MIRA INFORM REPORT

 

 

Report Date :

10.12.2012

 

IDENTIFICATION DETAILS

 

Name :

MAURITANIAN COPPER MINES

 

 

Registered Office :

Ilot D49 Tevrag Zeina,  Nouakchott

 

 

Country :

Mauritania

 

 

Date of Incorporation :

01.12.2004

 

 

Reg. No.:

46381

 

 

Legal Form :

Societe A Responsibilite Limitee

 

 

Line of Business :

Mining of other non‑ferrous metal ores

 

 

No. of Employees :

1541

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

No Complaints

 

 

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Mauritania

C1

C1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

MauritAnia - ECONOMIC OVERVIEW

 

Half the population still depends on agriculture and livestock for a livelihood, even though many of the nomads and subsistence farmers were forced into the cities by recurrent droughts in the 1970s and 1980s. Mauritania has extensive deposits of iron ore, which account for nearly 40% of total exports. The nation's coastal waters are among the richest fishing areas in the world but overexploitation by foreigners threatens this key source of revenue. The country''s first deepwater port opened near Nouakchott in 1986. Before 2000, drought and economic mismanagement resulted in a buildup of foreign debt. In February 2000, Mauritania qualified for debt relief under the Heavily Indebted Poor Countries (HIPC) initiative and nearly all of its foreign debt has since been forgiven. A new investment code approved in December 2001 improved the opportunities for direct foreign investment. Mauritania and the IMF agreed to a three-year Poverty Reduction and Growth Facility (PRGF) arrangement in 2006. Mauritania made satisfactory progress, but the IMF, World Bank, and other international actors suspended assistance and investment in Mauritania after the August 2008 coup. Since the presidential election in July 2009, donors have resumed assistance. Oil prospects, while initially promising, have largely failed to materialize, and the government has placed a priority on attracting private investment to spur economic growth. The Government also emphasizes reduction of poverty, improvement of health and education, and privatization of the economy. Economic growth remained above 5% in 2010-11, mostly because of rising prices of gold, copper, iron ore, and oil.

 

Source : CIA

 

 

 

Company Name

 

MAURITANIAN COPPER MINES

 

 

Rating Briefing

 

Payment Record:         UNDETERMINED

 

This rating is based on available data. In the event of additional information a possibility for a different rating applies.

 

 

Registration Briefing

 

Registration Number:   46381

Registration Date:        01/12/2004

Legal Form:                 SOCIETE A RESPONSIBILITE LIMITEE

Latest Financials:        N/A

 

 

Financial Briefing

 

Nominal Capital:          5,000,000 Mauritanian Ouguiya

Issued Capital: N/A

Turnover:                     346,200,000 US Dollars

Net Profit:                    N/A

Net Worth:                   N/A

 

 

Original Investigation Details

 

Investigation Number:     172767

Rime Reference:            0

Company Name:            MAURITANIA COPPER MINES

Country:                        MM

Street Name:                 GUELB MOGHREIN AKJOUJT LLOT D49 TEVRAGH ZEINA

City Code:

Post Code:                    NOUAKCHOTT

Comments:                   RNC 884881B NIF 30300067

 

We require FRESHLY Investigated Report (with last 2/3 years       financials – if possible) in lights of current  scenario and development in and around the subject and any important guidelines or suggestions to make on

 

Please provide the maximum credit limit & latest financials on the subject company

ALWAYS INCLUDE FULL LINE OF BUSINESS ALONGWITH NAMES OF PRODUCTS MANUFACTURED / TRADED BY THE SUBJECT AS THIS IS REQUIRED BY OUR CLIENT SPECIFICALLY.

 

 

Company Details

 

Company Name:            MAURITANIAN COPPER MINES

Also trades as   :           MCM SA

Headquarter Address:     Guelb Moghrein Copper‑Gold Operations Ilot D49,

Tevrag Zeina,

Nouakchott,

Mauritania

 

Postal Address:             P.O.Box 5045,

                                    Nouakchott

Telephone:                    +2224524 4813

Fax:                              +2224524 4735

 

Web Site:                      www.first‑quantum.com

 

Company was originally started on 01/07/2006

 

 

Registration & Legal Details

 

Current Legal Form:                   SOCIETE A RESPONSIBILITE LIMITEE

Registration Address:                 Ilot D49 Tevrag Zeina,

Nouakchott

Registration Number:                  46381

Registration Date:                      01/12/2004

Year/Date Company Established:01/07/2006

Registration Town:                     Nouakchott

Tax Registration Number:           884881B

 

 

Capital

 

Currency:                      Mauritanian Ouguiya

Authorized Capital:         5,000,000

Paid Up Capital: 5,000,000

 

 

Shareholders / Owners

 

Parent Company:         FIRST QUANTUM MINERALS LTD FQM,

                                    8th Floor

                                    543 Granville Street,

                                    Vancouver,

                                    Canada

                                    % Shares Held: 100.00%

 

 

Principals

 

Name:                                       Mr Thomas Merlin

Position within the company:      General Manager

Can fluently speak:                    English & French

 

Name:                                       Mr Alassane Maiga

Position within the company:      Financial Controller

Can fluently speak:                    French

 

 

Company Activities

 

NACE Codes:    0729     Mining of other non‑ferrous metal ores

 

The Guelb Moghrein mine is owned 100% by Mauritanian Copper Mines (MCM), a First Quantum subsidiary. The mine is located 250 kilometres northeast of the nation’s capital, Nouakchott, near the town of Akjoujt. Mining at Guelb Moghrein started in April 2006. Commissioning of the copper flotation plant commenced in July 2006 and commercial production began in October 2006. Mining at Guelb Moghrein is carried out in a single open pit using hydraulic excavators and mechanical drive haul trucks. Sulphide ore is treated in the processing plant at Guelb Moghrein to produce copper‑gold concentrate.

 

Local Reporters consider the investigated company to be LARGE in their field of concern.

 

 

Operations

 

Employees       Company Employs: 1541

 

HQ Premises    Operates from:   Rented Offices

Location:           Central Business Area

 

Branches         Ichiri (250 Km from Nouakchott),

                        Akjoujt,

                        Mauritania

                        Branch is: Owned

                        Description of branch: Factory, Mine

 

 

Imports

 

Import % and type of product:     80% Finished Goods

Imports From:    Australia, Europe, South Africa

Importing Terms:            Bank transfer

 

 

Trading & Selling

 

Territory:           100% International

 

 

Related Companies

 

Subsidiaries

Affiliates

Information on Related Companies is not available/applicable

 

 

Bankers

 

GENERALE DE BANQUE DE MAURITANIE GBM,

Branch: Nouakchott

Avenue de l'Independance PO BOX 5558,

Nouakchott,

Mauritania

 

 

Financial Information

 

Financial Interview Date: 06/12/2012

Source:                                     www.first‑quantum.com

Figures are:                               Official Figures

Currency:                                  US Dollars

 

 

Months Sales Figures               Sales               Gross Profit/Loss          Net Profit/Loss

12                     31/12/2011                   346,200,000

12                     31/12/2010                    274,400,000

12                     31/12/2009                   197,299,270

12                     31/12/2008                   191,120,000

12                     31/12/2007                   228,000,000

 

 

Payments

 

Subject's payments reported to be:          UNDETERMINED

 

Interview & Reporter Comments

 

Date:                05/12/2012

Name/Title:        Mr. Alassane Maiga Financial Controller

Comment:         We have sent a fax/e‑mail/questionnaire however no reply has been received as of yet.

 

Reporter Comment Date:            06/12/2012

Reporter Comment:                    Please note that we tried several times to contact the subject company, the line was busy.

A fax was sent to the company however no reply was received as of yet.

 

The above mentioned information was obtained from the subject web site.

 

Conclusions

 

Local Reputation:           The company being investigated is considered by local reporters to be a Fair / Normal

                                    Trade Risk.

 

Financial Results Trend: Financial Information indicates that the business activities of the company are  showing an upward turn.

 

Age of Business:           The company is long established in the local market.

           

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.20

UK Pound

1

Rs.86.99

Euro

1

Rs.70.22

 

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

 

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

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

--

NB

New Business

 

--

 

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%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.