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

12 Months Ended

Dec. 31, 2016

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

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,
	2016			2015			2014
	(Thousands of Dollars)
Sales	$	9,921		$	50,744		$	63,300
Gross profit (loss)		(17,211	)		(10,437	)		3,624
General, administrative and other expenses		9,690			8,796			10,487
Loss from operations	$	(26,901	)	$	(19,233	)	$	(6,863	)
Gain on settlement with former operator		17,425			-			-
Net loss	$	(9,476	)	$	(19,233	)	$	(6,863	)

Depreciation and amortization for the years ended December 31, 2016, 2015, and 2014 was $11.7 million, $23.2 million and $23.7 million, respectively.  Therefore, net income before depreciation and amortization was as follows:

	Years Ended December 31,
	2016		2015		2014
	(Thousands of Dollars)
Net income before depreciation and amortization	$	2,196	$	4,016	$	16,845

Financial Position

	December 31,
	2016		2015
	(Thousands of Dollars)
Current assets	$	22,860	$	26,078
Noncurrent assets		251,741		255,613
Total assets	$	274,601	$	281,691
Current liabilities	$	8,005	$	22,740
Long term liabilities		82,546		85,450
Shareholders' equity		184,050		173,501
Total liabilities and equity	$	274,601	$	281,691

Equity in Income or Loss of AMAK Reflected on Consolidated Statements of Operation

The equity in the income or loss of AMAK reflected on the consolidated statements of income for the years ended December 31, 2016, 2015, and 2014, is comprised of the following:

	2016			2015			2014
AMAK Net Loss	$	(9,476	)	$	(19,233	)	$	(6,863	)
Zakat tax applicable to Saudi Arabian shareholders only		320			303			-
AMAK Net Loss before Saudi Arabian shareholders’ portion of Zakat	$	(9,156	)	$	(18,930	)	$	(6,863	)
Company’s share of loss reported by AMAK (33.44% beginning July 10, 2016 and  35.25% prior to July 10, 2016)	$	(2,826	)	$	(6,672	)	$	(2,419	)
Amortization of difference between Company’s investment in AMAK
and Company’s share of net assets of AMAK		1,347			1,347			1,347
Equity in loss of AMAK	$	(1,479	)	$	(5,325	)	$	(1,072	)

Shareholders and Percentages Owned

The following table shows AMAK shareholders and percentages owned at December 31, 2016:

Name	Percentage Owned
Various Saudi shareholders		46.73	%
Trecora Resources		33.44	%
Armico		19.51	%
Treasury		0.32	%
Total		100.00	%