MIRA INFORM REPORT

 

 

Report Date :

25.09.2012

 

IDENTIFICATION DETAILS

 

Name :

MINERA ESCONDIDA LTDA. ( MINSEC )

 

 

Registered Office :

Av. Americo Vespucio Sur 100 Piso 9 - Las Condes, Santiago
XIII Region Metropolitana

 

 

Country :

Chile

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

14.08.1985

 

 

Legal Form :

Limited Liability Partnership

 

 

Line of Business :

Mining company like, Production of copper, export of copper cathodes and concentrates, gold and silver.

 

 

No. of Employees :

3.869

 

 

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 :

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


MINERA ESCONDIDA LTDA. ( MINSEC )


Av. Americo Vespucio Sur 100 Piso 9 - Las Condes
Santiago
XIII Region Metropolitana
CHILE

Telephone         : 56-2-3305000
Fax                   : 56-2-2076510

E_Mail              : karina.kavendano.bhpbilliton.com   
Web Site           : www.escondida.cl 
Postal Code      : 1271075


SUMMARY

Started                                     : 1985
Total Employees                       : 3.869
Payments                                             : See Commercial Record
Financial Sit.                             : Normal
Economic Sit.                                       : Excellent
Sales                                        : 000's$  3.868.991.764.-
Net worth                                  : 000's$  3.007.218.625.-
Current profit                             : 000's$  1.447.132.848.-
Capital                                      : 000's$    354.359.831.-

Sic(s)                                        : 1021 - 1041 - 1044

Line of Business: Mining company.


EVALUATION

Interpretation at the end of the report.

Credit Recommendation

                                                000's Pesos   000's US$ dollars         000's Euros
Conservative value :     195.000.000             373.950             288.803
Liberal value      :           214.500.000             411.345             317.684

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


Financial indicators

According to last financial statement, subject shows a normal financial
situation, as indicated in:

** Acceptable Working Capital
** Good Current Liquidity Ratio
** Normal Acid Test Ratio

Economic situation is excellent, as reflected in:

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

** Excellent Profitability Over Sales Ratio
** Excellent 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 registers pension fund's  infringements

Previsional Detail

Date     :20/08/2012
Reason   :Fines on the previsional legislation   
Value    :Ch$ 122.400,00.-
Months   :8        
Bulletin :136
Page     :120427
Drawer   : Adm. de Fondos de Cesantía (afc)                                    

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

Detail of Delinquent Debts

Date      : 31/07/2011
Note      : Holder certificate
Value     : Ch$ 54.872,00
Drawer    : Dicom S.A.
City      : -

Date      : 30/06/2011
Note      : Holder certificate
Value     : Ch$ 54.732,00
Drawer    : Dicom S.A.
City      : -

Date      : 31/05/2011
Note      : Holder certificate
Value     : Ch$ 54.530,00
Drawer    : Dicom S.A.
City      : -

Date      : 29/02/2012
Note      : Holder certificate
Value     : Ch$ 56.161,00
Drawer    : Dicom S.A.
City      : -

Date      : 31/01/2012
Note      : Holder certificate
Value     : Ch$ 56.043,00
Drawer    : Dicom S.A.
City      : -

Date      : 31/12/2011
Note      : Holder certificate
Value     : Ch$ 55.751,00
Drawer    : Dicom S.A.
City      : -

Date      : 30/11/2011
Note      : Holder certificate
Value     : Ch$ 55.543,00
Drawer    : Dicom S.A.
City      : -

Date      : 31/10/2011
Note      : Holder certificate
Value     : Ch$ 55.287,00
Drawer    : Dicom S.A.
City      : -

Date      : 30/09/2011
Note      : Holder certificate
Value     : Ch$ 55.043,00
Drawer    : Dicom S.A.
City      : -

Date      : 28/11/2010
Note      : Invoice
Value     : Ch$ 761.078,00
Drawer    : U.C.N. Liemun
City      : -

Date      : 30/05/2012
Note      : Invoice
Value     : Ch$ 3.590.512,00
Drawer    : MDP Andamios
City      : -

Date      : 31/08/2011
Note      : Holder certificate
Value     : Ch$ 54.942,00
Drawer    : Dicom S.A.
City      : -
Subject registers 20 Invoices amounting 000's$ 7.783 . Only the latest have been
hereabove detailed..


