MIRA INFORM REPORT

 

 

Report Date :

04.07.2013

 

IDENTIFICATION DETAILS

 

Name :

MOLIBDENOS Y METALES S.A.

 

 

Registered Office :

Camino Nos a Los Morros Nro. 66 San Bernardo - Maipo XIII Region Metropolitana

 

 

Country :

Chile

 

 

Financials (as on) :

30.09.2012       

 

 

Date of Incorporation : 

28.10.1975

 

 

Legal Form :

Public Stock Company

 

 

Line of Business :

Marketer of molybdenum by-products

 

 

No. of Employees :

1.461

 

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 – March 31st 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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 approximately one-third of GDP, with commodities making up some three-quarters of total exports. Copper alone provides 19% of government revenue. From 2003 through 2012, real growth averaged almost 5% per year, despite the slight contraction in 2009 that resulted from the global financial crisis. 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 has 22 trade agreements covering 60 countries including agreements with the European Union, Mercosur, China, India, South Korea, and Mexico. Chile has joined the United States and nine other countries in negotiating the Trans-Pacific-Partnership trade agreement. In 2012, foreign direct investment inflows reached $28.2 billion, an increase of 63% over the previous record set in 2011. The Chilean Government has generally followed a countercyclical fiscal policy, accumulating surpluses in sovereign wealth funds during periods of high copper prices and economic growth, and generally allowing deficit spending only during periods of low copper prices and growth. As of 31 December 2012, those sovereign wealth funds - kept mostly outside the country and separate from Central Bank reserves - amounted to more than $20.9 billion. Chile used these funds to finance fiscal stimulus packages during the 2009 economic downturn. In May 2010 Chile signed the OECD Convention, becoming the first South American country to join the OECD.

 

Source : CIA


IDENTIFICATION                            

MOLIBDENOS Y METALES S.A.
( MOLYMET )


Camino Nos a Los Morros Nro. 66
San Bernardo - Maipo
XIII Region Metropolitana
CHILE

Telephone    : 56-2-29376600, 56-2-29376653, 56-2-29376676

E_Mail              : info@molymet.cl  
Web Site           : www.molymet.cl 

SUMMARY

Started                          : 1975
Total Employees              : 1.461
Payments                                 : See Commercial Record
Capital                          : 000's$    166.682.430.-

Sic(s) : 2899 - 6799

Line of Business: Marketing of molybdenum by-products.


Financial indicators

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

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

Economic situation is normal, as reflected in:

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

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


COMMERCIAL INFORMATION

Commercial Bulletin      : As at 11/02/2013 subject does not register protested
                           checks, bank drafts nor promissory notes in the
                           commercial information bulletin

Labor Bulletin           : As at 11/02/2013 does not register work infringements

Previsional bulletin     : As At 11/02/2013 registers social security
                           infringements

Previsional Detail

Date     :17/12/2012
Reason   :Undeclared payrolls                    
Value    :Ch$ 6.740.567,00.-
Months   :23       
Bulletin :139
Page     :150679
Drawer   : AFP Provida                                                         


Consolidated delinquency : As at 11/02/2013, subject does not register any
                           delinquent bill

TRADE REFERENCES

Suppliers' trade references are supplied as follows:

Detail of References

Old            : Since 2001
Last purchase  : 11-2012
Terms          : 60 days
Payment        : Prompt
Notes          : invoice
Credit         : (000'sUS$) 5.000
Owes           : (000'sUS$) 3.000
Due            : Does not Register
Paying Comments: Good
Purchase Aver. : (Monthly 000's$) 2.000

Old            : Since 1996
Last purchase  : 11-2012
Terms          : 30 days
Payment        : Prompt
Notes          : order form
Credit         : (000'sUS$) 4.000
Owes           : (000'sUS$) 2.800
Due            : Does not Register
Paying Comments: Good
Purchase Aver. : (Monthly 000's$) 4.500

