INVESTMENT IN AL MASANE AL KOBRA MINING COMPANY (AMAK) (Tables)

12 Months Ended

Dec. 31, 2012

INVESTMENT IN AL MASANE AL KOBRA MINING COMPANY ("AMAK") [Abstract]

The Company accounted for its contribution of these assets to AMAK, net of the $11 million liability, as the contribution of non-monetary assets to a joint venture, and recorded the transfer based on the lower of the cost or market value of the transferred assets. The Company determined that cost was less than market value, with market value being based on the contribution of cash of $60 million by the other investors in AMAK in exchange for their 50% interest. In addition, the Company confirmed that market value was greater than cost based on the cash flow projections based on the proven reserves and market mineral prices. The Company's initial investment in AMAK was comprised of the following:

	(thousands of dollars)
Accumulated costs of mineral Interests in Saudi Arabia	$	40,290
Contribution of AMAK organization costs		3,712
Loan payable assumed by AMAK		(11,000	)
Net initial investment in AMAK	$	33,002

Summarized Results of Operation and Financial Position for AMAK

The summarized results of operation and financial position for AMAK are as follows:

Results of Operations

	Years Ended December 31,
	2012			2011			2010
	(Restated – see Note 3)
	(Thousands of Dollars)
Sales	$	15,594		$	-		$	-
Gross Profit		3,825			-			-
General, administrative and other expenses		6,328			2,621			2,130
Net Income (loss)	$	(2,503	)	$	(2,621	)	$	(2,130	)

Financial Position

	December 31,
	2012		2011
	(Thousands of Dollars)
Current assets	$	32,827	$	26,489
Noncurrent assets		261,620		241,977
Total assets	$	294,447	$	268,466

Current liabilities	$	135,111	$	69,352
Long term liabilities		9,260		46,536
Shareholders' equity		150,076		152,578
	$	294,447	$	268,466

Equity in Income or Loss of AMAK Reflected on Consolidated Statement Of Operation

The equity in the income or loss of AMAK reflected on the consolidated statement of operations for the years ended December 31, 2012, 2011, and 2010, is comprised of the following:

	2012			2011		2010
Company's share of loss reported by AMAK	$	885		$	1,018	$	874
Amortization of difference between Company's investment in AMAK
and Company's share of net assets of AMAK		(674	)		-		-
Equity in loss of AMAK	$	211		$	1,018	$	874