MIRA INFORM REPORT

 

 

Report Date :

24.05.2012

 

IDENTIFICATION DETAILS

 

Name :

ANGLO AMERICAN CHILE LTDA.

 

 

Registered Office :

Av. Pedro de Valdivia 291 – Providencia, Santiago, XIII Region Metropolitana

 

 

Country :

Chile

 

 

Date of Incorporation :

14.03.2003

 

 

Legal Form :

Limited Liability Partnership

 

 

Line of Business :

Administration and planning services in areas such as management, financial, treasury, accounting, auditing , control of mining projects, etc.

 

 

No. of Employees :

400

 

 

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 :

Good

 

 

Payment Behaviour :

Regular  

 

 

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                            

ANGLO AMERICAN CHILE LTDA.


Av. Pedro de Valdivia 291 - Providencia
Santiago
XIII Region Metropolitana
CHILE

Telephone    : 56-2-2306000, 56-2-3606793
Fax          : 56-2-2306700

E_Mail       : maesquivel@anglochile.cl
Web Site     : www.anglochile.cl , www.angloamerican-chile.cl
Postal Code  : 750-0524


SUMMARY

Started                      : 2003
Total Employees       : 400
Payments                 : Prompt
Capital                      : 000's$      4.458.276.-

Sic(s) : 8742

Line of Business: Administrative Services.- Shared services.-


Credit Recommendation

                                                000's Pesos   000's US$ dollars         000's Euros
Conservative value :         520.000               1.032                 813
Liberal value      :           572.000               1.135                 894

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

Payment Scoring = [ 100 ]

Financial indicators

Financial statements could not be obtained, thus financial analysis can not be
carried out



COMMERCIAL INFORMATION

Commercial Bulletin      : subject does not register protested
                                    checks, bank drafts nor promissory notes in the
                                    commercial information bulletin

Labor Bulletin           : does not register labor infringements

Previsional Bulletin     : does not register pension fund's
                           infringements

Consolidated delinquency : As at 16/05/2012, subject does not register any
                           delinquent bill


TRADE REFERENCES


Suppliers' trade references are supplied as follows:

Detail of References

Old            : Since 2007
Last purchase  : 04-2012
Terms          : 30 days
Payment        : Prompt
Notes          : invoice
Credit         : (000'sUS$) 200.000
Owes           : -
Due            : Does not Register
Paying Comments: Good
Purchase Aver. : (Monthly 000's$) 150.000

Old            : Since 1998
Last purchase  : 04-2012
Terms          : 30 days
Payment        : Prompt
Notes          : invoice
Credit         : (000'sUS$) 1.000.000
Owes           : -
Due            : Does not Register
Paying Comments: Good
Purchase Aver. : (Monthly 000's$) 450.000

Detail of Former Trade References
--------------------------------------------------------------------------------
              Last                                                     Credit                Owes
Old        Purch. Payment.    Notes                     (000'sUS$)        (000'sUS$)
--------------------------------------------------------------------------------
Since 1998 03-11  Prompt      invoice                  1.000.000         454.000
Since 2006 09-10  Prompt      invoice                     10.000            None
Since 2005 08-10  Prompt      invoice                     35.000            None
Since 2005 12-09  Prompt      invoice                       Open            None
Since 2006 01-10  Prompt      invoice                     10.000            None
                 01-10  Prompt      invoice                          -            None

During the last 6 months, the account holder credit history shows 44 credit
review inquiries requested by banks, credit reporting agencies, health insurance
companies, department stores, and other businesses in general.

The account holder credit report reflects no delinquent payment history, no

protests, and no social security and/or work infringements as of the date of

this report.


AVERAGE PAYMENTS IN CHILE

International Risk and Payment Review reported in June 2011

The local delays in payment average 0-1 month.


BANKS

Subject operates with the following banks:

-  Banco de Chile
-  Banco Santander Chile, main office Bandera 140, Santiago


OPERATIONS

Line of Business : Administration and planning services in areas such as
                   management, financial, treasury, accounting, auditing ,
                   control of mining projects, etc.

Classification according to commercial activity:

Sic: 8742-0000 Management consulting services
         -9902 Business management consultant

Subject is considered as a large company in this line of business, does not
exist competition



Sales

Services keep steady throughout the year

National and international sales territory

Services are offered

National: 99%.

Sales conditions: 100% cash.

