Annual report pursuant to Section 13 and 15(d)

AMAK ACCOUNTS PAYABLE, ACCRUED LIABILITIES AND FORGIVENESS OF LIABILITIES

v3.19.1
AMAK ACCOUNTS PAYABLE, ACCRUED LIABILITIES AND FORGIVENESS OF LIABILITIES
12 Months Ended
Dec. 31, 2018
Schedule of Equity Method Investments [Line Items]  
ACCOUNTS PAYABLE, ACCRUED LIABILITIES AND FORGIVENESS OF LIABILITIES
ACCRUED LIABILITIES
Accrued liabilities at December 31 are summarized as follows:
 
2018

 
2017

 
(thousands of dollars)
Accrued state taxes
$
210

 
$
272

Accrued payroll
936

 
1,407

Accrued interest
31

 
30

Accrued officer compensation

 
500

Accrued restructuring & severance expenses (Note 21)
1,221

 

Accrued foreign taxes
802

 

Other liabilities
2,239

 
1,752

Total
$
5,439

 
$
3,961

AMAK  
Schedule of Equity Method Investments [Line Items]  
ACCOUNTS PAYABLE, ACCRUED LIABILITIES AND FORGIVENESS OF LIABILITIES
Accounts Payable, Accrued Liabilities and Forgiveness of Liabilities
Accounts payable and accrued liabilities consisted of the following at:
 
December 31,
 
2018

 
2017

Accounts payable and accrued liabilities
26,925,170

 
17,858,012

Other
381,763

 
2,802,493

Accrued salaries and payroll expenses
1,450,012

 
2,012,113

 
 
 
 
 
28,756,945


22,672,618


On March 31, 2016, the Company entered into finalization and discharge memorandums of understanding (MOU’s) with their former mine operator CGM and subcontractor Nesma where certain contracts were cancelled. These contracts included the EPC Surface Works Contract and Subcontract (CGM/NESMA) dated November 26, 2007, the Underground Mining Contract (CGM) dated June 29, 2010, the 1st Surface Works O&M Contract (CGM) dated July 3, 2011, and the 2nd Surface Works O&M Contract (CGM) dated November 3, 2014 (collectively, the Contracts).

The MOU’s were binding agreements between the Company, CGM and Nesma. All of CGM’s spare parts on site related to the Contracts reverted to and became the property of the Company. CGM received payment of approximately SR4,500,000 and forfeited their rights to the spare parts that had an economic value of approximately SR34,477,500. The spare parts were recorded at SR4,500,000 and were included in property and equipment, net on the balance sheets. Under the MoU’s, CGM and Nesma did not receive any further payments from the Company as full settlement against the deterioration of property, plant and equipment which exceeded normal wear and tear and any other breach of contracts. In recognition of certain financial losses incurred by the Company, CGM and NESMA forfeited the recovery of all remaining amounts due under the Contracts. The total amounts of liabilities recorded on the Company’s books as of March 31, 2016 were approximately SR65,345,000 which were written off to other income on the statement of operations for the year ended December 31, 2016. There were no outstanding or unresolved claims and all parties have fulfilled their obligations in connection with the Contracts.