TRADE REFERENCES

Suppliers' trade references are supplied as follows:

Detail of References

Old            : Since 2001
Last purchase  : 06-2012
Terms          : 30 days
Payment        : Prompt
Notes          : invoice
Credit         : (000'sUS$) 120.000
Owes           : (000'sUS$) 20.000
Due            : Does not Register
Paying Comments: Excellent
Purchase Aver. : (Monthly 000's$) 100.000

Old            : Since 2008
Last purchase  : 06-2012
Terms          : 30 days
Payment        : Prompt
Notes          : invoice
Credit         : (000'sUS$) 20.000
Owes           : -
Due            : Does not Register
Paying Comments: Good
Purchase Aver. : (Monthly 000's$) 5.000

Old            : Since 1985
Last purchase  : 07-2012
Terms          : 30 days
Payment        : Prompt
Notes          : invoice
Credit         : (000'sUS$) 4.500.000
Owes           : -
Due            : Does not Register
Paying Comments: Good
Purchase Aver. : (Monthly 000's$) 4.500.000

Old            : Since 2000
Last purchase  : 06-2012
Terms          : 30-45 days
Payment        : Prompt
Notes          : bank transfer
Credit         : (000'sUS$) 60.000
Owes           : -
Due            : Does not Register
Paying Comments: Good
Purchase Aver. : (Monthly 000's$) 6.000

Old            : Since 2005
Last purchase  : 06-2012
Terms          : 30 days
Payment        : Prompt
Notes          : invoice
Credit         : (000'sUS$) 50.000
Owes           : (000'sUS$) 28.000
Due            : Does not Register
Paying Comments: Good
Purchase Aver. : (Monthly 000's$) 33.000

Detail of Former Trade References
--------------------------------------------------------------------------------
           Last                                           Credit            Owes
Old        Purch. Payment.    Notes                     (000'sUS$)        (000'sUS$)
--------------------------------------------------------------------------------
Since 2008 10-11  Prompt      invoice                          -               -
Since 1985 10-11  Prompt      invoice                  4.500.000               -
Since 2005 10-11  Prompt      invoice                     50.000               -
Since 2001 11-11  Prompt      invoice                    120.000          21.000
Since 2000 10-11  Prompt      bank transfer               60.000               -
Since 1997 06-10  Prompt      invoice                       Open            None
Since 2008 04-10  Prompt      invoice & check               Open            None
Since 1985 07-10  Prompt      invoice                     25.000            None
Since 1999 07-10  Prompt      invoice                    150.000            None
Since 1999 06-10  Prompt      invoice                     60.000            None
Since 1998 07-10  Prompt      invoice                     80.000            None
Since 2001 06-10  Prompt      checks                        Open            None
Since 2005 06-10  Prompt      invoice                     50.000            None
Since 2000 07-10  Prompt      checks                      60.000            None
Since 2000 02-10  Prompt      checks                      60.000            None
Since 2005 01-10  Prompt      invoice                     50.000            None
Since 2001 02-10  Prompt      checks                        Open            None
Since 1997 02-10  Prompt      invoice                       Open            None
Since 1998 02-10  Prompt      invoice                     80.000            None
Since 2008 12-09  Prompt      invoice & check                  -            None
Since 1999 02-10  Prompt      invoice                       Open            None
Since 1997 01-10  Prompt      invoice                     50.000            None
Since 1999 02-10  Prompt      invoice                    150.000            None
Since 1985 01-10  Prompt      invoice                     25.000            None
Since 1985 11-09  Prompt      invoice                       Open            None
Since 1997 11-09  Prompt      invoice                       Open            None
Since 1997 11-09  Prompt      invoice                       Open            None
                  -           invoice                          -               -
Since 2000 11-09  Prompt      checks                        Open            None
Since 2001 11-09  Prompt      checks                        Open            None
Since 2001 10-08  Prompt      checks                        Open            None
Since 1997 10-08  Prompt      invoice                       Open               -
Since 2000 10-08  Prompt      checks                        Open               -
Since 1997 10-08  Prompt      invoice                       Open               -
Since 1985        Prompt      invoice                       Open            None
Since 1998 10-08  Prompt      invoice                       Open            None
Since 1985 09-07  Prompt      invoice                       Open            None
Since 1997 04-08  Prompt      invoice                       Open               -
Since 2000 05-08  Prompt      checks                        Open               -
Since 1997 05-08  Prompt      invoice                       Open               -
Since 2001 04-08  Prompt      checks                        Open            None
Since 1998 05-08  Prompt      invoice                       Open               -
9 years    09-07  Prompt      invoice                          -               -
Since 2001 09-07  Prompt      checks                        Open            None
Since 1997 09-07  Prompt      invoice                       Open               -
Since 2000 09-07  Prompt      checks                        Open               -
Since 1997 10-07  Prompt      checks                        Open               -
Since 1985 09-07  Prompt      invoice                       Open               -
Since 1995        Prompt      current account               Open            None
10 years   03-07  Prompt      checks                        Open               -
Since 1985 03-07  Prompt      invoice                       Open               -
Since 2000 04-07  Prompt      checks                        Open               -
Since 1997 04-07  Prompt      checks                        Open               -
Since 1997 04-07  Prompt      invoice                       Open               -
Since 2001 04-07  Prompt      checks                        Open            None
8 years    06-06  Prompt      invoice                          -               -
5 years    06-06  Prompt      not specified                 Open               -
5 years    06-06  Prompt      checks                        Open               -
6 years    06-06  Prompt      checks                        Open               -
10 years   06-06  Prompt      checks                        Open               -
10 years   06-06  Prompt      invoice                       Open               -
5 years    06-06  Prompt      checks                        Open               -
8 years    06-06  Prompt      not specified                 Open               -
8 years    01-06  Prompt      not specified                 Open               -
5 years    01-06  Prompt      checks                        Open               -
10 years   01-06  Prompt      invoice                       Open               -
5 years    01-06  Prompt      checks                        Open               -
5 years    01-06  Prompt      checks                        Open               -
6 years    01-06  Prompt      checks                        Open               -
4 years    01-06  Prompt      not specified                 Open               -
8 years    01-06  Prompt      invoice                          -               -
8 years    03-05  Prompt      invoice                          -               -
3 years    03-05  Prompt      not specified                 Open               -
6 years    03-05  Prompt      checks                        Open               -
5 years    03-05  Prompt      checks                           -               -
10 years   03-05  Prompt      invoice                       Open               -
5 years    03-05  Prompt      checks                        Open               -
5 years    03-05  Prompt      checks                        Open               -
8 years    03-05  Prompt      not specified                 Open               -
10 years   03-04  Prompt      invoice                       Open           1.656

