 |
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907,191,566 |
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961,441,043 |
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AL MASANE AL KOBRA MINING COMPANY
Statements of Operations
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December 31, |
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2019 |
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2018 |
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2017 |
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(Expressed in Saudi Riyals) |
Revenues |
293,811,329 |
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263,377,273 |
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136,629,881 |
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Costs of revenues |
261,073,821 |
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255,313,296 |
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162,388,373 |
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Operating income (loss) |
32,737,508 |
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8,063,977 |
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(25,758,492 |
) |
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General and |
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administrative expenses |
48,927,307 |
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29,475,998 |
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28,299,733 |
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Loss from operations |
(16,189,799 |
) |
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(21,412,021 |
) |
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(54,058,225 |
) |
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Other income (expense) |
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Finance charges |
(5,436,532 |
) |
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(5,969,821 |
) |
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(6,103,680 |
) |
Other income |
2,091,152 |
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323,575 |
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893,524 |
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(3,345,380 |
) |
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(5,646,246 |
) |
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(5,210,156 |
) |
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Loss before Zakat and income tax |
(19,535,179 |
) |
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(27,058,267 |
) |
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(59,268,381 |
) |
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Zakat and income tax benefit (expense) |
(6,751,156 |
) |
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1,824,929 |
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(3,627,193 |
) |
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Net loss |
(26,286,335 |
) |
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(25,233,338 |
) |
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(62,895,574 |
) |
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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Treasury |
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(Accumulated |
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Capital |
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Premium |
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Stock at cost |
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Deficit) |
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Total |
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Balance at January 1, 2017 |
780,000,000 |
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37,546,420 |
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— |
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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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— |
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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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— |
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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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— |
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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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— |
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Net loss |
— |
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— |
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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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— |
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(213,033,441 |
) |
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606,966,559 |
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Share repurchase |
— |
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— |
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(74,713,350 |
) |
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— |
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(74,713,350 |
) |
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Net loss |
— |
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— |
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— |
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(26,286,335 |
) |
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(26,286,335 |
) |
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Balance at December 31, 2019 |
820,000,000 |
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— |
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(74,713,350 |
) |
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(239,319,776 |
) |
|
505,966,874 |
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AL MASANE AL KOBRA MINING COMPANY
Statements of Cash Flows
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December 31, |
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2019 |
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2018 |
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2017 |
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(Expressed in Saudi Riyals) |
Cash flows from operating activities: |
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Net loss |
(26,286,335 |
) |
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(25,233,338 |
) |
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(62,895,574 |
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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 |
113,949,259 |
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125,507,864 |
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83,547,586 |
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Accretion of deferred mine closure costs |
562,211 |
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543,198 |
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524,829 |
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Amortization of deferred finance costs |
1,675,135 |
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2,175,902 |
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1,610,733 |
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Gain on forgiveness of liabilities |
— |
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— |
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— |
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Deferred income taxes |
424,873 |
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(7,224,929 |
) |
|
417,966 |
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Changes in operating assets and liabilities: |
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Accounts receivable |
(13,408,437 |
) |
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(8,021,219 |
) |
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(8,213,816 |
) |
Inventories |
10,593,780 |
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(18,644,188 |
) |
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(11,351,752 |
) |
Advances to contractors and other |
(30,884,252 |
) |
|
563,016 |
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(3,944,995 |
) |
Accounts payable and accrued liabilities |
11,661,674 |
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6,084,327 |
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9,638,009 |
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Zakat and income tax liability |
5,532,026 |
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1,883,327 |
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1,583,048 |
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End-of-service indemnities |
1,231,003 |
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1,131,360 |
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1,037,893 |
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Net cash provided by operating activities |
75,050,937 |
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78,765,320 |
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11,953,927 |
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Cash flows from investing activities: |
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Additions to property and equipment |
(48,246,282 |
) |
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(28,945,309 |
) |
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(31,550,443 |
) |
AL MASANE AL KOBRA MINING COMPANY
Statements of Cash Flows - (Continued)
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December 31, |
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2019 |
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2018 |
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2017 |
|
(Expressed in Saudi Riyals) |
Cash flows from financing activities: |
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Issuance of share capital and premium |
— |
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2,453,580 |
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— |
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Payments on capital lease obligations |
(1,059,694 |
) |
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(72,788 |
) |
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— |
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Repurchase of treasury stock |
(22,151,322 |
) |
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— |
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— |
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Borrowings from long-term debt |
50,000,000 |
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— |
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— |
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Payments on long-term debt |
(30,000,000 |
) |
|
— |
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(5,000,000 |
) |
Net advances from (to) shareholders |
(2,859,341 |
) |
|
(53,015,844 |
) |
|
403,147 |
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Net cash provided by (used in) financing activities |
(6,070,357 |
) |
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(50,635,052 |
) |
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(4,596,853 |
) |
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Increase (decrease) in cash and cash equivalents |
20,734,298 |
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(815,041 |
) |
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(24,193,369 |
) |
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Cash and cash equivalents, beginning of year |
31,510,496 |
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32,325,537 |
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56,518,906 |
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Cash and cash equivalents, end of year |
52,244,794 |
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31,510,496 |
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32,325,537 |
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Supplemental cash flow information |
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Cash paid for interest |
4,428,545 |
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3,927,778 |
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3,686,000 |
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Cash paid for Zakat and income tax |
6,086,073 |
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3,212,813 |
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1,626,179 |
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Supplemental disclosure of non-cash items |
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Assets acquired through capital lease obligations |
7,933,140 |
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|
625,805 |
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— |
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Advances to shareholders applied to treasury stock purchase |
52,562,028 |
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— |
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— |
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