MIRA
INFORM REPORT
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Report Date : |
22nd
January, 2007 |
IDENTIFICATION
DETAILS
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Name : |
MITSUI
MINING CO LTD |
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Registered Office : |
Toyosu
Center Bldg, 3-3-3 Toyosu Kotoku Tokyo 136-6007, Japan |
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Country : |
Japan |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
December
1969 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer
of cokes; import, wholesale of coals, oils |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
Yen 2,074.6 Million |
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Status : |
Moderate |
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Payment Behaviour : |
Regular |
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Litigation : |
-- |
Company Name
MITSUI
MINING CO LTD
REGD NAME
Mitsui
Kozan KK
MAIN OFFICE
Toyosu
Center Bldg, 3-3-3 Toyosu Kotoku Tokyo 136-6007 JAPAN
Tel : 03-5560-1311
Fax : 03-5560-1991
URL : http://www.mitsui-mining.co.jp/
E-Mail address :
kouhou@mitsui-mining.co.jp
ACTIVITIES
Mfg of cokes; import, wholesale of coals, oils
BRANCHES
Sapporo, Hiroshima, Kitakyushu, Fukuoka, Miike
OVERSEAS
Sydney, Beijing, Shanghai, Jakarta
FACTORY(IES
Tochigi
CHIEF EXEC
TARO YAMAHO, PRES
Yen Amount
In million Yen, unless otherwise stated
SUMMARY
FINANCES R/WEAK A/SALES Yen 179,457 M
PAYMENTS REGULAR CAPITAL Yen 7,000 M
TREND UP WORTH Yen 24,913 M
STARTED 1969 EMPLOYES 611
COMMENT
NATURAL RESOURCES COMPANY, UNDER REHABILITATION BY AEGIS OF
INDUSTRIAL REVITALIZATION CORP OF JAPAN.
FINANCIAL SITUATION CONSIDERED RATHER WEAK BUT SHOULD BE GOOD FOR
MODERATE BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 2,074.6 MILLION, 30 DAYS NORMAL TERMS..
Forecast (or estimated) figures for 31/03/2007 fiscal term
HIGHLIGHTS
The subject company was established originally in 1874 as a Mitsui
group company for producing coals. Once
boasted nation’s largest coal output.
In 2003 fiscal term (ending Mar/2004), the firm went into financial
difficulties, posting excess liabilities of Yen 35,300 million on consolidated
basis and Yen 17,100 million on non-consolidated basis, plus non-consolidated cumulative
losses of Yen 51,700 million due to evaluation losses on land owned by
subsidiaries (all figures rounded off).
And in Apr 2004 sought the support of Industrial Revitalization Corp of
Japan (IRCJ). In Apr 2004, old Mitsui
Mining and its subsidiaries merged to retain the name of Mitsui Mining Co Ltd and re-listed on the Tokyo
S/E. Under IRCJ’s recommendation the
firm withdrew from unprofitable operations, including cement, to focus on coal,
oil and cokes, shrinking its opera tions
into three main divisions (See OPERATION).
In Mar 2005, IRCJ selected trio consortium as support companies: Daiwa
Securities, Nippon Steel and Sumitomo Corp.
And in Jan 2006,.SMBC arranged
syndicated loan of Yen 83 billion to support the firm. Aiming to complete rehabilitation within two years.
FINANCIAL INFORMATION
The sales volume for Mar/2006 fiscal term amounted to Yen 178,457
million, a 7.8% down from Yen 194,584 million in the previous term. Sales declined due to decline in the number
and withdrawal from business of consolidated subsidiaries. The recurring profit was posted at Yen 11,042
million and the net profit at Yen 224 million, respectively, compared with Yen
13,206 million recurring profit and Yen
11,302 million net profit, respectively, a year ago.
First Half results ending Sept/2006: sales Yen 89,689 million (up
3.5%), recurring profit Yen 463 million (down 93.3%), net profit Yen 3,252
million (up from the loss of Yen 3,217 million). (% indicates comparison with the same period last year). Sales volume of coal & cokes
increased. Profits improved due to the
rise in sales price caused by the rapid increase in the price of raw
materials worldwide.
For the current term ending Mar 2007 the recurring profit is
projected at Yen 4,200 million and the net profit at Yen 7,700 million, on an
18.3% rise in turnover, to Yen 212,300 million. Sales volume will expand, while costs of fuel and materials will
erode profits.
The financial situation is considered RATHER WEAK but should be
good for MODERATE business engagements.
Max credit limit is estimated at Yen 2,074.6 million, on 30 days normal
terms.
REGISTRATION
Date Registered :
Dec 1969
Legal Status :
Limited Company (Kabushiki Kaisha)
Authorized :
1,182 shares
Issued :
338,716,213 shares
Sum :
Yen 7,000 million
Major shareholders (%)
Daiwa Sec SMBC Principal Investments (18.7), Nippon Steel (12.9),
Sumitomo Corp (12.9),Kobe Steel (3.9) Japan Securities Finance (3.9), Nisshin
Steel (1.9), Master Trust Bank
of Japan T (1.7), SMBC (1.6), Mitsui OSK Lines (1.0), Sumitomo Life Ins (1.0);
foreign owners (2.4)
No. of shareholders: 15,810
Listed on the S/Exchange (s) of: Tokyo
Managements
Taro Yamaho, pres; Koichiro Kakihara, s/mgn dir; Koji Sakata, mgn
dir; Koji Sakata, dir; Yoshiro Shimizu, mgn dir; Shigeki Dobashi, mgn dir;
Hideo Watanabe, dir
Nothing detrimental is known as to the commercial morality of
executives.