Registers 20 delinquent payments and one social security infringement.

During the last 6 months, the account holder credit history shows 379 credit
review inquiries requested by companies, workmen's compensation agencies,
warehouses, credit assessment agencies, department stores, financial
institutions, hardware stores, among others.-


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                 1.142.256.565                 1.443.400.371                1.389.773.479
CURRENT LIABILITIES              749.142.992                   738.076.287                  402.160.058
WORKING CAPITAL                  393.113.573                   705.324.084                  987.613.421
FIXED ASSETS                        3.318.680.425                2.527.306.953                2.312.377.505
OTHER ASSETS                      44.684.950                    47.880.313                    20.266.706
LONG TERM LIABILITIES            749.260.323                 629.523.072                  714.101.826
NET WORTH                             3.007.218.625                2.650.988.278                2.606.155.806
OPERATING INCOMES              3.868.991.764               4.479.186.069                3.309.321.642
CURRENT PROFIT(LOSS)           1.447.132.848              2.109.491.344                1.497.442.454

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

ASSETS                                                           31/12/2011                    31/12/2010
Cash                                                                 107.634.559                  103.690.592
Term Deposits                                                              59.118.963                    56.941.326
Sales Debtors                                                               993.903                         821.481.957
Sundry Debtors                                                             440.654.558                 0
Notes & Accts Receivable/Interco.Relations          26.343.116                  14.127.382
Inventory                                                           491.144.401                  447.159.114
Taxes Recoverable                                            16.367.065                    0
CURRENT ASSETS                                          1.142.256.565                1.443.400.371

Net Fixed Asset                                                3.318.680.425                2.527.306.953
FIXED ASSETS                                                            3.318.680.425                2.527.306.953

Investments in Related Companies                             0                          9.386.809
Long Term Debtors                                           43.404.244                    15.165.552
Intangibles                                                        1.280.706                      1.412.592
Other                                                                           0                                  21.915.360
OTHER ASSETS                                               44.684.950                    47.880.313

