MIRA INFORM REPORT

 

 

Report Date :

29.06.2012

 

IDENTIFICATION DETAILS

 

Name :

MT. ISA METALS LTD

 

 

Formerly Known As :

MT. ISA METALS PTY LTD

 

 

Registered Office :

'Amp Place' Level 32 10 Eagle Street Brisbane Queensland 4000

 

 

Country :

Australia

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

15.06.2006

 

 

Com. Reg. No.:

120212017

 

 

Legal Form :

Australian Public Company

 

 

Line of Business :

Exploration and development of mineral deposits mainly gold and copper in the

Mt Isa Region and West Africa (Burkina Faso).

 

 

No. of Employees :

150 employees

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

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)

Australia

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

 

IDENTIFICATION DETAILS

 

Verified Address

Subject name :              MT. ISA METALS LTD

Business address :        'Amp Place' Level 32

10 Eagle Street

Town :                           Brisbane

Province :                      Queensland

Zip/postal code :            4000

Country :                       Australia

Tel :                              +61 7 31983040

Fax :                             +61 7 32365036

Email :                          info@mtisametals.com.au

Website :                      www.mtisametals.com.au

 

Registered address :      'Amp Place' Level 32

10 Eagle Street

Town :                           Brisbane

Province :                      Queensland

Zip/postal code :            4000

Country :                       Australia

 

SUMMARY DETAILS

 

Executive Summary

Date founded or registered :        15/06/2006

Legal form :                               Australian Public Company

Chief executive :                        Peter David Spiers

Issued & paid up capital :           AUD 30,297,098.32

Sales turnover :              AUD 313,493 (Consolidated 12 months, 30/06/2011)

Net income :                              AUD -2,605,811 (Consolidated 12 months, 30/06/2011)

Total fixed assets :                     AUD 24,290,661 (Consolidated 12 months, 30/06/2011)

Line of business :                       Exploration and development of mineral deposits mainly gold and copper in the

Mt Isa Region and West Africa (Burkina Faso).

Staff employed :                         150 employees

 

CREDIT RISK OPINION

 

Company Analysis

Country risk :                             Country risk is minimal

Operation trend :                        Operational trend is in start-up phase

Management experience :           Management is modestly experienced

Financial performance :              Financial performance is poor

Organization structure :              Organizational structure is acceptable

Detrimental :                              No detrimental records found

Payment history :                      No payment delays noted

Comments :                              The Subject's activities in both Mt Isa Region and West Africa are still in discovery & exploration stage. Small credit can be considered as the Subject's equity balance is sufficient.

 

STATUTORY DETAILS

 

Registry Data

Registration date :          15/06/2006

Legal form :                   Australian Public Company

Registration no              Australian Company Number: 120212017

Registered authority :     Australian Securities and Investments Commission

Fiscal/ Tax no :              Australian Business Number: 59120212017

Registry status :            Live/Active

Previous name :             MT. ISA METALS PTY LTD

D'AGUILAR MINERALS PTY LTD

D'AGUILAR URANIUM PTY. LTD. (initial)

Change of legal form :     None reported.

 

MANAGEMENT / DIRECTORS

 

Key Management

Name :              Peter David Spiers

Designation :     Managing Director

 

Name :              Peter Harding-Smith

Designation :     Chief Financial Officer

 

Name :              Peter Ledwidge

Designation :     Business Development Manager

 

Name :              Jennifer Gunter

Designation :     Manager of Exploration Projects

 

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

 

Appointments

Name :                          Nicholas Mather

Designation :                 Director

Appointment date :         15/06/06

Address :                      30 Batman Street

Clayfield, QLD 4011

Australia

Biography :                    Born on 23-06-1957 in Brisbane, Queensland, Australia.

Mr. Nicholas Mather serves as Non-Executive Director of Mt Isa

Metals Limited. Mr. Mather’s special area of experience is the

generation of and entry into undervalued or unrecognised resource

exploration opportunities. He has been involved in the junior resource

sector at all levels for more than 25 years. In that time he has been

instrumental in the delivery of resource projects that have delivered

gains to shareholders. Mr. Mather is currently CEO (and cofounder)

of Solomon Gold plc (AIM) and Managing Director (and founder) of

D’Aguilar Gold Ltd (ASX). As an Executive Director (and cofounder)

of Arrow Energy Ltd until 2004, Mr. Mather was responsible for the

generation of its Surat Basin Coal Bed Methane project. Arrow

Energy Ltd now has a market capitalisation of over $3 billion.

Previously as CEO of BeMax Resources Limited, Mr. Mather was

instrumental in the discovery of the company’s Pooncarie mineral

sands project in 1998. Mr. Mather has also been a nonexecutive

Director of Ballarat Goldfields, having assisted with the

recapitalisation of the company in 2002. Mr. Mather is a member of

the Audit and Risk Management Committee.

