MIRA INFORM REPORT

 

 

Report Date :

21.10.2008

 

IDENTIFICATION DETAILS

 

Name :

FREEPORT MACMORAN COPER AND GOLD INC

 

 

Registered Office :

One North Central Ave. Phoenix, AZ 85004

 

 

Country :

United States

 

 

Financials (as on) :

31.12.2007

 

 

Date of Incorporation :

1988

 

 

Legal Form :

Corporation Trust Company

 

 

Line of Business :

Producer of Molybdenum and Gold.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

EUR 7 000 000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

                  

 

GEOPOLITICS

 

 

POLITICAL DATA

 

 

ECONOMIC DATA

FORM OF GOVERNMENT

 

ECONOMIC RISK

Federal

 


None

 

CURRENCY

 

BRANCH SITUATION

 

USD

 

Satisfying

 

 

IDENTIFICATION

 

Company Name:

 

Freeport Macmoran Coper and Gold Inc

 

Address:

 

One North Central Ave.

Phoenix, AZ 85004,

U.S.A.

 

 

Phone:

 

Facsimile:

 

ID:

 

State:

 

Managers:

 

+1 602.366.8100 /206 585 4444

 

+1 415 343 9301

 

F-1353408-5

 

Arizona

 

Moffett, James R. is the Chairman

 

Date founded:

 

 

1988 – registered in 3/23/2007

 

Corporation Trust Company

 

NA

 

NA

 

25 400 employees

Legal form:

Stock:

 

Value:

 

Staff:

Business: 

Producer of molybdenum and gold.

 

 

BANKS

 

BANK OF AMERICA, SEATTLE

 

 

BUSINESS

 

Operations:

 

Freeport-McMoRan Copper & Gold Inc. (FCX) is a leading international mining company

It is a producer of molybdenum and gold.

 

It is incorporated in Delaware.

 

Way of payments:

 

 

 

SHAREHOLDERS – SUBSIDIARIES – MANAGERS

 

The main holders are as follow:

 

BREAKDOWN

 

 

 

 

% of Shares Held by All Insider and 5% Owners:

1%

% of Shares Held by Institutional & Mutual Fund Owners:

98%

% of Float Held by Institutional & Mutual Fund Owners:

99%

Number of Institutions Holding Shares:

883

 

MAJOR DIRECT HOLDERS (FORMS 3 & 4)

 

 

 

Holder

Shares

Reported

MOFFETT JAMES R

173,505

13-May-08

ADKERSON RICHARD C

1,522,924

6-Mar-08

DAY ROBERT

1,155,954

9-Jun-08

RANKIN B M JR

9,500

1-Jun-08

QUIRK KATHLEEN L

164,374

1-Feb-08

 

 

 

 

 

The executives are:

 

Moffett, James R. is the Chairman.

Mr. Adkerson is the President and Chief Executive Officer

Ms. Quirk is the Executive Vice President, Chief Financial Officer and Treasurer

Mr. Arnold is the Executive Vice President and Chief Administrative Officer

 

 

FINANCIALS – COMMERCIAL TRENDS AND FORECAST

 

PERIOD ENDING

31-Dec-07

31-Dec-06

31-Dec-05

Total Revenue

16,939,000  

5,790,500  

4,179,118  

Cost of Revenue

9,773,000  

2,764,683  

1,646,435  

 

Gross Profit

7,166,000  

3,025,817  

2,532,683  

 

 

Operating Expenses

 

Research Development

-  

-  

-  

 

Selling General and Administrative

611,000  

157,070  

103,885  

 

Non Recurring

-  

-  

-  

 

Others

-  

-  

251,512  

 

 

 

Total Operating Expenses

-  

-  

-  

 

 

 

 

 

Operating Income or Loss

6,555,000  

2,868,747  

2,177,286  

 

 

 

 

Income from Continuing Operations

 

 

Total Other Income/Expenses Net

69,000  

26,221  

(8,709)

 

 

Earnings Before Interest And Taxes

6,646,000  

2,901,458  

2,168,577  

 

 

Interest Expense

513,000  

75,587  

131,639  

 

 

Income Before Tax

6,133,000  

2,825,871  

2,036,938  

 

 

Income Tax Expense

2,400,000  

1,201,175  

915,068  

 

 

Minority Interest

(791,000)

(168,187)

(126,743)

 

 

 

 

Net Income From Continuing Ops

2,942,000  

1,456,509  

995,127  

 

 

 

 

Non-recurring Events

 

 

Discontinued Operations

35,000  

-  

-  

 

 

Extraordinary Items

-  

-  

-  

 

 

Effect Of Accounting Changes

-  

-  

-  

 

 

Other Items

-  

-  

-  

 

 

 

 

 

Net Income

2,977,000  

1,456,509  

995,127  

 

Preferred Stock And Other Adjustments

(208,000)

(60,500)

(60,500)

 

 

 

Net Income Applicable To Common Shares

$2,769,000  

$1,396,009  

$934,627  

 

 

 

 

PERIOD ENDING

31-Dec-07

31-Dec-06

31-Dec-05

 