TOTAL ASSETS                                                           4.505.621.940                4.018.587.637

LIABILITIES                                                                 31/12/2011                    31/12/2010
Oblig.With Banks & Financ.Inst.Short Term           81.201.230                  220.889.067
Accounts Payable                                                         438.885.242                  149.014.623
Notes & Accts Payable Related Companies            135.929.500              71.431.945
Provisions                                                        87.970.302                    90.802.208
Withholdings                                                     0                                  205.921.425
Other Current Liabilities                                      5.156.718                      17.019
CURRENT LIABILITIES                                     749.142.992                  738.076.287

Oblig.with Banks & Financial Intitutions               238.626.875                  114.940.759
Notes Payable                                                  0                                  14.398.716
Sundry Creditors                                                           12.029.561                    0
Notes & Accts Payable Related Companies             51.103.080               70.994.309
Provisions                                                        447.500.807                  82.056.779
Other Long Term Liabilities                                             0                                  347.132.509
LONG TERM LIABILITIES                              749.260.323                     629.523.072

Paid Capital                                                      381.313.453                  355.575.482
Accumulated Profits                                                      1.178.772.324                185.921.452
Current Profit (Losses)                                       1.447.132.848                2.109.491.344
NET WORTH                                                     3.007.218.625                2.650.988.278

TOTAL LIABILITIES                                         4.505.621.940                4.018.587.637

STATEMENTS OF RESULTS                               31/12/2011                 31/12/2010
Operating  Income                                             3.868.991.764                4.479.186.069
Operating Cost                                                  -1.648.368.955               -1.561.878.200
OPERATING MARGIN                                       2.220.622.809                2.917.307.869

Administration & Sales Expenses                       -240.930.164                 -52.135.108
OPERATING RESULT                                       1.979.692.645                2.865.172.761

Financial Incomes                                                          14.049.175                    1.266.227
Other non Operating Incomes                             3.229.402                      13.364.436
Financial Expenses                                           -3.920.336                     -29.372.193
Other non Operating Expenses                          -148.988.944                 -110.374.269
Exchange difference                                         12.960.889                    0
NON OPERATING RESULT                              -122.669.814                 -125.115.799

Result Before Income Tax                                1.857.022.831                2.740.056.962
Income Tax                                                       -409.889.983                 -630.565.617
NET PROFIT(LOSS)                                          1.447.132.848                2.109.491.345

CURRENT PROFIT(LOSS)                                 1.447.132.848                2.109.491.345

ECONOMIC - FINANCIAL RATIOS

                                                            31/12/2011                    31/12/2010                    Average

Working Capital            (000's$)             393.113.573                  705.324.084                  549.218.829
Current Liquidity           (Times)              1,52                              1,96                              1,74
Acid Test                   (Times)                0,87                              1,35                              1,11
Collection Period Days      ( Days)          43,55                           67,16                            55,36
Accounts Receivable Turnover(Times)           8,27                                   5,36                              6,82
Inventory Turnover          (Times)           3,36                              3,49                              3,43
Current Indebtedness        (Times)           0,25                             0,28                              0,27
Total Indebtedness          (Times)           0,50                              0,52                              0,51
Solvency                    (Times)                3,01                              2,94                              2,98
Assets Tying Up             (  %  )              73,66                            62,89                            68,28
Profitability Over Sales    (  %  )             37,40                            47,10                            42,25
Profitability Over Assets   (  %  )            32,12                            52,49                            42,31
Profitability Over Net Worth(  %  )          92,76                            389,57                          241,17


BANKS

Subject operates with the following banks:

-  Banco de Chile
-  Banco de Credito e Inversiones
-  Banco Santander Chile


OPERATIONS


Line of Business : Mining company.

                   Production of copper, export of copper cathodes and
                   concentrates, gold and silver.
                
Classification according to commercial activity:

Sic: 1021-0000 Copper ores
         -0100 Copper ore mining and preparation
Sic: 1041-0000 Gold ores
         -0100 Gold ores mining
Sic: 1044-0000 Silver ores
         -0100 Silver ores mining

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


Sales

Sales are steady throughout the year

100% wholesalers

National and international sales territory

Products are sold

National: 12%.

