MIRA INFORM REPORT
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Report Date : |
21.11.2008 |
IDENTIFICATION DETAILS
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Name : |
GOLDEN STAR WASSA LTD |
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Registered Office : |
Kia
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Country : |
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Financials (as on) : |
31.03.2008 (Consolidated) |
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Date of Incorporation : |
17.09.2002 |
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Com. Reg. No.: |
768964 |
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Legal Form : |
Limited Corporation |
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Line of Business : |
Gold Prospecting &
Mining Company |
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 340,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
SUBJECT'S NAME
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Registered Name: |
GOLDEN STAR
WASSA LTD |
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Requested Name: |
GOLDEN STAR WASSA LTD |
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Other Names: |
None found. |
ADDRESS AND TELECOMMUNICATION
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Physical Address: |
Kia
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Postal Address: |
P.o
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Country: |
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Phone: |
233-21-779040/1 |
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Fax: |
233-21-777700 |
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Email: |
info@gsrgh.com |
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Website: |
www.gsrgh.com |
CREDIT OPINION & RISK RATING
ASSESSMENT
|
Financial Index as of
December 2007 shows subject firm with a medium risk of credit. We recommend
Credit of USD 340,000 on 90 days. |
LEGAL
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Legal Form: |
Limited Corporation |
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Date Incorporated: |
17-Sep-2002 |
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Reg. Number: |
768964 |
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Nominal Capital |
GHC.
100,000,000 |
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Subscribed Capital |
GHC.
100,000,000 |
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Paid Up Capital |
GHC.
100,000,000 |
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Subscribed Capital is Subscribed in the following form: |
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Position |
Shares |
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Mr.
Tom Mair |
MD/
CEO |
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Mr.
John Labate |
Director |
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Mr.
Mike Koampah |
Director |
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Golden
Star Resources |
Holding
Company |
90% |
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Government
of |
Shareholder |
10% |
RELATED COMPANIES
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Golden
Star Resources |
Parent company. |
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None |
Subsidiary company. |
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(GSBPL)Golden Star (Bogoso/Prestea) Ltd (HBB) Hwini-Butre & Benso properties Ltd |
Affiliated company. |
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None |
Shareholder of subject
firm. |
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None |
Branches of the firm |
OPERATIONS
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Registered to operate as
a gold prospecting & mining Company |
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Imports: |
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Exports: |
Europe & Australia |
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Trademarks: |
None |
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Terms of sale: |
Cash (80%) and 20 days (20%), invoices. |
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Main Customers: |
firms and organizations |
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Employees: |
400 employees. |
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Vehicles: |
Several motor vehicles. |
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Territory of sales: |
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Location: |
Rented premises, 20.000 square feet, |
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Terms of sale: |
Cash (40%) and 25-90 days (60%), invoices. |
AUDITORS AND INSURANCE
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Auditors: |
Information not
available. |
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Insurance Brokers: |
Information not
available. |
FINANCE
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Currency Reported: |
Ghanaian Cedi (GHC.) |
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Approx. Ex. Rate: |
1 US Dollar = 11,780
Ghanaian Cedi |
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Fiscal Year End: |
December 31, 2007 |
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Inflation: |
According to information given by independent sources, the inflation
at December 31st, 2007 was of 13%. |
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Financial Information |
Attached for Group |
BANK
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Bank Name: |
BARCLAYS
BANK |
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Branch: |
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Comments: |
None |
TRADE
REFERENCES
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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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Stated in thousands of US dollars except
shares issued and outstanding) (Unaudited) |
As of |
As of |
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|
March 31, 2008 |
December 31,
2007 |
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ASSETS |
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CURRENT ASSETS |
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Cash and cash equivalents |
54,677 |
75,754 |
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Accounts receivable |
4,019 |
8,369 |
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Inventories |
71,230 |
55,966 |
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Deposits |
6,947 |
4,513 |
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Prepaids and other |
1,670 |
1,224 |
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Total Current Assets |
138,543 |
145,826 |
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RESTRICTED CASH |
5,170 |
1,510 |
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AVAILABLE-FOR-SALE INVESTMENTS |
7,740 |
5,121 |
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DEFERRED EXPLORATION AND DEVELOPMENT COSTS |
30,804 |
29,203 |
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PROPERTY, PLANT AND EQUIPMENT |
279,714 |
284,077 |
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MINING PROPERTIES |
330,391 |
326,811 |
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Total Assets |
792,362 |
792,548 |
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LIABILITIES |
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CURRENT LIABILITIES |
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Accounts payable |
18,867 |
26,457 |
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Accrued liabilities |
33,107 |
28,394 |
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Fair value of derivatives |
339 |
248 |
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Asset retirement obligations |
2,013 |
2,013 |
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Current debt |
15,237 |
17,125 |
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Total Current Liabilities |
69,563 |
74,237 |
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LONG TERM DEBT |
106,909 |
107,929 |
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ASSET RETIREMENT OBLIGATIONS |
17,060 |
16,906 |
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FUTURE TAX LIABILITY |
42,154 |
42,154 |
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Total Liabilities |
235,686 |
241,226 |
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MINORITY INTEREST |
6,002 |
6,150 |
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COMMITMENTS AND CONTINGENCIES |
— |
— |
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SHAREHOLDERS’ EQUITY |
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SHARE CAPITAL |
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Common shares, without par value, unlimited shares authorized. Shares
issued and outstanding: 235,945,311 at March 31, 2008 and 233,703,681 at
December 31, 2007 (Note 15) |
615,351 |
609,103 |
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CONTRIBUTED SURPLUS |
13,919 |
13,230 |
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EQUITY COMPONENT OF CONVERTIBLE NOTES |
34,525 |
34,620 |
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ACCUMULATED OTHER COMPREHENSIVE INCOME (Note 17) |
5,766 |
3,192 |
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DEFICIT |
(118,887) |
(114,973) |
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Total Shareholders’ Equity |
550,674 |
545,172 |
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Total Liabilities and Shareholders’ Equity |
792,362 |
792,548 |
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CONSOLIDATED STATEMENTS OF |
Three months
ended |
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OPERATIONS AND COMPREHENSIVE LOSS |
2008 |
2007 |
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Gold revenue |
$ 53,183 |
$ 29,861 |
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Cost of sales (Note 9) |
(49,124) |
(33,326) |
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Mine operating margin (loss) |
4,059 |
(3,465) |
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Net loss for the period |
$ (3,914) |
$ (3,565) |
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.50.03 |
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|
1 |
Rs.74.42 |
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Euro |
1 |
Rs.62.71 |
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%)