٢٠١٩ · (a) portfolio funds the board of directors took the decision to liquidate all the...

2019 السنوي التقرير | )ش.م.ع.ع( الُعمانية الكروم شركة

Annual Report 2019٢٠١٩Working Oman’s numerous quality chrome ore deposits

54

His Majesty Sultan Haitham bin Tarik

OMAN CHROMITE COMPANY (SAOG) | ANNUAL REPORT 2019

Contents

Board of Directors 1

Chairman’s Report 2-3

Profit Dividend & Sales Turnover 4

Brief Extract About the Company 5

Important Events in the History of Oman Chromite Company 6

Auditor’s Report about Corporate Governance Report 7

Corporate Governance Report 8-14

Management Discussion and Analysis Report 15-16

Independent Auditor’s Report 17-21

Statement of Financial Position 22

Statement of Comprehensive Income 23

Statement of Changes in Equity 24

Statement of Cash Flows 25

Notes to the Financial Statements 26-53


Board of Directors

Mr. Ali bin Abdullah Al BadiBoard Deputy Chairman & Audit Committee Chairman

Businessman

Mr. Ibrahim bin Mubarak Al BalushiGeneral Manager

Mr. Rashid bin Saif bin Suliman Al-BimaniBoard Member - R,N&E Committee MemberGeneral Manager - Mwarid Mining Company

Mr. Rashid bin Salim bin Abdullah al ToqiBoard Member - Audit Committee Member

GM of Oman Mining Company

Mr. Qais bin Mohamed bin Moosa Al YousefBoard Chairman

Chairman of Oman Chamber of Commerce and Industry

Mr. Nasser bin Saif bin Khalfan Al MaqbalBoard Member, R,N&E Committee Member

CEO of Oman Mineral Development Company

Mr. Yousef bin Salman bin Baqer Al SalehBoard Member & R,N&E Committee Chairman

Businessman

Mr. Saad bin Saif bin Nasser Al SadiBoard Member & Audit Committee Member

The Directorate General of Investment Director of Government Property Dept.

1


CHAIRMAN’S REPORT

In the name of God, the Grateful, the Merciful

Dear Shareholders,

On behalf of the Board of Directors of Oman Chromite Company (SAOG), I am pleased to present to you the Annual Report on the activities and performance of your Company for the financial year ending 31st December 2019.

1) Production:

The production during the year 2019 was 19,545 MT, as compared with 20,020 MT that has been produced in the year 2018, with decrease of 2.4%.

This was due to the decrease of chromite reserves in the existing sites and the high amount of waste material that must be removed before reaching the chrome ore.

The Board of Directors is using all its efforts to seek licenses for new sites, and has had a number of meetings with the concerned authorities in this regard. We are pleased to inform that we have succeeded in obtaining a mining licence for one mining site and 8 exploration licences which are currently under exploration process. We hereby express our sincere gratitude to the Public Authority for Mining for granting those licenses.

2) Marketing:

Sales for the year 2019 reached 27,087 MT, which is an increase of 86% from the company’s sales reached during 2018 of 14,515 MT. The total quantity sold in domestic market was 2004 MT.

The Company’s total quantity of the Metallurgical ore sales were 72%, and the total sales of the Refractory ore sales were 28%.

The increase in sales this year was due to the increase in demand of the metallurgical chrome ore markets during 2019. Therefore, the Company’s Management has increased the quantity sold of metallurgical grade.

3) Income and Profits:

(A) The total sales of the year 2019 were RO. 2.38 million compared to RO. 1.83 million in 2018, with increase of 30 % from 2018. This is primarily due to increase in quantities sold in 2019.

(B) The operating profit for the year 2019 was RO. 335,399 as compared to RO. 475358 in the year 2018, with decrease of 29.4%. The decrease is mainly attributed to the decrease in sales prices of the Metallurgical chrome ore in the international market, together with the increase of production cost.

(C) Total net profit achieved in 2019 was RO. 346,329 as compared to RO. 463,654 with decrease of 25% from net profits realized in 2018.

