Consolidated statement of cash flows for the
year ended December 31, 2016

All amounts in Saudi Riyals unless otherwise stated

       Year ended  Year ended
       December 31,  December 31,
     Notes  2016  2015
         
    Operating activities      
    Income before zakat and income tax    478,994,072  854,450,872
    Adjustments for non-cash flow items      
 Allowance for doubtful debts  9,36  312,475  3,200,000  
 (Reversal) / Increase in allowance for inventory obsolescence  10,34  (131,520)  625,666  
 Depreciation  13  2,431,733,140  2,209,631,051  
 Write-off of plant and equipment  13  23,661,182  10,494,925  
 Adjustment  to plant and equipment  13  20,186,947  25,550,171  
 Write-off of capital work-in-progress  14  34,091,444  –  
 Impairment of exploration and evaluation asset  15  –  20,306,493  
 Deferred stripping expense  16  11,177,572  36,589,184  
 Amortization of intangible assets  17  35,728,426  74,118,583  
 Share in net loss of jointly controlled entities  18.1,18.2   73,788,148  91,630,866  
 Provision for severance fees  23  8,278,039  17,934,852  
 Provision for employees’ termination benefits  24.1  80,095,845  79,567,555  
 Contribution for the employees’ savings plan  24.2  26,408,207  23,582,534  
 Accretion of provision for mine closure and reclamation  26.2  1,465,156  1,394,847  
 Inventory loss  34  –  121,212,929  
 Income from short term investments  38  (151,636,138)  (35,583,877)  
 Finance charges  39  824,388,335  449,057,996  
         
   Changes in working capital      
 Trade and other receivables  9  14,697,494  (45,997,665)  
 Inventories  10  (398,280,847)  (622,813,479)  
 Advances and prepayments  11  85,837,265  (25,651,450)  
 Projects and other payables – Trade    20  193,979,981  49,311,794  
 Accrued expenses – Trade  21  (43,782,164)  (104,756,055)  
  Zakat paid  22.2  (44,082,363)  (54,147,978)  
  Severance fees paid  23  (16,103,550)  (31,476,875)  
   Employee s’ termination benefits paid  24.1  (18,801,273)  (29,513,887)
   Employees’ savings plan withdrawal  24.2  (15,874,040)  (10,707,301)
   Provision for mine closure and reclamation utilized  26.1  (2,500,001)  (1,881,991)
   Fiance charges paid    (1,464,625,709)  (891,904,935)
   Net cash generated from operating activities    2,189,006,123  2,214,224,825
         
    Investing activities      
   Income received from short-term investments    144,658,139  27,910,042
   Decrease / (increase) in restricted cash  7  534,022,035  (53,776,258)
   Short-term investments  8  (1,811,947,011)  (375,732,629)
   Due from joint venture partners  12  720,000,000  –
   Additions to property, plant and equipment  13  (55,461,920)  (293,475,275)
   Additions to capital work-in-progress  14  (8,017,917,270)  (13,122,022,226)
    Additions to exploration and evaluation assets  15  (36,569,955)  (80,181,699)
    Additions ions to deferred stripping expense  16  (44,348,857)  (31,679,192)
    Additions to intangible assets  17  (1,285,986)  (3,992,516)
    Projects and other payables – Projects  20  176,158,014  659,457,256
    Accrued expenses – Projects  21  (1,854,673,101)  2,066,960,240
    Net cash utilized in investing activities    (10,247,365,912)  (11,206,532,257)
                 
     Year ended  Year ended
     December 31,  December 31,
   Notes  2016  2015
  Financing activities      
 Due from SABIC  9  (28,807,037)  –
 Obligation under capital lease  25  (12,381,256)  (10,948,976)
 Proceeds from long-term borrowings received  27.6  22,599,305,720  6,475,610,600
 Repayment of long-term borrowings  27.6  (14,059,224,385)  (6,004,221,579)
  Due to joint venture partner  28  6,086,750  (257,610,514)
 Payments to increase share capital by non-controlling interest, net  32.6  –  50,043,112
  Increase in share capital of non-controlling interest  32.6  600,000,000  1,350,000,000
  Dividend paid to non-controlling interest  32.6  (451,192,963)  (330,000,000)
  Net cash generated from financing activities    8,653,786,829  1,272,872,643
  Net change in cash and cash equivalents    595,427,040  (7,719,434,789)
  Unrestricted cash and cash equivalents at beginning of the year  7  3,714,946,268  11,434,381,057
  Unrestricted cash and cash equivalents at end of the year  7  4,310,373,308  3,714,946,268
       
  Non-cash flow transactions      
  Transfer of capital spares to property, plant & equipment from inventories  13,10  223,886,537
  Transfer to property, plant and equipment from capital work-in-progress  

 13,14

 14,457,146,382  321,532,962
  Provision for mine closure capitalized as part of property, plant and equipment  13, 26.1,  26.3  –  1,053,288
  Depreciation capitalized as part of capital-work-in-progress  14,13  55,551,096  63,439,623
  Transfer to capital work-in-progress from exploration and evaluation assets  14,15  –  2,147,943
  Amortization capitalized as part of capital-work-in-progress  14,17  9,576,144  5,729,831
   Provision for mine closure and reclamation capitalized as part of capital-work- in-progress  14, 26.1  –  26,250,000
 Amortization of transaction cost capitalized as part of capital work-in-progress  14, 27.2  36,551,710  15,729,190
  Borrowing cost capitalized as part of capital work-in-progress  14, 39.1  647,205,389  443,009,951
  Transfer to intangible assets from property, plant and equipment  17,13  –  885,255
  Transfer to intangible assets from capital work-in-progress  17,14  40,715,230  37,520,660
  Transfer from payments to increase share capital to share capital pertaining to non-controlling interest  32.6  –  83,278,002