MIRA INFORM REPORT

 

 

Report Date :

20.07.2012

 

IDENTIFICATION DETAILS

 

Name :

MOLIBDENOS Y METALES S.A. ( MOLYMET ) 

 

 

Registered Office :

Camino Nos a Los Morros Nro. 66, San Bernardo – Maipo, XIII Region Metropolitana 

 

 

Country :

Chile

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

1975

 

 

Legal Form :

Public Stock Company 

 

 

Line of Business :

Marketing of molybdenum by-products

 

 

No. of Employees :

1.432

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

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 – March 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Chile

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


IDENTIFICATION                            

T A X : 93.628.000-5
 
MOLIBDENOS Y METALES S.A.
 
( MOLYMET )
 

Camino Nos a Los Morros Nro. 66
 
San Bernardo - Maipo
 
XIII Region Metropolitana
 
CHILE
 

Telephone    : 56-2-9376676, 56-2-9376600, 56-2-9376653
 

E_Mail       : info@molymet.cl
 
Web Site   : www.molymet.cl
 


SUMMARY 

Started                     : 1975
 
Total Employees      : 1.432
 
Payments                 : See Commercial Record
 
Sales                        : 000's$    693.685.202.-
 
Capital                      : 000's$    168.932.260.-
 

Sic(s) : 2899 - 6799
 

Line of Business: Marketing of molybdenum by-products.
 


EVALUATION 

Interpretation at the end of the report. 

Credit Recommendation
 

                                                000's Pesos   000's US$ dollars         000's Euros
 
Conservative value :       3.900.000               8.040               6.079
 
Liberal value      :           4.290.000               8.844               6.687
 

If additional information is received or present information is rectified, this
 
recommendation may be modified.
 


Financial indicators 

According to last financial statement, subject shows an excellent financial
 
situation, as indicated in:
 

** High Working Capital
 
** Excellent Current Liquidity Ratio
 
** Excellent Acid Test Ratio
 

Economic situation is normal, as reflected in:
 

** Low Current Indebtedness Ratio
 
** Normal Total Indebtedness Ratio
 
** Excellent Solvency Ratio
 

** Normal Profitability Over Sales Ratio
 
** Normal Profitability Over Assets Ratio
 
** High Profitability Over Net Worth Ratio
 


COMMERCIAL INFORMATION 

Commercial Bulletin      : As at 17/07/2012 subject does not register protested
 
                                    checks, bank drafts nor promissory notes in the
 
                                    commercial information bulletin
 

Labor Bulletin                : As at 17/07/2012 does not register labor infringements
 

Previsional bulletin         : As At 17/07/2012 registers pension fund's
 
                                    infringements
 

Previsional Detail
 

Date     :11/06/2012
 
Reason   :Undeclared payrolls                    
 
Value    :Ch$ 50.434,00.-
 
Months   :4        
 
Bulletin :136
 
Page     :119035
 
Drawer   : AFP Cuprum                                                          
 

Consolidated delinquency : As at 17/07/2012, subject registers the following
 
 delinquent bill
 

Detail of Delinquent Debts
 

Date      : 02/04/2012
 
Note      : Invoice
 
Value     : Ch$ 1.511.876,00
 
Drawer    : Tanner Servicios Financieros
 
City      : -
 


TRADE REFERENCES (06/03/2012) 

Suppliers' trade references are supplied as follows:
 

Detail of References
 

Old            : Since 2001
 
Last purchase  : 01-2012
 
Terms          : 60 days
 
Payment        : Prompt
 
Notes          : invoice
 
Credit         : (000'sUS$) 4.000
 
Owes           : -
 
Due            : Does not Register
 
Paying Comments: Good
 
Purchase Aver. : (Monthly 000's$) 1.500
 

Old            : Since 1996
 
Last purchase  : 01-2012
 
Terms          : 30 days
 
Payment        : Prompt
 
Notes          : order form
 
Credit         : (000'sUS$) 4.000
 
Owes           : (000'sUS$) 3.000
 
Due            : Does not Register
 
Paying Comments: Good
 
Purchase Aver. : (Monthly 000's$) 4.500
 

Detail of Former Trade References
 
--------------------------------------------------------------------------------
 
           Last                                           Credit            Owes
 
Old        Purch. Payment.    Notes                     (000'sUS$)        (000'sUS$)
 