Detail of Former Trade References
--------------------------------------------------------------------------------
           Last                                           Credit            Owes
Old        Purch. Payment.    Notes                     (000'sUS$)        (000'sUS$)
--------------------------------------------------------------------------------
Since 2001 01-12  Prompt      invoice                      4.000               -
Since 1996 01-12  Prompt      order form                   4.000           3.000
Since 1996 01-11  Prompt      order form                   4.000            None
Since 1996 04-10  Prompt      order form                   4.000            None
Since 2002 03-10  Prompt      order form                  50.000            None
Since 2002 10-09  Prompt      order form                       -            None
Since 1996 10-09  Prompt      order form                   5.000            None
Since 1996 05-09  Prompt      order form                   5.000            None
Since 2002 05-09  Prompt      order form                       -            None
Since 2002 06-08  Prompt      order form                       -               -
Since 1996 06-08  Prompt      order form                   5.000               -
Since 1996 04-08  Prompt      order form                   5.000               -
Since 1996 03-07  Prompt      order form                   5.000               -
Since 2001 01-07  Prompt      order form                  10.000            None
Since 2001 07-06  Prompt      order form                   4.000               -
10 years   07-06  Prompt      order form                   5.000               -
10 years   03-06  Prompt      order form                   1.500               -
Since 2001 03-06  Prompt      order form                   6.000               -
5 years    03-06  Prompt      checks                        Open               -
Since 2001 10-05  Prompt      order form                   6.000               -
5 years    10-05  Prompt      checks                        Open               -
10 years   10-05  Prompt      order form                   1.500               -
10 years   02-05  Prompt      order form                   1.500             842
5 years    02-05  Prompt      checks                        Open               -
Since 2001 02-05  Prompt      order form                   6.000           2.300
10 years   02-04  Prompt      order form                   5.000               -
5 years    02-04  Prompt      checks                        Open               -
10 years   02-04  Prompt      checks                       5.000               -

The account holder credit report reflects one social security infringement
included in this report.

During the last 6 months, the account holder credit history shows 117 credit
review inquiries requested by companies, insurance companies, financial
institutions 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 )

  ( Please note that last Balance Sheet does not correspond to annual figures)

                            From  01/01/2012        01/01/2011        01/01/2010
                              To  30/09/2012        31/12/2011        31/12/2010

CURRENT ASSETS                   362.435.944       552.377.364       491.003.937
CURRENT LIABILITIES              203.992.569       152.055.650       144.692.721
WORKING CAPITAL                  158.443.375       400.321.714       346.311.216
FIXED ASSETS                     233.886.509       248.436.581       227.692.363
OTHER ASSETS                     244.939.090        38.679.295        34.892.244
LONG TERM LIABILITIES            206.474.177       222.724.953       194.407.219
NET WORTH                        430.794.797       464.712.637       414.488.604
OPERATING INCOMES                448.230.007       693.685.202       631.248.330
CURRENT PROFIT(LOSS)              25.490.248        54.807.532        45.674.140

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

ASSETS                                              30/09/2012        31/12/2011
Cash                                               111.333.107       118.094.525
Term Deposits                                       59.096.648       209.153.956
Sales Debtors                                        2.139.545         2.693.341
Notes Receivable                                    66.697.814        63.057.029
Notes & Accts Receivable/Interco.Relations           2.424.755         2.664.139
Inventory                                          113.488.287       154.649.392
Taxes Recoverable                                    7.255.788         2.064.982
CURRENT ASSETS                                     362.435.944       552.377.364

Other Fixed Assets                                  13.578.248        13.415.080
Net Fixed Asset                                    220.308.261       235.021.501
FIXED ASSETS                                       233.886.509       248.436.581

Investments in Related Companies                   232.618.701        21.287.040
Long Term Debtors                                    1.032.819         2.305.896
Intangibles                                            933.327         1.140.954
Other                                               10.354.243        13.945.405
OTHER ASSETS                                       244.939.090        38.679.295

