FINANCIAL STATEMENTS |
AL MASANE AL KOBRA MINING COMPANY
Balance Sheets
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September 30, |
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December 31, |
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2020 |
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2019 |
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(Expressed in Saudi Riyals) |
ASSETS |
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Current assets: |
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Cash and cash equivalents |
29,452,821 |
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52,244,794 |
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Restricted cash (Note 1) |
7,935,905 |
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— |
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Accounts receivable, net |
8,688,925 |
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29,643,472 |
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Inventories |
45,017,824 |
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35,277,340 |
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Advances to shareholders (Note 1) |
— |
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2,859,341 |
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Advances to contractors and other |
20,650,315 |
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50,053,018 |
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Total current assets |
111,745,790 |
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170,077,965 |
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Non-current assets: |
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Property and equipment, net |
683,014,705 |
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610,634,432 |
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Development costs, net |
98,939,725 |
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121,267,664 |
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Deferred mine closure costs |
4,849,249 |
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5,211,505 |
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Total non-current assets |
786,803,679 |
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737,113,601 |
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898,549,469 |
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907,191,566 |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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Current liabilities: |
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Accounts payable and accrued liabilities |
38,499,280 |
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40,418,619 |
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Zakat and income tax liability |
14,966,681 |
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10,932,026 |
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Capital lease obligation, current portion |
2,479,480 |
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2,318,301 |
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Long-term debt, current portion |
97,500,000 |
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50,000,000 |
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Total current liabilities |
153,445,441 |
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103,668,946 |
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Non-current liabilities |
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Provision for mine closure costs |
17,030,905 |
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16,625,347 |
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Capital lease obligation, net of current portion |
2,022,518 |
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3,898,002 |
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Long-term debt, net of current portion and |
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deferred finance costs |
271,626,947 |
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267,933,847 |
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End-of-service indemnities |
6,029,921 |
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4,880,892 |
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Deferred income taxes |
— |
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4,217,658 |
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Total non-current liabilities |
296,710,291 |
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297,555,746 |
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AL MASANE AL KOBRA MINING COMPANY
Balance Sheets - (Continued)
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September 30, |
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December 31, |
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2020 |
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2019 |
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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 |
(131,808,900) |
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(74,713,350) |
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Accumulated deficit |
(239,797,363) |
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(239,319,776) |
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Total shareholders' equity |
448,393,737 |
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505,966,874 |
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898,549,469 |
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907,191,566 |
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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
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2020 |
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2019 |
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2018 |
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(Expressed in Saudi Riyals) |
Revenues |
234,872,562 |
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293,811,329 |
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263,377,273 |
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Costs of revenues |
208,980,004 |
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279,645,705 |
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255,313,296 |
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Operating income |
25,892,558 |
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14,165,624 |
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8,063,977 |
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General and administrative expenses |
18,693,047 |
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30,355,423 |
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29,475,998 |
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Income (loss) from operations |
7,199,511 |
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(16,189,799) |
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(21,412,021) |
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Other income (expense) |
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Finance charges |
(4,539,975) |
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(5,436,532) |
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(5,969,821) |
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Other income (expense) (Note 1) |
(1,300,258) |
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2,091,152 |
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323,575 |
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(5,840,233) |
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(3,345,380) |
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(5,646,246) |
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Income (loss )before Zakat and income tax |
1,359,278 |
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(19,535,179) |
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(27,058,267) |
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Zakat and income tax (expense) benefit |
(1,836,865) |
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(6,751,156) |
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1,824,929 |
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Net loss |
(477,587) |
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(26,286,335) |
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(25,233,338) |
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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 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 (Note 1) |
— |
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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) |
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505,966,874 |
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Share repurchase (Note 1) |
— |
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— |
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(57,095,550) |
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— |
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(57,095,550) |
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Net loss |
— |
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— |
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— |
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(477,587) |
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(477,587) |
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Balance at September 30, 2020 |
820,000,000 |
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— |
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(131,808,900) |
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(239,797,363) |
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448,393,737 |
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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
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2020 |
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2019 |
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2018 |
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(Expressed in Saudi Riyals) |
Cash flows from operating activities: |
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Net loss |
(477,587) |
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(26,286,335) |
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(25,233,338) |
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Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
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Depreciation and amortization |
77,148,251 |
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113,949,259 |
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125,507,864 |
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Accretion of deferred mine closure costs |
405,558 |
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562,211 |
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543,198 |
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Amortization of deferred finance costs |
1,193,100 |
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1,675,135 |
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2,175,902 |
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Deferred income taxes |
(4,217,658) |
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424,873 |
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(7,224,929) |
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Forfeiture of non-refundable deposit |
1,429,670 |
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— |
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— |
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Changes in operating assets and liabilities: |
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Accounts receivable |
20,954,547 |
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(13,408,437) |
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(8,021,219) |
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Inventories |
(9,740,484) |
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10,593,780 |
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(18,644,188) |
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Advances to contractors and other |
29,402,704 |
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(30,884,252) |
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563,016 |
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Accounts payable and accrued liabilities |
(1,919,339) |
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11,661,674 |
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6,084,327 |
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Zakat and income tax liability |
4,034,655 |
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5,532,026 |
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1,883,327 |
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End-of-service indemnities |
1,149,029 |
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1,231,003 |
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1,131,360 |
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Net cash provided by operating activities |
119,362,446 |
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75,050,937 |
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78,765,320 |
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Cash flows from investing activities: |
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Additions to property and equipment |
(126,838,330) |
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(48,246,282) |
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(28,945,309) |
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Cash flows from financing activities: |
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Issuance of share capital and premium |
— |
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— |
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2,453,580 |
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Payments on capital lease obligations |
(1,714,305) |
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(1,059,694) |
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(72,788) |
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Repurchase of treasury stock |
(55,665,879) |
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(22,151,322) |
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— |
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Borrowings from long-term debt |
50,000,000 |
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50,000,000 |
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— |
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Payments on long-term debt |
— |
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(30,000,000) |
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— |
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Net advances to shareholders |
— |
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(2,859,341) |
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(53,015,844) |
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Net cash used in financing activities |
(7,380,184) |
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(6,070,357) |
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(50,635,052) |
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Increase (decrease) in cash and cash equivalents and restricted cash |
(14,856,068) |
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20,734,298 |
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(815,041) |
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Cash, cash equivalents and restricted cash, beginning of period |
52,244,794 |
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31,510,496 |
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32,325,537 |
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Cash, cash equivalents and restricted cash, end of period |
37,388,726 |
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52,244,794 |
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31,510,496 |
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Supplemental cash flow information |
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Cash paid for interest |
3,346,875 |
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4,428,545 |
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3,927,778 |
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Cash paid for Zakat and income tax |
2,019,868 |
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6,086,073 |
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3,212,813 |
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Supplemental disclosure of non-cash items |
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Assets acquired through capital lease obligations |
— |
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7,933,140 |
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625,805 |
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Advances to shareholders applied to treasury stock purchase |
1,429,671 |
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52,562,028 |
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— |
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