 

Name :                          Peter David Spiers

Designation :                 Director

Appointment date :         04/03/08

Address :                      72 Ironside Street

St Lucia, QLD 4067

Australia

Biography :                    Born on 06-06-1962 in Hastings, Victoria, Australia.

Mr. Peter Spiers serves as Managing Director, Executive Director of

MT Isa Metals Limited. Mr. Spiers is a qualified geologist with in

excess of 20 years of experience in the resources industry. Mr Spiers

has substantial operations and exploration experience having worked

in a wide range of commodities and operating environments both

within Australia and offshore. A proportion of his career to date was

spent with Western Mining Corporation (WMC) where he held

numerous senior technical and commercial roles. His most recent

role was Group Manager – Business Development, where he

managed the targeting and evaluation of mineral investment

opportunities including copper, gold, nickel, iron ore, mineral sands,

coal and other industrial minerals. Previously Mr. Spiers was also

responsible for WMC’s operations strategic planning which included

planning oversight for a multibillion dollar asset portfolio comprising

the company’s nickel, coppergolduranium, and phosphate fertilizer

operations. More recently Mr. Spiers held an executive position with

ASX listed Atlas Group Holdings Limited where he was focused on

the development of businesswide improvement initiatives and the

definition of strategies for growth.

 

Name :                          John Graham Bovard

Designation :                 Director

Appointment date :         06/06/08

Address :                      195 Hawken Drive

St Lucia, QLD 4067

Australia

Biography :                    Born on 27-09-1945 in Taree, New South Wales, Australia.

Mr. John G. Bovard serves as Non-Executive Independent Chairman

of the Board of Mt Isa Metals Limited. Mr. Bovard is a civil engineer

and has over 40 years experience in mining, heavy construction,

project development and corporate management. His career has

included roles as CEO of public companies and both executive and

nonexecutive directorships and he is currently a Non–Executive

Director of Australian Solomons Gold Limited. He holds a Bachelor of

Civil Engineering, and is a Fellow of the Australian Institute of Mining

and Metallurgy and a Fellow of the Australian Institute of Company

Directors. Mr. Bovard is a member of the Audit and Risk Management

Committee.

 

Name :                          Michele Muscillo

Designation :                 Director

Appointment date :         06/06/08

Address :                      163 Annie Street

New Farm, QLD 4005

Australia

Biography :                    Born on 30-10-1980 in Brisbane, Queensland, Australia.

Mr. Michele Muscillo serves as Non-Executive Director of Mt Isa

Metals Ltd. Mr. Muscillo is a Partner specialising in corporate law with

Hopgood Ganim Lawyers. He was admitted as a Solicitor in 2004 and

has a practice focusing almost exclusively on mergers and

acquisitions, and capital raising. He has a Bachelor of Laws from

Queensland University of Technology and was a recipient of the QUT

University Medal. In his role with Hopgood Ganim Lawyers, Mr.

Muscillo has acted on a variety of corporate transactions including

initial public offerings, takeovers and other acquisitions. Mr. Muscillo

is the Chairman of the Audit and Risk Management Committee.

 

Name :                          Peter Laurence Harding-Smith

Designation :                 Company Secretary

Appointment date :         06/06/11

Address :                      164 Main Avenue

Windsor, QLD 4030

Australia

Biography :                    Born on 19-12-1968 in Brisbane, Queensland, Australia.

Mr. Peter Harding-Smith serves as Chief Financial Officer and

Company Secretary of Mt Isa Metals Ltd since June 6, 2011. He joins

Mt Isa Metals with past senior financial management and company

secretarial positions with DPSA Holdings Pty Ltd and ASX-listed

Silver Chef Limited and Provet Holdings Limited. He is a Chartered

Accountant with over 20 years of business experience with a

Bachelor of Business from Queensland University of Technology. He

is a member of the Institute of Chartered Accountants of Australia

and Chartered Secretaries Australia and is a Fellow of the Financial

Services Institute of Australia.