--------------------------------------------------------------------------------
 
Since 1996 01-11  Prompt      order form                   4.000            None
 
Since 1996 04-10  Prompt      order form                   4.000            None
 
Since 2002 03-10  Prompt      order form                  50.000            None
 
Since 2002 10-09  Prompt      order form                       -            None
 
Since 1996 10-09  Prompt      order form                   5.000            None
 
Since 1996 05-09  Prompt      order form                   5.000            None
 
Since 2002 05-09  Prompt      order form                       -            None
 
Since 2002 06-08  Prompt      order form                       -               -
 
Since 1996 06-08  Prompt      order form                   5.000               -
 
Since 1996 04-08  Prompt      order form                   5.000               -
 
Since 1996 03-07  Prompt      order form                   5.000               -
 
Since 2001 01-07  Prompt      order form                  10.000            None
 
Since 2001 07-06  Prompt      order form                   4.000               -
 
10 years   07-06  Prompt      order form                   5.000               -
 
10 years   03-06  Prompt      order form                   1.500               -
 
Since 2001 03-06  Prompt      order form                   6.000               -
 
5 years    03-06  Prompt      checks                        Open               -
 
Since 2001 10-05  Prompt      order form                   6.000               -
 
5 years    10-05  Prompt      checks                        Open               -
 
10 years   10-05  Prompt      order form                   1.500               -
 
10 years   02-05  Prompt      order form                   1.500             842
 
5 years    02-05  Prompt      checks                        Open               -
 
Since 2001 02-05  Prompt      order form                   6.000           2.300
 
10 years   02-04  Prompt      order form                   5.000               -
 
5 years    02-04  Prompt      checks                        Open               -
 
10 years   02-04  Prompt      checks                       5.000               -
 

Subject does not register any protested bills. However, shows one social
 
security infringement as of the date of this report.
 

Moreover, subject shows one delinquent payment for a total value of
 
$1.511.876.-

During the last 6 months, the account holder credit history shows 95 credit
 
review inquiries requested by financial institutions, health insurance
 
companies, credit reporting agencies, and businesses in general.-
 


AVERAGE PAYMENTS IN CHILE 

International Risk and Payment Review reported in June 2011
 

The local delays in payment average 0-1 month.
 



FINANCIAL INFORMATION 

C O M P A R A T I V E  -  S U M M A R Y 
 ( Figures in Thousand Pesos, local currency ) 

                            From  01/01/2011        01/01/2010        01/01/2009 
                              To  31/12/2011        31/12/2010        31/12/2009 

CURRENT ASSETS                   552.377.364       491.003.937       317.401.091 
CURRENT LIABILITIES              152.055.650       144.692.721       100.087.837 
WORKING CAPITAL                  400.321.714       346.311.216       217.313.254 
FIXED ASSETS                     248.436.581       227.692.363       235.124.471 
OTHER ASSETS                      38.679.295        34.892.244         2.625.916 
LONG TERM LIABILITIES            222.724.953       194.407.219       180.196.463 
NET WORTH                        464.712.637       414.488.604       274.867.178 
OPERATING INCOMES                693.685.202       631.248.330       479.334.652 
CURRENT PROFIT(LOSS)              54.807.532        45.674.140        36.302.299 

                            B A L A N C E  S H E E T 
                        CONSOLIDATED FISCAL YEAR COMPLETE 

ASSETS                                              31/12/2011        31/12/2010 
Cash                                               118.094.525       242.671.678 
Term Deposits                                      209.153.956                 0 
Sales Debtors                                        2.693.341        84.800.757 
Sundry Debtors                                      63.057.029                 0 
Notes & Accts Receivable/Interco.Relations           2.664.139            30.149 
Inventory                                          154.649.392       138.500.657 
Taxes Recoverable                                    2.064.982         3.099.923 
Other Current Assets                                         0        21.900.773 
CURRENT ASSETS                                     552.377.364       491.003.937 

Contructions & Infrastructure Works                          0       216.152.871 
Other Fixed Assets                                           0        11.539.492 
Higher Value/Technical Reappr.Fix.Assets            13.415.080                 0 
Net Fixed Asset                                    235.021.501                 0 
FIXED ASSETS                                       248.436.581       227.692.363 