Related companies
Mitsui Nishinippon Futoh, Mitsui Mining Materials, other (Tot 22
as of Mar/06)
OPERATION
Activities: Activities: Natural resources company of Mitsui group;
(sales breakdown by divisions):
1. Coal/Cokes Div (50%):
coals (imported from Australia, China, etc, supplying to Electric Power,
Cement, Paper Mills, etc), cokes & by-products (70% of the cokes &
by-products are exported to USA, Europe, Brazil, etc) (produced by Kitakyushu Factory) (10 subsidiaries involved).
2. Materials Div (33%):
Oil, LPG, other products (procured from domestic oil refiners), ships’ fuel oil
(subsidiary Barrel Oil Pte Ltd, Singapore selling to ships in Singapore areas),
construction materials (lime & lime mortars produced by a subsidiary,
shipping to industries, such as pulp & paper, fertilizer, sewerage, road
pavers, etc), building equipment & supplies (6 subsidiaries involved).
3. General Engineering
Works Div (8%): Chemical industrial machines & equipment (mfr’d by Tochigi
Factory), mfg/repairing works of construction machinery, mining machinery,
other industrial machinery & equipment, ceramics & products (produced
by a subsidiary, Mitsui Mining Materials), carbon materials & products (own
mfg). (7 subsidiaries involved).
4. Other Div's (9%):
Operation of amusement parks, golf courses (by a subsidiary, Mitsui Greenland),
hotels; real estate sales, office & other building maintenance services,
real estate broking, all by subsidiaries.
5. Overseas sales ratio
26.5%: N America 2.7%; Europe 5.6%; Asia 14.5%, others 2.7%
Clients
[Wholesalers, steel mills] Mitsui & Co, Sojitz Corp, Nippon
Steel, other.
No. of accounts
1,000
Domestic areas of activities
Nationwide
Suppliers
[Mfrs, wholesalers] Mitsui & Co, Tonen General Sekiyu,
other. Imports from China, Australia,
etc.
Payment record
Regular
Location
Business area in Tokyo.
Office premises at the caption address are leased and maintained
satisfactorily.
Bank References
SMBC (H/O)
Relations: Satisfactory
FINANCES
(Consolidated in million yen)
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Terms Ending: |
31/03/2006 |
31/03/2005 |
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INCOME STATEMENT |
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Annual Sales |
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179,457 |
194,584 |
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Cost of Sales |
152,816 |
164,381 |
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GROSS PROFIT |
26,640 |
30,203 |
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Selling & Adm Costs |
12,955 |
15,692 |
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OPERATING PROFIT |
13,684 |
14,510 |
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Non-Operating P/L |
-2,642 |
-1,304 |
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RECURRING PROFIT |
11,042 |
13,206 |
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NET PROFIT |
224 |
11,302 |
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BALANCE SHEET |
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Cash |
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7,417 |
7,804 |
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Receivables |
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40,532 |
21,605 |
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Inventory |
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74,708 |
19,672 |
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Securities, Marketable |
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Other Current Assets |
(68,180) |
1,047 |
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TOTAL CURRENT
ASSETS |
54,477 |
50,128 |
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Property &
Equipment |
83,675 |
68,910 |
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Intangibles |
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4,585 |
6,629 |
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Investments, Other
Fixed Assets |
10,188 |
12,101 |
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TOTAL ASSETS |
152,925 |
137,768 |
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Payables |
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19,284 |
22,230 |
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Short-Term Bank Loans |
11,647 |
9,608 |
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Other Current Liabs |
22,554 |
13,208 |
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TOTAL CURRENT LIABS |
53,485 |
45,046 |
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Debentures |
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540 |
300 |
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Long-Term Bank Loans |
68,719 |
62,423 |
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Reserve for Retirement
Allw |
4,599 |
4,555 |
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Other Debts |
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566 |
617 |
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TOTAL LIABILITIES |
127,909 |
112,941 |
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MINORITY INTERESTS |
102 |
104 |
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Common stock |
7,000 |
7,000 |
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Additional paid-in capital |
6,845 |
6,845 |
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Retained earnings |
11,221 |
11,033 |
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Evaluation p/l on investments/securities |
92 |
25 |
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Others |
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(167) |
(108) |
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Treasury stock, at cost |
(78) |
(73) |
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TOTAL S/HOLDERS`
EQUITY |
24,913 |
24,722 |
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TOTAL EQUITIES |
152,925 |
137,766 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2006 |
31/03/2005 |
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Cash Flows from Operating Activities |
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8,562 |
11,186 |
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Cash Flows from Investment Activities |
-16,337 |
-2,649 |
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Cash Flows from Financing Activities |
7,462 |
-11,540 |
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Cash, Bank Deposits at the Term End |
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6,303 |
6,548 |
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ANALYTICAL RATIOS
Terms ending: |
31/03/2006 |
31/03/2005 |
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Net Worth (S/Holders' Equity) |
24,913 |
24,722 |
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Current Ratio (%) |
101.85 |
111.28 |
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Net Worth Ratio (%) |
16.29 |
17.94 |
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Recurring Profit Ratio (%) |
6.15 |
6.79 |
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Net Profit Ratio (%) |
0.12 |
5.81 |
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Return On Equity (%) |
0.90 |
45.72 |
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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 |
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NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
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