MIRA
INFORM REPORT
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Report Date : |
14.06.2007 |
IDENTIFICATION DETAILS
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Name : |
PANGEA MINERALS LIMITED |
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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 : |
2003 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Operates the Tulawaka 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 200,000,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
COmpany NAME
PANGEA MINERALS LIMITED
ADDRESS
Street : Plot no. 1736,
Area :
P.O. Box :
23153
Town :
Country :
Telephone :
(255 22) 260 0348 / 2600 604 / 618 93604444 (Australian contact number)
Fax : (255 22) 260 0355 / 618 9360442 (Australian
contact number)
Trading Styles
Tulawaka Gold Project
SENIOR COMPANY
PERSONNEL
Name Position
1. Gregory
(Australian national)
2. Peter Kukkuk Finance
Manager
(Australian national)
Total Employees
310
PAYMENTS
No complaints have been
heard regarding payments from local suppliers or banks.
Subject
is a subsidiary of Barrick Gold Corporation,
Ownership inspires
confidence and we consider it is acceptable to deal with subject for MEDIUM
amounts.
Opinion on maximum credit
: TAN Shs 200,000,000
Trade risk assessment : Fairly
low
Opinion on the maximum
credit figure of
The above figure is much
higher than normally seen in one amount, however could prove admissible in a
series of transactions provided the total indebtedness is strictly monitored.
It is normal accepted
practice for international suppliers to deal on secured terms with Tanzanian
importers.
SIGNIFICANT CHANGES
The Tulawaka mine project
:
The
Tulawaka mine is a joint venture operation; with Pangea Minerals having 70% of
interest and MDN (Northern Mining Explorations) having the remaining 30%
interest in the property. Tulawaka mine is operated (commercial exploatation
commenced in 2005) by subject. It is a high-grade open cut, gravity/CIL
operation; preliminary geological data indicate there are 15 tonnes of gold
deposits to be processed in four years at the site. Annual production is expected to be approx 4
tonnes of gold annually.
PRINCIPAL BANKERS
NAME :
CITIBANK (T) LTD
Branch :
Main Branch
PO Box :
71625
Town :
Telephone :
(22) 211 7601
Fax :
(22) 211 3910
Account no : 100749068
FINANCIAL INFORMATION
Private companies in
The following
consolidated Balance Sheet information applies to Barrick Gold Corporation :
31 Dec 2005 31 Dec 2006
(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
Total current assets 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 & SHAREHOLDRES’ EQUITY
Current liabilities
Accounts payable 686 386
Short-term debt 863 80
Other current liabilities 303 94
Total current liabilities 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
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 &
shareholders’ equity 21,373 6,862
CONSOLIDATED PROFIT &
LOSS ACCOUNT
Sales Turnover : US DLRS 1,932,000,000 - 2004 - exact
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US DLRS 2,350,000,000 - 2005 - exact
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US DLRS 5,636,000,000 - 2006 - exact
Net Profit :
US DLRS 248,000,000 - 2004 - exact
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US DLRS 401,000,000 - 2005 - exact
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US DLRS 1,506,000,000 - 2006 - exact
Financial year ends 31
December
LEGAL STATUS AND
HISTORY
Date Started : 2003
History : Subject was
founded in 2003 to operate a gold mine. Commercial exploitation commenced in
2005.
Capital : not given
Limited Liability Company
with the following sole shareholder :
Barrick Gold
Corporation 100%
Telephone: (416) 861 9911
Fax : (416) 861 2492
Barrick
is one of the leading international gold mining companies, with a portfolio of
operating mines and development projects located in the
In
2006, Barrick produced 8.64 million ounces of gold at a cash cost of $282 per
ounce, in the bottom third of the global cost curve. In addition, the Company
produced 367 million pounds of copper at a total cash cost of $0.79 per pound.
For 2007, Barrick is targeting gold production of 8.1-8.4 million ounces and
copper production of approximately 400 million pounds. Total cash costs are
expected to be about $335-$350 per ounce of gold and about $0.90 per pound of
copper. The Company has a successful track record of mine development, having
completed the construction of the Tulawaka, Lagunas Norte and Veladero mines in
2005, the Cowal mine in early 2006, and the re-opening of the Ruby Hill mine in
early 2007. Barrick has many more projects at various stages of exploration and
development. This robust and unrivalled pipeline of projects is due to the
Company’s ongoing commitment to exploration, even in times of lower gold
prices. Barrick is actively exploring for gold in more than 15 countries around
the world.
ACTIVITIES
The Company is involved
in the following activities :
Operates the Tulawaka
Gold Mine.
Barrick Gold Corporation
(through its local arm Pangea Minerals Limited) has been granted a 25 year
license to run the mine,
FACILITIES
The Company has the
following facilities :
Office
premises in
The
Tulawaka district is located 100 km west of the Bulyanhulu mine, 700 km
northwest of
Subject was previously
located at
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%)