Investments in Related Companies                    21.287.040        18.967.637 
Long Term Debtors                                    2.305.896                 0 
Intangibles                                          1.140.954           175.541 
Other                                               13.945.405        15.749.066 
OTHER ASSETS                                        38.679.295        34.892.244 

TOTAL ASSETS                                       839.493.240       753.588.544 

LIABILITIES                                         31/12/2011        31/12/2010 
Oblig.With Banks & Financ.Inst.Short Term           72.165.892        35.332.798 
Accounts Payable                                    65.594.453        88.510.939 
Notes & Accts Payable Related Companies                255.515           239.727 
Provisions                                             421.861           494.043 
Withholdings                                         4.094.504           997.325 
Other Current Liabilities                            9.523.425        19.117.889 
CURRENT LIABILITIES                                152.055.650       144.692.721 

Oblig.with Banks & Financial Intitutions           186.997.642       161.829.582 
Notes & Accts Payable Related Companies                      0           238.269 
Provisions                                           9.100.520         9.262.813 
Other Long Term Liabilities                         26.626.791        23.076.555 
LONG TERM LIABILITIES                              222.724.953       194.407.219 

Paid Capital                                       211.823.831       197.744.436 
Other Reserves                                     -14.563.335           275.225 
Accumulated Profits                                207.790.338       171.629.715 
Accumulated Losses                                           0          -834.912 
Current Profit (Losses)                             54.807.532        45.674.140 
Provisory Dividends                                  4.854.271                 0 
NET WORTH                                          464.712.637       414.488.604 

TOTAL LIABILITIES                                  839.493.240       753.588.544 

STATEMENTS OF RESULTS                               31/12/2011        31/12/2010 
Operating  Income                                  693.685.202       631.248.330 
Operating Cost                                    -588.776.836      -546.751.486 
OPERATING MARGIN                                   104.908.366        84.496.844 

Administration & Sales Expenses                    -33.135.133       -35.090.639 
OPERATING RESULT                                    71.773.233        49.406.205 

Financial Incomes                                   12.014.961         9.731.083 
Other non Operating Incomes                          4.413.637         4.397.757 
Loss investment Related Companies                     -159.567                 0 
Financial Expenses                                 -12.727.795        -9.341.587 
Other non Operating Expenses                        -5.269.875          -160.953 
Exchange difference                                          0         2.154.628 
NON OPERATING RESULT                                -1.728.639         6.780.928 

Result Before Income Tax                            70.044.594        56.187.133 
Income Tax                                         -15.251.141       -10.512.993 
Monority Interest                                       14.079                 0 
NET PROFIT(LOSS)                                    54.807.532        45.674.140 

CURRENT PROFIT(LOSS)                                54.807.532        45.674.140 

                           ECONOMIC - FINANCIAL RATIOS 

                                        31/12/2011     31/12/2010        Average 

Working Capital            (000's$)    400.321.714    346.311.216    373.316.465 
Current Liquidity           (Times)           3,63           3,39           3,51 
Acid Test                   (Times)           2,62           2,44           2,53 
Collection Period Days      ( Days)          35,50          48,38          41,94 
Accounts Receivable Turnover(Times)          10,14           7,44           8,79 
Inventory Turnover          (Times)           3,81           3,95           3,88 
Current Indebtedness        (Times)           0,33           0,35           0,34 
Total Indebtedness          (Times)           0,81           0,82           0,82 
Solvency                    (Times)           2,24           2,22           2,23 
Assets Tying Up             (  %  )          29,59          30,21          29,90 
Profitability Over Sales    (  %  )           7,90           7,24           7,57 
Profitability Over Assets   (  %  )           6,53           6,06           6,30 
Profitability Over Net Worth(  %  )          13,37          12,38          12,88 


BANKS

Subject operates with the following banks:
 


National
 

-  Banco Bice
 
-  Banco Bilbao Vizcaya Argentaria, Chile
 
-  Banco de Chile
 
-  Banco de Credito e Inversiones
 
-  Banco Security, head office
 
-  BancoEstado
 
-  Corpbanca
 

International
 

-  J.P. Morgan Chase  United States
 


OPERATIONS


Line of Business : Marketing of molybdenum by-products. Oxides, chemical
 
                   products, basic industrial chemical substances, mineral
 
                   products, ferro molybdenum, among others.

                   Subject is  ISO 9001: 2000 - ISO 2001 : 2008 certified.
 

