MIRA INFORM REPORT

Report Date :

05.02.2013

IDENTIFICATION DETAILS

Name :	MESSINA COPPER (BOTSWANA) LTD.
Registered Office :	Private Bag T5 Jati Town Francistown
Country :	Botswana
Financials (as on) :	31.03.2012
Date of Incorporation :	05.07.2001
Legal Form :	Limited Liability Company, Limited by shares
Line of Business :	Mining and exploration of copper
No. of Employees :	500

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	No Complaints
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30^th, 2012

Country Name	Previous Rating (31.03.2011)	Current Rating (30.06.2012)
Botswana	B1	B1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

BOTSWANA - ECONOMIC OVERVIEW

Botswana has maintained one of the world's highest economic growth rates since independence in 1966. However, economic growth was negative in 2009, with the industrial sector shrinking by 30%, after the global crisis reduced demand for Botswana's diamonds. Although the economy recovered in 2010, GDP growth has again slowed. Through fiscal discipline and sound management, Botswana transformed itself from one of the poorest countries in the world to a middle-income country with a per capita GDP of $16,800 in 2012. Two major investment services rank Botswana as the best credit risk in Africa. Diamond mining has fueled much of the expansion and currently accounts for more than one-third of GDP, 70-80% of export earnings, and about half of the government's revenues. Botswana's heavy reliance on a single luxury export was a critical factor in the sharp economic contraction of 2009. Tourism, financial services, subsistence farming, and cattle raising are other key sectors. Unofficial estimates place unemployment at close to 40%. The prevalence of HIV/AIDS is second highest in the world and threatens Botswana's impressive economic gains. An expected leveling off in diamond production within the next two decades overshadows long-term prospects. A major international diamond company signed a 10-year deal with Botswana in 2012 to move its rough stone sorting and trading division from London to Gaborone by the end of 2013. The move will support Botswana's downstream diamond industry.

Source : CIA

REGISTERED NAME & COMPANY SUMMARY

COMPANY REPORTED:	MESSINA COPPER (BOTSWANA) LTD.
Principal Address:	Private Bag T5 Jati Town Francistown, Botswana
Telephone:	+267-2410109/ 2410128
Fax:	+267-2410109
Email:	Bradk@africancopper.com
Internet:	www.africancopper.com
Established:	05/07/2001
Registration:	Botswana
Legal Form:	Limited Liability Company, Limited by shares
Stock Listing:	Not Listed
Workforce:	2012
	500
Office & Factories
Head offices
Branches	None

DIRECTORS/MANAGEMENT

Management/ Directors

President/ CEO (1)
Name	Mr. David Rodier
Current Title:	Chairman
Remarks	Top Decision Maker

Director (2)
Name	Mr. Pandelani Nefolovhodwe
Active in daily business:	Active
Current Title:	Director
Country of residence	Botswana

Top decision maker is the person who has the ultimate authority or power to make important managerial decisions. He/She may or may not be officially registered as a president or an executive director.

NEGATIVE INFORMATION

No negative information found

SHARE & SHARE CAPITAL INFORMATION

Share Capital
Nominal Capital	BWP. 100,000
Paid in Capital	BWP. 100,000
Subscribed Capital	BWP. 100,000
Shareholders
Name	Position	Amount	Ratio
Mr. David Rodier	Group Chairman
Mr. Pandelani Nefolovhodwe	Director
Mr. Jordan Soko	Director
Mr. Bradley Robert Kipp	Director
Mr. Roy Derek Corrans	Director
Professor Stephen Simukanga	Director
Mr. Steven Georgala	Director
African Copper Plc (ACU)	Holding Co.		100.00%
Total			100.00%

Owned Mines

MOWANA MINE

PAYMENT INFORMATION

	Terms of payment
Buying terms	30% in cash, 70% on 30 day credit
Selling terms	80% in cash, 20% on credit
Suppliers	Various companies
Customers	Industries, firms and organizations
Recent Sales	Group shown below
Exports	Worldwide
Export Ratio	20.0%
Import Ratio	40.0%
Domestic Market Share	20.0%

GROUP STRUCTURE & AFFILIATED COMPANIES

Affiliated Companies
Company (1)	MATSITAMA MINERALS (PROPRIETARY) LIMITED (BOTSWANA)

FOREIGN EXCHANGE RATES

Exchange Rate

US$ 1 = BWP. 8

ADDITIONAL INFORMATION

Established:	05/07/2001
Registration:	Botswana
Legal Form:	Limited Liability Company, Limited by shares
Stock Listing:	Not Listed
Workforce:	2012
	500
Office & Factories
Head offices
Branches	None

Business Activities

Mining and exploration of copper

Business Premises	5000 Sft
Type of occupation	Owned
Location	The subject is located close to a major road network
Premises used as	Offices

Banking relationship
Main Banks	First National Bank of Botswana

Auditors

KPMG

NOTES & COMMENTS

The Subject company had closed down operations in the Mowana mine and restarted in 2009.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.52.97
UK Pound	1	Rs.83.17
Euro	1	Rs.72.20

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%)

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