International: 1%

Exports to Brazil, Japan and Peru.

of Exports obtained from Customs'National Service

Country                            %last year   %Accum.
-------------------------------------------------------
Japan                                   90,34      0,00
Peru                                     9,66      0,00
Brazil                                   0,00    100,00


Historical registries

Total       2011 = 000's$ 15.234.160                     Accumulated 2012 = 000's$ 9.961
Total       2009 = 000's$ 47.176
Total       2008 = 000's$ 503
Total       2007 = 000's$ 398
Total       2004 = 000's$ 2.076


Customers

Main customers are: Related companies.

The 3 most important customers are:

Anglo American Norte S.A.,  Anglo American Sur S.A.,  Compañia Minera Doña Ines
de Collahuasi S.C.M.



Purchases

Places orders with multiple suppliers

National: 99%

Purchase conditions: 100% cash.

International: 1%

Imports from Germany, Australia, Canada, England, Southafrica and United States

Records of Imports obtained from Customs'National Service

Country                            %last year   %Accum.
-------------------------------------------------------
United States                           35,30     34,80
Southafrica                             22,85     65,18
Canada                                  15,95      0,00
Germany                                 15,81      0,00
Australia                                6,70      0,00
England                                  3,38      0,00


Historical registries

Total       2011 = 000's$ 87.696               Accumulated 2012 = 000's$ 6.185
Total       2010 = 000's$ 44.232
Total       2009 = 000's$ 45.710
Total       2008 = 000's$ 25.890
Total       2007 = 000's$ 7.154
Total       2006 = 000's$ 3.673
Total       2005 = 000's$ 2.502
Total       2004 = 000's$ 8.108


Main suppliers
- Aceros Chile S.A.
- Distribuidora Industrial y Tecnica Ltda.
- Elementos Industriales y Tecnologicos Limitada
- Fluor Chile Ingenieria y Construccion S.A.
- Importadora y Comercial Norval Limitada
- Kala S.A.
- Sociedad Acustical S.A.
- Veyance Technologies Chile Limitada

Employees: 400 employees

Overall personnel:  5.854 employees.

Location

-  Administrative offices located at Av. Pedro de Valdivia 291 Providencia
   Santiago, Chile, commercial area, main avenue of busy traffic, construction
   in good conditions

Branches
Subject does not have any branch

RELATED COMPANIES
Subject is related to the following companies:

-  Anglo American Sur S.A. T A X 77762890-9 Providencia Santiago (El Soldado
   foundry, Los Bronces)
-  Anglo American Norte S.A. T A X 91658000-2 Providencia Santiago , (Mantos
   blancos and Mantos Verde)
-  Compañia Minera Doña Ines de Collahuasi S.C.M. T A X 89468900-5 Las Condes
   Santiago . Sales as at 31/12/2010 000's$ 1.838.746.705

FIXED ASSETS

Real estates
Subject does not register real estates

Machinery & Instalations
Equipments and machinery, not specified

INSURANCES
Insurance details were declined.

BOARD OF DIRECTORS

President Executive      : Miguel Angel Durán Vergara TAX:7750395-1
Director                 : Lorenzo Menéndez Pagliotti
Director                 : Felipe Purcell Douds
Director                 : Luis Ignacio Quiñones Sotomayor TAX:7776718-5

ADMINISTRATION

Finance Vice President   : James E. Beams
Commercialization &      : Felipe Purcell Douds
Corporate Affairs Vice
President
Human Resources          : Alejandro Mena Frau
Vicepresident
Manager of External      : Marcelo Esquivel Gómez TAX:10900986-5
Affairs
Controller               : Gastón Véliz

CURRICULUM


Felipe Purcell Douds

Titled as           : Industrial Civil Engineer
Position            : Commercialization & Corporate Affairs Vice President

Alejandro Mena Frau

Titled as           : Commercial Engineer
Position            : Human Resources Vicepresident

LEGAL INFORMATION
Legal Structure      : Limited Liability Partnership
Constitution date    : 14/03/2003. Registered on leaf  7.114 Nr 5.596, of
                       Santiago Trade Registry year  2003.
                      
Notary               : Gustavo Montero Martí, Santiago
Term of duration     : 10 Year automatically renewable for equal and successive
                       periods
Legal Address        : Santiago - Chile
Published in         : Official Gazette dated 20/03/2003 page Nº 23

Current Social Capital: 000's$ 4.458.276.-

Partner : 2

-  70,00% 77762890-9 Anglo American Sur S.A.
-  30,00% 91658000-2 Anglo American Norte S.A.

Power of attorney held by directors, each one of them.

Legal changes

Public Deed dated 30/12/2003, notary Gustavo Montero Martí, Santiago, published
in the Official Gazette dated 17/01/2004 page N° 35, statutes were modified:
stating that partner Compañía Minera Disputada de las Condes Ltda changed
business name by Minera Sur Andes Ltda.

