C Si Ni Cr V Ti Ta Sc Li Sr Zr Fe Cu Zn Sn B Al Ce U Mn Mo Nb Sb

7. Receivables from associates and related parties
On December 11, 2009, the Company loaned $5,000 to
Timminco’s wholly-owned subsidiary, Bécancour Silicon
Inc. (“Bécancour”), in exchange for a convertible senior
subordinated promissory note (“Convertible Note”).
The Convertible Note accrued interest at 12%, payable
quarterly in arrears. On December 15, 2010, the Company
amended the terms of the Convertible Note through an
amended convertible senior subordinated promissory
note (“Amended Convertible Note”). The Amended
Convertible Note bears interest at 14%, payable quarterly
in arrears starting December 31, 2010 and matures on
January 3, 2014. The full principal amount is convertible
into common shares of Timminco, at AMG’s option at any
time, at a conversion price of C$0.26 per share, subject
to customary anti-dilution adjustments. Both the original
and the Amended Convertible notes were accounted for
as hybrid instruments with the note and the equity option
being valued separately. See note 14 for valuation of the
option. The value of the note was $71 as at December 31,
2010 (December 31, 2009:$3,094).
All interest owed related to the Amended Convertible Note
was paid as of December 31, 2010. At December 31, 2009,
interest receivable related to the original note was $34.
Trade and related party receivables of $19,273 (2009:
$11,626) primarily represents interest owed to the
Company on loans due from subsidiaries ($8,935) and
management fees owed ($6,760). The remainder of the
balance is comprised of amounts owed by subsidiaries
that represent expenses paid for by AMG and billed back
to the subsidiaries.
8. Prepayments
At December 31, 2010 and 2009, prepayments
primarily represent prepaid insurance and prepaid rent
for the Company.
9. Cash and cash equivalents
Bank balances earn interest at floating rates based on
daily bank deposit rates.
Parent Company Financial Statements 143