4) Investments:

The company’s investments during 2019 are as follows:

(a) Fixed deposits:

The Total interest on fixed deposits during 2019 was R.O 70687 as compared to RO. 63124 during 2018. This increase is due to the higher deposit amount and its interest.

2


(a) Portfolio Funds

The Board of Directors took the decision to liquidate all the portfolios to avoid further losses. However, some of the shares in one of these portfolios were not sold due to lack of trading in those shares.

The company’s portfolios unrealized profits during 2019 was R.O 545 compared to unrealized loss of R.O 357 during 2018.

5) Dividend Policy:

The Company adopts a balanced policy for the distribution of profit, taking into consideration the production conditions, market expectations, the movement of cash flow, and the expectations of the Shareholders. The Board of Directors therefore recommends distribution of dividend to the shareholders with 11% of the paid up capital. The total amount allocated for this is R.O 330,000 and the dividend is 110 Baisa per share.

6) Donations, Grants and the Local Society Development:

The Company continuously supports the community around its operating quarries by constant communication with the offices of the Government, and through the direct interaction with the citizens of the region. The company has made a financial contribution to the value of R.O 23700 during 2019.

7) Thanks And Gratitude:

At the end of the report we wish to express our condolences to ourselves and the Omani people for the demise of the late Sultan Qaboos bin Said bin Taimur the establisher of the Omani renaissance. We also express our loyalty to His Majesty Sultan Haitham bin Tarik May God protect Him and guide him for the benefit of Oman and its People.

Finally, I wish to express my personal thanks and appreciation to the Shareholders for their constant support to the Company, to the company’s customers, Bankers, the members of the Board of Directors for their constructive cooperation, and to the executive management of the company and its employees for all their efforts and we look forward to further success and progress for Oman Chromite Company.

Qais bin Mohammed Al Yousef

Board Chairman

3


!""! !""# !""$ !""% !""& !""' !""( !"") !"*" !"** !"*! !"*# !"*$ !"*% !"*& !"*' !"*( !"*)&"""" '%""" *%"""" !!%""" !$"""" #&"""" !$"""" $%"""" &""""" &""""" #&"""" $%"""" %*"""" #""""" $%"""" $("""" $!"""" ##""""

#'%%!* **"&$## **))#$# *$#)%"( *"&*""! *$))"$# *%*!)'" *'!((!* !!'&'#* !!'#*(* !*'*!*( !*'*!*( *)$*!&' *'%'(#) !!%$#&) !"'$*'* *(#%#&$ !#(*!**

*+ !+ #+ $+ %+ &+ '+ (+ )+ *"+ **+ *!+ *#+ *$+ *%+ *&+ *'+ *(+,-./0+ !""!+ !""#+ !""$+ !""%+ !""&+ !""'+ !""(+ !"")+ !"*"+ !"**+ !"*!+ !"*#+ !"*$+ !"*%+ !"*&+ !"*'+ !"*(+ !"*)+

,-./0+ &""""+ '%"""+ *%""""+ !!%"""+ !$""""+ #&""""+ !$""""+ $%""""+ &"""""+ &"""""+ #&""""+ $%""""+ %*""""+ #"""""+ $%""""+ $(""""+ $!""""+ ##""""+

,-./0+ #'%%!*+ **"&$##+ **))#$#+ *$#)%"(+ *"&*""!+ *$))"$#+ *%*!)'"+ *'!((!*+ !!'&'#*+ !!'#*(*+ !*'*!*(+ !*'*!*(+ *)$*!&'+ *'%'(#)+ !!%$#&)+ !"'$*'*+ *(#%#&$+ !#(*!**+

!""!+ !""#+ !""$+ !""%+ !""&+ !""'+ !""(+ !"")+ !"*"+ !"**+ !"*!+ !"*#+ !"*$+ !"*%+ !"*&+ !"*'+ !"*(+ !"*)+&""""+ '%"""+

*%""""+!!%"""+ !$""""+

#&""""+!$""""+

$%""""+

&"""""+ &"""""+

#&""""+$%""""+

%*""""+

#"""""+

$%""""+ $(""""+$!""""+

##""""+#'%%!*+

**"&$##+**))#$#+

*$#)%"(+

*"&*""!+

*$))"$#+ *%*!)'"+

*'!((!*+

!!'&'#*+ !!'#*(*+!*'*!*(+ !*'*!*(+

*)$*!&'+

*'%'(#)+

!!%$#&)+

!"'$*'*+

*(#%#&$+

!#(*!**+

"+

%"""""+

*""""""+

*%"""""+

!""""""+

!%"""""+

#""""""+

!""!#$#!"%&#

TOTALSALES

DIVIDEND

YEAR

SALES AND DIVIDEND DETAILS

4


The Lord has given the Sultanate of Oman vast various mineral wealth, where Chrome has been discovered in different places in the Sultanate of Oman especially in mountainous areas. About 500 sites of Chrome have been discovered in different

places.

Oman Chromite Company has been established in July 1991 by the Royal Decree No 65/ 91as a joint – stock Company with capital value of R.O. 3,000,000. The main objective of establishing the Company was to exploit economically the mineral wealth especially the Chrome in order to secure the small shareholder’s wealth, and to provide job opportunities for Omanis.

Two types of Chrome ore are produced (Metallurgical & Refractory) and exported to the many countries in the world such as Japan, China, India, Germany, Thailand, South Korea and South Africa.

5


Important EvEnts In thE hIstory of

oman ChromItE Company

No. Year Event1 1991 Issuing of the Royal Decree No. 65/91 for establishing

Oman Chromite Company.

2 1991 Establishing of Oman Chromite Company.

3 1993 Starting production in Al-Ghashabi Mine.

4 1994 Starting production in Zam1 Mine.

5 1994 Starting production in RGR 56 Mine.

6 1994 Starting production in RG12 Mine.

7 1997 Starting production in Zam2 Mine.

8 1999 Starting production in Shams Mine.

9 1999 Fixing and operating the company’s crusher.

10 2003 The company realized the highest quantity sales (42342) tons

11 2004 Issuing of the Royal Decree No. 3/04 to amend some provisions of the Royal Decree No. 65/91.

12 2005 Adding of the company share to the industry’s general index at Capital Market Authority

13 2005 The company was honored by Ministry of Manpower and awarded the distinction shield.

14 2007 Completing the company subscribed capital.

15 2007 Starting production in Mahra Mine.

16 2009 Starting production in Sheik Mine.

17 2014 Starting production in Wasit Mine.

18 2019 Award of one Mining License and 8 Exploration Licenses

6


CORPORATE GOVERNANCE REPORT

1) Company Management Philosophy

The Company is managed in accordance with the approved Internal Regulations, which are made in compliance with the Company’s Regulations and the Code of Corporate Governance which defines the responsibilities of the Board and its committees.

The Board of Oman Chromite Company (SAOG) (“the Company”) complies to adopt and support healthy culture regarding the regulation and managing of the Company. So the members of the Board and the internal committees evaluate to what extent they are committed by procedures and polices connected with this culture and to check that the Company is applying the principles that are provided in the Regulation Charter of joint stock companies and its amendments regarding registered companies in the Muscat Securities Market that are issued by the Capital Market Authority.

2) The Board of Directors

The Board of Directors of the Company is responsible for directing, and supervising the general polices of the Company. These responsibilities include:

- To set up the objectives for the production and sales.

- To approve the strategies that shall be executed to realise these objectives.

- To pursue continuously the executive administration performance of the Company regarding the drawn-up objectives and to what extent it is confined with the executive polices of those objectives.

2.1) Composition and category of directors

The recent Board consists of seven members who have different and various experiences. They are individually and collectively objective and independent.

The representation of the Board for the year 2019 was as follows:-

1. Seven members represent the shareholders.

2. The period of the membership for the elected members is 3 years. They can be re-elected for another period according to the Royal Decree No.3/2004.

