MIRA
INFORM REPORT
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Report Date : |
12.02.2008 |
IDENTIFICATION
DETAILS
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Name : |
RIVERSDALE MINING LTD |
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Formerly Known As : |
THIRTEENTH BUTTERFLY P/L |
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Registered Office : |
2 Elizabeth Plaza North Sydney, NSW 2060 |
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Country : |
Australia |
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Financials (as on) : |
30.06.2007 |
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Date of Incorporation : |
26.05.1982 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Mining Company |
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 : |
No Complaints |
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Litigation : |
Clear |
REGISTERED NAME
RIVERSDALE MINING LTD
ACN
006 031 161
ABN
53 006 031 161
INCORPORATED
26 May 1982
REGISTERED ADDRESS
3, 2 Elizabeth Plaza
NORTH SYDNEY, NSW 2060
SHARECAPITAL
$82,921,586
SHAREHOLDERS
Not shown
DIRECTORS
LOVE,
Andrew
61 Ocean St
WOOLLAHRA,
NSW 2025
LENAHAN,
Niall
10 Cowles
Rd
MOSMAN, NSW
2088
POTTS,
Richard
14 Wright
St
CLIFTON
HILL, VIC 3068
O’KEEFE, William Michael
18 Pymble Ave
PYMBLE, NSW 2073
SECRETARY
LENAHAN,
Niall
10 Cowles
Rd
MOSMAN, NSW
2088
REGISTERED CHARGES
None on record
BUSINESS STRUCTURE
TRADING ADDRESS 3, 2 Elizabeth Plaza
NORTH SYDNEY, NSW 2060
TELEPHONE (612) 8299 7900
CONTROLLED ENTITIES Riversdale Holdings (Proprietary) Ltd South Africa
Riversdale Anthracite Colliery (Proprietary) Ltd
Zululand Anthracite Colliery (Proprietary) Ltd
Riversdale Energy (Mauritius) Limited Mauritius
ProMark Services Limited
BANK Westpac Banking Corporation
EMPLOYEES Not determined
BACKGROUND
The subject was incorporated in Victoria on 26 May 1982 as Thirteenth Butterfly P/L, changing name on 21 June 1982 to Waiviata International P/L, changing name on 3 March 2000 to Waivcom Worldwide Ltd, changing name on 1 September 2003 to Wave capital Ltd, before adopting the current style on 30 July 2004.
The subject has been listed on the Australian Stock Exchange since 1986 and was originally involved in online publishing.
In May 2004, the subject entered into an agreement to acquire a 74% interest n Riversdale Anthracite Colliery, a South African registered company which holds rights to an anthracite project.
On 1 December 2005 Riversdale completed the acquisition of 74% in ZAC, an operating underground anthracite mine located in the Zululand coalfield of northern Kwa-Zulu Natal, South Africa.
OPERATIONS
The subject operates as a mining company listed on the Australian Stock Exchange under the ASX code RIV. The Company intends to develop as a diversified mining finance house, focused on growth through investment in suitable mining opportunities.
Activities are conducted from premises located at the above listed trading address.
ADVERSE
A search of the of Credit Advantage Limited traced the following litigation listed against the subject at that date.
External Administration
Title : Administrator (Deed of Company
Arrangement)
Date : 28 June 2001
Name : David Laurence McEvoy
Address : 215 Spring St, Melbourne, Vic 3000
Start date : 28 June 2001
Doc Number : 017 184 856
External Administration
Title : Administrator (Deed of Company
Arrangement)
Date : 28 June 2001
Name : Nicholas Brooke
Address : 215 Spring St, Melbourne, Vic 3000
Start date : 28 June 2001
Doc Number : 017 184 856
FINANCES
From the subjects most recently lodged financial statements, it is noted that for the financial year ended 30 June 2007 the subject recorded revenue of $72,020,000, which resulted in an operating profit before tax of $11,103,000 and an operating profit after tax of $10,002,000 representing a Net Profit Margin of 13.89%.
During November 2007 Riversdale announced a major Coal Resource in its Mozambique coal project. This follows several months of exploration and drilling programs at the Company’s highly prospective Benga License in the Moatize district of Mozambique.
