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MIRA
INFORM REPORT
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Report Date : |
10.06.2011 |
IDENTIFICATION DETAILS
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Name : |
JORDAN PHOSPHATE MINES CO PLC (JPMC) |
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Registered Office : |
Al Sharif Al Radi Street, No. 5 Shmeisani PO Box30 Amman 11118 |
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Country : |
Jordan |
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Financials (as on) : |
31.12.2009 |
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Year of Establishment : |
March 1949 |
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Com. Reg. No.: |
16, Amman |
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Legal Form : |
Public Shareholding Company |
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Line of Business : |
Extraction, processing and export of phosphate rock and phosphoric fertilisers. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
US$ 3,000,000 |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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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
|
Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
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Jordan |
B1 |
B1 |
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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 |
SUMMARY
Company Name : JORDAN PHOSPHATE MINES CO PLC (JPMC)
Country of Origin : Jordan
Legal Form : Public Shareholding Company
Start Date : March 1949
Registration Date : 16th February 1964
Commercial Registration Number : 16, Amman
Issued Capital : JD 75,000,000
Paid up Capital : JD 75,000,000
Total Workforce : 3,811
Activities : Extraction, processing and export of phosphate rock and phosphoric
fertilisers.
Financial Condition : Fair
Payments : Nothing detrimental uncovered
Operating Trend : Steady
Recommended Credit Limit : US$ 3,000,000
COMPANY NAME
JORDAN PHOSPHATE MINES CO PLC (JPMC)
ADDRESS
Registered & Physical Address
Street : Al Sharif Al
Radi Street, No. 5
Area : Shmeisani
PO Box : 30
Town : Amman 11118
Country : Jordan
Telephone : (962-6) 5607141
/ 5660141 / 5607010
Facsimile : (962-6)
5682290 / 5691290 / 5608229
Email : admin-jmpc@nets.com.jo
/ jpmc@nets.com.jo
/ info@jpmc.com.jo
Premises
Subject operates from a large suite of offices that are owned and located
in the Central Business Area of Amman.
Branch Office (s)
Location Description
· El Hassa Owned
mine
· El Abiad Owned
mine
· Rusifa Owned
mine
· Eshidiya Owned
mine
· Aqaba Owned
fertilizer complex
Tel: (962-3)
2014151 / 2017004
KEY PRINCIPALS
Name Position
· Walid Kurdi Chairman
· Ahmed Al Mashaqbeh Deputy
Chairman
· Mohammad Abu
Hammour Director
· Mohamed Amin
Abdullah Director
· Junaidi Masri Director
· Talal Al Saadi Director
· Izz Eddin Katkhuda Director
· Hamad Al Omer Director
· Abdel Fattah Abu
Hassan Director
LEGAL FORM & OWNERS
Date of
Establishment : Subject’s
operations date back to March 1949, however it was registered on 16th
February 1964.
History : JPMC’s operations
date back to March 1949, however is was registered and incorporated as a Public
Shareholding Company on 16th February 1964.
On 1st
May 1986, JPMC absorbed the operations of Jordan Fertiliser Industries Company
(JFIC), whose accumulated losses by the end of 1985 had reached JD 40.3
million. JFIC is now operating as a
division of JPMC.
Legal Form : Public
Shareholding Company
Commercial Reg.
No. : 16, Amman
Issued Capital : JD 75,000,000
Paid up Capital : JD 75,000,000
Name of Major
Shareholders (s) Percentage
· Kamil Holdings
Limited 37.00%
Jersey
· Ministry of
Finance 25.66%
· Social Security
Corporation 15.95%
· Government of
Kuwait 9.33%
· Jordan Islamic Bank 1.54%
AFFILIATED COMPANIES
· Indo-Jordan
Chemicals Company Limited
· Nippon
Jordan Fertilizer Company Limited
OPERATIONS
Activities: JPMC currently operates three mines in Jordan producing phosphate rock, with a fourth mine at Al-Ruseif having ceased production in 1985, and a downstream fertilizer and chemicals plant at Aqaba in the south of Jordan producing phosphoric acid, diammonium phosphate ("DAP"), sulphuric acid and Aluminium fluoride.
Subject was founded in 1949 with a capital of JD 1 million to exploit the phosphate deposits in Jordan. The first mine was opened at Rusifa, north of Amman. In the early 1960s mining commenced at El Hassa, south of Amman and in the late 1970s the El Abiad mine was opened 20 Km north of El Hassa. In 1988 the Shidiya mine was opened. Production of fertilisers started in 1982 at Aqaba.
The company’s proven phosphate reserves amount to over 2 billion tonnes and could total as much as 10 billion tonnes. The Shidiya mines has proven reserves of 1.2 billion tonnes and possible reserves of 4-5 billion tonnes, compared with 200-300 million tonnes of proven reserves at Al Hassa and Al Abiad.
JPMC is currently producing 6.5 million metric tons of rock phosphate per year from various mines.
Approximately 4.5 million metric tons is exported to 20 countries worldwide. The balance of the quantity is used for manufacturing phosphoric acid at Aqaba complex and to supply the joint ventures as well.
JPMC currently mines and produces phosphate rock at its mines at Al-Hassa, Al-Abiad and Eshidiya,
producing various grades of phosphate rock. JPMC is currently the only entity licensed to mine and
produce phosphate rock in Jordan. JPMC also has a dormant mine at Al-Ruseifa.
Eshidiya Mines
Eshidiya mines, which covers an area of approximately 258 square km, is located in the south of Jordan, approximately 125 km north-east of the port at Aqaba.
Phosphate bearing deposits were discovered in the Eshidiya region in 1975 and, following Government exploration and feasibility studies, JPMC took over implementation of the mining project in 1987. Phosphate rock production commenced at Eshidiya in 1988 and amounted to 3.31 million mt in the year ended 31 December 2002. JPMC estimates that the Eshidiya mining area has phosphate bearing deposits of some 1.34 billion mt of which 810 million mt are considered by JPMC to be "proven". JPMC believes that ongoing exploration is likely to lead to an increase in estimated reserves in JPMC's mine at Eshidiya. In 1999, a new deposit with 62 million mt proven reserves of a high grade were discovered in the Upper Horizon area at Eshidiya. Production from this mine during 2009 was 3,416,992 tonnes.
Hassa & Abiad Mines
Al-Hassa and Al-Abiad mines are located approximately 20 km apart, some 130 km south of Amman. Each of the mines has a railway terminal linking it to the port at Aqaba, 200 km to the south.
The mines at Al-Hassa and Al-Abiad, each covering an area of approximately 25
square km, were, until the development of Eshidiya in 1988, the main mining and
production sites of JPMC.
The mines at Al-Hassa and Al-Abiad produce two main grades of phosphate rock,
although selective mining and blending can produce other grades. The principal
grades produced are a standard grade 70/72 BPL, which requires only crushing
and screening followed by drying of the mined ore, and a higher grade 73/75 BPL
resulting from additional beneficiation by washing followed by subsequent
drying to reduce the moisture content to a maximum of three percent.
Production from the two mines was 491,808 tonnes (Hassa) and 1,371,893 tonnes (Abiad) during 2009.
Al-Ruseifa
The mine at Al-Ruseifa commenced production in 1935. However, owing to the
depletion of economically exploitable reserves, this mine has been dormant
since 1985 and JPMC has no plans to recommence mining operations. The total
quantity of phosphate produced during the year 2008 from this mine amounted to
44,000 tonnes, which was derived exclusively from existing stockpiles of mined
ore
Aqaba fertilizer Complex
The Aqaba fertilizer complex is located at WADI 2, 15 Km south of Aqaba city on the Red Sea coast and approximately 360 Km south of Amman.
Production started in 1982 to produce Sulphuric acid, Phosphoric acid, Diammonium phosphate and Aluminium fluoride.
In the early nineties JPMC decided to rehabilitate the phosphoric acid plant and sulphuric acid plant in order to upgrade its annual production capacity, product quality & yield. The complex now comprises the following plants & production facilities:
- Utilities plant producing steam, water & electricity.
- Sulphuric acid plant rehabilitated in 1994, comprising two lines of production, producing
1.45 million tons per year of sulphuric acid.
- Phosphoric acid plant rehabilitated in 1993, producing 350,000 tons per year of
phosphoric acid.
- Granulation plant, comprises two lines of production, producing 650,000 tons per year
DAP.
- Aluminium fluoride plant, producing 14,000 tons per year of aluminium fluoride.
Import Countries: Germany, the United States of America and the Far
East.
Export Countries : Subject exports approximately 85 percent of
phosphate output with a significant
portion of it going to Norway and Asian
countries, as well as Germany, Australia and
New Zealand.
Operating Trend: Steady
Subject has a workforce of 3,811 employees.
FINANCIAL DATA
Financial highlights provided by local sources are given below:
Currency: Jordanian Dinars (JD 000’s)
Balance Sheet 31/12/09 31/12/08
Assets
Property and equipment 92,315 72,404
Projects in progress 22,931 17,227
Goodwill 21,804 21,804
Investments in associates 41,494 40,471
Employees' housing loans 3,412 2,506
Available-for-sale financial assets 6,815 5,199
Payments on pre-stripped overburden 759 2,682
Spare parts and strategic supplies 26,909 18,386
216,439 180,679
Inventories 70,018 51,394
Spare parts and supplies 31,192 25,907
Accounts receivable 36,918 90,472
Other current assets 33,154 28,523
Financial assets at fair value through profit and loss 233 258
Loans to others - 1,062
Cash on hand and at banks 186,330 172,803
357,845 370,419
TOTAL ASSETS 574,284 551,098
Equity and Liabilities
Equity attributable to equity holders
Paid-in capital 75,000 75,000
Statutory reserve 67,034 61,604
Voluntary reserve 57,168 46,308
Special reserve 48,313 37,453
Cumulative change in fair value (27) 40
Retained earnings 224,936 196,708
Total Equity 472,424 417,113
Non-current liabilities
Long-term loans 11,780 19,380
Compensation fund and end-of-service indemnity provision 11,855 15,490
Early retirement obligations 7,794 12,397
Deferred tax liabilities - 2
31,429 47,269
Current liabilities
Accounts payable 19,809 16,805
Accrued expenses 16,558 10,391
Other current liabilities 14,811 17,022
Due to banks 674 4,829
Current portion of long-term loans 6,462 12,340
Income tax provision 12,117 25,329
70,431 86,716
Total Liabilities 101,860 133,985
TOTAL EQUITY AND LIABILITIES 574,284 551,098
Income Statement
Net sales 458,246 846,892
Cost of sales (293,756) (483,740)
Gross profit 164,490 363,152
Selling and marketing expenses (10,892) (15,469)
Aqaba port fees (6,763) (8,109)
Transportation expenses (23,625) (31,576)
Administrative expenses (15,063) (19,587)
Ruseifa Mine expenses (2,867) (2,165)
Mining fees (5,630) (6,790)
Provision for slow-moving spare parts - (3,903)
Provision for doubtful debts (500) (390)
Foreign exchange difference 312 (6)
Pension income (expense) 1,950 (1,588)
Other income, net 4,150 7,588
Operating profit 105,562 281,157
Finance costs (2,724) (3,532)
Finance income 3,544 666
Share of profit of associates 2,049 1,835
Loss on financial assets at fair value through profit and loss (24) (30)
Other fees (3,051) (7,503)
Board of Directors remuneration (45) (45)
Profit before tax 105,311 272,548
Income tax expense (12,433) (33,926)
Profit for the year 92,878 238,622
Local sources consider subject’s financial condition to be Fair.
Net sales for the period ending 31st
December 2010 were JD 563,107,000 and Profit for the year was JD 80,232,000.
BANKERS
·
Arab Bank Plc
Shmeisani Branch
PO Box: 950545
& 950544
Amman 11195
Tel: (962-6)
5607231 / 5607115
Fax: (962-6)
5606793 / 5606830
Email: secretariat@arabbank.com.jo
·
Housing Bank
Parliament Street
PO Box: 7693
Amman
Tel: (962-6)
5667126
·
Jordan National Bank
Jabal Amman Branch
PO Box: 1578
Amman 11118
Tel: (962-6)
5642391
Fax: (962-6)
5628809
PAYMENT HISTORY
No complaints regarding subject’s payments have been reported.
GENERAL COMMENTS
JPMC is the sole entity currently operating under licence to mine and
produce phosphate rock in Jordan. In the year ended 31 December 2000, Jordan
was the sixth largest phosphate rock producer in the world, the fourth largest
exporter of phosphate rock in the world and the largest exporter in terms of
revenue in the Jordanian economy. JPMC is the largest mining and industrial
employer in Jordan.
JPMC is controlled by the Government of Jordan which, through the Jordan
Investment Corporation, the investment arm of the Government of Jordan, and
through the Social Security Corporation, currently owns 81.954 percent of the
authorised and issued share capital of JPMC.
During the course of this investigation nothing detrimental was
uncovered regarding the manner in which payment obligations are fulfilled. The
operating history is clear and the financial situation is satisfactory. As such
we are of the opinion that the subject is a sound trade risk.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.72 |
|
|
1 |
Rs.73.47 |
|
Euro |
1 |
Rs.65.38 |
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
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.