Annual report pursuant to Section 13 and 15(d)

AMAK FINANCIAL STATEMENTS

v3.20.4
AMAK FINANCIAL STATEMENTS
 12 Months Ended
Dec. 31, 2020
AMAK  
Schedule of Equity Method Investments [Line Items]  
FINANCIAL STATEMENTS
AL MASANE AL KOBRA MINING COMPANY
Balance Sheets
September 30, December 31,
2020 2019
(Expressed in Saudi Riyals)
ASSETS
Current assets:
Cash and cash equivalents 29,452,821  52,244,794 
Restricted cash (Note 1) 7,935,905  — 
Accounts receivable, net 8,688,925  29,643,472 
Inventories 45,017,824  35,277,340 
Advances to shareholders (Note 1) —  2,859,341 
Advances to contractors and other 20,650,315  50,053,018 
Total current assets 111,745,790  170,077,965 
Non-current assets:
Property and equipment, net 683,014,705  610,634,432 
Development costs, net 98,939,725  121,267,664 
Deferred mine closure costs 4,849,249  5,211,505 
Total non-current assets 786,803,679  737,113,601 
898,549,469  907,191,566 
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities 38,499,280  40,418,619 
Zakat and income tax liability 14,966,681  10,932,026 
Capital lease obligation, current portion 2,479,480  2,318,301 
Long-term debt, current portion 97,500,000  50,000,000 
Total current liabilities 153,445,441  103,668,946 
Non-current liabilities
Provision for mine closure costs 17,030,905  16,625,347 
Capital lease obligation, net of current portion 2,022,518  3,898,002 
Long-term debt, net of current portion and
deferred finance costs 271,626,947  267,933,847 
End-of-service indemnities 6,029,921  4,880,892 
Deferred income taxes —  4,217,658 
Total non-current liabilities 296,710,291  297,555,746 
AL MASANE AL KOBRA MINING COMPANY
Balance Sheets - (Continued)
September 30, December 31,
2020 2019
(Expressed in Saudi Riyals)
Commitments and contingencies (Note 14)
Shareholders' equity
Share capital 820,000,000  820,000,000 
Share premium (131,808,900) (74,713,350)
Accumulated deficit (239,797,363) (239,319,776)
Total shareholders' equity 448,393,737  505,966,874 
898,549,469  907,191,566 
AL MASANE AL KOBRA MINING COMPANY
Statements of Operations
For the nine months ended September 30, 2020 and
years ended December 31, 2019 and 2018

2020 2019 2018
(Expressed in Saudi Riyals)
Revenues 234,872,562  293,811,329  263,377,273 
Costs of revenues 208,980,004  279,645,705  255,313,296 
Operating income 25,892,558  14,165,624  8,063,977 
General and administrative expenses 18,693,047  30,355,423  29,475,998 
Income (loss) from operations 7,199,511  (16,189,799) (21,412,021)
Other income (expense)
Finance charges (4,539,975) (5,436,532) (5,969,821)
Other income (expense) (Note 1) (1,300,258) 2,091,152  323,575 
(5,840,233) (3,345,380) (5,646,246)
Income (loss )before Zakat and income tax 1,359,278  (19,535,179) (27,058,267)
Zakat and income tax (expense) benefit (1,836,865) (6,751,156) 1,824,929 
Net loss (477,587) (26,286,335) (25,233,338)
AL MASANE AL KOBRA MINING COMPANY
Statements of Changes in Shareholders' Equity
(Expressed in Saudi Riyals)
Retained
Earnings
Share Share Treasury (Accumulated
Capital Premium Stock at cost Deficit) Total
Balance at December 31, 2017 780,000,000  37,546,420  —  (187,800,103) 629,746,317 
Issuance of share premium —  2,453,580  —  —  2,453,580 
Conversion of share premium to share capital 40,000,000  (40,000,000) —  —  — 
Net loss —  —  —  (25,233,338) (25,233,338)
Balance at December 31, 2018 820,000,000  —  —  (213,033,441) 606,966,559 
Share repurchase (Note 1) —  —  (74,713,350) —  (74,713,350)
Net loss —  —  —  (26,286,335) (26,286,335)
Balance at December 31, 2019 820,000,000  —  (74,713,350) (239,319,776) 505,966,874 
Share repurchase (Note 1) —  —  (57,095,550) —  (57,095,550)
Net loss —  —  —  (477,587) (477,587)
Balance at September 30, 2020 820,000,000  —  (131,808,900) (239,797,363) 448,393,737 
AL MASANE AL KOBRA MINING COMPANY
Statements of Cash Flows
For the nine months ended September 30, 2020 and
years ended December 31, 2019 and 2018
2020 2019 2018
(Expressed in Saudi Riyals)
Cash flows from operating activities:
Net loss (477,587) (26,286,335) (25,233,338)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization 77,148,251  113,949,259  125,507,864 
Accretion of deferred mine closure costs 405,558  562,211  543,198 
Amortization of deferred finance costs 1,193,100  1,675,135  2,175,902 
Deferred income taxes (4,217,658) 424,873  (7,224,929)
Forfeiture of non-refundable deposit 1,429,670  —  — 
Changes in operating assets and liabilities:
Accounts receivable 20,954,547  (13,408,437) (8,021,219)
Inventories (9,740,484) 10,593,780  (18,644,188)
Advances to contractors and other 29,402,704  (30,884,252) 563,016 
Accounts payable and accrued liabilities (1,919,339) 11,661,674  6,084,327 
Zakat and income tax liability 4,034,655  5,532,026  1,883,327 
End-of-service indemnities 1,149,029  1,231,003  1,131,360 
Net cash provided by operating activities 119,362,446  75,050,937  78,765,320 
Cash flows from investing activities:
Additions to property and equipment (126,838,330) (48,246,282) (28,945,309)
Cash flows from financing activities:
Issuance of share capital and premium —  —  2,453,580 
Payments on capital lease obligations (1,714,305) (1,059,694) (72,788)
Repurchase of treasury stock (55,665,879) (22,151,322) — 
Borrowings from long-term debt 50,000,000  50,000,000  — 
Payments on long-term debt —  (30,000,000) — 
Net advances to shareholders —  (2,859,341) (53,015,844)
Net cash used in financing activities (7,380,184) (6,070,357) (50,635,052)
Increase (decrease) in cash and cash equivalents and restricted cash (14,856,068) 20,734,298  (815,041)
Cash, cash equivalents and restricted cash, beginning of period 52,244,794  31,510,496  32,325,537 
Cash, cash equivalents and restricted cash, end of period 37,388,726  52,244,794  31,510,496 
Supplemental cash flow information
Cash paid for interest 3,346,875  4,428,545  3,927,778 
Cash paid for Zakat and income tax 2,019,868  6,086,073  3,212,813 
Supplemental disclosure of non-cash items
Assets acquired through capital lease obligations —  7,933,140  625,805 
Advances to shareholders applied to treasury stock purchase 1,429,671  52,562,028  —