The Company signed a shareholders agreement with the global steel
group Tata Steel Limited on 30 November 2007. Under the JV, Tata will
acquired a 35% interest in the Benga and Tete exploration tenements, which
cover an area of 24,960 hectares in Mozambique. A special purpose joint
venture vehicle has been established to develop the coal project.
Consideration for the acquisition of the 35% Project Interest is A$100 million
for which Tata secures a key position in the joint venture, as well as a 40%
share of the coking coal off-take and the option to participate on commercial
terms above this level. Tata will also be strategically positioned to
participate with Riversdale.
Below is a summary of the subject’s income results for the past two financial years.
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Riversdale Mining Ltd |
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As at 30 June 2007 |
As at 30 June 2006 |
Change (%) |
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Revenue |
$72,020,000 |
$34,834,000 |
106.75% |
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Profit b/tax |
$11,103,000 |
$35,583,000 |
-68.80% |
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Profit a/tax |
$10,002,000 |
$34,677,000 |
-71.16% |
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Net Profit Margin |
13.89% |
99.55% |
-85.66% |
During fiscal 2007, the subject recorded Net Cashflows from operating activities totaling $18,183,000.
As at 30 June 2007 the subject recorded total current assets of $69,430,000. They included cash of $49,049,000, receivables of $9,535,000 and inventories of $10,846,000.
Current liabilities at the same date totalled $20,694,000 and included payables of $12,579,000 and borrowings of $4,838,000.
As at 30 June 2007, the subject recorded Working Capital of $48,736,000 and a current ratio of 3.36 to 1 indicating strong liquidity levels.
Net Assets totalled $129,696,000 as at 30 June 2007. At this date, the subject further recorded a Debt to Equity ratio of 0.33 to 1 showing low levels of gearing.
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Riversdale Mining Ltd |
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As at 30 June 2007 |
As at 30 June 2006 |
Change (%) |
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Revenue |
$72,020,000 |
$34,834,000 |
106.75% |
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Profit b/tax |
$11,103,000 |
$35,583,000 |
-68.80% |
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Profit a/tax |
$10,002,000 |
$34,677,000 |
-71.16% |
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Net Profit Margin |
13.89% |
99.55% |
-85.66% |
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Current Assets |
$69,430,000 |
$74,913,000 |
-7.32% |
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Non Current Assets |
$103,272,000 |
$65,968,000 |
56.55% |
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Total Assets |
$172,702,000 |
$140,881,000 |
22.59% |
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Current Liabilities |
$20,694,000 |
$15,955,000 |
29.70% |
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Non Current Liabilities |
$22,312,000 |
$30,461,000 |
-26.75% |
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Total Liabilities |
$43,006,000 |
$46,416,000 |
-7.35% |
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Net Assets |
$129,696,000 |
$94,465,000 |
37.30% |
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Working Capital |
$48,736,000 |
$58,958,000 |
-17.34% |
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Current Ratio |
3.36 |
4.7 |
-28.54% |
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Debt to Equity |
0.33 |
0.49 |
-32.52% |
TRADE SURVEY
During the current investigation, contact with the subjects principals was unable to be established.
Subsequently details pertaining to the company’s suppliers were unable to be obtained and a trade survey could not be conducted.
SUMMARY
The subject was incorporated in Victoria on 26 May 1982 as Thirteenth Butterfly P/L, changing name on 21 June 1982 to Waiviata International P/L, changing name on 3 March 2000 to Waivcom Worldwide Ltd, changing name on 1 September 2003 to Wave capital Ltd, before adopting the current style on 30 July 2004.
The subject has been listed on the Australian Stock Exchange since 1986 and was originally involved in online publishing.
For the financial year ended 30 June 2007 the subject recorded revenue of $72,020,000, which resulted in an operating profit before tax of $11,103,000 and an operating profit after tax of $10,002,000 representing a Net Profit Margin of 13.89%.
As at 30 June 2007, the subject recorded Working Capital of $48,736,000 and a current ratio of 3.36 to 1 indicating strong liquidity levels.
Net Assets totalled $129,696,000 as at 30 June 2007.
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%)