Territory: North zone (Codelco).

International: 88%.

Exports to Australia, Brazil, Canada, China, South Korea, France, Netherlands,
India, Italy, Japan, Taiwan, Thailand and United States

of Exports obtained from Customs'National Service

Country                            %last year   %Accum.
-------------------------------------------------------
China                                   31,40     29,90
Japan                                   18,23     19,91
India                                   12,70     11,22
South Korea                             12,27     13,58
Brazil                                   8,00      8,61
United States                            7,71      5,24
Italy                                    3,73      4,13
Netherlands                              2,28      2,76
Taiwan                                   2,21      3,97
France                                   0,86      0,36
Thailand                                 0,60      0,27
Canada                                   0,00      0,00
Australia                                0,00      0,00


Historical registries

Total       2011 = 000's$ 3.232.132.824                Accumulated 2012 = 000's$ 1.742.927.430
Total       2010 = 000's$ 581.587.239
Total       2009 = 000's$ 2.217.693.814
Total       2007 = 000's$ 4.081.384.976
Total       2006 = 000's$ 3.203.154.694
Total       2005 = 000's$ 1.669.278.056
Total       2004 = 000's$ 1.257.430.142


Customers

Main customers are: Foreign companies,  companies in general,  etc.

6 customers International and  9 customers National. 

National Customers: Corporacion Nacional del Cobre de Chile,  Sumitomo
                    Corporation (Chile) Ltda.,  Mitsubishi Chile Ltda.,  Mitsui
                    Chile Ltda.,  Samsung Motors Chile S.A.,  Alcatel- Lucent de
                    Chile S.A.,  XStrata Copper Chile S.A.,  Madeco S.A. and
                    Cobre Cerrillos S.A.

International Customers: Dowa Mining Japan,  Nippon Japan,  Furukawa Japan,
                         Nittetsu Japan,  Nordeutsche Affinerie Germany,
                         Sumitomo Electric Industries Japan.


Purchases

Domestic and international purchases

National: 80%

International: 20%

Purchase conditions: Letter of credit and direct collection.

Imports from Germany, Argentina, Australia, Austria, Belgium, Brazil, Bulgaria,
Canada, China, Colombia, Denmark, Spain, Finland, France, Greece, Hungary,
India, Indonesia, England, Israel, Japan, Mexico, Peru, Dominican Republic,
Czech Republic, Singapore, Southafrica, Sweden, Switzerland, Taiwan, Turkey and
United States

of Imports obtained from Customs'National Service

Country                            %last year   %Accum.
-------------------------------------------------------
United States                           55,12     55,79
Germany                                 10,38      4,34
Canada                                   8,81      8,42
Brazil                                   6,74      2,82
Switzerland                              4,76      2,35
China                                    3,96      2,35
Spain                                    3,26      1,09
Australia                                1,66      4,62
Southafrica                              1,66      0,62
Argentina                                1,23      0,00
Belgium                                  0,54      0,27
Bulgaria                                 0,41      0,00
Finland                                  0,37      7,70
France                                   0,24      0,00
Mexico                                   0,23      0,45
Colombia                                 0,22      0,00
Greece                                   0,14      2,17
Turkey                                   0,09      0,00
Japan                                    0,06      0,00
Denmark                                  0,06      0,06
Sweden                                   0,03      0,00
Singapore                                0,01      0,00
England                                  0,01      0,00
Israel                                   0,00      0,00
Hungary                                  0,00      0,00
India                                    0,00      2,29
Indonesia                                0,00      0,00
Austria                                  0,00      0,00
Taiwan                                   0,00      0,00
Peru                                     0,00      3,87
Dominican Republic                       0,00      0,00
Czech Republic                           0,00      0,65

Historical registries

Total       2011 = 000's$ 106.522.449                   Accumulated 2012 = 000's$ 44.346.533
Total       2010 = 000's$ 2.493.224
Total       2009 = 000's$ 98.418.663
Total       2007 = 000's$ 71.332.603
Total       2006 = 000's$ 56.113.874
Total       2005 = 000's$ 85.986.011
Total       2004 = 000's$ 76.549.143


