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MIRA
INFORM REPORT
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Report Date : |
14.03.2008 |
IDENTIFICATION
DETAILS
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Name : |
KONKOLA
COPPER MINES PLC (KCM) |
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Registered Office : |
Private Bag KCM, 2000 Chingola |
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Country : |
Zambia |
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Date of Incorporation : |
1970 |
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Com. Reg. No.: |
1641 Chingola, Zambia |
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Legal Form : |
Limited Liability company, Limited by Shares |
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Line of Business : |
Copper Mining and Other Metals 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 : |
No Complaints |
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Litigation : |
Clear |
COMPANY REPORTED
KONKOLA
COPPER MINES PLC (KCM)
Principal Address
Private Bag KCM, 2000 Chingola, Zambia
Telephone: +260-2-350000
Fax: +260-2-350000
Email: augustine.seyuba@kcm.co.zm
Internet: www.kcm.co.zm
Established
1970
Registration
No. 1641 Chingola, Zambia
Legal Form
Limited Liability
company, Limited by shares
Stock Listing
Not Listed
Workforce
2007
9,400
Office & Factories
Head offices Stand M/1408, Fern Avenue Chingola, Zambia
Branches None
Company Profile
Paid in Capital ZMK. 100,000,000
Subscribed Capital ZMK. 100,000,000
Shareholders
Name Position Amount Ratio
Mr. Navin Agarwal CEO
Mr. Kuldip Kaura Vice CEO
Mr. D
Bandyopadhyay Director
Mr. C V Krishnan Director
Mr. T D Kamwendo Director
Vedanta Resources
plc, United Kingdom Holding
Co. 51.00%
Zambia Copper
Investments Ltd, Bermuda Shareholder 28.40%
ZCCM Investments
Holdings Plc, Zambia Shareholder 20.60%
GRZ Shareholder Golden Share 0.0%
Total 100.00%
Credit Opinion
Our proposed credit amount of USD 400,000 is recommendable
Subsidiary Companies
Subsidiary Company
(1) Copper flash
smelting plant, Zambia
Subsidiary Company
(2) Konkola Deep copper-mine project (KDMP)
Affiliated Companies
Company (1) BHARAT ALUMINIUM
COMPANY LTD
Company (2) COPPER MINES OF
TASMANIA
Company (3) HINDUSTAN ZINC LTD
Company (4) MADRAS ALUMINIUM
CO. LTD
Company (5) STERLITE
INDUSTRIES LTD
Management/ Directors
President/ CEO (1)
Name Mr. N Agarwal
Work
Experience 20 years in this
line of business
Remarks Top
Decision Maker
President/ CEO (2)
Name Mr.
Kuldip Krishnan Kaura
Work
Experience 30 years in this
line of business
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
Copper mining and
other metals etc
Terms of payment
Buying terms 20%
in cash, 80% on credit
Selling terms 80% in cash, 20% on credit
Suppliers
Liebher,
Customers
Industries & Companies
Recent Sales
USD$.
1,250,000,000 (2007)
Exports
Europe, Asia, USA
Export Ratio
90.0%
Import Ratio
10.0%
Domestic Market Share
30.0%
Banking relationship
Main Banks Development Bank of
Zambia
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 satisfactory.
COMMENTS
On 5 November 2004, the Vedanta Group completed the acquisition of a 51%
controlling interest in KCM.
Maximum credit we recommend is USD 400,000 outstanding at any one time.
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%)