Classification according to commercial activity:
 

Sic: 2899-0000 Chemical preparations
 
Sic: 6799-0000 Investors
 

Subject is considered as a large company in this line of business, normal
 
competition
 

Sales
 

Sales are steady throughout the year
 

100% wholesalers
 

National and international sales territory
 

Products are sold
 

National: 2%.
 

Sales conditions: Cash and credit.
 

International: 98%.
 

Exports to Germany, Argentina, Australia, Austria, Belgium, Brazil, Canada,
 
China, Colombia, North Korea, South Korea, United Arab Emirates, Spain, Finland,
 
Netherlands, India, England, Japan, Malaysia, Mexico, Peru, Singapore,
 
Southafrica, Sweden, Taiwan, United Kingdom, Thailand and United States
 

of Exports obtained from Customs'National Service
 

Country                            %last year   %Accum. 
------------------------------------------------------- 
Netherlands                             50,07     32,09 
United States                           16,43     35,79 
Belgium                                  7,74      5,15 
Japan                                    6,87      7,76 
Brazil                                   5,16      5,62 
Austria                                  4,32      5,60 
Sweden                                   2,34      2,14 
Australia                                1,02      1,48 
Mexico                                   0,90      0,00 
Southafrica                              0,86      1,47 
Germany                                  0,61      0,00 
Argentina                                0,50      0,00 
China                                    0,50      0,00 
England                                  0,48      0,58 
Taiwan                                   0,46      0,49 
Spain                                    0,41      0,59 
India                                    0,26      0,00 
Thailand                                 0,25      0,00 
Finland                                  0,21      1,16 
South Korea                              0,20      0,00 
Canada                                   0,19      0,00 
Singapore                                0,05      0,00 
United Kingdom                           0,04      0,00 
United Arab Emirates                     0,04      0,00 
North Korea                              0,04      0,00 
Colombia                                 0,02      0,00 
Peru                                     0,01      0,00 
Malaysia                                 0,00      0,00 

Historical registries
 

Total       2011 = 000's$ 525.585.544   
      Accumulated 2012 = 000's$ 29.468.902 
Total       2009 = 000's$ 299.655.841
 
Total       2008 = 000's$ 1.061.336.355
 
Total       2007 = 000's$ 870.135.895
 
Total       2006 = 000's$ 814.195.548
 
Total       2005 = 000's$ 705.822.065
 
Total       2004 = 000's$ 373.216.001
 
Total       2003 = 000's$ 106.669.208
 

Customers
 

Main customers are: Companies in general.
 

The 3 most important customers are:
 

Cap S.A.,  Compañia Electro Metalurgica S.A. and  Aceros y Metales Sociedad
 
Limitada.
 

Purchases
 

Places orders with multiple suppliers
 

National: 50%
 

International: 50%
 

Imports from Germany, Argentina, Belgium, Brazil, Canada, China, North Korea,
 
South Korea, Denmark, Spain, France, England, Japan, Mexico, Peru, Turkey and
 
United States
 

Records of Imports obtained from Customs'National Service
 

Country                            %last year   %Accum. 
------------------------------------------------------- 
Peru                                    43,97     60,35 
Mexico                                  23,05     36,61 
United States                           19,19      0,00 
Canada                                  11,83      2,20 
China                                    1,59      0,04 
Argentina                                0,16      0,70 
Brazil                                   0,09      0,00 
North Korea                              0,03      0,00 
South Korea                              0,02      0,00 
Japan                                    0,02      0,00 
Turkey                                   0,01      0,00 
France                                   0,01      0,00 
Denmark                                  0,01      0,00 
Germany                                  0,01      0,06 
Belgium                                  0,00      0,00 
Spain                                    0,00      0,00 
England                                  0,00      0,00 

Historical registries
 

Total       2011 = 000's$ 311.452.142   
      Accumulated 2012 = 000's$ 16.780.831 
Total       2009 = 000's$ 174.751.674
 
Total       2008 = 000's$ 529.529.057
 
Total       2007 = 000's$ 494.465.892
 
Total       2006 = 000's$ 316.461.140
 
Total       2005 = 000's$ 375.794.897
 
Total       2004 = 000's$ 148.404.368
 
Total       2003 = 000's$ 48.233.099
 


Main suppliers


- Coagra S.A.
 
- Compañia de Petroleos de Chile Copec S.A.
 
- Corporacion Nacional del Cobre de Chile
 
- Electricidad Gobantes S.A.
 
- Empresa Nacional de Energia Enex S.A.
 
- In Motion Servicios S.A.
 
- Manufacturas Metalurgicas Rheem Chilena Limitada
 
- Minera Anglo American Chile Ltda.
 
- Minera Sur Andes S.A.
 
- Oxiquim S.A.
 
- Petrobras Chile Distribución Ltda.
 
- Plasticos Haddad S.A.
 
- Rhein (Chile) S.A.
 

Employees: 1.432 employees
 

Location
 

-  Huérfanos 812, Of. 612,Santiago was subject's adress until July 31st. 2011.
 
   Currently located at Camino Nos a Los Morros Nro. 66 San Bernardo, Chile
 

Branches (05/03/2012)
 

-  Industry at Avda. Peñuelas 0258 San Bernardo Chile
 

RELATED COMPANIES


Subject is related to the following companies:
 

National
 

-  Inmobiliaria San Bernardo S.A. T A X 96953640-4, 99,99% Participation
 
-  Carbomet Industrial S.A. T A X 96103000-5 San Bernardo, 99,98% Participation
 
-  Complejo Industrial Molynor S.A. T A X 76016222-1 Mejillones, 95,88%
 
   Participation
 
-  Carbomet Energia S.A. T A X 91066000-4 San Bernardo, 52,75% Participation
 
-  Inmobiliaria San Jose de Nos S.A. T A X 96999080-6, 0,01% Participation
 
-  Compañia Auxiliar de Electricidad del Maipo S.A.
 
-  Comotech S.A.
 

