MIRA
INFORM REPORT
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Report Date : |
11.11.2008 |
IDENTIFICATION
DETAILS
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Name : |
BULYANHULU GOLD MINE LTD |
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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 : |
24.09.1994 |
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Com. Reg. No.: |
14456 |
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Legal Form : |
Limited Corporation |
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Line of Business : |
Gold Mining/Extraction
Activities |
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 100,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
SUBJECT'S NAME
Registered Name: BULYANHULU GOLD MINE LTD
Requested Name: BULYANHULU
GOLD MINE LTD
Other Names: None found.
ADDRESS AND TELECOMMUNICATION
Physical Address: Hamza Aziz Road, Msasani Peninsula, Dar Es
Salaam, Tanzania
Postal Address: P.o Box 891 Kahama District
Shinyanga
Dar Es Salaam
Country: Tanzania
Phone: 255-22-2600508/28-2520725/6/2520727/ 2520614/2602231/2668153/2601303
Fax: 255-22-2600222/28-2667732/2700815
Email: bulyanhulu@barrick.com
Website: www.barrick.com
CREDIT OPINION
Financial Index as of December 2007 shows subject firm
with a medium risk of credit. However, bank and credit information obtained
reveal a history of prompt payments. We recommend Credit of USD 100,000 on 90
days.
LEGAL
Legal Form: Limited Corporation
Date Incorporated: 24-Sept-1994
Reg. Number: 14456
Nominal Capital TZS 1,000,000,
Subscribed Capital TZS 1,000,000,
Subscribed
Capital is Subscribed in the following form:
Position Shares
Mr. Peter Munk MD/ CEO
Mr. Gareth Taylor Director
Mr.
Kedibone Ngakane-Lokwe Director
Mr. Peter Crossgrove Director
Barrick Tanzania Ltd Holding Company 1,000,000
RELATED COMPANIES
Barrick Tanzania Ltd Parent company.
None Projects
North Mara Goldmine Ltd Affiliated company.
None Shareholder of subject firm.
None Branches of the firm
OPERATIONS
Registered to operate gold mining/extraction
activities
Imports: None
Exports: East
Africa
Trademarks: None
Terms of sale: Cash
(60%) and 30 days (40%), invoices.
Main Customers: firms
and organizations
Employees: 60
employees.
Vehicles: Several
motor vehicles.
Territory of sales: Tanzania
Location: Rented
premises, 1,000 square feet,
AUDITORS AND INSURANCE
Auditors: Ernst & Young
Insurance Brokers: Alexander Forbes
FINANCE
Currency Reported: Tanzanian Shillings (TZS)
Approx. Ex. Rate: 1 US Dollar = 1,243.6 Tanzanian Shillings
Fiscal Year End: December
31, 2007
Inflation: According to
information given by independent sources, the inflation at December 31st,
2007 was of 13%.
Financial Information
Submitted In
USD(000,000)
Balance Sheet as At December 31, 2007 2006
ASSETS
Current assets
Cash and equivalents 2,207 3,043
Accounts receivable 256 234
Inventories 1.118 931
Other current assets 707 588
4.288 4.796
Non-current assets
Investments 142 646
Equity method investments 1.074 327
Property, plant and equipment 8.596 8.39
Intangible assets 68 75
Goodwill 5.847 5.855
Other assets 1.936 1.421
Total assets 21,951 21,510
LIABILITIES AND SHAREHOLDERS' EQUITY
Current
liabilities
Accounts payable 808 686
Short-term debt 233 863
Other current liabilities 255 303
1.296 1.852
Non-current liabilities
Long-term debt 3.153 3.244
Asset retirement obligations 892 843
Deferred income tax liabilities 841 798
Other liabilities 431 518
Total liabilities 6.613 7.255
Non-controlling interests 82 56
Shareholders' equity
Capital stock 13.273 13.106
Retained earnings 1.832 974
Accumulated other comprehensive income 151 119
Total shareholders' equity 15.256 14.199
Contingencies and commitments
Total liabilities and shareholders' equity 21,951 21,510
2006 2007
Sales 6,332 5,630
Net Profit (Loss) 1,506 1,119
BANK
Bank Name: CITI BANK.
Branch: Dar Es Salaam, Tanzania
Account Number: 100542056
Enquiry Amount: 100,000
Terms: 90 days
Bank Code: Code
-C which means good for normal Business Engagements
Comments: Overdraft None, Promissory notes- None
TRADE
REFERENCES
Experiences: Good
NOTARIAL BONDS None
COMMENTS / ADDITIONAL INFORMATION
This information was obtained from outside sources other
than the subject company itself and confirmed the above subject.
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)
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(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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FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.47.59 |
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UK Pound |
1 |
Rs.74.55 |
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Euro |
1 |
Rs.60.57 |
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%)