Main suppliers

- Accenture Chile Asesorias y Servicios Limitada
- Aguas Industriales Limitada
- B. Bosch S.A.
- BHP Chile Inc.
- Cemento Polpaico S.A.
- Compass Catering S.A.
- Constructora Excon S.A.
- Cooperativa de Dueños de Camiones de Iquique Caliche Ltda.
- Elementos Industriales y Tecnologicos Limitada
- Empresa Nacional de Energia Enex S.A.
- Enaex S.A.
- Finning Chile S.A.
- Fluor Chile Ingenieria y Construccion S.A.
- GasAtacama Generacion S.A.
- Hilti Chile Ltda.
- Importadora Tech Ltda.
- Industria Metalurgica Inamar Limitada
- Ingenieria y Construccion Sigdo Koppers S.A.
- Interfluid Equipos Industriales S.A.
- KSB Chile S.A.
- Kychenthal Industrial y Comercial S.A.
- Lan Airlines S.A.
- Nexxo S.A.
- Puente Alto Ingenieria y Servicios Ltda.
- Reliper Comercial Ltda.
- Saavedra y Abalo M&S Ltda.
- Sande S.A.
- Sodexo Chile S.A.

Employees: 3.869 employees approx.

Location

-  Administration offices located at Av. Americo Vespucio Sur 100 Piso 9 Las
   Condes Santiago, Chile, commercial area, main avenue of busy traffic,
   construction in good conditions

Branches

-  Offices (ph: 56-55-201223) at Av. de la Minería 501 Antofagasta Chile

RELATED COMPANIES

Subject does not have any related company.

-  Compañia Minera Cerro Colorado Ltda. T A X 94621000-5 Iquique . Sales as at
   31/12/2010 000's$ 378.928.977
-  Minera Spence S.A. T A X 86542100-1 Antofagasta

FIXED ASSETS

Real estates

Subject registers real estates

-  Home, Pasaje Neorara 1230 Antofagasta-Chile, Fiscal value of 000's$ 45.539.-,
   rol Nº 3.351-9
-  Home, Avda. Grecia 1150 Depto. 306 Antofagasta-Chile, Fiscal value of 000's$
   52.361.-, rol Nº 488-59
-  Home, Cerro Rincones 582 Antofagasta-Chile, Fiscal value of 000's$ 59.706.-,
   rol Nº 4.511-11
-  Home, Cerro Trapecio 01968 Antofagasta-Chile, Fiscal value of 000's$
   45.093.-, rol Nº 3.351-7
-  Home, Avda. Grecia 1160 Depto. 304 Antofagasta-Chile, Fiscal value of 000's$
   52.361.-, rol Nº 488-49
-  Home, Salar de Pedernales 1372 Antofagasta-Chile, Fiscal value of 000's$
   21.663.-, rol Nº 1.490-7
-  Sites, Avda. Escondida Mz  I Sitio 10 Antofagasta-Chile, Fiscal value of
   000's$ 74.080.-, rol Nº 4.515-7
-  Branch, Av. de la Minería 501 Antofagasta-Chile, Fiscal value of 000's$
   24.297.693.-, rol Nº 110-1
-  Home, Avda. Antilhue 02082 Antofagasta-Chile, Fiscal value of 000's$
   53.545.-, rol Nº 3.351-13
-  Home, Mehuin 01637 Depto. 101 Antofagasta-Chile, Fiscal value of 000's$
   26.391.-, rol Nº 3.304-16
-  Home, Avda. Grecia 1160 Depto. 503 Antofagasta-Chile, Fiscal value of 000's$
   52.361.-, rol Nº 488-52
-  Sites, Patricio Lynch Lote 1 C Antofagasta-Chile, Fiscal value of 000's$
   1.101.618.-, rol Nº 456-1
-  Sites, P. Aguirre Cerda 9101 Antofagasta-Chile, Fiscal value of 000's$
   17.949.-, rol Nº 5.150-3
-  Home, Huellelhue 1230 Antofagasta-Chile, Fiscal value of 000's$ 31.248.-, rol
   Nº 3.340-9
-  Home, Collico 1216 Antofagasta-Chile, Fiscal value of 000's$ 42.841.-, rol Nº
   3.350-2
-  Home, Diaz Gana 720 Depto. 502 Antofagasta-Chile, Fiscal value of 000's$
   52.361.-, rol Nº 488-42
-  Home, Huellehue 1313 Antofagasta-Chile, Fiscal value of 000's$ 38.888.-, rol
   Nº 3.323-4
-  Home, Cerro Cenicero 01656 Antofagasta-Chile, Fiscal value of 000's$
   26.053.-, rol Nº 3.303-10