Staff employed :             150 employees

 

Key Advisors

Auditors :                      BDO AUDIT (QLD) PTY LTD

Level 18, 300 Queen Street

Brisbane, QLD 4000

Australia

Solicitors :                     HOPGOODGANIM LAWYERS

Level 8, Waterfront Place

1 Eagle Street

Brisbane, QLD 4000

Australia

 

SHARE CAPITAL

 

Composition

Authorized Capital :        AUD 30,297,098.32

No of shares :                167,036,056 Ordinary Shares

Share par value :            No par value

Issued capital :              AUD 30,297,098.32

Paid up capital :             AUD 30,297,098.32

 

OWNERSHIP / SHAREHOLDERS

 

How listed :                   Major Shareholders Only

 

Composition

Shareholder name :        DGR GLOBAL LIMITIED

Address :                      Level 13, 145 Eagle Street

Brisbane, QLD 4000

Australia

No. of shares :               52,000,000 Ordinary Shares

% of shares :                 31.77%

 

Shareholder name :        NATIONAL NOMINEES LIMITED

Address :                      Level 12, 500 Burke Street

Melbourne, VIC 3000

Australia

No. of shares :               14,908,736 Ordinary Shares

% of shares :                 9.11%

 

Shareholder name :        Jointly held by Mr. Peter David Spiers & Mrs Fiona Lynette Spiers

Address :                      72 Ironside Street

St Lucia, QLD 4067

Australia

No. of shares :               1,930,000 Ordinary Shares

% of shares :                 1.18%

 

Shareholder name :        UBS NOMINEES PTY LTD

Address :                      Level 16, The Chifley Tower

2 Chifley Square

Sydney, NSW 2000

Australia

No. of shares :               5,710,554 Ordinary Shares

% of shares :                 3.49%

 

Shareholder name :        J P MORGAN NOMINEES AUSTRALIA LIMITED

Address :                      Level 32, 225 George Street

Sydney, NSW 2000

Australia

No. of shares :               4,529,046 Ordinary Shares

% of shares :                 2.77%

 

Comments :                  The Subject is public listed on Australian Stock Exchange since 22 August, 2008.

 

RELATED COMPANIES & CORPORATE AFFILIATIONS

 

Structure

Name :                          DGR GLOBAL LIMITED

Affiliation type :              Shareholder

Address :                      Level 13, 145 Eagle Street

Brisbane, QLD 4000

Australia

Comments :                  DGR Global Limited engages in the exploration of mineral properties in Australia,

the Solomon Islands, and the United States. It explores for copper, gold-silver,

nickel-cobalt, molybdenum, uranium, iron-titanium-aluminum, and oil and gas.

The company was formerly known as D’Aguilar Gold Limited and changed its

name to DGR Global Limited in November 2011. DGR Global Limited is based in

Brisbane, Australia.

 

Name :                          MET BF PTY LTD

Affiliation type :              Wholly-owned Subsidiary

Address :                      'Amp Place' Level 32

10 Eagle Street

Brisbane, QLD 4000

Australia

 

Name :                          BIRIMIAN RESOURCES PTY LTD

Affiliation type :              Wholly-owned Subsidiary

Address :                      'Amp Place' Level 32

10 Eagle Street

Brisbane, QLD 4000

Australia

 

Name :                          BIRIMIAN RESOURCES SARL

Affiliation type :              Wholly-owned Subsidiary

Address :                      Burkina Faso

 

BANK & MORTGAGES

 

Bank Details

Name of bank :              National Australia Bank Limited

Address :                      Australia

Account details :            Current Account

Comments :                  It is generally not the policy of local banks to provide credit status information to

non related parties, however interested parties would be advised to consult first

with the Subject if banker's references are required.

Mortgages :                   None reported.

 

Legal Fillings

Bankruptcy fillings :        None reported.

Court judgements :         None reported.

Tax liens :                     None reported.

Others :                        None reported.

 

FINANCIAL DATA

 

Description

Source of financial statement :    Public Record Sources

Financial statement date :          30/06/11

Type of accounts :                     Full audited

Currency :                                 Australia Dollar (AUD)

Exchange rate :                         1 USD = AUD 0.99 as of 27-06-2012

 

Summarized Financial Information

Consolidation type :                   Consolidated                 Consolidated                 Consolidated

Currency :                                 Australia Dollar (AUD)    Australia Dollar (AUD)    Australia Dollar (AUD)

Denomination :                          (x1) One                        (x1) One                        (x1) One

Date of financial year end :          31/12/11                        30/06/11                        30/06/10

Length of accounts :                   6 months                       12 months                     12 months

Sale turnover / Income : 367,292                         314,493                         46,153

Profit before tax :                       -1,045,153                     -2,605,811                     -2,040,521

Net income :                              -1,045,153                     -2,605,811                     -2,040,521

Non current assets :                   11,372,629                    8,574,369                      3,711,169

Current assets :                         12,707,132                   15,716,292                    1,448,470

Total assets :                            24,079,761                    24,290,661                    5,159,639

Current liabilities :                      712,043             856,131                        439,804

Non current liabilities :                0                                 0                                  0

Total liabilities :                          712,043                         856,131                         439,804

Share equity :                            23,367,718                    23,434,530                    4,719,835

Reserve :                                   3,575,743                      3,396,305                      957,539

Retained earning :                      -7,574,455                     -6,701,981                    -4,155,004

Comments :                  The consolidated financial information above relates to the Subject and its

subsidiaries.

