MIRA INFORM REPORT
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Report Date : |
06.07.2011 |
IDENTIFICATION DETAILS
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Name : |
ILUKA RESOURCES LIMITED |
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Formerly Known As : |
Westralian Sands |
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Registered Office : |
Level 23, 140 St Georges Terrace, Perthwa 6000 |
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Country : |
Australia |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
21.07.1954 |
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Legal Form : |
Limited Company |
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Line of Business : |
Producer of zircon |
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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Status : |
Good |
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Payment
Behaviour : |
Usually Correct |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2011
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Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
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Australia |
a1 |
a1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
REGISTERED NAME
ILUKA RESOURCES LIMITED
ACN: 008 675 018
ABN: 34 008 675
018
CORPORATE SEARCH
Incorporation State: WA
Incorporation Date: 21 JUL 1954
Registered Office
LEVEL 23,
140 ST GEORGES TERRACE,
PERTH
WA 6000
Current Directors Total: 6
STEPHEN JOHN TURNER - Appointed: 26 MAR 2010
7/4 BILLYARD Avenue ELIZABETH BAY, NSW
DOB: 28 APR 1961
WAYNE GEOFFREY OSBORN - Appointed: 26 MAR 2010
26B FRASER Road APPLECROSS, Western Australia
DOB: 14 SEP 1951
JENNIFER ANNE SEABROOK - Appointed: 01 MAY 2008
29 AIRLIE Street CLAREMONT, Western Australia
DOB: 19 JAN 1957
DAVID ALEXANDER ROBB - Appointed: 18 OCT 2006
43 MINORA Road DALKEITH, Western Australia
DOB: 04 JUL 1954
GAVIN REZOS - Appointed: 20 JUN 2006
17 MCNEIL Street PEPPERMINT GROVE, Western Australia
DOB: 13 APR 1961
GEORGE JOHN PIZZEY - Appointed: 07 NOV 2005
ROYAL DOMAIN TOWER
2902/368 ST KILDA Road MELBOURNE, Victoria 3004 Australia
DOB: 28 JUL 1945
Current Secretaries Total: 1
CAMERON WILSON - Appointed: 08 DEC 2004
Share Structure - Classes Total: 1
ORD ORDINARY SHARES: 38000000 – Amount paid: $114,000,000
Shareholders Total:
Unknown
BUSINESS STRUCTURE
TRADING ADDRESS Level 23, 140 St Georges Tce
PERTH, WA 6000
TELEPHONE (618) 9360 4700
FACSIMILE (618) 9360 4777
OFFICES CAPEL, WA
GERALDTON, WA
HAMILTON, VIC
KENT TOWN, SA
CONTROLLED ENTITIES Westlime (WA) Limited,
Ilmenite Pty Limited
Southwest Properties Pty Limited
Western MineralSands Pty Limited
Yoganup Pty Limited
Iluka Corporation Limited
Associated Minerals Consolidated Limited
Iluka Administration Limited
Iluka (NSW) Limited
Iluka Consolidated Pty Limited
Iluka Exploration Pty Limited
Gold Fields Asia Limited
Iluka International Limited
NGGHoldings Limited
Caroda Pty Limited
Iluka Midwest Limited
Western Titanium Limited
The Mount Lyell Mining and Railway Company Limited,
Colinas Pty Limited
Renison Limited
Iluka Finance Limited
The Nardell Colliery Pty Limited
Glendell Coal Limited
Lion Properties Pty Limited
BANK Not determined
EMPLOYEES 900
BACKGROUND
The subject was incorporated in Western Australia on 21 July 1954 as Westralian Sands Ltd before adopting the current style on 24 May 1999.
The subject was formed in July 1998 in a merger between Westralian Sands and the titanium mineral business of RGC (Renison Goldfields Consolidated).
Westralian Sands was established in 1954 but commenced operations in 1959 when it started mining and processing the Yoganup deposit near Capel in Western Australia.
OPERATIONS
The subject is an Australia listed ASX 100 company
involved in the exploration, project development, operation and marketing of
mineral sands products.
The subject is the world’s largest
producer of zircon, with a market share of approximately one third. It is the
second largest producer of titanium dioxide minerals, and within this sector
the largest global producer of the higher value titanium dioxide products of
rutile and synthetic rutile (upgraded ilmenite).
The subject’s operations are based
in Australia, with mining and processing operations in Victoria; mining
operations in South Australia, as well as processing and ilmenite upgrading operations
in Western Australia. The company also has mining and processing operations in
Virginia, in the United States.
Over recent years, the company has
transformed its asset base from its historical reliance on its Western
Australian mining operations to new, high quality, longer life operations in
the Murray Basin (Victoria and New South Wales) and Eucla Basin (South
Australia).
ADVERSE
A search of the following litigation listed against the subject at that date.