TOTAL ASSETS                                       841.261.543       839.493.240

LIABILITIES                                         30/09/2012        31/12/2011
Oblig.With Banks & Financ.Inst.Short Term          132.289.850        72.165.892
Accounts Payable                                    59.152.553        65.594.453
Notes & Accts Payable Related Companies                 25.584           255.515
Provisions                                             397.967           421.861
Withholdings                                           805.409         4.094.504
Other Current Liabilities                           11.321.206         9.523.425
CURRENT LIABILITIES                                203.992.569       152.055.650

Oblig.with Banks & Financial Intitutions           165.190.333       186.997.642
Notes Payable                                           34.585                 0
Provisions                                          41.249.259         9.100.520
Other Long Term Liabilities                                  0        26.626.791
LONG TERM LIABILITIES                              206.474.177       222.724.953

Paid Capital                                       193.279.209       211.823.831
Other Reserves                                     -16.114.813       -14.563.335
Accumulated Profits                                223.244.214       207.790.338
Current Profit (Losses)                             25.490.248        54.807.532
Provisory Dividends                                  4.895.939         4.854.271
NET WORTH                                          430.794.797       464.712.637

TOTAL LIABILITIES                                  841.261.543       839.493.240

STATEMENTS OF RESULTS                               30/09/2012        31/12/2011
Operating  Income                                  448.230.007       693.685.202
Operating Cost                                    -388.066.428      -588.776.836
OPERATING MARGIN                                    60.163.579       104.908.366

Administration & Sales Expenses                    -21.737.515       -33.135.133
OPERATING RESULT                                    38.426.064        71.773.233

Financial Incomes                                    3.497.370        12.014.961
Profit Investmens Related Companies                  4.828.190                 0
Other non Operating Incomes                          1.750.106         4.413.637
Loss investment Related Companies                            0          -159.567
Financial Expenses                                  -8.630.194       -12.727.795
Other non Operating Expenses                        -3.408.301        -5.269.875
Exchange difference                                   -300.844                 0
NON OPERATING RESULT                                -2.263.673        -1.728.639

Result Before Income Tax                            36.162.391        70.044.594
Income Tax                                         -10.672.143       -15.251.141
Monority Interest                                            0            14.079
NET PROFIT(LOSS)                                    25.490.248        54.807.532

CURRENT PROFIT(LOSS)                                25.490.248        54.807.532

                           ECONOMIC - FINANCIAL RATIOS

                                        30/09/2012     31/12/2011        Average

Working Capital            (000's$)    158.443.375    400.321.714    279.382.545
Current Liquidity           (Times)           1,78           3,63           2,71
Acid Test                   (Times)           1,22           2,62           1,92
Collection Period Days      ( Days)          57,23          35,50          46,37
Accounts Receivable Turnover(Times)           6,29          10,14           8,22
Inventory Turnover          (Times)           3,42           3,81           3,62
Current Indebtedness        (Times)           0,47           0,33           0,40
Total Indebtedness          (Times)           0,95           0,81           0,88
Solvency                    (Times)           2,05           2,24           2,15
Assets Tying Up             (  %  )          27,80          29,59          28,70
Profitability Over Sales    (  %  )           5,69           7,90           6,80
Profitability Over Assets   (  %  )           3,03           6,53           4,78
Profitability Over Net Worth(  %  )           6,29          13,37           9,83

BANKS 

Subject operates with the following banks:


National

-  Banco Bice
-  Banco Bilbao Vizcaya Argentaria, Chile
-  Banco de Chile
-  Banco de Credito e Inversiones
-  Banco Security, main office
-  BancoEstado
-  Corpbanca

International

-  J.P. Morgan Chase  United States

OPERATIONS 

Line of Business : Marketing of molybdenum by-products. Oxides, chemical
                   products, basic industrial chemical substances, mineral
                   products, ferro molybdenum, among others.