The below table shows the representatives post in the Board according to the charter requirements:

Name of the Director Representing Category of the Director

Mr. Qais bin Mohamed bin Moosa Al-Yousef – Chairman Shareholders Non- Executive & Independent

Mr. Ali bin Abdullah bin Ali Al-Badi Vice – Chairman Shareholders Non- Executive & Independent

Mr. Yousef bin Salman bin Baqer Al-Saleh – Member Shareholders Non- Executive & Independent

Mr. Rashid bin Saif bin Suliman Al-Bemani – Member Shareholders Non- Executive & Independent

Mr. Nasser bin Saif bin Khalfan Al Maqbali - Member Shareholders Non- Executive & Independent

Mr. Rashid bin Salim bin Abdullah Al Toqi - Member Shareholders Non- Executive & Independent

Mr. Saed bin Saif bin Nasser Al Sadi - Member Shareholders Non- Executive & Independent

8


2.2) Attendance of each director at the Board meeting and the last AGM

The Company had AGM during 2019:

The AGM was held on 05/03/2019 in Muscat.

The below table shows the Board members attendance to the board meeting and the last AGM:

Name of the Director

Board meeting (Number of meetings attended)

Attended last AGM

05/03/2019 (Yes/No)

Number of other Boards/Committees he/she is a Member

or Chairperson

Mr. Shikhan bin Mohamed Bin Zahran Al Salmi 2 Meetings Yes None

Mr. Qais bin Mohamed bin Moosa Al-Yousef 6 Meetings No 3

Mr. Ali bin Abdullah bin Ali Al-Badi 7 Meetings No None

Mr. Yousef bin Salman bin Baqer Al-Saleh 7 Meetings Yes None

Mr. Rashid bin Saif bin Suliman Al-Bemani 8 Meetings Yes None

Mr. Nasser bin Saif ban Khalfan Al Maqbali 6 Meetings Yes None

Mr. Rashid bin Salim bin Abdullah Al Toqi 8 Meetings Yes None

Mr. Saed bin Saif bin Nasser Al Sadi 8 Meetings Yes None

Note: Board membership changed at the AGM election of new board dated 5/03/2019.

2.3) The Board of Oman Chromite Company (SAOG) has two committees

1- The Audit Committee

2- The Remuneration, Nomination and Executive Affairs Committee

The below table shows the membership of board members in the committees during the year 2019 as follows:

Name of the Director

Board Committees

Audit Committee Remuneration, Nomination and Executive Affairs Committee

Mr. Shikhan Bin Mohamed Bin Zahran Al Salmi - Committee's member before the new formation of the board

Mr. Qais bin Mohamed bin Moosa Al-Yousef Committee's chairman

before the new formation of the board

-

Mr. Ali bin Abdullah bin Ali Al-Badi Chairman -

Mr. Yousef bin Salman bin Baqer Al-Saleh - Chairman

Mr. Rashid bin Saif bin Suliman Al-Bemani - Member

Mr. Nasser bin Saif ban Khalfan Al Maqbali - Member

Mr. Rashid bin Salim bin Abdullah Al Toqi Member -

Mr. Saed bin Saif bin Nasser Al Sadi Member -

9


2.4) Number of board meetings held and dates of meeting

The Board meetings held during the year 2019 are as follows:

Number of meeting Meeting date Meeting Place

First meeting 07-02-2019 Muscat

Second meeting 27-02-2019 Muscat

Third meeting 05-03-2019 Muscat

Fourth meeting 24-04-2019 Muscat

Fifth meeting 24-07-2019 Muscat

Sixth meeting 18-09-2019 Muscat

Seventh meeting 23-10-2019 Muscat

Eighth meeting 22-12-2019 Muscat

2.5) Process of nomination of the directors

The contest for the membership of Oman Chromite Company (SAOG) Board is basically based on the Commercial Companies Law of 2019 of the Sultanate of Oman and the Royal Decree No. 65/91.

