MIRA
INFORM REPORT
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Report Date : |
1st
June 2006 |
IDENTIFICATION
DETAILS
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Name : |
FIRST
QUANTUM MINERALS ZAMBIA LTD |
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Registered Office : |
Bwana
Mkubwa Copper Mine 71785,
Ndola Zambia |
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Country : |
Zambia |
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Financials (as on) : |
2004 |
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Date of Incorporation : |
1997 |
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Legal Form : |
Private
Limited Liability Company |
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Line of Business : |
Operators
of copper mine in Zambia |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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Status : |
Satisfactory
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
CO. NAME
FIRST
QUANTUM MINERALS ZAMBIA LTD
ADDRESS
Care
of : Bwana Mkubwa Copper Mine
P.O.
Box : 71785
Town : Ndola
Country
: Zambia
Telephone :
(260 2) 655050 / 247410 / 655 433 / 620058 / (260) 96990581
Fax : (260 2) 655399
E-Mail : info@first-quantum.com /
matt.pascall@fqml.com
Shortform
Name : FQMZ
Also
Known As : FQM Zambia Limited
SENIOR COMPANY PERSONNEL
Name Position
1.
Philip K.R. Pascall Chairman & CEO
2.
Clive Newall President & Director
3.
Martin R. Rowley Director
4.
R. Stuart Angus Director
5.
Robert A. Watts Director
6.
Rupert Pennant-Rea Director
7.
Peter St George Director
8.
Matt Pascall General Manager
Total
Employees : 1,000 plus
PAYMENTS
No
complaints have been heard regarding payments from local suppliers or banks.
Subject
is a subsidiary of First Quantum Minerals Ltd, in Canada.
We
consider it is acceptable to deal with subject for MEDIUM amounts.
Opinion
on maximum credit : KWACHA 1,000,000,000 (associations inspire confidence for higher
amounts if required).
Trade
risk assessment : Normal
It
is normal accepted practice for international suppliers to deal on secured
terms with Zambian importers.
PRINCIPAL BANKERS
NAME : STANDARD CHARTERED BANK ZAMBIA LIMITED
Branch : Main Branch (and a branch in Ndola)
PO
Box : 31934
Town : Lusaka
Telephone:
(260 1) 229242
Fax : (260 1) 222092
FINANCIAL INFORMATION
Balance
sheets are not available and the subject interviewed declined to give any
financial information, which the company regards as strictly confidential.
Consolidated
Balance Sheets of First Quantum Minerals Ltd as at 31
December
2004 showed :
2004 2003
(in thousands of US DLRS)
Assets
Current
assets
Cash and
cash equivalents
50,356 25,592
Restricted
cash
1,931 -
Accounts
receivable and prepaid expenses
21,927 4,441
Inventory 31,674
17,576
105,888 47,609
Investments 15,340 12,632
Exploration
properties
444 2,242
Property,
plant and equipment
319,222 96,603
Other
assets and deferred charges
32,167 3,049
473,061 162,135
Liabilities
Current
liabilities
Accounts
payable and accrued liabilities
33,884 17,737
Current
taxes payable
3,248 -
Current
portion of long-term debt
22,865 12,993
Current
portion of other liabilities
12,012 3,333
72,009 34,063
Long-term
debt
191,661 32,374
Asset
retirement obligations
3,762 4,182
Other
liabilities
33,286 3,114
Future
income tax liability
12,313 4,589
313,031 78,322
Minority
interests
2,190 2,190
315,221 80,512
Shareholders’
Equity
Equity
accounts 161,776 113,102
Deficit
(3,936) (31,479)
157,840 81,623
473,061 162,135
Consolidated
Statements of Operations and Deficit
Revenues
Copper
103,352 49,419
Acid
10,171 11,035
113,523 60,454
Costs and
expenses
Cost of
sales
53,770 41,299
Depletion
and amortization
10,873 7,761
Exploration 3,063 620
Foreign
exchange loss
260 969
General
and administrative
6,171 2,852
Interest
and financing fees
on
long-term debt
3,040 1,759
Other
income
(985) (419)
76,192 54,841
Earnings
before income taxes
and
equity earnings
37,331 5,613
Income
taxes
11,006 1,397
Equity
earnings
1,685 366
Net earnings
for the year
28,010 4,582
Deficit -
Beginning of year
(31,479) (36,061)
Prior
period restatement
(stock-based
compensation)
(467) -
Deficit -
End of year (3,936)
(31,479)
LEGAL STATUS AND HISTORY
Date
Started : 1997
Paid
up Capital : not given
Private
Limited Liability Company with the following sole shareholder :
First
Quantum Minerals Ltd 100%
Suite
450
800
West Pender Street
Vancouver
V6C
2V6
Canada
Tel
: (1 604) 688 6577
Fax
: (1 604) 688 3818
Affiliated
companies of First Quantum Minerals Zambia Ltd :
Associates
1.
Bwana Mkubwa Mining Ltd
PO Box 71785
Ndola
Tel: (260 2) 655 050
Fax: (260 2) 655 399
2.
Mopani Copper Mines Plc
Central Avenue
Kitwe
Tel: (260 2) 247 000
3.
Compagnie Miniere de Sakania (COMISA)
88 Kabalo Street
Lubumbashi
Democratic Republic of Congo
Tel: (243) 814 0000 51 / 970 31 133
E-mail: firstquantum_congo@hotmail.com
ACTIVITIES
The
Company is involved in the following activities :
Operators
of copper mine in Zambia.
FACILITIES
The
Company has the following facilities :
Administrative
offices situated in Zambia.
SPECIAL NOTE
Interviewed
: Subject.
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No
caution needed for credit transaction. It has above average (strong)
capability for payment of interest and principal sums |
Large |
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56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of
interest and principal sums in default or expected to be in default upon
maturity |
Limited with full security |
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<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |