AMAK FINANCIAL STATEMENTS

12 Months Ended

Dec. 31, 2020

AMAK

Schedule of Equity Method Investments [Line Items]

FINANCIAL STATEMENTS

AL MASANE AL KOBRA MINING COMPANY

Balance Sheets

	September 30,	December 31,
	2020	2019
	(Expressed in Saudi Riyals)
ASSETS
Current assets:
Cash and cash equivalents	29,452,821	52,244,794
Restricted cash (Note 1)	7,935,905	—
Accounts receivable, net	8,688,925	29,643,472
Inventories	45,017,824	35,277,340
Advances to shareholders (Note 1)	—	2,859,341
Advances to contractors and other	20,650,315	50,053,018
Total current assets	111,745,790	170,077,965
Non-current assets:
Property and equipment, net	683,014,705	610,634,432
Development costs, net	98,939,725	121,267,664
Deferred mine closure costs	4,849,249	5,211,505
Total non-current assets	786,803,679	737,113,601
	898,549,469	907,191,566
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities	38,499,280	40,418,619
Zakat and income tax liability	14,966,681	10,932,026
Capital lease obligation, current portion	2,479,480	2,318,301
Long-term debt, current portion	97,500,000	50,000,000
Total current liabilities	153,445,441	103,668,946
Non-current liabilities
Provision for mine closure costs	17,030,905	16,625,347
Capital lease obligation, net of current portion	2,022,518	3,898,002
Long-term debt, net of current portion and
deferred finance costs	271,626,947	267,933,847
End-of-service indemnities	6,029,921	4,880,892
Deferred income taxes	—	4,217,658
Total non-current liabilities	296,710,291	297,555,746

AL MASANE AL KOBRA MINING COMPANY

Balance Sheets - (Continued)

	September 30,	December 31,
	2020	2019
	(Expressed in Saudi Riyals)
Commitments and contingencies (Note 14)
Shareholders' equity
Share capital	820,000,000	820,000,000
Share premium	(131,808,900)	(74,713,350)
Accumulated deficit	(239,797,363)	(239,319,776)
Total shareholders' equity	448,393,737	505,966,874
	898,549,469	907,191,566

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

	2020	2019	2018
	(Expressed in Saudi Riyals)
Revenues	234,872,562	293,811,329	263,377,273
Costs of revenues	208,980,004	279,645,705	255,313,296
Operating income	25,892,558	14,165,624	8,063,977
General and administrative expenses	18,693,047	30,355,423	29,475,998
Income (loss) from operations	7,199,511	(16,189,799)	(21,412,021)
Other income (expense)
Finance charges	(4,539,975)	(5,436,532)	(5,969,821)
Other income (expense) (Note 1)	(1,300,258)	2,091,152	323,575
	(5,840,233)	(3,345,380)	(5,646,246)
Income (loss )before Zakat and income tax	1,359,278	(19,535,179)	(27,058,267)
Zakat and income tax (expense) benefit	(1,836,865)	(6,751,156)	1,824,929
Net loss	(477,587)	(26,286,335)	(25,233,338)

AL MASANE AL KOBRA MINING COMPANY

Statements of Changes in Shareholders' Equity

	(Expressed in Saudi Riyals)
				Retained
				Earnings
	Share	Share	Treasury	(Accumulated
	Capital	Premium	Stock at cost	Deficit)	Total
Balance at December 31, 2017	780,000,000	37,546,420	—	(187,800,103)	629,746,317
Issuance of share premium	—	2,453,580	—	—	2,453,580
Conversion of share premium to share capital	40,000,000	(40,000,000)	—	—	—
Net loss	—	—	—	(25,233,338)	(25,233,338)
Balance at December 31, 2018	820,000,000	—	—	(213,033,441)	606,966,559
Share repurchase (Note 1)	—	—	(74,713,350)	—	(74,713,350)
Net loss	—	—	—	(26,286,335)	(26,286,335)
Balance at December 31, 2019	820,000,000	—	(74,713,350)	(239,319,776)	505,966,874
Share repurchase (Note 1)	—	—	(57,095,550)	—	(57,095,550)
Net loss	—	—	—	(477,587)	(477,587)
Balance at September 30, 2020	820,000,000	—	(131,808,900)	(239,797,363)	448,393,737

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

	2020	2019	2018
	(Expressed in Saudi Riyals)
Cash flows from operating activities:
Net loss	(477,587)	(26,286,335)	(25,233,338)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	77,148,251	113,949,259	125,507,864
Accretion of deferred mine closure costs	405,558	562,211	543,198
Amortization of deferred finance costs	1,193,100	1,675,135	2,175,902
Deferred income taxes	(4,217,658)	424,873	(7,224,929)
Forfeiture of non-refundable deposit	1,429,670	—	—
Changes in operating assets and liabilities:
Accounts receivable	20,954,547	(13,408,437)	(8,021,219)
Inventories	(9,740,484)	10,593,780	(18,644,188)
Advances to contractors and other	29,402,704	(30,884,252)	563,016
Accounts payable and accrued liabilities	(1,919,339)	11,661,674	6,084,327
Zakat and income tax liability	4,034,655	5,532,026	1,883,327
End-of-service indemnities	1,149,029	1,231,003	1,131,360
Net cash provided by operating activities	119,362,446	75,050,937	78,765,320
Cash flows from investing activities:
Additions to property and equipment	(126,838,330)	(48,246,282)	(28,945,309)
Cash flows from financing activities:
Issuance of share capital and premium	—	—	2,453,580
Payments on capital lease obligations	(1,714,305)	(1,059,694)	(72,788)
Repurchase of treasury stock	(55,665,879)	(22,151,322)	—
Borrowings from long-term debt	50,000,000	50,000,000	—
Payments on long-term debt	—	(30,000,000)	—
Net advances to shareholders	—	(2,859,341)	(53,015,844)
Net cash used in financing activities	(7,380,184)	(6,070,357)	(50,635,052)
Increase (decrease) in cash and cash equivalents and restricted cash	(14,856,068)	20,734,298	(815,041)
Cash, cash equivalents and restricted cash, beginning of period	52,244,794	31,510,496	32,325,537
Cash, cash equivalents and restricted cash, end of period	37,388,726	52,244,794	31,510,496
Supplemental cash flow information
Cash paid for interest	3,346,875	4,428,545	3,927,778
Cash paid for Zakat and income tax	2,019,868	6,086,073	3,212,813
Supplemental disclosure of non-cash items
Assets acquired through capital lease obligations	—	7,933,140	625,805
Advances to shareholders applied to treasury stock purchase	1,429,671	52,562,028	—