MIRA INFORM REPORT

 

 

Report Date :

01.10.2012

 

IDENTIFICATION DETAILS

 

Name :

ANGLO AMERICAN SUR S.A.

 

 

Registered Office :

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

 

 

Country :

Chile

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

31.05.2002

 

 

Legal Form :

Private Stock Company

 

 

Line of Business :

Copper extraction and foundry

 

 

No. of Employees :

1.992 employees

 

 

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

(31.03.2012)

Current Rating

(30.06.2012)

Chile

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

CHILE - ECONOMIC OVERVIEW

 

Chile has a market-oriented economy characterized by a high level of foreign trade and a reputation for strong financial institutions and sound policy that have given it the strongest sovereign bond rating in South America. Exports account for more than one-third of GDP, with commodities making up some three-quarters of total exports. Copper alone provides one-third of government revenue. During the early 1990s, Chile's reputation as a role model for economic reform was strengthened when the democratic government of Patricio AYLWIN - which took over from the military in 1990 - deepened the economic reform initiated by the military government. Since 1999, growth has averaged 4% per year. Chile deepened its longstanding commitment to trade liberalization with the signing of a free trade agreement with the US, which took effect on 1 January 2004. Chile claims to have more bilateral or regional trade agreements than any other country. It has 59 such agreements (not all of them full free trade agreements), including with the European Union, Mercosur, China, India, South Korea, and Mexico. Over the past seven years, foreign direct investment inflows have quadrupled to some $15 billion in 2010, but foreign direct investment had dropped to about $7 billion in 2009 in the face of diminished investment throughout the world. The Chilean government conducts a rule-based countercyclical fiscal policy, accumulating surpluses in sovereign wealth funds during periods of high copper prices and economic growth, and allowing deficit spending only during periods of low copper prices and growth. As of November 2011, those sovereign wealth funds - kept mostly outside the country and separate from Central Bank reserves - amounted to more than $18 billion. Chile used this fund to finance fiscal stimulus packages during the 2009 economic downturn. In December 2009, the OECD invited Chile to become a full member, after a two year period of compliance with organization mandates, and in May 2010 Chile signed the OECD Convention, becoming the first South American country to join the OECD. The economy started to show signs of a rebound in the fourth quarter of 2009, and GDP grew 5.1% in 2010 and 6.5% in 2011. Chile achieved this growth despite the 8.8 magnitude earthquake that struck in February 2010, which was one of the top 10 strongest earthquakes on record. The earthquake and subsequent tsunamis it generated caused considerable damage near the epicenter, located about 70 miles from Concepcion - and about 200 miles southwest of Santiago

Source : CIA


Company name

 

ANGLO AMERICAN SUR S.A.

Av. Pedro de Valdivia 291 - Providencia
Santiago
XIII Region Metropolitana
CHILE
Telephone         : 56-2-2306000
Fax                   : 56-2-2306700
Web Site           : www.anglochile.cl
Postal Code      : 6640594


SUMMARY

Started                                      : 2002
Total Employees                        : 1.992
Payments                                             : See Commercial Record
Financial Sit.                             : Excellent
Economic Sit.                                        : Good
Sales                                        : 000's$  1.209.877.413.-
Net worth                                  : 000's$  2.042.671.977.-
Current profit                              : 000's$    413.261.222.-
Capital                                      : 000's$    585.478.379.-

Sic(s)                                        : 1081 - 5052

Line of Business                        : Copper extraction and foundry.