3) Hierarchy of top management

Eng. Ibrahim bin Mubarak Al-Balushi, General Manager

B Eng. Civil Engineering from University of Wales and MBA from University of Bedfordshire UK, with over 12 years experience as below:

1. Senior Civil Project Engineer at PDO.

2. Civil Project Engineer at OGC.

3. Civil Project Engineer at PDO.

4) 4) Audit Committee and other Committees

4.1) The Audit Committee

Main functions:-

To check and inform the Board about the quality and efficiency of the internal account system, auditors’ reports and to what extent the fiscal information is accurate and the accounting policies are consistently followed and appropriate.

Terms of reference:

1. Following the role of Audit Committee as per Code of Corporate Governance for MSM listed companies.

2. Internal auditor appointment

3. External auditor appointment advice

4. Discussion and approval of internal audit plan and report

5. Discussion and approval of external audit report and informing the Board of their opinion on that report

10


6. Setting standards for auditing and control

7. The Audit Committee had five meetings during the year 2019 as follows:

Member’s name Post Number of meetings

Mr. Qais bin Mohamed bin Moosa Al-Yousef Committee's chairman before the new formation of the board 1 Meetings

Mr. Ali bin Abdulla bin Ali Al-Badi Chairman 4 Meetings

Mr. Rashid bin Salim bin Abdullah Al Toqi Member 4 Meetings

Mr. Saed bin Saif Bin Nasser Al Sadi Member 5 Meetings

4.2) The Remuneration, Nomination and Executive Affairs Committee

Main Functions:

1. Following are the role of Remuneration, Nomination and Executive Affairs Committee as per the Code of Corporate Governance for MSM listed companies.

2. To supervise the routine works of the Company on behalf of the Board, and to supervise the execution of the internal regulations that regulate the Company’s works such as tender regulation and purchase regulation.

3. To assist the shareholders at the Annual General Meeting in the nomination of proficient directors and the election of the most fit for purpose. Moreover, the committee aims to assist the Board in selecting the appropriate and necessary executives for the executive management.

The Committee had nine meetings during the year 2019

Details of the members and the Committee meetings are as follows:

Member’s Name Post Number of meetings

Mr. Shikhan bin Mohamed bin Zahran Al Salmi Committee's member before the new formation of the board 1 Meeting

Mr. Yousef bin Salman bin Baqer Al-Saleh Chairman 9 Meetings

Mr. Nasser bin Saif bin Khalfan Al Maqbali Member 8 Meetings

Mr. Rashid bin Saif bin Suliman Al-Bemani Member 9 Meetings

5) Remuneration matters

The total annual amount of remuneration and allowances that were paid to the top five senior employees in the high administration level (salaries, allowances, gratuities) amounted to Rial 164,626 (One Hundred Sixty Four Thousand Six Hundred Twenty Six Omani Rials).

Nature of Expense Amount (RO)

Wages 156,375

Bonus 8,251

Total 164,626

11


Employment contracts: Expatriate employees are employed on a two year contracts, renewable on mutually acceptable terms. Notice period is generally 1 month or salary in lieu thereof. No severance terms are specified in the contracts.

The Directors of the Board are paid for attending the board meetings and the details of the Board Committees meetings for 2019 are as follows:

Board Member’s Name

Remuneration of Members Attending the Meeting

Board Meeting

Remuneration, Nomination

and Executive Affairs

Committee

Audit Committee

MeetingTotal (RO)

Mr. Shikhan Bin Mohamed Bin Zahran Al Salmi 950 500 - 2,400

Mr. Qais bin Mohamed bin Moosa Al-Yousef 950 - 700 6,100

Mr. Ali bin Abdullah bin Ali Al-Badi 700 - 650 7,350

Mr. Yousef bin Salman bin Baqer Al-Saleh 700 650 - 10,000

Mr. Rashid bin Saif bin Suliman Al-Bemani 700 500 - 8,900

Mr. Nasser bin Saif bin Khalfan Al Maqbali 700 500 - 7,700

Mr. Rashid bin Salim bin Abdullah Al Toqi 700 - 500 6,900

Mr. Saed bin Saif bin Nasser Al Sadi 700 - 500 8,100

Total 36,650 13,200 7,600 57,450

6) Details of non-compliance by the Company

The Company has never breached the laws provided by the charter or the requirements that are imposed by the supervision authorities, The Company has never been punished for any accusations.

