Arabian American Development Announces Planned Retirement of CEO Hatem El-Khalidi Effective June 30, 2009; Nicholas Carter Will Be Named to Succeed El-Khalidi as President and CEO
Company Provides Additional Status Update for Saudi Mining Operations and other Corporate Activities
Mr. Carter has been Executive Vice President and Chief Operating Office of Arabian American Development Company and South Hampton Resources since
Mr. El-Khalidi commented, “I am gratified by the progress that is being made at the AMAK mine and look forward to continuing my involvement on the joint venture’s Board of Directors. I have every confidence that Nick is the right person to guide the Company going forward and know that the best interest of the shareholders is always his first priority.
Mr. Carter commented, “Hatem has ably guided the Company and the development of the AMAC joint venture. His dedication to seeing the project come to fruition has helped him overcome innumerable difficult hurdles over the years, and the Company owes him a debt of gratitude for his perseverance and performance. We are now focused on bringing the mine into production in 2010 and reaping the financial benefits of the work that has been done thus far. The change from being a mining development company to being an investor in an operating mining company will require us to re-think our organization and how we move forward to maximize the return for our shareholders. I am honored that the Board of Directors has placed its trust in me to continue directing the Company activities.”
In other action, the Nominating Committee of the ARSD Board of Directors has been charged with proposing desired qualifications to be approved by the Board and reviewing candidates with the goal of appointing an additional Board member and/or Chairman by the next annual shareholder meeting, which will be in late May or June of 2009.
The Board also announced that in view of the 2008 financial performance of the Company, no executive bonuses would be given nor would any stock grants be awarded to executives or Board members for 2008. The Board also voted unanimously to forgo any cash compensation due themselves for 2008 activities. Depending upon committee assignments and attendance, Board members normally receive between
The Company also provided the following updates on the Al-Masane Al-Kobra mining operations:
- Documentation of the mining assets is currently being turned over to the AMAK joint venture.
- All Arabian American employees currently located in the Kingdom will be released by
January 31, 2009and all separation payments will be paid at that time. Employees will be terminated from Arabian American and then may be re-hired as appropriate with AMAK. Many may choose to retire as most are long term employees who have provided mine site security and maintenance over the years and are near retirement age.
- A spokesperson familiar with the Saudi activities of AMAK will be made available on the investor conference calls going forward.
The Company also reiterated that negotiations with a major shareholder to provide “Safety Net” financing has been put on hold. The Company’s confidence is growing that it will not need the additional support and it continues to have discussions with Bank of America concerning any additional need for working capital in the event oil prices rise dramatically or volume climbs as anticipated. The current liquidity position will also allow the Company to pay the above mentioned retirement obligations due its Saudi employees which total approximately
The Company anticipates holding a conference call in
About Arabian American Development Company (ARSD)
Arabian American owns and operates a petrochemical facility located in southeast
Statements in this release that are not historical facts are forward looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward looking statements are based upon management’s belief as well as assumptions made by and information currently available to management. Because such statements are based upon expectations as to future economic performance and are not statements of fact, actual results may differ from those projected. These risks, as well as others, are discussed in greater detail in Arabian American’s filings with the Securities and Exchange Commission, including Arabian American’s annual Report on Form 10-K for the year ended
SOURCE Arabian American Development Co.