Total fiscal appraisal $74.073.556.189.-

Vehicles

Owns vehicles for the company's use

777 trucks Aljibes, 65 trucks Caterpillar,  railroad wagons . 28 trucks Diesel,

Machinery & Instalations

Subject owns the following

-  Packers , tractors Komatsu-Caterpillar , crushing machines , cells ,
   concentrates' thickeners , flotation columns , 9 inches, metallic underground
   mineduct , filters , drillers eléctricas y diesel , motolevelers Caterpillar
   , mills , etc.

INSURANCES

Subject is insured, but name of insurance company is not disclosed

BOARD OF DIRECTORS

President                : Edgar Basto Baez TAX:22804787-2
Director of Production   : Pedro Damjanic Yutronic TAX:6321726-3

ADMINISTRATION

Human Resources          : Jorge Lopéz del Pino
Vicepresident
Finance Vice President   : Maree Robertson Robertson
Supply Manager           : Marco Lagos Castillo

CURRICULUM


Pedro Damjanic Yutronic

T A X               : 6321726-3
Titled as           : Mechanical Civil Engineer.

LEGAL INFORMATION

Legal Structure      : Limited Liability Partnership
Constitution date    : 14/08/1985. Registered on leaf N° 12.876 Nro. 6.652 of
                       the Santiago Trade Registry, year 1985.
Notary               : Patricio Raby Benavente, Santiago
Term of duration     : 75 Year renewable in five-year periods
Legal Address        : Santiago - Chile
Published in         : Official Gazette dated 20/08/1985 page Nº 5

Current Social Capital: 000's$ 354.359.831.-

Partner : 4

-  57,50% BHP Escondida Inc (United States)
-  30,00% Rio Tinto Escondida Investments Ltd. (Bermuda)
-  10,00% Jeco Corporation (Japon)
-   2,50% Jeco 2 Ltd.

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

Legal changes

Public Deed dated 22/07/1999, notary Andrés Rubio Flores, Santiago, published in
the Official Gazette dated 27/07/1999 page N° 30, statutes were modified: .-
Established new statutes. Capital is US$98.804.668.76 (ThChs$51.088.930).-

Public Deed dated 13/08/1999, notary Gustavo Montero Martí, suplente de Andrés
Rubio Flores, Santiago, published in the Official Gazette dated 19/08/1999 page
N° 36, statutes were modified: .- Rectified prior deed.

Public Deed dated 30/03/2001, notary Andrés Rubio Flores, Santiago, published in
the Official Gazette dated 12/04/2001 page N° 45, capital was increased: to US$
259.804.668,76.-

Public Deed dated 21/12/2001, notary Gustavo Montero Martí, Santiago, published
in the Official Gazette dated 29/12/2001 page N° 39, capital was increased: in
US$196.700.000.- Consequently, it is established in US$456.504.668,76.-

Public Deed dated 15/10/2002, notary Gustavo Montero Martí, Valparaíso,
published in the Official Gazette dated 26/10/2002 page N° 32, statutes were
modified: , Sociedad Contractual Minera Escondida merged with Minera Escondida
Ltda. The first one was dissolved and was taken over by the second one acquiring
all assets and liabilities.

Consequently, capital was increased to US$461.101.912,64.-

Public Deed dated 19/12/2002, notary Gustavo Montero Martí, Santiago, published
in the Official Gazette dated 28/12/2002 page N° 22, capital was increased: in
US$53.400.000.- Paid capital is US$514.501.912,64.

Public Deed dated 27/12/2004, notary Gustavo Montero Marti, Santiago, published
in the Official Gazette dated 05/01/2005 page N° 28, capital was increased: in
US$16.700.000 remaining in US$547.901.912,64.-

Public Deed dated 27/12/2005, notary Gustavo Montero Martí, Santiago, published
in the Official Gazette dated 31/12/2005 page N° 45, capital was increased: in
US$50.000.000.- remaining in US$597.901.912,64.-

Public Deed dated 22/12/2006, notary Alvaro Bianchi Rosas, Santiago, published
in the Official Gazette dated 08/01/2007 page N° 33, capital was increased: to
US$ 647.901.912,64.-

Public Deed dated 18/12/2009, notary Alvaro Bianchi Rosas, Santiago, published
in the Official Gazette dated 07/01/2010 page N° 30, capital was increased: to
US$731.241.912,64.-

Public Deed dated 26/05/2010, notary Sebastián Aninat Salas, Santiago, published
in the Official Gazette dated 07/06/2010 page N° 28, partners were modified:
International Finance Corporation, owner of 2,50%, retired from the partnership,
sold and transferred participation to "JECO 2 LTD.", which joined as new
partner.