Assets

Current Assets

 

Cash And Cash Equivalents

1,626,000  

907,464  

763,599  

 

Short Term Investments

-  

-  

-  

 

Net Receivables

1,295,000  

485,769  

687,969  

 

Inventory

2,885,000  

724,248  

565,019  

 

Other Current Assets

97,000  

33,556  

5,795  

 

Total Current Assets

5,903,000  

2,151,037  

2,022,382  

Long Term Investments

-  

87,954  

95,630  

Property Plant and Equipment

26,821,000  

3,098,502  

3,088,931  

Goodwill

6,105,000  

-  

-  

Intangible Assets

472,000  

-  

-  

Accumulated Amortization

-  

-  

-  

Other Assets

1,360,000  

52,309  

57,908  

Deferred Long Term Asset Charges

-  

-  

285,355  

 

Total Assets

40,661,000  

5,389,802  

5,550,206  

 

Liabilities

Current Liabilities

 

Accounts Payable

2,977,000  

758,281  

932,635  

 

Short/Current Long Term Debt

31,000  

19,116  

253,350  

 

Other Current Liabilities

861,000  

195,052  

182,993  

 

Total Current Liabilities

3,869,000  

972,449  

1,368,978  

Long Term Debt

7,180,000  

660,999  

1,002,598  

Other Liabilities

2,839,000  

297,915  

210,259  

Deferred Long Term Liability Charges

7,300,000  

800,310  

902,386  

Minority Interest

1,239,000  

213,028  

222,991  

Negative Goodwill

-  

-  

-  

 

Total Liabilities

22,427,000  

2,944,701  

3,707,212  

 

Stockholders' Equity

Misc Stocks Options Warrants

-  

-  

-  

Redeemable Preferred Stock

-  

-  

-  

Preferred Stock

3,975,000  

1,099,985  

1,100,000  

Common Stock

50,000  

30,993  

29,696  

Retained Earnings

3,601,000  

1,414,817  

1,086,191  

Treasury Stock

(2,841,000)

(2,748,948)

(2,595,888)

Capital Surplus

13,407,000  

2,668,108  

2,212,246  

Other Stockholder Equity

42,000  

(19,854)

10,749  

 

Total Stockholder Equity

18,234,000  

2,445,101  

1,842,994  

 

Net Tangible Assets

$11,657,000  

$2,445,101  

$1,842,994  

 

 

 

PERIOD ENDING

31-Dec-07

31-Dec-06

31-Dec-05

Net Income

2,977,000  

1,456,509  

995,127  

 

Operating Activities, Cash Flows Provided By or Used In

Depreciation

1,264,000  

232,539  

259,108  

Adjustments To Net Income

926,000  

291,284  

119,462  

Changes In Accounts Receivables

428,000  

196,523  

(252,934)

Changes In Liabilities

337,000  

(137,218)

540,052  

Changes In Inventories

272,000  

(146,188)

(108,225)

Changes In Other Operating Activities

21,000  

(27,025)

(45)

 

Total Cash Flow From Operating Activities

6,225,000  

1,866,424  

1,552,545  

 

Investing Activities, Cash Flows Provided By or Used In

Capital Expenditures

(1,755,000)

(250,540)

(142,986)

Investments

-  

-  

-  

Other Cashflows from Investing Activities

(13,106,000)

27,042  

8,647  

 

Total Cash Flows From Investing Activities

(14,861,000)

(223,498)

(134,339)

 

Financing Activities, Cash Flows Provided By or Used In

Dividends Paid

(1,563,000)

(1,137,427)

(637,647)

Sale Purchase of Stock

5,605,000  

(84,503)

(75,361)

Net Borrowings

5,297,000  

(297,950)

(493,049)

Other Cash Flows from Financing Activities

16,000  

20,819  

-  

 

Total Cash Flows From Financing Activities

9,355,000  

(1,499,061)

(1,206,057)

Effect Of Exchange Rate Changes

-  

-  

-  

 

Change In Cash and Cash Equivalents

$719,000  

$143,865  

$212,149  

 

 

RATING

 

 

Local credit bureau gave a correct credit rate.

 

The Company is in “good standing”.

This means that all local and federal taxes were paid on due date.

 

-        The cash flow is correct.

 

-        Payments are made on a regular basis.

 

 

Our final opinion

 

The company is not a large active seeker of open-term credit and generally pays vendors as per agreed terms.

 

The company has a clear and positive legal record.

 

A Credit line may be considered.

 

 

SUMMARY

 

 

 

FINANCIAL SUMMARY

 

 

DEBT COLLECTIONS AND PAYMENTS

PROFITABILITY

 

INDEBTNESS

 

CASH

 

Large

 

Controlled

 

Very Good

PUBLIC

 

PAYMENTS

 

 

See Details Above

 

As Agreed

 

 

 

 

ADVISED CREDIT

 

7 000 000 EUR

 

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.49.29

UK Pound

1

Rs.80.40

Euro

1

Rs.63.35

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

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

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

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.

 

Small

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

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

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%)

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions