INVESTMENT IN AL MASANE AL KOBRA MINING COMPANY ("AMAK")
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Sep. 30, 2014
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INVESTMENT IN AL MASANE AL KOBRA MINING COMPANY ("AMAK") [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVESTMENT IN AL MASANE AL KOBRA MINING COMPANY ("AMAK") |
13. INVESTMENT IN AL MASANE AL KOBRA MINING COMPANY (“AMAK”)
As of September 30, 2014, and December 31, 2013, the Company had a non-controlling equity interest (35%) of approximately $53.4 million and $54.1 million, respectively. This investment is accounted for under the equity method. There were no events or changes in circumstances that may have an adverse effect on the fair value of our investment in AMAK at September 30, 2014.
AMAK’s financial statements were prepared in the functional currency of AMAK which is the Saudi Riyal (SR). In June 1986 the SR was officially pegged to the U. S. Dollar (USD) at a fixed exchange rate of 1 USD to 3.75 SR.
The summarized results of operation and financial position for AMAK are as follows:
Results of Operations
Financial Position
The equity in the income or loss of AMAK reflected on the consolidated statement of income for the three and nine months ended September 30, 2014, and 2013, is comprised of the following:
At December 31, 2013, we had an outstanding advance to AMAK of approximately $0.5 million for interim funding on a short term basis. The entire balance owed was paid in the second quarter of 2014; therefore, at September 30, 2014, there was no amount outstanding.
See our Annual Report on Form 10-K for the year ended December 31, 2013, for additional information.
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