Payment Default
Account Number : 141553
Account Type :
Telecommunications
Member : AAPT
Date : 16 October 2007
Amount :
$1361
Reason :
Payment default
Assoc Code : Company’s Account
Writs and summonses
Creditor :
shire of Carnamah
Date : 02.07.2010
Amount : $3199
Plaint No. : 357/10/WGER
Court : Magistrates Court Writ
Assoc code : Companys Account
FINANCES
From the subjects most recently lodged financial statements, it is noted that for the financial year ended 31 December 2010 the subject recorded consolidated revenue of $964,600,000, which resulted in an operating profit before tax of $39,900,000 and an operating profit after tax of $36,100,000 representing a Net Profit Margin of 3.74%.
Below is a summary of the subject’s consolidated income results for the past two financial years.
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Iluka Resources Ltd - consolidated |
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As at 31 December 2010 |
As at 31 December 2009 |
Change (%) |
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Revenue |
$964,600,000 |
$602,600,000 |
60.07% |
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Profit b/tax |
$39,900,000 |
($166,800,000) |
-123.92% |
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Profit a/tax |
$36,100,000 |
($82,400,000) |
-143.81% |
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Net Profit Margin |
3.74% |
-13.67% |
17.42% |
During fiscal 2010, the subject recorded consolidated Net Cashflows from operating activities totalling $178,700,000.
On 27 May 2009 Iluka disposed of its shares in Consolidated Rutile Limited (“CRL”) to Unimin Australia Limited for 45 cents per share and aconsideration of $84.2 million resulting in a profit from discontinued operations of $22.9 million.
As 31 December 2010 the subject recorded consolidated total current assets of $395,900,000. They included cash of $30,100,000, receivables of $164,800,000 and inventories of $201,000,000.
Current liabilities at the same date totalled $188,100,000 and included payables of $103,700,000 and provisions of $54,900,000.
As at 31 December 2010 the subject recorded consolidated Working Capital of $207,800,000 and a current ratio of 2.1 to 1 indicating strong liquidity levels.
The subject had access to financing facilities with a combined limit of $590.4 million at 31 December 2010. At this date these facilities were drawn to $345 million.
Consolidated Net Assets totalled $1,124,600,000 as at 31 December 2010. At this date, the subject further recorded a Debt to Equity ratio of 0.72 to 1.
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Iluka Resources Ltd - consolidated |
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As at 31 December 2010 |
As at 31 December 2009 |
Change (%) |
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Revenue |
$964,600,000 |
$602,600,000 |
60.07% |
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Profit b/tax |
$39,900,000 |
($166,800,000) |
-123.92% |
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Profit a/tax |
$36,100,000 |
($82,400,000) |
-143.81% |
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Net Profit Margin |
3.74% |
-13.67% |
17.42% |
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Current Assets |
$395,900,000 |
$411,600,000 |
-3.81% |
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Non-Current Assets |
$1,544,000,000 |
$1,686,800,000 |
-8.47% |
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Total Assets |
$1,939,900,000 |
$2,098,400,000 |
-7.55% |
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Current Liabilities |
$188,100,000 |
$256,500,000 |
-26.67% |
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Non-Current Liabilities |
$627,200,000 |
$746,600,000 |
-15.99% |
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Total Liabilities |
$815,300,000 |
$1,003,100,000 |
-18.72% |
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Net Assets |
$1,124,600,000 |
$1,095,300,000 |
2.68% |
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Working Capital |
$207,800,000 |
$155,100,000 |
33.98% |
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Current Ratio |
2.1 |
1.60 |
31.16% |
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Debt to Equity |
0.72 |
0.92 |
-20.84% |
TRADE SURVEY
During the current investigation, contact with the subject’s principals was unable to be established.
Subsequently
details pertaining to the company’s suppliers were unable to be obtained and a
trade survey could not be conducted.
SUMMARY
The subject was incorporated in Western Australia on 21 July 1954 as Westralian Sands Ltd before adopting the current style on 24 May 1999.
The subject was formed in July 1998 in a merger between Westralian Sands and the titanium mineral business of RGC (Renison Goldfields Consolidated).
for the financial year ended 31 December 2010 the subject recorded consolidated revenue of $964,600,000, which resulted in an operating profit before tax of $39,900,000 and an operating profit after tax of $36,100,000 representing a Net Profit Margin of 3.74%.
During fiscal 2010, the subject recorded consolidated Net Cashflows from operating activities totalling $178,700,000.
As at 31 December 2010 the subject recorded consolidated Working Capital of $207,800,000 and a current ratio of 2.1 to 1 indicating strong liquidity levels.
Consolidated Net Assets totalled $1,124,600,000 as at 31
December 2010.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.44.50 |
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UK Pound |
1 |
Rs.71.25 |
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Euro |
1 |
Rs.64.40 |
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 |
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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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.