 

OPERATION DETAILS

 

Main activities :              The Subject engages in exploration and development of mineral deposits

mainly gold and copper in the Mt Isa Region and West Africa (Burkina

Faso).

The Subject holds substantial tenement positions in two world renowned

mineral provinces.

The Birimian Gold Province of West Africa is a world-class gold province

with more than fifty +1Moz gold deposits discovered across the region to

date. Subject has secured (via option agreements) a large tenement

position in the Birimian centered on Burkina Faso. The tenements include

multiple prospects with identified high grade gold assays and are

considered highly prospective for future gold discoveries.

Subject also holds a significant tenement position in the Mount Isa region

of north-west Queensland. Mount Isa is a world-class mineral province

noted for a long history of base metal and precious metal discoveries.

Product & services :       Exploration of gold and copper

 

Purchases

International :                 None reported.

 

Sales

Local :                          Yes

International :                 None reported.

History :                        The Subject was incorporated on 15 June 2006 as a wholly-owned

subsidiary of D'Aguilar Gold Limited. Following the successful completion

of an Initial Public Offering (IPO), subject was admitted to the official list of

the Australian Securities Exchange as an independent company on 21

August 2008 (ASX:MET).

 

Property & Assets

Premises :                    The Subject operates from premises located at the verified heading

address consisting of an administrative office.

Branches :                    In addition, the Subject operates from mines located at The Birimian Gold

Province of West Africa and Mount Isa region of north-west Queensland.

 

SUMMARIZED COUNTRY RISK

 

Gross Domestic Products (GDP) & Economic Overview

Central bank :                                        Reserve Bank of Australia

Reserve of foreign exchange & gold :       US$ 43.879 billion

Gross domestic product - GDP :             US$ 1.586 trillion

GPP (Purchasing power parity) :             954.296 billion of International dollars

GDP per capita - current prices :             US$ 68,916

GDP - composition by sector :                agriculture: 4%

industry: 25.6%

services: 70.4%

 

Inflation :                                                           2009: 1.8%

2010: 2.8%

2011: 3.4%

 

Unemployment rate :                                          2009: 5.6%

2010: 5.2%

2011: 5.1%

Public debt

(General Government gross debt as

a % GDP):                                                        2009: 16.9%

2010: 20.4%

2011: 22.9%

 

Government bond ratings :                                  Standard & Poor's: AAA/Stable/A-1+

Moody's rating: Aaa

Moody's outlook: STA

Market value of publicly traded

shares:                                                                         US$1.258 trillion

 

Largest companies in the country :                      Westpac Banking Group (Major Banks), BHP Billiton (Diversified Metals & Mining), Commonwealth Bank (Major Banks), National Australia Bank (Major Banks), ANZ Banking (Major Banks), Telstra (Telecommunications services), Wesfarmers (Food Retail)

 

Trade & Competitiveness Overview

Total exports :                                       US$210.7 billion

Exports commodities :                           coal, iron ore, gold, meat, wool, alumina, wheat

Total imports :                                       US$187.2 billion

Imports commodities :                            machinery and transport equipment, computers and office machines,

telecommunication equipment and parts; crude oil and petroleum products

Export - major partners :                         Japan 18.9%, China 14.2%, South Korea 8%, US 6%, NZ 5.6%, India

5.5%, UK 4.2%

Import - major partners :                         China 15.5%, US 12.8%, Japan 9.6%, Singapore 5.6%, Germany 5.2%,

UK 4.3%, Thailand 4.2%

FDI Inflows :                                          2008: US$46,843 million

2009: US$25,716 million

2010: US$32,472 million

 

FDI Outflows :                                        2008: US$33,604 million

2009: US$16,160 million

2010: US$26,431 million

 

Best countries for doing business :          10 out of 183 countries

 

Global competitiveness ranking : 20 (ranking by country on a basis of 142, the first is the best)

 

Country and Population Overview

Total population :                                   22.23 million

Total area :                                            7,692,024 km2

Capital :                                                Canberra

Currency :                                             Australian dollars (AUD)

Internet users as % of total

population:                                            76%

 

PAYMENT HISTORY

 

Purchase Term

International :                 L/C, Prepayment, Telegraphic transfer, Credit 30-90 days

 

Sales Term

Local :                          Prepayment, Bank transfer, Credit 30-90 days

 

Trade Reference/ Payment

 

Behaviour

Comments :                  As local and international trade references were not supplied, the Subject's

payment track record history cannot be appropriately determined but based

on our research, payments are believed to be met without delay.

 

Investigation Note

Sources            : Interviews and material provided by the Subject

: Other official and local business sources


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.56.92

UK Pound

1

Rs.88.91

Euro

1

Rs.71.25

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.