7) Communication with the Shareholders and Investors

The Board of Directors is very careful to spread out the essential information that are connected with the Shareholders and the Investors. The Company has a web-site (www.Omanchromite.com), which provides all information about Company’s products and other different statements.

The quarterly results of the Company’s operations are published in the main Arabic and English newspapers in Oman. The annual report along with fiscal financial statements summary are sent by registered post to the shareholders along with the invitation for the coming Annual General Meeting.

The Company has continuous contact with reporters and investors through the efficient participation in local, regional, international gatherings and forums.

12


8) Market Price statements

High/ low during the financial year with MSM index for industrial sector.

Period High (OMR)

Low (OMR)

MSM Industry Index

January 2019 3.640 3.640 4796.87

February 2019 3.280 3.280 4872.15

March 2019 3.280 3.280 4637.04

April 2019 3.630 3.280 4645.50

May 2019 3.640 3.640 4620.35

June 2019 3.640 3.640 4622.92

July 2019 3.640 3.640 4414.29

August 2019 3.640 3.640 4412.26

September 2019 3.640 3.640 4405.05

October 2019 3.640 3.640 4318.08

November 2019 3.640 3.640 4520.55

December 2019 3.570 3.570 4206.35

9) Dividend for the year 2019

The Board has recommended to distribute profit to the shareholders of 11% for the year 2019 of the capital (Omani Rial 3 million) at the rate of 110 Baiza for each share.

2004 2006 2010 2020

2004 2005 2007 2009 2011 2020

0

0

1

2 Price

Qua

ntity

3

4

500k

13


10) Distribution of the Company’s shareholders allocation

The following are the main shareholders who have (5%) or more shares of the Company’s capital.

Particulars Percentage shareholding

Mineral Development Oman SAOC 15%

Mohammad Moosa Abdullah Al Yousuf 16.06%

Mohamed Al Barwani Holding LLC 13.67%

Oman Mining Company LLC 10%

Al Qurum Establishment LLC 10%

Financial Corporation Co. SAOG (Fincorp) 10.18%

Al Munomh Establishment LLC 5%

Royal Oman Police Pension fund 5%

11) Specific matters regarding the non-compliance with the provisions of regulations and managing the Company

None

12) Professional Profile of the Statutory Auditors

BDO LLC, the statutory auditors of the Company, have been operating in the Sultanate of Oman since 1976. BDO LLC is an independent and legally distinct member firm of BDO International Limited. BDO, globally the fifth largest professional services firm providing industry focused Assurance, Tax and Advisory services, has over 88,000 employees working in a global network of over 1,800 offices situated in 167 countries and territories.

BDO LLC is accredited by the Capital Market Authority to audit public listed companies (SAOGs) in Oman. BDO LLC billed an amount of RO 3,150 towards professional services rendered to the Company for the year 2019.

13) Any other aspects

1. The Board of Directors acknowledge that:

2. The internal control systems are regularly reviewed and comply with internal rules and regulations.

3. The Board of Directors are responsible to ensure that the financial statements have been prepared in accordance with International Financial Reporting Standards issued by the International Accounting Standards Board (IASB), interpretations issued by the International Financial Reporting interpretations Committee (IFRIC) and the requirements of the Commercial Companies Law of 2019 of the Sultanate of Oman and the Rules and Guidelines for Disclosure Requirements prescribed by the Capital Market Authority.

There are no material events affecting the continuation of the Company and its ability to continue its production and operations during the next financial year.

Qais bin Mohamed bin Moosa Al-Yousef

Chairman of the Board

14


Management Discussion and Analysis Report

1 - Introduction

Due to the Company’s efforts and its work in accordance with the instructions and policies drawn by the Board and due to the continuous update with the latest developments in the international market, the company sales has reached R.O 2,381,210 and succeeded in realizing gross profit of R.O 335,399 in 2019.

2 -The Company’s Aims

Oman Chromite Company SAOG was established in July 1991 by the Royal Decree No. (65/91) as a joint stock company with a capital of R.O 3 million. Minerals Development Oman (SAOC) owns 15% of its shares, Mohammad Moosa Abdullah AL Yousuf owns 16%, Mohammed AL Barwani Holding LLC Company owns 13.6%, Oman Mining , Fincorp and Al-Qurum Establishment owns 10% each. The main aim of establishing the company is to exploit the mineral treasure as general and the Chromite ore as particular. The economic exploitation of the ore will benefit the Shareholders and provide job opportunities for the citizens in the mining sector.

Currently the Company extracts two types of chrome ore (Metallurgical and Refractory ore) available from the mines in the north of the Sultanate, and are exported raw or crushed based on the global market demand.

3 - The Company’s Strategy

The company’s future vision starting from the specific aims that enables the company to set up an ambitious strategy in order to develop its works in the field of studying, producing, manufacturing and marketing the mineral treasure particularly the Chromite ore. It aims to develop the company’s works by the ideal exploitation of mining and by following all the strategies that improve the performance of the company.

It also contributes in making the mineral treasure one of the important national income resources in Oman, and to raise the income level of all the shareholders as well as realizing the added value of the products. All efforts are made to improve the employee’s competence and to contribute in supporting the efforts of the government in Omanization.

4 - International Market for Metallurgical and Refractory Chrome Ore:

The total quantity of sales through the year 2019 was about 27087 MT compared to 14,515 MT in the year of 2018. The increase in sales was due to the success of the management in marketing an increased quantity of the metallurgical ore despite the declining world markets. The management has continued its efforts to follow up with international market and succeeded to make several sales contracts during 2019.

5 - Operations:

The production has decreased this year to 19,545 MT compared to 20,020 MT that has been produced in the year 2018. This was due to the high quantities of waste to be removed before reaching the ore in the existing mines.

The company has succeeded in obtaining one mining license however the reserves in the mine was limited and did not help the company to increase the production in 2019. The company is studying 8 new locations authorised for exploration in 2019 and results are expected in 2020.

15


6 - Administration and Staff Affairs:

According to the Board policy of substitution of foreign workers by national workers, the percentage of Omanization reached 77.8% of the total number of the company staff in 2019. The total number of staff reached 61.

The board continues its policy of human resources development. Many employees were sent to attend different administrative and professional training programs that helps them achieving their goals and satisfying the company’s needs.

7 - Investment Projects:

- Bank deposits:

Total interest on bank deposits during 2019 amounted to RO 70686 compared to RO 63,123 as interest on deposits during 2018. The increase in interest on deposits is due to the increase in interest rates on deposits.

Portfolio of Investment in Muscat Securities Market:

The company’s portfolios of shares profit during 2019 was RO. 960 compared to a losses of RO 357 during 2018.

The Board took the decision to close all the portfolios to avoid the high volume of losses.

The management is reviewing the possibility of investing in new market subscriptions which are expected to have a positive impact on the company’s investments.

Ibrahim bin Mubarak Al Balushi

General Manager

16


STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31, 2019

(Expressed in Omani Rial)

22


STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOMEFOR THE YEAR ENDED DECEMBER 31, 2019


23


STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY FOR THE YEAR ENDED DECEMBER 31, 2019


24


STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2019


25


26

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2019(Expressed in Omani Rial)


27

NOTES TO THE FINANCIAL STATEMENTS (continued)FOR THE YEAR ENDED DECEMBER 31, 2019(Expressed in Omani Rial)


28



29



30



31



32



33



34



35



36



37



38



39



40



41



42



43



44



45



46



47



48



49



50



51



52



53


٢٠١٩ · (a) portfolio funds the board of directors took the decision to liquidate all the...

Documents