                   CERTIFICATION ISO 9001: 2000 - ISO 2001 : 2008.-

Classification according to commercial activity:

Sic: 2899-0000 Chemical preparations
Sic: 6799-0000 Investors

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: 2%.

Sales conditions: Cash and credit.

International: 98%.

Exports to Germany, Argentina, Australia, Austria, Belgium, Brazil, Canada,
China, Colombia, North Korea, South Korea, United Arab Emirates, Spain, Finland,
Netherlands, Hong Kong, India, England, Japan, Malaysia, Mexico, Peru,
Singapore, Southafrica, Sweden, Taiwan, Thailand and United States

of Exports obtained from Customs'National Service

Country                            %last year   %Accum.
-------------------------------------------------------
Netherlands                             50,07     33,50
United States                           16,43     22,42
Belgium                                  7,74      7,16
Japan                                    6,87      6,40
Brazil                                   5,16      5,96
Austria                                  4,32      5,13
Sweden                                   2,34      1,97
Australia                                1,02      1,17
Mexico                                   0,90      0,23
Southafrica                              0,86      1,01
Germany                                  0,61      0,12
Argentina                                0,50      0,38
China                                    0,50      1,56
England                                  0,48      1,63
Taiwan                                   0,46      1,51
Spain                                    0,41      0,67
India                                    0,26      3,78
Thailand                                 0,25      0,21
Finland                                  0,21      1,11
South Korea                              0,20      3,91
Canada                                   0,19      0,06
Singapore                                0,05      0,00
United Arab Emirates                     0,04      0,00
Hong Kong                                0,04      0,00
North Korea                              0,04      0,00
Colombia                                 0,02      0,00
Peru                                     0,01      0,00
Malaysia                                 0,00      0,00

Historical registries

Total       2011 = 000's$ 525.585.544                   Accumulated 2012 = 000's$ 330.194.057
Total       2009 = 000's$ 299.655.841
Total       2008 = 000's$ 1.061.336.355
Total       2007 = 000's$ 870.135.895
Total       2006 = 000's$ 814.195.548
Total       2005 = 000's$ 705.822.065
Total       2004 = 000's$ 373.216.001
Total       2003 = 000's$ 106.669.208


Customers

Main customers are: Companies in general.

The 3 most important customers are:

Cap S.A.,  Compañia Electro Metalurgica S.A. and  Aceros y Metales Sociedad
Limitada.

Purchases

Places orders with multiple suppliers

National: 50%

International: 50%

Imports from Germany, Argentina, Belgium, Brazil, Canada, China, North Korea,
South Korea, Denmark, Spain, France, England, Japan, Mexico, Peru, Turkey and
United States

of Imports obtained from Customs'National Service

Country                            %last year   %Accum.
-------------------------------------------------------
Peru                                    43,97     58,88
Mexico                                  23,05     33,51
United States                           19,19      0,09
Canada                                  11,83      5,48
China                                    1,59      1,38
Argentina                                0,16      0,28
Brazil                                   0,09      0,05
North Korea                              0,03      0,00
South Korea                              0,02      0,08
Japan                                    0,02      0,05
Turkey                                   0,01      0,01
Denmark                                  0,01      0,04
France                                   0,01      0,00
Germany                                  0,01      0,07
Belgium                                  0,00      0,00
England                                  0,00      0,00
Spain                                    0,00      0,00

Historical registries

Total       2011 = 000's$ 311.452.142                   Accumulated 2012 = 000's$ 189.430.392
Total       2009 = 000's$ 174.751.674
Total       2008 = 000's$ 529.529.057
Total       2007 = 000's$ 494.465.892
Total       2006 = 000's$ 316.461.140
Total       2005 = 000's$ 375.794.897
Total       2004 = 000's$ 148.404.368
Total       2003 = 000's$ 48.233.099


Main suppliers 

- Coagra S.A.
- Compañia de Petroleos de Chile Copec S.A.
- Corporacion Nacional del Cobre de Chile
- Electricidad Gobantes S.A.
- Empresa Nacional de Energia Enex S.A.
- In Motion Servicios S.A.
- Manufacturas Metalurgicas Rheem Chilena Limitada
- Minera Anglo American Chile Ltda.
- Minera Sur Andes S.A.
- Oxiquim S.A.
- Petrobras Chile Distribución Ltda.
- Plasticos Haddad S.A.
- Rhein (Chile) S.A.

