MIRA
INFORM REPORT
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Report Date : |
1st
June 2006 |
IDENTIFICATION
DETAILS
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Name : |
FIRST
QUANTUM MINING & OPERATIONS |
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Registered Office : |
71785,
Ndola Zambia |
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Country : |
Zambia |
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Financials (as on) : |
31/12/2005 |
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Date of Incorporation : |
1990 |
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Legal Form : |
Private
Limited Liability Company |
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Line of Business : |
Engaged
in copper mining |
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 MINING & OPERATIONS LTD (Correct)
FIRST
QUANTUM MINING & OPERATIONS (Requested)
ADDRESS
P.O.
Box : 71785
Town : Ndola
Country : Zambia
Telephone :
(260 1) 651 555 - 8
Fax : (260 1) 651 555
Shortform
Name : FQMO
SENIOR COMPANY PERSONNEL
Name Position
1.
Philip K.R Pascall Group Chairman
and Chief Executive Officer
2.
Doreen Nakazwe Company Secretary
Total
Employees : 500 plus
PAYMENTS
No
complaints have been heard regarding payments from local suppliers or banks.
Subject
is a wholly owned subsidiary of First Quantum Minerals Ltd. of Canada which is
engaged in the production of copper, gold and acid and related activities
including exploration, development and
processing.
These activities are conducted principally in Zambia, the Democratic Republic
of Congo and Mauritania.
Ownership
inspires confidence and we consider it is acceptable to deal with subject for
MEDIUM amounts.
Opinion
on maximum credit : KWACHA 400,000,000 (higher amount may be considered with
assutances of the parent company)
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
PO
Box : 31934
Town : Ndola
Telephone:
(260 2) 239 242
Fax : (260 2) 232 092
FINANCIAL INFORMATION
Balance
sheets are not available and the subject interviewed declined to give any
financial information, which the company regards as strictly confidential.
The
following consolidated Balance sheet information as at 31 December 2005 applies
to First Quantum Minerals Ltd Canada, subjects parent company.
31
Dec 2005 31 Dec 2004
ASSETS (In thousands of US Dollars)
Current
assets
Cash and
cash equivalents
82,910 50,356
Restricted
cash 20,162
1,931
Accounts
receivable and prepaid expenses 70,444
21,927
Inventory 60,854 31,674
234,370 105,888
Investments 9,522 15,340
Property,
plant and equipment
471,294 319,222
Other
assets
31,325 32,611
746,511 473,061
LIABILITIES
Current
liabilities
Accounts
payable & accrued liabilities
63,492 33,474
Current
taxes payable
16,055 3,248
Other
current liabilities
78,632 35,287
158,179 72,009
Long-term
debt
176,767 191,661
Other
liabilities
34,340 37,048
Future
income tax liability
43,330 12,313
412,616 313,031
Minority
interest
22,454 2,190
435,070 315,221
Shareholders’
Equity 311,441 157,840
Liabilities
& Shareholders’ Equity
746,511 473,061
CONSOLIDATED
PROFIT AND LOSS ACCOUNT
Revenues
Copper 434,100 103,352
Gold
6,715 -
Acid
3,799 10,171
444,614 113,523
Cost of
sales
151,904 53,770
Depletion
and amortization
36,545 10,873
Operating
profit
256,165 48,880
Other
expenses 37,471 11,549
Earnings
before income taxes, minority
interests
and equity earnings
218,694 37,331
Income
taxes
45,612 11,006
Minority
interest
20,264 -
Equity
earnings
- 1,685
Net
earnings for the year
152,818 28,010
LEGAL STATUS AND HISTORY
Date
Started : 1990's
Capital
: not given
Private
Limited Liability Company with the following sole shareholder :
First
Quantum Minerals Ltd 100%
Granville
Street 543 8th Floor
Vancouver,
V6C 1X8
Canada
Tel:
(1 604) 688 6577
Fax:
(1 604) 688 3818
Email:
andrew.hancharyk@fqml.com
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UK Office
Mill House
Mill Bay Lane, 1st Floor
West Sussex, RH121SS
United Kingdom
Tel : (44) 140 327 3484
Fax : (44) 140 327 3494
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Australia Office
24 Outram Street level 1
West Perth
Western Australia 6872
P.O. Box 1407
Tel : (61 9) 893 460 100
Fax : (61 9) 892 262 522
Affiliated
companies of First Quantum Mining & Operations Ltd :
Associates
1.
Bwana Mkubwa Mining Ltd
PO Box 71785
Ndola
Zambia
Tel: (260 2) 655 433 / 655 050
Fax: (260 2) 655 399
2.
Mopani Copper Mines Plc
Central Avenue
Kitwe
Zambia
Tel: (260 2) 247 000
3.
Compagnie Miniere de Sakania (COMISA)
88 Kabalo Street
Lubumbashi
Democratic Republic of Congo
Tel: (243) 814 000 051 / 9703 1133
Fax: (243) 234 2212
E-mail: firstquantum_congo@hotmail.com
4.
Guelb Moghrein
Northeast of Akjoujt,
Mauritania
5.
Frontier SPRL
Zambia Road, Plot 3805
Industrial Area
P.O. Box :
230022
Ndola, Zambia
Telephone:
(260 2) 650 993
Fax
: (269 2) 651 363
ACTIVITIES
The
Company is involved in the following activities :
Engaged
in copper mining.
Imports
equipment from Canada.
FACILITIES
The
Company has the following facilities :
Administrative
offices are located in a commercial area of Ndola. Copper mine is located at
the Copperbelt, Zambian Industrial Hub.
SPECIAL NOTE
You
enquired on : FIRST QUANTUM MINING & OPERATIONS
Please
note the correct name as per heading.
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 |