EVALUATION

Credit Recommendation

                                                000's Pesos   000's US$ dollars         000's Euros
Conservative value :      65.000.000             124.650              96.268
Liberal value      :           71.500.000             137.115             105.895

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

Payment Scoring = [ 90 ]




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 good, as reflected in:

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

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


COMMERCIAL INFORMATION

Commercial Bulletin      : As at 21/09/2012 subject does not register protested
                           checks, bank drafts nor promissory notes in the
                           commercial information bulletin

Labor Bulletin           : As at 21/09/2012 does not register labor infringements

Previsional Bulletin     : As at 21/09/2012 does not register pension fund's
                           infringements

Consolidated delinquency : As at 21/09/2012, subject registers the following
                           delinquent bills

Detail of Delinquent Debts

Date      : 30/09/2011
Note      : Invoice
Value     : Ch$ 833.248,00
Drawer    : Autorentas del Pacificio Ltda.
City      : -

Date      : 30/03/2011
Note      : Invoice
Value     : Ch$ 2.457,00
Drawer    : Autorentas del Pacificio Ltda.
City      : -

Date      : 30/11/2011
Note      : Invoice
Value     : Ch$ 435.401,00
Drawer    : Autorentas del Pacificio Ltda.
City      : -

Date      : 30/10/2011
Note      : Invoice
Value     : Ch$ 652.661,00
Drawer    : Autorentas del Pacificio Ltda.
City      : -

Date      : 01/08/2012
Note      : Pay voucher
Value     : Ch$ 48.165,00
Drawer    : Autopista Central S.A.
City      : -

Date      : 15/12/2011
Note      : Pay voucher
Value     : Ch$ 6.780,00
Drawer    : Soc. Concesionaria Vespucio Norte Exp
City      : -

Date      : 30/03/2011
Note      : Invoice
Value     : Ch$ 93.892,00
Drawer    : Autorentas del Pacificio Ltda.
City      : -


TRADE REFERENCES

Trade references are supplied as follows:

Detail of References

Old            :
Last purchase  : 08-2012
Terms          : 30 days
Payment        : Prompt
Notes          : invoice
Credit         : -
Owes           : -
Due            : Does not Register
Paying Comments: Good
Contract-based operations and amounts vary on each project.-

The account holder credit report reflects no protests and no social security
and/or work infringements as of the date of this report.

However, it registers 10 delinquent payments for unpaid invoices totalling
000's $ 2.073.-

During the last 6 months, the account holder credit history shows 279 credit
review inquiries requested by financial institutions, consultancy agencies,
health insurance companies, industries 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                   711.148.897                  462.800.581                  349.253.970
CURRENT LIABILITIES              188.124.517                   191.804.538                  290.792.438
WORKING CAPITAL                  523.024.380                  270.996.043                  58.461.532
FIXED ASSETS                   2.506.212.893                      1.783.280.967                1.227.535.956
OTHER ASSETS                      66.201.955                     61.038.332                    63.993.485
LONG TERM LIABILITIES          1.052.767.251                639.497.288                  15.032.474
NET WORTH                      2.042.671.977                      1.475.818.054                1.334.958.499
OPERATING INCOMES              1.209.877.413               971.362.243                  563.605.646
CURRENT PROFIT(LOSS)             413.261.222               420.461.120                  237.578.886

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

ASSETS                                               31/12/2011                   31/12/2010
Cash                                                     254.642.997                  5.242.180
Term Deposits                                                0                         34.804.968
Sales Debtors                                        390.878.073                 383.336.227
Inventory                                               56.054.864                    37.415.995
Taxes Recoverable                                    9.572.963                   2.001.211
CURRENT ASSETS                                     711.148.897            462.800.581

Net Fixed Asset                                     2.506.212.893                1.783.280.967
FIXED ASSETS                                                 2.506.212.893                1.783.280.967

Investments in Related Companies            3.230.445                    2.899.322
Long Term Debtors                                      396.310                   1.977.810
Intangibles                                             62.575.200                    56.161.200
OTHER ASSETS                                        66.201.955               61.038.332

TOTAL ASSETS                                                            3.283.563.745                2.307.119.880

LIABILITIES                                                       31/12/2011                    31/12/2010
Oblig.With Banks & Financ.Inst.Short Term              381.187                    0
Accounts Payable                                                          179.779.071                  181.205.516
Provisions                                                         7.964.259                      10.599.022
CURRENT LIABILITIES                                       188.124.517                  191.804.538

Other Long Term Liabilities                                 1.052.767.251                639.497.288
LONG TERM LIABILITIES                                   1.052.767.251               639.497.288

Paid Capital                                                       646.994.195                  580.676.855
Other Reserves                                                              -6.324.267                     7.746.970
Accumulated Profits                                                       988.740.827                  466.933.109
Current Profit (Losses)                                        413.261.222                 420.461.120
NET WORTH                                                     2.042.671.977                1.475.818.054

TOTAL LIABILITIES                                                        3.283.563.745                2.307.119.880

STATEMENTS OF RESULTS                               31/12/2011                  31/12/2010
Operating  Income                                              1.209.877.413                971.362.243
Operating Cost                                                  -620.216.181                 -414.008.666
OPERATING MARGIN                                        589.661.232                  557.353.577

Administration & Sales Expenses                       -55.051.576                   -35.531.319
OPERATING RESULT                                        534.609.656                  521.822.258

Financial Incomes                                                          11.239.549                    7.251.815
Other non Operating Incomes                              3.978.740                     3.931.284
Financial Expenses                                                        -15.651.100                   -9.405.129
Exchange difference                                           10.045.927                                0
NON OPERATING RESULT                                 9.613.116                                 1.777.970

Result Before Income Tax                                   544.222.772                 523.600.228
Income Tax                                                       -130.961.550                -103.139.108
NET PROFIT(LOSS)                                           413.261.222                  420.461.120

CURRENT PROFIT(LOSS)                                  413.261.222                  420.461.120

                           ECONOMIC - FINANCIAL RATIOS

                                                            31/12/2011                    31/12/2010                                Average
Working Capital            (000's$)              523.024.380                  270.996.043                  397.010.212
Current Liquidity           (Times)               3,78                              2,41                              3,10
Acid Test                   (Times)                 3,48                              2,22                              2,85
Collection Period Days      ( Days)           116,31                          142,07                          129,19
Accounts Receivable Turnover(Times)    3,10                                2,53                              2,82
Inventory Turnover          (Times)              11,06                            11,07                            11,07
Current Indebtedness        (Times)           0,09                             0,13                              0,11
Total Indebtedness          (Times)           0,61                              0,56                              0,59
Solvency                    (Times)                2,65                              2,78                              2,72
Assets Tying Up             (  %  )              76,33                            77,29                            76,81
Profitability Over Sales    (  %  )              34,16                            43,29                            38,73
Profitability Over Assets   (  %  )             12,59                            18,22                            15,41
Profitability Over Net Worth(  %  )          25,36                              39,84                            32,60


BANKS

Subject operates with the following bank:

-  Banco Santander Chile


OPERATIONS

Line of Business : Copper extraction and foundry. (Divisions Los Bronces, El
                   Soldado and Foundry Chagres.)

Classification according to commercial activity:

Sic: 1081-0000 Metal mining services
Sic: 5052-0000 Coal and other minerals and ores
         -0101 Copper ore

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: 1%.

International: 99%.

Exports to Germany, Belgium, Brazil, China, South Korea, Netherlands, India,
Italy, Japan, Mexico, Taiwan and United States

of Exports obtained from Customs'National Service
Country                                     %last year         %Accum.
-------------------------------------------------------
Belgium                                    25,29                23,01
Brazil                                        17,94                3,93
Mexico                                      17,37                0,00
China                                        11,93                18,57
United States                           10,39                7,00
Japan                                        4,05                  15,55
South Korea                              4,04                  10,06
Netherlands                              3,12                   0,30
India                                         2,50                  13,76
Italy                                          1,76                 0,62
Germany                                  1,52                  6,97
Taiwan                                      0,09                  0,17


Historical registries

Total       2011 = 000's$ 846.887.774                   Accumulated 2012 = 000's$ 648.524.360
Total       2009 = 000's$ 503.251.668
Total       2008 = 000's$ 867.430.784
Total       2007 = 000's$ 282.528.003


Purchases

Places orders with multiple suppliers

National: 50%

International: 50%

Imports from Germany, Argentina, Australia, Austria, Belgium, Brazil, Canada,
China, Denmark, Slovenia, France, Netherlands and India. England, Italy, Japan,
Mexico, Unknown Origin/Destin., Peru, The Slovak Republic, Sweden, Switzerland,
Taiwan, Thailand, Turkey and United States

of Imports obtained from Customs'National Service
Country                                     %last year                     %Accum.
-------------------------------------------------------
United States                           73,75                                         86,49
Germany                                  9,81                               1,46
Austria                                  4,62                                  3,75
Brazil                                   3,25                                   0,59
Canada                                   1,75                                1,18
Australia                                0,97                                 3,10
Denmark                                  0,92                               0,00
Thailand                                 0,91                                0,00
Peru                                     0,80                                  1,29
France                                   0,75                                 0,00
Sweden                                   0,51                               0,21
Japan                                    0,44                                 0,00
Unknown Origin/Destin.        0,41                                    0,00
China                                    0,36                                  0,61
Netherlands                              0,21                               0,01
Italy                                    0,12                                    0,08
Taiwan                                   0,10                                 0,00
Switzerland                              0,08                               0,00
Mexico                                   0,07                                0,01
India                                    0,05                                   0,05
Argentina                                0,05                                1,05
The Slovak Republic              0,05                                   0,00
Belgium                                  0,01                                0,00
Slovenia                                 0,01                                 0,00
England                                  0,00                                0,00
Turkey                                   0,00                                 0,00


Historical registries

Total       2011 = 000's$ 48.151.372                     Accumulated 2012 = 000's$ 25.313.378
Total       2009 = 000's$ 83.724.663
Total       2008 = 000's$ 29.929.399
Total       2007 = 000's$ 1.839.109


Main suppliers

- Finning Chile S.A.
- Janssen S.A.
- S.K. Comercial  S.A.
- Tecno Fast Atco S.A.

Employees: 1.992 employees

Location

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


Branches


Subject has the following branches:

-  Division Los Bronces - Division El Soldado - Foundry Chagres - Mantos Blancos
   and Mantos Verde.-


RELATED COMPANIES

Subject is related to the following companies:

-  Compañia Minera Doña Ines de Collahuasi S.C.M. T A X 89468900-5 Las Condes
   Santiago, 44,00% Participation . Sales as at 31/12/2011 000's$ 2.000.918.153
-  Anglo American Norte S.A. It works Mantos Blancos and Mantoverde.
-  Anglo American Chile Ltda. T A X 77905330-K Providencia Santiago It provides
   services to Anglo American Norte and Anglo American Sur.


FIXED ASSETS

Real estates

Subject does not register real estates

Vehicles

Owns vehicles for the company's use

Trucks (for copper extraction.)

Machinery & Instalations

Equipments and machinery, not specified

INSURANCES

Insurance Company:

-Chartis Compania de Seguros Generales

Due              : Unspecified due dates
In force         : Annual
Risks            : Total cover.
Objetive         : Assets in general.

BOARD OF DIRECTORS

President & Director     : Miguel Angel Durán Vergara
Director                 : Alejandro Mena Frau
Director                 : Felipe Purcell Douds

ADMINISTRATION

General Manager          : Marcelo Glavic Ferrada
Human Resources          : Alejandro Mena Frau
Vicepresident
Commercialization &      : Felipe Purcell Douds
Corporate Affairs Vice
President
Vice President of Adm.   : James E. Beams
& Finances

CURRICULUM


Alejandro Mena Frau

Titled as           : Commercial Engineer
Position            : Human Resources Vicepresident

Felipe Purcell Douds

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

LEGAL INFORMATION


Legal Structure      : Private Stock Company
Constitution date    : 31/05/2002. Registered on leaf 13.657 N°11.320 Santiago
                       Trade Register, year 2002, under business name
                       Inversiones Anglo American Dos Ltda.
Notary               : María Loreto Zaldívar G., Santiago
Term of duration     : Indefinite
Legal Address        : Santiago - Chile
Published in         : Official Gazette dated 05/06/2002 page Nº 22

Current Social Capital: 000's$ 585.478.379.-Divided to 1.240.750.565.-
                        registered shares unique series

Shareholder : 3

-  75,49% 77762890-9 Inversiones Anglo American Sur S.A.
-  24,50% Mc Resource Development Ltd
-   0,01% Clarent Limited (Virgin Islands British)

Power of attorney held by General Manager.

Legal changes

Public Deed dated 07/11/2002, notary Patricio Zaldívar Mackenna, Santiago,
published in the Official Gazette dated 13/11/2002 page N° 28, partners were
modified: INVERSIONES ANGLO AMERICAN LTDA retired from the partnership and sold
all rights to ANGLO AMERICAN CHILE DOS LTDA., which joined the partnership.
Besides, capital was increased: from US$1.000 to US$1.220.000.000.-

Public Deed dated 13/03/2003, notary Gustavo Montero Martí, Santiago, published
in the Official Gazette dated 18/03/2003 page N° 26, corporate name was
modified: INVERSIONES ANGLO AMERICAN DOS LTDA by INVERSIONES ANGLO AMERICAN SUR
LTDA.

Public Deed dated 17/05/2005, notary Jaime Morandé Orrego, Santiago, published
in the Official Gazette dated 02/06/2005, capital was increased: from
US$1.220.000.000 to $1.240.189.980.-

Public Deed dated 23/07/2007, notary Cosme F. Gomila Gatica, Santiago, published
in the Official Gazette dated 26/07/2007 page N° 8, corporate structure was
modified: from limited liability partnership to private stock company. Also,
corporate name was modified: INVERSIONES ANGLO AMERICAN SUR LTDA by ANGLO
AMERICAN SUR S.A. Indefinite term of duration, address in Santiago and capital
US$1.240.189.980 divided into 1.240.189.980 no par value shares.

Public Deed dated 31/07/2007, notary Cosme F. Gomila Gatica, Santiago, published
in the Official Gazette dated 09/08/2007 page N° 28, statutes were modified: the
takeover merger of MINERA SUR ANDES S.A. by subject was approved, on the basis
of the audited balances of both partnerships as at Dec 31, 2006. As a result of
this merger, subject acquired all assets and liabilities of MINERA SUR ANDES
S.A. as well as its rights and duties. This company is then dissolved, not being
necessary to carry out its asset stripping. Besides, capital was increased: from
US$1.240.189.980 to US$1.240.735.736,42 divided into 1.240.750.565 no par value
shares.-

Public Deed dated 31/08/2012, notary María V. Wielandt Covarrubias de Patricio
Raby Benavente, Santiago, published in the Official Gazette dated 05/09/2012,
statutes were modified: details were not published.-

CAPITAL US$ 1.240.735.736,46 X $ 471,88  (exchange rate as at 27-09-2012)  = $
585.478.379.320.-

INFORMATION SOURCES

On 25/09/2012 Miss. María Eugenia Maresco, General Manager Assistant,  submitted
just general information.  outside sources provided Balance Sheets.

-Other outside information sources.

Exchange rate

-As at 27/09/2012 $471,88 Per US$
-As at 31/12/2011 $521,46 Per US$
-As at 31/12/2010 $468,01 Per US$
-As at 31/12/2009 $507,10 Per US$





 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.52.69

UK Pound

1

Rs.85.71

Euro

1

Rs.68.14

 

 

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.