International
 

-  Strategic Metals B.V., Netherlands 99,99%
 
-  Molymet Corporation, United States 99,9%
 
-  Molymex S.A. de C.V., Mexico 99,99%
 
-  Chemiemetall, Germany
 
-  Luoyang High-Tech Metals Co. Ltd., China
 
-  Sadaci N.V., Belgium
 


FIXED ASSETS 

Real estates


Subject registers real estates
 

-  Farming exploitation, Parcela 9 Ex Fundo Las Lilas San Bernardo-Chile, Fiscal
 
   value of 000's$ 18.343.-, rol Nº 5500-28
 
-  Previous, Huérfanos 812 Of. 612 Santiago-Chile, Fiscal value of 000's$
 
   270.181.-, rol Nº 101-869
 
-  Building, Huérfanos 812 Of. 608 Santiago-Chile, Fiscal value of 000's$
 
   32.299.-, rol Nº 101-868
 
-  Sites, Peñuelas San Bernardo-Chile, Fiscal value of 000's$ 194.827.-, rol Nº
 
   5500-79
 
-  Farming exploitation, Cinco Pinos Pc. 9 San Bernardo-Chile, Fiscal value of
 
   000's$ 42.631.-, rol Nº 5500-24
 
-  Farming exploitation, Parcela 11 Nos San Bernardo-Chile, Fiscal value of
 
   000's$ 17.752.-, rol Nº 5500-27
 
-  Industry, Cinco Pinos 0331 San Bernardo-Chile, Fiscal value of 000's$
 
   374.197.-, rol Nº 5500-130
 
-  Farming exploitation, Rinconada Nos Pc. 19 Lt. 3 San Bernardo-Chile, Fiscal
 
   value of 000's$ 20.769.-, rol Nº 5500-36
 
-  Industry, Las Lilas Hijuelas A San Bernardo-Chile, Fiscal value of 000's$
 
   57.574.-, rol Nº 5500-49
 
-  Farming exploitation, Las Lilas de Nos Lt. 3 B San Bernardo-Chile, Fiscal
 
   value of 000's$ 293.097.-, rol Nº 5500-114
 
-  Farming exploitation, La Querencia Pc. 8 Lt. B 4 A San Bernardo-Chile, Fiscal
 
   value of 000's$ 6.449.-, rol Nº 5500-115
 
-  Parking lot, Huérfanos 653 Box B 712 Santiago-Chile, Fiscal value of 000's$
 
   1.777.-, rol Nº 121-894
 
-  Sites, Las Acacias con Ochagavia San Bernardo-Chile, Fiscal value of 000's$
 
   768.734.-, rol Nº 4510-30
 
-  Branch, Avda. Peñuelas 0258 San Bernardo-Chile, Fiscal value of 000's$
 
   198.987.-, rol Nº 5.500-80
 
-  Farming exploitation, Peñuelas 0725 Nos San Bernardo-Chile, Fiscal value of
 
   000's$ 8.225.-, rol Nº 5500-151
 
-  Industry, Camino Nos San Bernardo-Chile, Fiscal value of 000's$ 2.315.557.-,
 
   rol Nº 5500-82
 
-  Farming exploitation, Camino Nos Pc. C Querencia San Bernardo-Chile, Fiscal
 
   value of 000's$ 27.652.-, rol Nº 5500-157
 
-  Industry, Los Suspiros 3700 San Bernardo-Chile, Fiscal value of 000's$
 
   1.209.968.-, rol Nº 5500-91
 
-  Premises, Huérfanos 812, Oficina 501 Santiago-Chile, Fiscal value of 000's$
 
   465.725.-, rol Nº 101-865
 

Total fiscal appraisal $ 6.324.741.603.-
 


Machinery & Instalations


Equipments and machinery, not specified
 


INSURANCES

Insurance covering interests are undersigned
 
Insurance Services Brokers., covering all risks.
 

BOARD OF DIRECTORS
 

President                : Carlos Hurtado Ruiz-Tagle
 
Vice President           : George Anastassiou Mustakis
 
Director                 : Jorge Gabriel Larraín Bunster
 
Director                 : Raúl Alamos Letelier
 
Director                 : Alberto Pirola Gianoli
 
Director                 : Eduardo Guilisasti Gana TAX:6290361-9
 
Director                 : Michael Schwarzkopf
 

ADMINISTRATION
 

General Manager and CEO  : John Patrick Graell Moore TAX:6153784-8
 
Corporate Manager of     : Manuel Guzmán Manzo TAX:4917151-K
 
Research and Development
 
Corporate Manager of     : Francisco J. Fernández Cañas TAX:6028944-1
 
Finances and IT.
 
Corporate Manager of     : Francisco de los Rios
 
Human Resources and
 
Corporate Affairs
 
Accounting Manager       : Máximo Jara Leal
 
Finance Vice President   : Jorge Ramírez Gossler TAX:7017179-1
 
Commercial Vice          : Gonzalo Bascuñán Obach TAX:12797030-0
 
President
 
Vice President           : Fernando Alliende Correa TAX:4883753-0
 
International and New
 
Businesses Area
 
Vice President           : Luis Gonzalo Concha Parada TAX:7817539-7
 
Engeneering
 
Operation Vice President : Gabriel Gutiérrez Clavería TAX:5146447-8
 
Operation Vice           : Rafael Raga Castellanos TAX:4363486-0
 
President of Molymex and
 
Real Estate Companies
 
Auditor Corporate        : Claudia Avendaño Rozas TAX:11959266-6
 
Internal
 

CURRICULUM
 

John Patrick Graell Moore
 

T A X               : 6153784-8
 
Studies             : Finished studies in Universidad de Chile
 
Titled as           : Industrial Civil Engineer.
 
Position            : General Manager and CEO
 
Curriculum          : Founder and Director of Agrícola Cerrillos de Tamaya and
 
                      President of Viña Tamaya, a company with a very successful
 
                      growth.Technical Director of Inecon, consultancy services,
 
                      10 years developing works for the public & private
 
                      sector.General manager of Molymet S.A., the main world"s
 
                      company of processing and sale of molybdenum with plants
 
                      in Chile, Mexico, Belgium and Germany.
 

Manuel Guzmán Manzo
 

T A X               : 4917151-K
 
Titled as           : Chemical Civil Engineer.
 
Position            : Corporate Manager of Research and Development
 

Francisco J. Fernández Cañas
 

T A X               : 6028944-1
 
Titled as           : Computer Engineer.
 
Position            : Corporate Manager of Finances and IT.
 

Jorge Ramírez Gossler
 

T A X               : 7017179-1
 
Titled as           : Commercial Engineer.
 
Position            : Finance Vice President
 

Carlos Hurtado Ruiz-Tagle
 

Studies             : Finished studies in Universidad de Chile .
 
