MIRA
INFORM REPORT
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Report Date : |
14.06.2007 |
IDENTIFICATION DETAILS
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Name : |
BARRICK BULYANHULU GOLD MINE |
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Registered Office : |
Plot No 1736, |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
1994 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Operators of Bulyanhulu gold mine. |
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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Maximum Credit Limit : |
TAN Shs 1,000,000,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
COmpany NAME
BARRICK BULYANHULU GOLD
MINE (Correct)
KAHAMA MINING CORPORATION
LTD (Requested)
ADDRESS
Street : Plot No 1736,
Area : Msasani-Masaki
P.O. Box :
1081
Town :
Country :
Telephone :
(255 22) 260 0604 (5 lines) / 961 892 1257 (via satellite)
Fax : (255 22) 260 0213 / 260 0210 (2 lines)
E-Mail : dwa@barrick.com/ aarbv@barrick.com
Formerly Known As
Kahama Mining Corporation
Ltd
SENIOR COMPANY
PERSONNEL
Name Position
1. Gregory Wilkins Group
President & Chief Executive Officer
2. Vincent Borg Group Senior Vice President
3. Gareth
4. Victoria Wanfri
(Mrs) Human Resources Manager
5. Frida Kyesi (Mrs) Manager
Total Employees
2,000 (subject)
9,000 (group)
PAYMENTS
No complaints have been
heard regarding payments from local suppliers or banks.
Subject
is a wholly owned subsidiary of Barrick Gold Corporation,
Subject's ownership
inspires confidence and we consider it is acceptable to deal with subject for
LARGE amounts.
Opinion on maximum credit
: TAN Shs 1,000,000,000 (higher amounts may be considered with assurances from
the parent company)
Trade risk assessment :
Opinion on the credit
figure of
We consider the above
figure to be within the company's financial capabilities.
It is normal accepted
practice for international suppliers to deal on secured terms with Tanzanian
importers.
PRINCIPAL BANKERS
NAME :
CITIBANK (T) LTD
Branch :
Main Branch
PO Box :
71625
Town :
Telephone : (255 22) 211 7601
Fax :
(255 22) 211 3910
Subject has an amortizing
loan of US DLRS 150 million. The loan is insured for political risks equally by
branches of the Canadian government and the World Bank.
FINANCIAL INFORMATION
Balance sheets are not
available. However, the subject interviewed offered the following information :
Sales Turnover : US DLRS
47,590,275 - 2001 - exact*
: US DLRS 48,000,000 -
2002 - approx
:
US DLRS 109,000,000 - 2003 - exact
: US DLRS 135,000,000 - 2004 - exact
: US DLRS 125,000,000 - 2005 - exact
: US DLRS 120,000,000 - 2006 - approx
Net Profit :
not given
* for first year in operations, beginning in
the second quarter of 2001.
The following financial
information applies to Barrick Gold Corporation,
2006 2005
(in millions of US DLRS)
ASSETS
Current assets
Cash and equivalents 3,043 1,037
Accounts receivable 234 54
Inventories 931 402
Other current assets 588 255
4,796 1,748
Non-current assets
Available-for-sale securities 646 62
Equity method investments 327 138
Property, plant and equipment 8,335 4,146
Intangible assets 75 -
Goodwill 5,855 -
Other assets 1,339 768
Total assets 21,373 6,862
Liabilities and Shareholders’ Equity
Current liabilities
Accounts payable 686 386
Short-term debt 863 80
Other current liabilities 303 94
1,852 560
Non-current liabilities
Long-term debt 3,244 1,721
Asset retirement obligations 843 409
Deferred income tax liabilities 798 114
Other liabilities 436 208
Total liabilities 7,173 3,012
Non-controlling interests 1 -
Shareholders’ equity
Capital stock 13,106 4,222
Retained earnings (deficit) 974 (341)
Accumulated other comprehensive income (loss) 119 (31)
Total shareholders’ equity 14,199 3,850
Total liabilities and shareholders’ equity 21,373 6,862
CONSOLIDATED PROFIT AND
LOSS ACCOUNT
Gold sales :
US DLRS 1,967,000,000 - 2002 - exact
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US DLRS 2,035,000,000 - 2003 - exact
: US DLRS 1,932,000,000 - 2004 - exact
: US DLRS 2,350,000,000 - 2005 - exact
: US DLRS 5,636,000,000 - 2006 - exact
Net income :
US DLRS 193,000,000 - 2002 - exact
: US DLRS 200,000,000 -
2003 - exact
: US DLRS 248,000,000 -
2004 - exact
: US DLRS 401,000,000 -
2005 - exact
: US DLRS 1,506,000,000 - 2006 - exact
Financial year ends 31
December.