Employees: 1.461 employees

Location

-  Previously and until July 31, 2011 subject was located at Huérfanos 812, Of.
   612. Currently, it is located at Camino Nos a Los Morros Nro. 66 San
   Bernardo, Chile

Branches 

-  Industry located at Avda. Peñuelas 0258 San Bernardo Chile

RELATED COMPANIES 

Subject is related to the following companies:

National

-  Carbomet Industrial S.A. T A X 96103000-5 San Bernardo, 99,99% Participation
-  Inmobiliaria San Bernardo S.A. T A X 96953640-4, 99,99% Participation
-  Molymet Recycling Ltda. T A X 76172181-K, 99,00% Participation
-  Molymet Trading S.A. T A X 76107905-0 San Bernardo, 99,00% Participation .
   Sales as at 31/12/2011 000's$ 107.558.948
-  Carbomet Energia S.A. T A X 91066000-4 San Bernardo, 52,76% Participation
-  Carbomet Inmobiliaria S.A. T A X 76216414-0, 52,75% Participation
-  Inmobiliaria San Jose de Nos S.A. T A X 96999080-6, 0,02% Participation
-  Complejo Industrial Molynor S.A. T A X 76016222-1 Mejillones, 0,01%
   Participation

International

-  Molymet Corporation, United States 99,9%
-  Molymex S.A. de C.V., Mexico 99,99%
-  Chemiemetall GmbH, Germany
-  Molymet Do Brasil, Brazil 90%
-  Strategic Metals B.V.B.A., Belgium 99,99%

FIXED ASSETS

Real estates 

Subject registers real estates

-  Farming exploitation, Las Lilas de Nos Lt. 3 B San Bernardo-Chile, Fiscal
   value of 000's$ 300.743.-, rol Nº 5500-114
-  Farming exploitation, Rinconada Nos Pc. 19 Lt. 3 San Bernardo-Chile, Fiscal
   value of 000's$ 21.311.-, rol Nº 5500-36
-  Farming exploitation, La Querencia Pc. 8 Lt. B 4 A San Bernardo-Chile, Fiscal
   value of 000's$ 6.618.-, rol Nº 5500-115
-  Industry, Cinco Pinos 0331 San Bernardo-Chile, Fiscal value of 000's$
   383.959.-, rol Nº 5500-130
-  Farming exploitation, Peñuelas 0725 Nos San Bernardo-Chile, Fiscal value of
   000's$ 8.439.-, rol Nº 5500-151
-  Farming exploitation, Camino Nos Pc. C Querencia San Bernardo-Chile, Fiscal
   value of 000's$ 28.374.-, rol Nº 5500-157
-  Premises, Huérfanos 812, Oficina 501 Santiago-Chile, Fiscal value of 000's$
   477.875.-, rol Nº 101-865
-  Sites, Las Acacias con Ochagavia San Bernardo-Chile, Fiscal value of 000's$
   788.788.-, rol Nº 4510-30
-  Sites, Peñuelas San Bernardo-Chile, Fiscal value of 000's$ 199.909.-, rol Nº
   5500-79
-  Industry, Camino Nos San Bernardo-Chile, Fiscal value of 000's$ 3.192.850.-,
   rol Nº 5500-82
-  Industry, Los Suspiros 3700 San Bernardo-Chile, Fiscal value of 000's$
   2.059.321.-, rol Nº 5500-91
-  Previous, Huérfanos 812 Of. 612 Santiago-Chile, Fiscal value of 000's$
   277.229.-, rol Nº 101-869
-  Parking lot, Huérfanos 653 Box B 712 Santiago-Chile, Fiscal value of 000's$
   1.823.-, rol Nº 121-894
-  Building, Huérfanos 812 Of. 608 Santiago-Chile, Fiscal value of 000's$
   33.141.-, rol Nº 101-868
-  Branch, Avda. Peñuelas 0258 San Bernardo-Chile, Fiscal value of 000's$
   204.178.-, rol Nº 5.500-80
-  Farming exploitation, Parcela 11 Nos San Bernardo-Chile, Fiscal value of
   000's$ 18.215.-, rol Nº 5500-27
-  Farming exploitation, Parcela 9 Ex Fundo Las Lilas San Bernardo-Chile, Fiscal
   value of 000's$ 18.822.-, rol Nº 5500-28
-  Farming exploitation, Cinco Pinos Pc. 9 San Bernardo-Chile, Fiscal value of
   000's$ 43.743.-, rol Nº 5500-24
-  Industry, Las Lilas Hijuelas A San Bernardo-Chile, Fiscal value of 000's$
   59.076.-, rol Nº 5500-49