Public Deed dated 25/05/2004, notary Andrés Rubio Flores, Santiago, published in
the Official Gazette dated 21/06/2004 page N° 28, statutes were modified:
partners stipulated payment of capital and that deadline to pay is extended.
Capital is US$ 10.166.615.-

Public Deed dated 27/04/2005, notary Andrés Rubio Flores, Santiago, published in
the Official Gazette dated 03/06/2005 page N° 59, corporate purpose was
modified: it was extended to services of administration, planning, advisories
and/or performance in different areas such as management, supervision of
operators, treasury,accounting etc.

Public Deed dated 13/02/2007, notary Sebastián Aninat Salas, Santiago, published
in the Official Gazette dated 03/03/2007 page N° 29, statutes were modified:
administration and power of attorney will correspond to both partners through a
board of directors composed by 3 regular members and 3 deputy members.

Public Deed dated 12/12/2007, notary Cosme Fernando Gomila Gatica, Santiago,
published in the Official Gazette dated 21/12/2007 page N° 89, partners were
modified: Minera Sur Andes S.A. retired from the partnership and Anglo American
Sur  S.A. joined the partnership. Empresa Minera Mantos Blancos S.A retired and
Anglo American Norte S.A. joined the partnership with the same percentages, at
the same time capital of  US$10.166.615.- is confirmed.

Public Deed dated 25/04/2011, notary Gustavo Montero M., Santiago, published in
the Official Gazette dated 10/05/2011, capital was increased: to US$ 8.850.000.-

Current capital is US$ 8.850.000.- X $503,73 (exchange rate as at May 18, 2012)
= $4.458.276.000.-

PUBLICATIONS
Information regarding subject is supplied as follows

Diario Estrategia of 31/01/2011

The Anglo-South African mining company, Anglo American Chile, is part of the
Basic Metals Division of Anglo American PLC, its Executive President is Miguel
Ángel Durán, the company is the third major producer of copper in the country,
keeping the 11.7% of the market share. With the operation of Mantos Blancos and
Mantoverde (Anglo American Norte); El Soldado, Chagres  and Los Bronces (Anglo
American Sur) and the 44% of Compañía Minera Doña Inés de Collahuasi.
Headquartered in London, UK, it is an important producer of diamonds, copper,
nickel, iron metals, and also metal-working and carbon-thermal industries.
Besides, it is the world's first producer of platinum, with approximately 40% of
the global production. Its operations are settled in Africa, Asia, Australasia,
Europe, North and South America, including 45 countries around the  world. The
company started operations in Chile in 1995 with the start-up of  the copper
mine Mantoverde, later in 2002 when Exxon Mobil was selling the mine Disputada
de Las Condes (where Los Broces Division is located), Anglo American paid
US$1,300 million for it and began to produce around the 4% of the world's
production of copper. Nowadays, the company expects to reach a production of a
million tons of copper between 2014 and 2015, with the extension of Los Bronces
and Collahuasi. -

www.emol.com of 25/04/2012

Judge Juan Luis Correa, of the 14 Civil Court of Santiago, rejected this
Wednesday the appointment of an interventor and also the retention of Anglo
American Sur's dividends - both precautionary measures required by Codelco.

Judge Correa discarded both petitions arguing that it has not been acredited
that the defendant (Anglo American) is lacking sufficient goods to answer for a
probable unfavourable sentence.

"The measures required by Codelco did not have any justificaiton and they
were only an attempt of the state-owned company to harass and intimidate Anglo
American to desist from the legitime defence of its interests" - the Anglo-South
African mining company stated through a release.

Codelco seeks for the chilean courts to recognize its right to acquire the
49% of AAS, as it was established in a call option renewed in 2002 between both
companies.

However, in December 2011 Anglo required the resolution of the  call option
contract with the state-owned mining company based on "the multiple breached of
contract of Codelco" - the legal team stated.

"As one of the most important foreign investors in Chile, Anglo Amercan has
always acted with all the clear rights granted by the contract and in good
faith. Anglo American will not abandon its defense until its rights are
recognized and the unfairly damaged prestige of Anglo American, its shareholders
and workers is restored" - said the the mining company headquartered in
London. -

INFORMATION SOURCES

Miss. Teresa Ganem, Management secretary of Human Resources,
declined financial figures,  however, submitted the data shown in this report.

-Other outside information sources.




 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.55.93

UK Pound

1

Rs.88.14

Euro

1

Rs.70.87

 

 

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.