Titled as           : Economist
 
Position            : President
 
Curriculum          : University professor, advisor of economy and projects. He
 
                      was Minister of Public works during the government of
 
                      President Aylwin.  Founder and member of important board
 
                      of directors in chilean companies.
 

Gonzalo Bascuñán Obach
 

T A X               : 12797030-0
 
Titled as           : Commercial Engineer.
 
Position            : Commercial Vice President
 

Fernando Alliende Correa
 

T A X               : 4883753-0
 
Titled as           : Industrial Civil Engineer.
 
Position            : Vice President International and New Businesses Area
 

Luis Gonzalo Concha Parada
 

T A X               : 7817539-7
 
Titled as           : Mechanical Civil Engineer.
 
Position            : Vice President Engeneering
 

Gabriel Gutiérrez Clavería
 

T A X               : 5146447-8
 
Titled as           : Metallurgical Civil Engineer.
 

Rafael Raga Castellanos
 

T A X               : 4363486-0
 
Titled as           : Metallurgical Civil Engineer.
 
Position            : Operation Vice President of Molymex and Real Estate
 
                      Companies
 

Claudia Avendaño Rozas
 

T A X               : 11959266-6
 
Titled as           : Auditor Accountant.
 
Position            : Auditor Corporate Internal
 

Eduardo Guilisasti Gana
 

T A X               : 6290361-9
 
Titled as           : Civil Engineer.
 
Position            : Director
 


LEGAL INFORMATION


Legal Structure      : Public Stock Company
 
Constitution date    : 28/10/1975. Registered on leaf 1.215 N°689, Trade
 
                       Registry of the Real Estates Receivership of Valparaíso,
 
                       dated Dec 23, 1975.

                       Registered at the Superintendency of Securities under
 
                       N° 0191 on April 04, 1983.
 
Term of duration     : Indefinite
 
Legal Address        : Santiago - Chile
 

Current Social Capital: 000's$ 168.932.260.-Divided to 127.111.084.- registered
 
                        shares unique series
 

Shareholder :
 

-  10,70% Nueva Carenpa S.A.
 
-  10,43% Inversiones Lombardia S.A.
 
-  10,00% Plansee Limitada
 
-   7,93% The  Atlantic S.A.
 
-   6,25% 72251700-8 Fundacion Gabriel y Mary Mustakis
 
-   4,68% Ed Harvey Trust Corporation
 
-   4,68% Osvald Wagner Trust Co. Inc.
 
-   4,68% Phil White International Corp.
 
-   4,15% Rentas e Inversiones Octay S.A.
 
-   4,15% Marea Sur S.A.
 
-   3,75% Whar Plot Corp
 
-   3,65% 90412000-6 Minera Valparaiso S.A.
 

Administration is held by General Manager and CEO.
 

Legal changes
 

Public Deed dated 02/01/1984, notary Sergio Rodriguez Garcés, Santiago,
 
published in the Official Gazette dated 06/01/1984 page N° 13, corporate
 
structure was modified: Subject is divided into 2 companies: one is the
 
continuer, keeping business name with a capital of $238.027.409 divided into
 
104.000.000 registered shares of same value, and a new company called
 
Desarrollos Técnicos S.A.,with a capital of $401.647.000 divided into
 
104.000.000 shares.
 

Public Deed dated 12/07/1989, notary Aliro Veloso Muñoz, Santiago, published in
 
the Official Gazette dated 17/08/1989 page N° 9, capital was increased: to
 
$532.321.598.-
 

Public Deed dated 01/12/1989, notary Aliro Veloso Muñoz, Santiago, published in
 
the Official Gazette dated 18/12/1989 page N° 9, statutes were modified: subject
 
is divided into 2 companies, one keeps business name (subject) and a new one
 
called RIO VILAMA S.A., line of business is the manufacturing of molybdenum
 
oxide, ferromolybdenum, ammonium perrenate, etc.
 

Public Deed dated 25/11/2002, notary René Benavente Cash, Santiago, published in
 
the Official Gazette dated 29/11/2002 page N° 17, capital was increased: it was
 
agreed to express capital in dollars, i.e US$2.182.077,35 divided into
 
104.000.000 no par value shares.
 

Public Deed dated 05/01/2005, notary René Benavente Cash, Santiago, published in
 
the Official Gazette dated 14/01/2005 page N° 15, capital was increased: from
 
US$2.182.077,35 divided into 104.000.000 no par value shares, to
 
US$106.182.077,35 divided into same number of no par value shares.