Capital of US$ 731.241.912,64 x $484,6 (exchange rate as at August 2, 2012) =
$354.359.830.865.-

PUBLICATIONS

Information regarding subject is supplied as follows

El Mercurio Economia y Negocios Cuerpo b Pag 5 Cuerpo B of 16/02/2012
Escondida's profits fell 36% in 2011

Minera Escondida, operated by BHP Billiton - registered profits for
US$2,775million last year, representing a drop of 36% compared to 2010.

This happened along with a reduction of 19.5% over the revenues of the firm,
which reached US $ 7,419 million in 2011, and with a reduction of 24.6% in the
Escondida's production, which reached 819,261 metric tons of copper.

In 2011, Escondida accrued US$ 641 million for income taxes and US$ 145
million for the specific mining taxation. In total, it was a drop of 39.4%
compared to the taxation of 2010. -

INFORMATION SOURCES

On 02/08/2012 Miss. Karina Avendaño, President's Office Secretary,  submitted
the data shown in this report,  outside sources provided financial figures.

-Other outside information sources.

Exchange rate

-As at 03/08/2012 $484,60 Per US$
-As at 31/12/2011 $521,46 Per US$
-As at 31/12/2010 $468,01 Per US$
-As at 31/12/2009 $468,01 Per US$

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.

INTERPRETATION OF PAYMENT SCORING


The Scoring is arranged as follows: 0 to 40 Delays, 41 to 60 Slow, 61 to 80
Moderate, 81 to 100 Prompt




DIAMOND INDUSTRY – INDIA

 

-          From time immemorial, India is well known in the world as the birthplace for diamonds.  It is difficult to trace the origin of diamonds but history says that in the remote past, diamonds were mined only in India. Diamond production in India can be traced back to almost 8th Century B.C.  India, in fact, remained undisputed leader till 18th Century when Brazilian fields were discovered in 1725 followed by emergence of S. Africa, Russia and Australia.

-          The achievement of the Indian diamond industry was possible only due to combination of the manufacturing skills of the Indian workforce and the untiring and unflagging efforts of the Indian diamantaires, supported by progressive Government policies.

-          The area of study of family owned diamond businesses derives its importance from the huge conglomerate of family run organizations which operate in the diamond industry since many generations.

-          Some of the basic traits of family run business enterprises include spirit of entrepreneurship, mutual trust lowers transaction costs, small, nimble and quick to react, information as a source of advantage and philanthropy.

-          Family owned diamond businesses need to improve on many fronts including higher standard of corporate governance, long-term performance – focused strategies, modern management and technology.

-          The diamond jewellery industry in India today may be more than Rs 60000 mil and is rated amongst the fastest growing  in the world. Indi ranks third in the world in domestic diamond consumption.

-          Utmost caution is to be exercised while dealing with some medium and large diamond traders which are usually engaged in fictitious import – export, inter-company transactions, financially assisted by banks. In the process, several public sector banks lost several hundred million rupees. They mostly diverted borrowed money for diamond business into real estate and capital markets.

-          Excerpts from Times of India dated 30th October 2010 is as under –

 

DIAMOND SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT

 

This could be the biggest credibility crisis the Indian diamond industry has ever faced. Fifteen banks run the risk of losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two months ago, they had not repaid  these dues. Bankers believe many diamantaires borrowed money during the economic downturn two years ago and diverted funds to businesses like real estate and capital markets. Many of themselves made money from these businesses but their diamond companies have gone sick and declared insolvency.

-          Most of the money borrowed from the banks in the name of their diamond business has been diverted in real estate and the share market. The banks are not in a position to seize their properties because in many cases, these were purchased in the name of their relatives and friends.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.29

UK Pound

1

Rs.86.43

Euro

1

Rs.68.95

 

 

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.