MIRA
INFORM REPORT
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Report Date : |
15.04.2008 |
IDENTIFICATION
DETAILS
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Name : |
BARRICK
GOLD CORPORATION TANZANIA |
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Registered Office : |
P O Box 891, Kahama, Shinyanga |
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Country : |
Tanzania |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
24.9.1996 |
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Com. Reg. No.: |
2014617 Tanzania |
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Legal Form : |
Limited Liability Company, Limited by Shares |
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Line of Business : |
Exploration of Gold and other Minerals etc |
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 : |
USD 400,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
name of the company
BARRICK
GOLD CORPORATION TANZANIA
Principal Address
P O Box 891, Kahama, Shinyanga, Tanzania
Telephone: +255-22-2600508
Fax: +255-22-2600210
Email: aarbu@barrick.com
Internet: www.barrick.com
Established
24/9/1996
Registration
No. 2014617 Tanzania
Legal Form
Limited Liability
Company, Limited by shares
Stock Listing
Not Listed
Workforce
2007
300
Office & Factories
Head offices Plot 1736 Kahama Road/Hamza Aziz Road,
Tanzania
Branches None
Company Profile
Paid in Capital TZS. 100,000,000
Subscribed Capital TZS. 100,000,000
Shareholders
Name Position Amount
Ratio
Mr. Peter Munk CEO
Mr. Gareth Taylor MD
Mr. Alex Davidson Director
Mr. Jack Thompson Director
Barrick Gold
Corporation Holding
Co. 100.00%
Total 100.00%
Credit Opinion
Our proposed credit amount of USD 400,000 is recommendable
Affiliated Companies
Company (1) BARRICK GOLD
CORPORATION, CHILE
Company (2) BARRICK GOLD
CORPORATION,PERU
Company (3) DIAMONDEX
RESOURCES LTD , CANADA
Company (4) HIGHLAND GOLD
MINING LTD , UNITED KINGDOM
Management/ Directors
President/ CEO (1)
Name Mr. Peter Munk
Remarks Top
Decision Maker
President/ CEO (2)
Name Mr.
Gareth Taylor
Þ
Top decision maker is the person who has the ultimate authority or power
to make important managerial decisions. He/She may or may not be officially
registered as a president or an executive director.
Business Activities
Exploration of
Gold and other Minerals etc
Terms of payment
Buying
terms 30% in cash, 70% on credit
Selling
terms 80% in cash, 20% on credit
Suppliers
None
Customers
Group companies
Recent Sales
TZS.
5,680,000,000 (2007)
Exports
Europe &
America
Export Ratio
90.0%
Import Ratio
20.0%
Domestic Market Share
20.0%
Banking relationship
Main Banks SCB Bank
Credit Check of Subject,
President & CEO (as of report date)
Payment Morale: In the documents at our
disposal nothing adverse has been shown so far.
CREDIT RATING: Financial situation is
average.
COMMENTS
Maximum credit we recommend is USD 400,000 outstanding at any one time.
CONSOLIDATED BALANCE SHEETS
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(In
millions USD.) |
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At December 31, |
2007 |
2006 |
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ASSETS |
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Current assets |
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Cash and equivalents |
2,207 |
3,043 |
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Accounts receivable |
256 |
234 |
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Inventories |
1.118 |
931 |
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Other current assets |
707 |
588 |
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4.288 |
4.796 |
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Non-current assets |
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Investments |
142 |
646 |
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Equity method investments |
1.074 |
327 |
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Property, plant and equipment |
8.596 |
8.39 |
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Intangible assets |
68 |
75 |
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Goodwill |
5.847 |
5.855 |
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Other assets |
1.936 |
1.421 |
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Total assets |
21,951 |
21,510 |
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LIABILITIES AND
SHAREHOLDERS' EQUITY |
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Current liabilities |
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Accounts payable |
808 |
686 |
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Short-term debt |
233 |
863 |
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Other current liabilities |
255 |
303 |
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1.296 |
1.852 |
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Non-current liabilities |
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Long-term debt |
3.153 |
3.244 |
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Asset retirement obligations |
892 |
843 |
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Deferred income tax liabilities |
841 |
798 |
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Other liabilities |
431 |
518 |
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Total
liabilities |
6.613 |
7.255 |
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Non-controlling
interests |
82 |
56 |
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Shareholders'
equity |
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Capital stock |
13.273 |
13.106 |
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Retained earnings |
1.832 |
974 |
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Accumulated other comprehensive income |
151 |
119 |
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Total
shareholders' equity |
15.256 |
14.199 |
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Contingencies and commitments |
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Total
liabilities and shareholders' equity |
21,951 |
21,510 |
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CONSOLIDATED STATEMENTS OF CASH
FLOW
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(In
millions USD.) |
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For the years ended December 31, |
2007 |
2006 |
2005 |
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OPERATING
ACTIVITIES |