Total fiscal appraisal $ 8.124.415.180.-

Machinery & Instalations 

Equipments and machinery, not specified

INSURANCES 

Insurance covering interests are undersigned
Insurance Services Brokers
Covering all risks.

BOARD OF DIRECTORS

President               : Carlos Hurtado Ruiz-Tagle TAX:2300859-9
Vice President      : George Anastassiou Mustakis TAX:6374232-5
Director                 : Jorge Gabriel Larraín Bunster TAX:4102581-6
Director                 : Raúl Alamos Letelier TAX:5545475-2
Director                 : Alberto Pirola Gianoli TAX:6957184-0
Director                 : Eduardo Guilisasti Gana TAX:6290361-9
Director                 : Michael Schwarzkopf
Director                 : José Miguel Barriga Gianoli TAX:6978911-0
Director                 : Gonzalo Ibáñez Langlois TAX:3598597-2

ADMINISTRATION

General Manager and CEO  : John Patrick Graell Moore TAX:6153784-8
Corporate Manager for    : Manuel Guzmán Manzo TAX:4917151-K
Research and Development
Corporate Manager for    : Francisco J. Fernández Cañas TAX:6028944-1
Finances and IT.
Corporate Manager for    : Francisco de los Rios
Human Resources and
Corporate Affairs
Accounting Manager       : Máximo Jara Leal
Finance Vice President   : Jorge Ramírez Gossler TAX:7017179-1
Commercial Vice          : Gonzalo Bascuñán Obach TAX:12797030-0
President
Vice President for       : Fernando Alliende Correa TAX:4883753-0
International and New
Businesses Area
Vice President           : Luis Gonzalo Concha Parada TAX:7817539-7
Engeneering
Operation Vice President : Gabriel Gutiérrez Clavería TAX:5146447-8
Operation Vice           : Rafael Raga Castellanos TAX:4363486-0
President for Molymex
and Real Estate
Companies
Auditor Corporate        : Claudia Avendaño Rozas TAX:11959266-6
Internal

CURRICULUM


John Patrick Graell Moore

T A X               : 6153784-8
Studies             : Finished studies in Universidad de Chile
Titled as           : Industrial Civil Engineer.
Position            : General Manager and CEO
Curriculum          : Founder partner and Director of Agrícola Cerrillos de
                      Tamaya and President of Viña Tamaya, a company with a very
                      successful growth.He has worked in the consultancy
                      services area for more than 10 years as Technical Director
                      of Inecon, developing works for the public and private
                      sector.

Manuel Guzmán Manzo

T A X               : 4917151-K
Titled as           : Chemical Civil Engineer.
Position            : Corporate Manager for Research and Development

Francisco J. Fernández Cañas

T A X               : 6028944-1
Titled as           : Computer Engineer.
Position            : Corporate Manager for Finances and IT.