LEGAL STATUS AND
HISTORY
Date Started : 1994
History
: Subject was established in 1994 by Sutton Resources Ltd,
Capital : not given
Limited Liability Company
with the following sole shareholder :
Barrick Gold
Corporation 100 %
Tel : (1 416) 307 7470
Fax : (1 416) 861 8243
Parent Company
Barrick
is a leading international gold mining company, with a portfolio of operating
mines and development projects located in the
The
Company currently has five development projects in the pipeline, excluding
Tulawaka, which came onstream in early 2005. Two more are slated to come into
production in 2005 and the others between 2006 and 2009, adding significantly
to production at low cash costs. This robust pipeline of development projects
is due to the Company’s ongoing commitment to exploration, even in times of lower
gold prices. Barrick is also actively exploring approximately 100 projects, in
16 countries.
Barrick
has the gold mining industry’s strongest balance sheet, which positions the
Company to take prompt advantage of attractive development, exploration and
acquisition opportunities as they arise.
Barrick
shares are traded on the
Barrick
has a portfolio of 12 producing mines and five development projects. As the
lowest cash cost major gold producer, Barrick’s assets are geopolitically
diversified with assets in seven countries on four continents. Barrick has
extensive global experience, including demonstrated expertise in developing and
operating mines in remote/challenging areas. The Company currently employs over
9,000 people, including joint-venture personnel.
Affiliated companies of
Barrick Bulyanhulu Gold Mine :
Associates
Subject is a member of a
Barrick Group of companies which comprises 12 mine companies located in
1. Compania Minera
Piso 11
Avenida Ricardo Lyon
Providencia
Tel : (56 2) 340 2017
Fax : (56 2) 340 2022
E-Mail: informacion@barrick.com /
recursos_humanos@barrick.com
2. Mellon Investor
Services, L.L.C.
Tel: (1 201) 329 8660
3. Barrick
Victor Andres Belaunde 171
2° Piso
Tel: (51 1) 612 4100
Fax: (51 1) 275 0249
4. Plutonic Gold Mine
PMB 46
5. Bulyanhulu Mine Ltd
6. Barrick Russia
Holdings Inc.
4 Romanov Pereulok
125009
7. Tulawaka Mine Limited
Tel: (61 8) 9360 4444
Fax: (61 8) 9360 4422
8. Minera Argentina Gold
SA
Veladero Mine
9. Minera Barrick
Misquichilca
10.Homestake Mining Company
11.Homestake Mining
Company
ACTIVITIES
The Company is involved
in the following activities :
Operators of Bulyanhulu
gold mine.
The
Bulyanhulu mine is located in northwest
339
per ounce.
Bulyanhulu
is an underground trackless mining operation using long hole and drift-and-fill
as its principal stoping methods.
The
current reserves are concentrated on one reef but significant exploration
potential has been identified on two other reefs on the property. 2007 drilling
will follow up 2006 programs which have increased reserves, with particular
emphasis on both lateral and down dip underground extensions to Reef 2. This is
a series of sub parallel veins with high grade and near vertical dip that
support additional mineral resources and reserve target extensions in 2007.
Exploration
near surface is also targeted for up dip open pit exposure on reefs analogous
to Reef 2. Several near mine surface targets are being evaluated for new
mineralization and drilling is focused on cross cutting dilational structures
to the north. An airborne geophysical survey over the
In 2005 the mine produced
311,000 ounces of gold at total cash of US DLRS 358 per ounce.
In 2006, the mine
produced 330,000 ounces of gold at total cash costs of US DLRS 339 per ounce.
Imports equipment and
spare parts from
FACILITIES
The Company has the
following facilities :
Rented premises comprising
administrative offices and warehouse at the heading address.
Until September 2003,
subject operated from International, House Level 2,
Until 2004 subject
operated from Plot No. 874,
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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This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)