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Net income |
1,119 |
1,506 |
401 |
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Amortization |
1.004 |
735 |
427 |
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Income tax expense |
341 |
348 |
60 |
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Gains on sale of investments |
(71) |
(6) |
(17) |
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Revisions to AROs at closed mines |
6 |
53 |
15 |
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Income taxes paid |
(585) |
(280) |
(80) |
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Income from discontinued operations |
(9) |
(297) |
- |
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Other items |
(73) |
63 |
(80) |
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Net cash
provided by operating activities |
1.732 |
2.122 |
726 |
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INVESTING
ACTIVITIES |
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Property, plant and equipment |
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Capital expenditures |
(1,046) |
(1,087) |
(1,104) |
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Sales proceeds |
100 |
8 |
8 |
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Acquisitions, net of cash acquired of 13
million (2006: 1,108 million) |
(1,122) |
(208) |
- |
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Investments |
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Purchases |
(11) |
(369) |
(89) |
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Sales |
625 |
46 |
10 |
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Reclassifications |
(66) |
- |
- |
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Other investing activities |
(42) |
17 |
(5) |
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Net cash used in
investing activities |
(1,562) |
(1,593) |
(1,180) |
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FINANCING
ACTIVITIES |
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Capital stock |
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Proceeds on exercise of stock options |
142 |
74 |
92 |
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Dividends |
(261) |
(191) |
(118) |
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Long-term debt |
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Proceeds |
408 |
2.189 |
179 |
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Repayments |
(1,128) |
(1,581) |
(59) |
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Settlement of derivative instruments
acquired with Placer Dome |
(197) |
(1,840) |
- |
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Other financing activities |
- |
2 |
(1) |
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Net cash (used
in) provided by financing activities |
(1,036) |
(1,347) |
93 |
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CASH FLOWS OF
DISCONTINUED OPERATIONS |
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Operating activities |
21 |
29 |
- |
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Investing activities |
- |
2.788 |
- |
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Financing activities |
- |
11 |
- |
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21 |
2.828 |
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Effect of
exchange rate changes on cash and equivalents |
9 |
(4) |
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Net increase (decrease) in cash and
equivalents |
(836) |
2.006 |
(361) |
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Cash and
equivalents at beginning of year |
3.043 |
1.037 |
1.398 |
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Cash and
equivalents at end of year |
2,207 |
3,043 |
1,037 |
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CONSOLIDATED STATEMENTS OF INCOME
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(In
millions USD.) |
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For the years ended December 31, |
2007 |
2006 |
2005 |
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Sales |
6.332 |
5,630 |
2,348 |
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Costs and
expenses |
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Cost of sales |
3.184 |
2.741 |
1.198 |
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Amortization |
1.004 |
735 |
427 |
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Corporate administration |
155 |
142 |
71 |
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Exploration |
179 |
171 |
109 |
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Project development expense |
188 |
119 |
32 |
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Other expense |
208 |
216 |
114 |
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Impairment charges |
65 |
23 |
16 |
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4.983 |
4.147 |
1.967 |
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Interest income |
141 |
110 |
38 |
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Interest expense |
(113) |
(126) |
(3) |
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Other income |
103 |
93 |
46 |
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131 |
77 |
81 |
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Income from
continuing operations before income taxes and other items |
1.48 |
1.56 |
462 |
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Income tax expense |
(341) |
(348) |
(60) |
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Non-controlling interests |
14 |
1 |
(1) |
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Eguity in investees |
(43) |
(4) |
(6) |
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Income from
continuing operations |
1.11 |
1.209 |
395 |
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Income from discontinued operations |
9 |
297 |
- |
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Income before
cumulative effect of changes in accounting principles |
1.119 |
1.506 |
395 |
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Cumulative effect of changes in accounting
principles |
- |
- |
6 |
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Net income for
the year |
1.119 |
1,506 |
401 |
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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. |
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%)