Jorge Ramírez Gossler

T A X               : 7017179-1
Titled as           : Commercial Engineer.
Position            : Finance Vice President

Carlos Hurtado Ruiz-Tagle

T A X               : 2300859-9
Studies             : Finished studies in Universidad de Chile .
Titled as           : Economist
Position            : President
Curriculum          : University professor, advisor on economy and projects. He
                      was Minister of Public works during the government of
                      President Aylwin. Founder and member of the board of
                      directors of important chilean companies.-

Gonzalo Bascuñán Obach

T A X               : 12797030-0
Titled as           : Commercial Engineer.
Position            : Commercial Vice President

Fernando Alliende Correa

T A X               : 4883753-0
Titled as           : Industrial Civil Engineer.
Position            : Vice President for International and New Businesses Area

Luis Gonzalo Concha Parada

T A X               : 7817539-7
Titled as           : Mechanical Civil Engineer.
Position            : Vice President Engeneering

Gabriel Gutiérrez Clavería

T A X               : 5146447-8
Titled as           : Metallurgical Civil Engineer.

Rafael Raga Castellanos

T A X               : 4363486-0
Titled as           : Metallurgical Civil Engineer.
Position            : Operation Vice President for Molymex and Real Estate
                      Companies

Claudia Avendaño Rozas

T A X               : 11959266-6
Titled as           : Auditor Accountant.
Position            : Auditor Corporate Internal

Eduardo Guilisasti Gana

T A X               : 6290361-9
Titled as           : Civil Engineer.
Position            : Director

Gonzalo Ibáñez Langlois

T A X               : 3598597-2
Titled as           : Commercial Engineer.
Position            : Director

LEGAL INFORMATION 

Legal Structure      : Public Stock Company
Constitution date    : 28/10/1975. Registered on leaf 1.215 N°689, Valparaíso
                       Trade Real Estate Registry, dated December 23, 1975.

                       Registered in the Superintendency of Securities N° 0191
                       on April 04, 1983.
Term of duration     : Indefinite
Legal Address        : Santiago - Chile

Current Social Capital: 000's$ 166.682.430.-Divided to 127.111.084.- registered
                        shares unique series

Shareholder :

-  11,51% Plansee Limitada
-  10,70% Nueva Carenpa S.A.
-  10,43% Inversiones Lombardia S.A.
-   7,93% The  Atlantic S.A.
-   6,25% 72251700-8 Fundacion Gabriel y Mary Mustakis
-   4,68% Ed Harvey Trust Corporation
-   4,68% Osvald Wagner Trust Co. Inc.
-   4,68% Phil White International Corp.
-   4,15% Rentas e Inversiones Octay S.A.
-   4,15% Marea Sur S.A.
-   3,74% Whar Plot Corp
-   3,65% 90412000-6 Minera Valparaiso S.A.

Administration is held by General Manager and CEO.

Legal changes

Public Deed dated 02/01/1984, notary Sergio Rodriguez Garcés, Santiago,
published in the Official Gazette dated 06/01/1984 page N° 13, corporate
structure was modified: Subject was divided into 2 companies: one is the
continuer, which keeps its business name with a capital of $238.027.409 divided
into 104.000.000 registered and same value shares, and the other company with
business name Desarrollos Técnicos S.A. and a capital of $401.647.000 divided
into 104.000.000 shares.

Public Deed dated 12/07/1989, notary Aliro Veloso Muñoz, Santiago, published in
the Official Gazette dated 17/08/1989 page N° 9, capital was increased: to
$532.321.598.-

Public Deed dated 01/12/1989, notary Aliro Veloso Muñoz, Santiago, published in
the Official Gazette dated 18/12/1989 page N° 9, statutes were modified: subject
was divided into 2 companies, one which keeps its business name (subject) and a
new one  with business name RIO VILAMA S.A. Its line of business will be the
manufacture of molybdenum oxide, ferromolybdenum, ammonium perrenate, etc.

Public Deed dated 25/11/2002, notary René Benavente Cash, Santiago, published in
the Official Gazette dated 29/11/2002 page N° 17, capital was increased: it was
agreed to express capital in dollars, which is US$2.182.077,35 divided into
104.000.000 no par value shares.-

Public Deed dated 05/01/2005, notary René Benavente Cash, Santiago, published in
the Official Gazette dated 14/01/2005 page N° 15, capital was increased: from
US$2.182.077,35 divided into 104.000.000 no par value shares, to
US$106.182.077,35 divided into same amount of no par value shares. At the same
time, capital of US$106.182.077,35 was increased to US$158.182.077,35 divided
into 124.800.000 no par value shares.

(Rectified in official gazette dated Jan 22, 2005, page 13).-

Public Deed dated 25/09/2008, notary Juan Francisco Alamos Ovejero, Santiago,
published in the Official Gazette dated 01/10/2008 page N° 34, capital was
increased: to US$348.270.853,35 divided into 127.111.084  no par value shares.-

Public Deed dated 16/08/2010, notary Eduardo Javier Diez Morello, Santiago,
published in the Official Gazette dated 21/08/2010 page N° 7, statutes were
modified: it was agreed to increase the amount of directors from 7 to 9
members.-

Public Deed dated 06/06/2011, notary Eduardo J. Diez Morello, Santiago,
published in the Official Gazette dated 13/07/2011, statutes were modified: did
not publish details.-

CAPITAL US$ 348.270.853,35 x $485,06 (exchange rate as of March 6, 2012)
=$168.932.260.125.-

PUBLICATIONS 

Information regarding subject is supplied as follows

DIARIO FINANCIERO of 24/03/2010 Molymet, company linked to the families Matte,
Gianoli and Mustakis, reported as a relevant statement sent to the
Superintendency of Securities and Insurances (SVS) that its affiliate company
located in China made an agreement to purchase the 50% of the firm Luoyang
High-Tech Molybdenum Tungsten Material, which is engaged in the elaboration of
molybdenum  by-products.

The agreement was subscribed with China Molybdenum, the headquarters of the
japanese company.

The operation includes the payment of US$37.7 millions for this asset -
figures subject to modification at the moment of the operation's closing.

"The final business conditions should be fulfilled within the next two
months, and related , among others,  to the ratification by the board of
directors of the purchasing and selling companies, the approval of the
authorities and the registration in the corresponding registers of the People's
Republic of China", stated the company to the SVS.

In the document, it was also explained that the acquisition will be carried
out with own resources and that this will not have financial effects. -

Economía y Negocios El Mercurio Cuerpo B Pag 5 of 10/03/2012 Molymet fulfilled
the purchase

On March 8, Molymet acquires the 13% of the Molymet Company in the USA. The
transaction, announced in february, involved the purchase of 12.500.000 shares
of the American company which amounted to US$ 390,2 millions.

Molycorp is engaged in the production of minerals known as rare earth
elements. -

INFORMATION SOURCES

Mr. Máximo Jara Leal, Accounting Manager,  submitted just general
information,  outside sources provided Consolidated balance sheets.

IMPORTANT NOTE TO CONSOLIDATED BALANCE SHEETS

When entering consolidated balance sheets into the evaluation system,

they are not taken into account for assessment purposes as they do not
represent  the actual

situation of the subject company, therefore, they are not considered for
credit recommendation purposes.

-Other outside information sources.

Exchange rate

-As at 28/12/2012 $478,60 Per US$
-As at 30/09/2012 $473,77 Per US$
-As at 31/12/2011 $521,46 Per US$
-As at 31/12/2010 $468,01 Per US$

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.



 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.10

UK Pound

1

Rs.91.07

Euro

1

Rs.77.95

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.