MIRA
INFORM REPORT
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Report Date : |
15.03.2008 |
IDENTIFICATION
DETAILS
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Name : |
BULYANHULU GOLD MINE LTD |
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Formerly Known As : |
KAHAMA MINING CORPORATION |
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Registered Office : |
Hamza Aziz Road, Msasani Peninsula, Dar es
Salaam |
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Country : |
Tanzania |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
24.9.1994 |
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Com. Reg. No.: |
14456 Tanzania |
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Legal Form : |
Limited Liability Company, Limited by Shares |
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Line of Business : |
Mining of gold |
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 800,000 |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
COMPANY REPORTED
BULYANHULU GOLD MINE LTD
Former Name
KAHAMA MINING CORPORATION
Principal Address
Hamza Aziz Road, Msasani Peninsula, Dar es Salaam, Tanzania
Telephone: +255-28-2520725/ 6/
2520727/ 2520614 / 2602231/ 2668153/ 2601303
Fax: +255-28-2667732/ 2700815
Email: bulyanhulu@barrick.com
Internet: www.barrick.com
Established
24/9/1994
Registration
No. 14456 Tanzania
Legal Form
Limited Liability
Company, Limited by shares
Stock Listing
Not Listed
Workforce
2007
4,000
Office & Factories
Head offices 75KM Northwest of Kahama , Tanzania
Branches None
Company Profile
Paid in Capital TZS. 1,000,000,000
Subscribed Capital TZS. 1,000,000,000
Shareholders
Name Position Amount
Ratio
Mr. Peter Munk Chairman
Mr. Gareth Taylor MD
Mr. Peter
Crossgrove Director
Barrick Tanzania
Ltd Holding Co. 100.00%
Total 100.00%
Credit Opinion
Our proposed credit amount of USD 800,000 is recommendable
Owned Mines
Mine (1) NORTHMARA MINE
Mine (2) TULAWAKA MINE
Mine (3) KABANGA MINE
Mine (4) SOUTH DEEP MINE
Affiliated Companies
Company (1) NORTH MARA GOLDMINE LTD
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
Mining of gold
Terms of payment
Buying
terms 20% in cash, 80% on credit
Selling
terms 80% in cash, 20% on credit
Suppliers
None
Customers
Distributors
Recent Sales
USD.
245,922,698 (2007)
Exports
Europe, USA, Asia,
and South Africa
Export Ratio
90.0%
Import Ratio
10.0%
(equipment)
Domestic Market Share
90.0%
Banking relationship
Main Banks Barclays 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 gold
COMMENTS
According to legal aspects, the company has had criminal cases against it, over alleged human rights violations at Bulyanhulu mine, however the case was dismissed on the basis that there was no sufficient evidence to substantiate the allegations that have been made.According to the History the Bulyanhulu gold mine was owned by Sutton Resources Ltd company, In 1999, Barrick acquired Sutton Resources Ltd and Renamed the mine to Bulyanhulu Gold Mine Ltd, Barrick Tanzania Ltd is in turn owned by Barrick Gold Corporation.
Maximum credit we recommend is USD 800,000 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%)