MIRA INFORM REPORT

 

 

Report Date :

17.07.2008

 

IDENTIFICATION DETAILS

 

Correct Name :

RICHARDS BAY IRON & TITANIUM (PTY) LTD

 

 

Registered Office :

Farm RBM, Administrative District Of Kwazulu Natal, Richards Bay, Kwazulu Natal

 

 

Country :

South Africa

 

 

Year of Establishment :

1979

 

 

Com. Reg. No.:

1970/004013/07

 

 

Legal Form :

Pty Ltd

 

 

Line of Business :

The mining and processing of sand dunes as well as smelting of heavy minerals to produce titanium, high purity iron and zircon, etc.

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

 

 

COMPANY NAME

 

RICHARDS BAY MINERALS-TISAND (PTY) LTD

 

 

POSTAL ADDRESS

 

P O Box 401

RICHARDS BAY

3900

Telephone Number:        035 901 3111

Fax Number:                 035 901 3480

 

On investigation it was established that RICHARD BAY MINERALS is a trading name of a Partnership between companies namely RICHARDS BAY IRON & TITANIUM (PTY) LTD and TISAND (PTY) LTD, which report should be consulted.

 

 

JOINT VENTURE

 

RICHARDS BAY IRON & TITANIUM (PTY) LTD

TISAND (PTY) LTD                                

 

 

TRADING NAME

 

RICHARDS BAY MINERALS / RBM

 

 

PHYSICAL ADDRESS    

 

Farm RBM

Administrative District Of Kwazulu Natal

RICHARDS BAY

Kwazulu Natal

 

 

POSTAL ADDRESS

 

P O Box 401

RICHARDS BAY

3900

Telephone Number:        035 901 3111

Fax Number:                 035 901 3480

 

It was stated that RICHARDS BAY IRON & TITANIUM (PTY) LTD is owned 49% by BILLITON PLC and 51% by RIO TINTO PLC in the UK and TISAND (PTY) LTD is owned 51% by BILLITON PLC and 49% RIO TINTO PLC in the UK.

 

 

MANAGEMENT BOARD

 

B J GRIFFIN

M JUTRAS (Alternate)

G A O’BRIEN (Resident in Canada)

H KENYON-SLONEY (British)

K R GREEVE

S DIN (Alternate)

J F TURGEON (Alternate)

DR. T V MAPHAI

C MCRAE

C KINNELL

A R MYTTON

D MAROLE

 

 

BANKERS

 

FIRST NATIONAL BANK, Richards Bay. Account number 54905177290. It was stated that the subject enjoys unsecured overdraft facilities.  Utilisation of the overdraft is stated to fluctuate.

 

 

DATE STARTED

 

The partnership commenced in 1979.

 

The Registration Certificate Number of Richards Bay Iron & Titanium (Pty) Ltd is 1970/004013/07 and the Registration Certificate Number of Tisand (Pty) Ltd is 1969/007724/07.

 

 

VAT NUMBER

           

4610103220

 

 

MAJOR OPERATION

 

The mining and processing of sand dunes as well as smelting of heavy minerals to produce titanium, high purity iron and zircon, etc.

 

The respondent stated that TISAND (PTY) LTD is the mining section and RICHARDS BAY IRON & TITANIUM (PTY) LTD is the smelting operation of the joint venture.

 

 

MAJOR SUPPLIERS

 

UNITRANS

MACSTEEL  Durban

BARLOWS EQUIPMENT  Richards Bay

B P SOUTH AFRICA  Durban

 

 

MAJOR CUSTOMERS OR BUSINESS SECTORS:

 

Various types of industries.  Titanium is used in the paint industry and zircon is used in the ceramic industry.

 

 

AREA OF DISTRIBUTION AND SELLING:  

 

5% South Africa

 

 

EXPORTS

 

Exports 95% worldwide

 

 

TOTAL EMPLOYEES

 

1 750 employees in the group

 

 

OTHER PREMISES

           

None

 

 

OWNED OR LEASED

 

The mining property is owned by the Government and leased to the partners on a mining lease.  It was stated that the site premises are owned by RICHARDS BAY IRON & TITANIUM (PTY) LTD.

 

Full financial information was not forthcoming from respondents at the company.  It was, however, stated that the turnover per annum is R6 billion

 

AUDITORS

 

DELOITTE, Richards Bay

 

 

YEAR END    

 

DECEMBER

 

 

INSURANCE BROKERS

 

ALEXANDER FORBES

TRADE REFERENCES – FEBRUARY 2006

 

      ACCOUNT    HIGHEST      AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT        CREDIT                          PATTERN

 

1.    10 yrs           R4 000 000   R3 000 000 -    30 days    30 days        Excellent

                                               R4 000 000

 

2.    Do not give trade references

 

3.    10 yrs           R4 500 000   R2 000 000 -    30 days    30 days        Good

                           c/l                R3 000 000

 

4.    5 yrs            R3 000 000   R2 000 000 -    30 days    30 days        Excellent

                                               R3 000 000

 

TRADE REFERENCES – JULY 2007 

 

      ACCOUNT    HIGHEST      AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT        CREDIT                          PATTERN

 

1.    20 yrs           R6 000 000    R5 000 000      30 days    30 days        Excellent

                          c/l

 

2.    7 yrs+          R1 500 000    R1 000 000+    30 days    30 days        Excellent

                                                                     2½%

 

3.       Do not give trade references

 

4.    Do not give trade references

 

CURRENT TRADE REFERENCES 

 

      ACCOUNT    HIGHEST      AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT        CREDIT                          PATTERN

 

1.    10 yrs          open              R5 000 000 -    30 days    30 days        Very good

                                               R6 000 000

 

2.    Old acc        declined         declined          30 days    30 days        Very good

 

3.    Old acc        R5 000 000    R2 000 000      30 days    30 days        Excellent

                          c/l

 

 

 

COMMENTS

 

This is a well-established and well connected business, which is effecting a substantial turnover and is meeting its commitments timeously.  No adverse comments have been heard and the subject is regarded equal its normal business engagements.

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.42.78

UK Pound

1

Rs.85.51

Euro

1

Rs.67.90

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

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

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

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.

 

Small

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

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

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%)

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions