MIRA INFORM REPORT

 

 

Report Date :

10.10.2012

 

IDENTIFICATION DETAILS

 

Name :

JX NIPPON MINING & METALS CORP

 

 

 

 

Registered Office :

JX Bldg 8F, 2-6-3 Ohtemachi Chiyodaku Tokyo 100-8154

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

September 2002

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Non-ferrous metal mining, mfg of non-ferrous metal products, other

 

 

No. of Employees :

2,199

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

JAPAN - ECONOMIC OVERVIEW

 

In the years following World War II, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (1% of GDP) helped Japan develop a technologically advanced economy. Two notable characteristics of the post-war economy were the close interlocking structures of manufacturers, suppliers, and distributors, known as keiretsu, and the guarantee of lifetime employment for a substantial portion of the urban labor force. Both features are now eroding under the dual pressures of global competition and domestic demographic change. Japan's industrial sector is heavily dependent on imported raw materials and fuels. A tiny agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. Usually self-sufficient in rice, Japan imports about 60% of its food on a caloric basis. Japan maintains one of the world's largest fishing fleets and accounts for nearly 15% of the global catch. For three decades, overall real economic growth had been spectacular - a 10% average in the 1960s, a 5% average in the 1970s, and a 4% average in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the after effects of inefficient investment and an asset price bubble in the late 1980s that required a protracted period of time for firms to reduce excess debt, capital, and labor. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2011 stood as the fourth-largest economy in the world after second-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2011. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan further into recession. Government stimulus spending helped the economy recover in late 2009 and 2010, but the economy contracted again in 2011 as the massive 9.0 magnitude earthquake in March disrupted manufacturing. Electricity supplies remain tight because Japan has temporarily shut down almost all of its nuclear power plants after the Fukushima Daiichi nuclear reactors were crippled by the earthquake and resulting tsunami. Estimates of the direct costs of the damage - rebuilding homes, factories, and infrastructure - range from $235 billion to $310 billion, and GDP declined almost 0.5% in 2011. Prime Minister Yoshihiko NODA has proposed opening the agricultural and services sectors to greater foreign competition and boosting exports through membership in the US-led Trans-Pacific Partnership trade talks and by pursuing free-trade agreements with the EU and others, but debate continues on restructuring the economy and reining in Japan's huge government debt, which exceeds 200% of GDP. Persistent deflation, reliance on exports to drive growth, and an aging and shrinking population are other major long-term challenges for the economy.

Source : CIA


Company name and address

 

JX NIPPON MINING & METALS CORP

REGD NAME:   JX Nikko Nisseki Kinzoku KK

MAIN OFFICE:  JX Bldg 8F, 2-6-3 Ohtemachi Chiyodaku Tokyo 100-8154 JAPAN

Tel: 03-5299-7000      Fax: 03-5299-7349

 

URL:                 http://www.jx-group.co.jp

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Non-ferrous metal mining, mfg of non-ferrous metal products, other

 

BRANCHES

 

Osaka, Tsuruga

 

OVERSEAS   

 

Australia, Chile

 

FACTORIES

 

Ibaraki (4), Kanagawa (2), Fukui

 

 

OFFICERS

 

YOSHIMASA ADACHI, PRES    Masanori Okada, ch

Hiroshi Matsui, v pres                Toshihiro Ohfuji, s/mgn dir

Nobuyuki Yamaki, mgn dir         Keiichi Goto, mgn dir    

           

Yen Amount:     In million Yen, unless otherwise stated

 

 


SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 192,283 M

PAYMENTSREGULAR   CAPITAL           Yen 40,000 M

TREND UP                    WORTH            Yen 141,085 M

STARTED         2002                 EMPLOYES      2,199

 

 

COMMENT

 

NON-FERROUS METAL SMEL MINING, MFG OF THEIR PRODUCTS,

OWNED BY JX HOLDINGS INC.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

                       

HIGHLIGHTS

           

            The subject company was established originally in 1905 as Nippon Mining Corp for mining non-ferrous metals & smelting, and in 2002 thru business tie up with Japan Energy Corp, jointly established a joint holding company, JX Holdings Inc and became its wholly owned subsidiary.  This is a specialized non-ferrous metal mining & smelting firm, with mfg division of non-ferrous metal products, others (See OPERATION).  Developing copper mining in Chile with investment of USD3,000 million, aiming to commercial production in 2013.  Also developing coal mining in Australia.  Clients include chemical makers, machinery makers, other, nationwide

 

 

FINANCIAL INFORMATION

           

            The sales volume for Mar/2012 fiscal term amounted to Yen 192,283 million, a 2% up from Yen 189,059 million in the previous term.  The recurring profit was posted at Yen 52,853 million and the net profit at Yen 35,085 million, respectively, compared with Yen 36,245 million recurring profit and yen 17,238 million net profit, respectively, a year ago.

 

            For the current term ending Mar 2013 the recurring profit is projected at Yen 53,000 million and the net profit at Yen 36,000 million, respectively, on a 3% rise in turnover, to Yen 198,000 million.  Final results are yet to be released. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements. 

 

 

REGISTRATION

 

Date Registered:  Sept 2002

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         3.7 million shares

Issued:                928,460 shares

Sum:                   Yen 40,000 million

Major shareholders (%): JX Holdings Inc* (100)

 

*.. Holding company founded thru business consolidation of Nippon Oil & Nippon Mining

Holdings in Apr 2010, listed Tokyo S/E, capital Yen 100,000 million, sales Yen 10,723,889 million, operating profit Yen 327,844 million, recurring profit Yen 407,765 million, net profit Yen 170,595 million, total assets Yen 6,690,419 million, net worth Yen 2,044,752 million, employees 114, pres Isao Matsushita

Consolidated Financials are attached (See SUPPLEMENTS)

 

Nothing detrimental is known as to the commercial morality of executives.

 

 

OPERATION

 

Activities: Non-ferrous metal mining/smeltering & mfg of non-ferrous metal products (--100%)

Exports (30%)

 

(Mfg Items): copper foil (electro-deposited copper foil, treated rolled copper foil), sputtering targets, compound semiconductors, surface treatment agents, metallic powder, precision rolled products, precision fabricated products, cathode materials, others

 

Clients: [Mfrs, wholesalers] Nippon Steel & Sumikin Chemical Co, Intel Corp, Samsung Japan, Panasonic Corp, Mitsui & Co, Pan Pacific Copper, other

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Mitsui & Co, Pan Pacific Copper, Mitsubishi Materials, Mitsui Metal Mining, other

 

Payment record: Regular

 

Location: Business area in Tokyo.  Office premises at the caption address are owned by the parent, JX Holdings Inc, and maintained satisfactorily.

 

Bank References:

Mizuho Corporate Bank (H/O)

SMBC (H/O)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2013

31/03/2012

31/03/2011

31/03/2010

Annual Sales

 

198,000

192,283

189,059

171,236

Recur. Profit

 

53,000

52,853

36,245

8,240

Net Profit

 

36,000

35,085

17,238

5,475

Total Assets

 

 

327,354

335,449

712,396

Current Assets

 

 

112,364

122,335

 

Current Liabs

 

 

110,341

122,734

 

Net Worth

 

 

141,085

123,358

349,857

Capital, Paid-Up

 

 

40,000

40,000

40,000

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

2.97

1.71

10.41

-8.82

    Current Ratio

..

101.83

99.67

..

    N.Worth Ratio

..

43.10

36.77

49.11

    R.Profit/Sales

26.77

27.49

19.17

4.81

    N.Profit/Sales

18.18

18.25

9.12

3.20

    Return On Equity

..

24.87

13.97

1.56

 

Notes: Forecast (or estimated) figures for the 31/03/2013 fiscal term.

 

 

SUPPLEMENTS

 

CONSOLIDATED FINANCIALS OF THE PARENT, JX HOLDINGS INC

FINANCES: (Consolidated in million yen)

 

 

Terms Ending:

31/03/2012

31/03/2011

INCOME STATEMENT

  Annual Sales

 

10,723,889

9,634,396

  Cost of Sales

9,879,587

8,805,610

      GROSS PROFIT

844,302

828,786

  Selling & Adm Costs

516,458

494,384

      OPERATING PROFIT

327,844

334,402

  Non-Operating P/L

79,921

79,265

      RECURRING PROFIT

407,765

413,667

 

      NET PROFIT

170,595

311,736

BALANCE SHEET

  Cash

 

241,978

233,471

  Receivables

1,308,111

1,065,973

  Inventory

1,694,395

1,484,879

  Securities, Marketable

 

 

  Other Current Assets

310,137

283,408

      TOTAL CURRENT ASSETS

3,554,621

3,067,731

  Property & Equipment

1,940,376

1,940,291

  Intangibles

137,213

166,147

  Investments, Other Fixed Assets

1,058,209

1,085,789

      TOTAL ASSETS

6,690,419

6,259,958

  Payables

917,955

739,855

  Short-Term Bank Loans

715,030

716,561

 

 

 

  Other Current Liabs

1,520,612

393,744

      TOTAL CURRENT LIABS

3,153,597

1,850,160

  Debentures

206,187

251,131

  Long-Term Bank Loans

911,930

908,832

  Reserve for Retirement Allw

91,004

88,920

  Other Debts

 

282,949

1,274,674

      TOTAL LIABILITIES

4,645,667

4,373,717

      MINORITY INTERESTS

Common stock

100,000

100,000

Additional paid-in capital

746,711

746,693

Retained earnings

933,573

801,567

Evaluation p/l on investments/securities

24,802

35,524

Others

243,388

206,259

Treasury stock, at cost

(3,722)

(3,802)

      TOTAL S/HOLDERS` EQUITY

2,044,752

1,886,241

 

      TOTAL EQUITIES

6,690,419

6,259,958

CONSOLIDATED CASH FLOWS

Terms ending:

31/03/2012

31/03/2011

Cash Flows from Operating Activities

 

246,642

211,408

Cash Flows from Investment Activities

-198,595

-170,908

Cash Flows from Financing Activities

-37,318

-71,228

 

Cash, Bank Deposits at the Term End

 

241,035

232,438

ANALYTICAL RATIOS            Terms ending:

31/03/2012

31/03/2011

Net Worth (S/Holders' Equity)

2,044,752

1,886,241

Current Ratio (%)

112.72

165.81

Net Worth Ratio (%)

30.56

30.13

Recurring Profit Ratio (%)

3.80

4.29

Net Profit Ratio (%)

1.59

3.24

Return On Equity (%)

8.34

16.53

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.52.37

UK Pound

1

Rs.83.99

Euro

1

Rs.67.99

 

 

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.