MIRA
INFORM REPORT
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Report Date : |
13.03.2008 |
IDENTIFICATION
DETAILS
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Name : |
FIRST QUANTUM MINING AND OPERATIONS LIMITED |
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Registered Office : |
P O Box 71785, Ndola Zambia |
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Country : |
Zambia |
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Financials (as on) : |
30.09.2007 |
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Date of Incorporation : |
10.02.1991 |
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Com. Reg. No.: |
102388 Zambia |
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Legal Form : |
Limited Liability Company, Limited by Shares |
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Line of Business : |
Mining of Copper
Ores |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
USD 1,500,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
COMPANY REPORTED
FIRST QUANTUM MINING AND OPERATIONS LIMITED
Principal Address
P O Box 71785, Ndola Zambia
Telephone: +260-21-2651555/9
Fax: +260-21-2659401
Email: bwana.mkubwa@fqml.com
Internet: www.first-quantum.com
Established
10/02/1991
Registration
No. 102388 Zambia
Legal Form
Limited Liability
Company, Limited by shares
Stock Listing
Not Listed
Workforce
2007
600
Office & Factories
Head offices 3805, Zambia Road, Ndola, Zambia
Branches None
Company Profile
Paid in Capital ZMK. 67,290,429
Subscribed Capital ZMK. 67,290,429
Shareholders
Name Position Amount
Ratio
Mr. Phillip
Pascall Chairman
Mr. Clive Newall CEO
Mr. David Moroney CFO
Mr. Jeremy Allen GM
First Quantum
Minerals Ltd Holding Co. 100.00%
Total 100.00%
Credit Opinion
Our proposed credit amount of USD 1,500,000 is recommendable
Affiliated Companies
Company (1) ADASTRA MINERALS
INC.
Company (2) BLACK BARK
INVESTMENTS LTD
Company (3) BWANA MKUBWA MINING CONGO SPRL
Company (4) COMPAGNIE MINIERE
DE SAKANIA SPRL
Company (5) COVER INVESTMENTS
LIMITED
Company (6) FIRST QUANTUM
MINING AND OPERATIONS LIMITED
Company (7) FQM FINANCE LTD
Company (8) FQM ZAMBIA LIMITED
Company (9) FRONTIER SPRL
Company (10) INTERNATIONAL
QUANTUM RESOURCES LIMITED
Company (11) KANSANSHI HOLDINGS
LIMITED
Company (12) KANSANSHI MINING
PIC
Company (13) KINGAMYAMBO
MUSONOI TAILINGS SARL
Company (14) Lonshi copper mine
Company (15) MAURITANIAN COPPER
MINES S. A.
Company (16) ORYX LIMITED
Management/ Directors
President/ CEO (1)
Name Mr. Phillip Pascall
Remarks Top
Decision Maker
President/ CEO (2)
Name Mr.
Clive Newall
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
Mining of Copper
Ores
Terms of payment
Buying terms 10% in cash, 90% on credit
Selling terms 50% in cash, 50% on credit/
Terms
Suppliers
John Deere, CAT, MACK, LIEBHER etc
Customers
Industries, Companies etc
Recent Sales
USD. 560,290,000 (2007)
Exports
Europe, Canada,
USA, China, Africa
Export Ratio
90.0%
Import Ratio
10.0%
Domestic Market Share
80.0%
Banking relationship
Main Banks Standard
Bank
Auditors
PricewaterhouseCoopers
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 Good.
COMMENTS
According to its restructuring plan, Simple sample acquired the More Corps making it the largest finance institution in the region, in turn More Corps hold several banking and financing Institutions and other companies, hence has become a highly competitive company. The subject is considered equal to US$ 300,000 over 30 days and a maximum figure of US$ 500,000 over 30 days, unsecured. The subject is considered equal to a maximum of US$ 2,000,000 spread over 180 days.
Maximum credit we recommend is USD 35,000 outstanding at any one time.
CONSOLIDATED BALANCE SHEET
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(In
Millions USD.) |
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As
at |
September 30, |
December 31, |
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2007 |
2006 |
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Assets |
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Current assets |
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Cash and cash equivalents |
222.6 |
249.5 |
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Restricted cash |
- |
15 |
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Accounts receivable |
296.3 |
142.8 |
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Inventory |
232.9 |
167.3 |
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Current portion of other assets |
11.1 |
10.1 |
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762.9 |
584.7 |
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Investments |
261.6 |
45.2 |
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Property, plant
and equipment |
1,259.9 |
1,068.1 |
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Other assets |
16 |
21.7 |
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2,300.4 |
1,719.7 |
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Liabilities |
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Current
liabilities |
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Accounts payable and accrued liabilities |
83.1 |
84.8 |
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Current taxes payable |
126.8 |
110 |
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Current portion of long-term debt |
63.9 |
57.7 |
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Current portion of other liabilities |
24.3 |
19.4 |
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298.1 |
271.9 |
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Long-term debt |
251.2 |
237.2 |
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Other
liabilities |
36.6 |
38.3 |
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Future income
tax liabilities |
187.6 |
167.3 |
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773.5 |
714.7 |
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Minority interests |
179.9 |
85.2 |
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953.4 |
799.9 |
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Shareholders'
equity |
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Capital stock |
389.8 |
396 |
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Retained
earnings |
852.1 |
523.8 |
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Accumulated
other comprehensive income |
105.1 |
- |
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1,347.0 |
919.8 |
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2,300.4 |
1,719.7 |
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INCOME STATEMENTS
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9 months ended |
9 months ended |
12 months ended |
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September 30, |
September 30, |
December
31 |
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2007 |
2006 |
2006 |
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Sales revenues |
1,064.1 |
878.1 |
1,094 |
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Net earnings for
the period |
385 |
338.5 |
414 |
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%)