At the same time, capital of US$106.182.077,35, is again increased to
 
US$158.182.077,35 divided into 124.800.000 no par value shares.

(Rectified in official gazette of Jan 22, 2005, page 13)
 

Public Deed dated 25/09/2008, notary Juan Francisco Alamos Ovejero, Santiago,
 
published in the Official Gazette dated 01/10/2008 page N° 34, capital was
 
increased: to US$348.270.853,35 divided into  127.111.084  no par value shares.
 

Public Deed dated 16/08/2010, notary Eduardo Javier Diez Morello, Santiago,
 
published in the Official Gazette dated 21/08/2010 page N° 7, statutes were
 
modified: the number of directors is increased from 7 to 9 members.
 

Public Deed dated 06/06/2011, notary Eduardo J. Diez Morello, Santiago,
 
published in the Official Gazette dated 13/07/2011, statutes were modified: did
 
not publish details.
 

CAPITAL

US$ 348.270.853,35.-- X $485,06 (exchange rate as of March 6, 2012)
 
=$168.932.260.125.-
 


PUBLICATIONS


Information regarding subject is supplied as follows
 

DIARIO FINANCIERO of 24/03/2010 Molymet, company linked to families Matte,
 
Gianoli and Mustakis, reported as a relevant statement sent to the
 
Superintendency of Securities and Insurances (SVS) that its affiliate company
 
located in China reached to an agreement to purchase the 50% of the firm Luoyang
 
High-Tech Molybdenum Tungsten Material, which is engaged in the elaboration of
 
molybdenum  by-products.

According to comments of Molymet, the agreement was subscribed with China
 
Molybdenum, the headquarters of the japanese company.

The operation includes the payment  of US$37.7 millions for this asset -
 
figures subject to modification at the moment  of the operation's closing.

"The final business conditions should be fulfilled within the next two
 
months, and related , among others,  to the ratification by the board of
 
directors of the purchasing and selling companies, the approval of the
 
authorities and the registration in the corresponding registers of the People's
 
Republic  of China" - stated the company to the SVS.

In the documents, it was also explained that the acquisition will be carried
 
out with own resources and that this will not have financial effects. -
 

Economía y Negocios El Mercurio Cuerpo B Pag 5 of 10/03/2012 Molymet makes
 
acquisition concrete.

On March 8, Molymet acquires the 13% of the Molymet Company in the USA. The
 
deal, announced in february, involved the purchase of 12.500.000 shares of the
 
American company for a total value of US$ 390,2 millions.

Molycorp operates in the production of minerals known as rare earth elements. -
 

INFORMATION SOURCES
 

On 05/03/2012 Mr. Máximo Jara Leal, Accounting Manager,  submitted just general
 
information,  outside sources provided Consolidated balance sheets:
 

IMPORTANT NOTE TO CONSOLIDATED BALANCE SHEETS

When entering consolidated balance sheets into the evaluation system,
 

they are not taken into account for assessment purposes as they do not
 
represent  the actual
 

situation of the subject company, therefore, they are not considered for
 
credit recommendation purposes.
 

-Other outside information sources.
 

Exchange rate
 

-As at 06/03/2012 $485,06 Per US$
 
-As at 31/12/2011 $521,46 Per US$
 
-As at 31/12/2010 $468,01 Per US$
 
-As at 31/12/2009 $507,10 Per US$
 

INTERPRETATION OF RISK LEVEL AND CREDIT RECOMMENDATION
 

RISK LEVEL
 

Credit risk assessment is ordered as follows: 1 Minimum Risk, 2 Low Risk, 3
 
Middle Risk, 4 Middle High Risk, 5 Significant Risk, 6 High Risk.
 



CREDIT RECOMMENDATION 

Credit recommendation amounts are assigned according to criteria usually used in
 
the commercial credit evaluation.
 

The amounts are based on the risk percentages'assignment to the following
 
indicators:  Trade references, number of employees, legal structure, protested
 
bills, labor & welfare infringements, unpaid bills, operations, insurances, net
 
profit, net worth, working capital and liquidity variations.
 


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.55.33

UK Pound

1

Rs.86.74

Euro

1

Rs.68.06

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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%)

 

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

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