MIRA INFORM REPORT

 

 

Report Date :

25.07.2013

 

IDENTIFICATION DETAILS

 

Name :

TRONOX PIGMENTS LTD

 

 

Formerly Known As :

KERR-MCGEE PIGMENTS LTD

 

 

Registered Office :

C/o CITCO BANK & TRUST COMPANY (BAHAMAS) LIMITED

1st Floor, One Montague Place East Bay Street P.O. Box N-4906 Nassau Bahamas

 

 

Country :

Australia

 

 

Financials (as on) :

31.12.2012 (Group Consolidated)

 

 

Date of Incorporation :

22.07.1991

 

 

Com. Reg. No.:

052533829

 

 

Legal Form :

Foreign Company (Bahamas)

 

 

Line of Business :

Marketing arm for the Tronox Group operations in Australia for titanium ore and

titanium dioxide.

 

 

No. of Employees :

20 employees (Subject)

 

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)

Australia

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

 

AUSTRALIA - ECONOMIC OVERVIEW

 

The Australian economy has experienced continuous growth and features low unemployment, contained inflation, very low public debt, and a strong and stable financial system. By 2012, Australia had experienced more than 20 years of continued economic growth, averaging 3.5% a year. Demand for resources and energy from Asia and especially China has grown rapidly, creating a channel for resources investments and growth in commodity exports. The high Australian dollar has hurt the manufacturing sector, while the services sector is the largest part of the Australian economy, accounting for about 70% of GDP and 75% of jobs. Australia was comparatively unaffected by the global financial crisis as the banking system has remained strong and inflation is under control. Australia has benefited from a dramatic surge in its terms of trade in recent years, stemming from rising global commodity prices. Australia is a significant exporter of natural resources, energy, and food. Australia's abundant and diverse natural resources attract high levels of foreign investment and include extensive reserves of coal, iron, copper, gold, natural gas, uranium, and renewable energy sources. A series of major investments, such as the US$40 billion Gorgon Liquid Natural Gas project, will significantly expand the resources sector. Australia is an open market with minimal restrictions on imports of goods and services. The process of opening up has increased productivity, stimulated growth, and made the economy more flexible and dynamic. Australia plays an active role in the World Trade Organization, APEC, the G20, and other trade forums. Australia has bilateral free trade agreements (FTAs) with Chile, Malaysia, New Zealand, Singapore, Thailand, and the US, has a regional FTA with ASEAN and New Zealand, is negotiating agreements with China, India, Indonesia, Japan, and the Republic of Korea, as well as with its Pacific neighbors and the Gulf Cooperation Council countries, and is also working on the Trans-Pacific Partnership Agreement with Brunei Darussalam, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, the US, and Vietnam.

Source : CIA


IDENTIFICATION DETAILS

 

Verified Address

Subject name :              TRONOX PIGMENTS LTD

Business address :        Level 1, 1 Brodie-Hall Drive

Town :                           Bentley

Province :                      Western Australia

Zip/postal code :            6102

Country :                       Australia

Tel :                              +61 8 93651333

Fax :                             +61 8 93651390

Website :                      www.australia.tronox.com

 

Registered address :      C/o CITCO BANK & TRUST COMPANY (BAHAMAS) LIMITED

1st Floor, One Montague Place East Bay Street

P.O. Box N-4906

Town :                           Nassau

Country :                       Bahamas

Postal address :            Locked Bag 381, Bentley Delivery Centre

Town :                           Bentley

Province :                      Western Austtralia

Zip/postal code :            6983

Country :                       Australia

Comments :                  The Subject is registered as a Private Limited Company in Bahamas and

operates as a registered Foreign Company in Australia.

 

SUMMARY DETAILS

 

Executive Summary

Date founded or registered :        22/07/1991

Legal form :                               Foreign Company (Bahamas)

Chief executive :                        Anthony Martin Orell

Issued & paid up capital :           N/A

Sales turnover :              USD 1,832,000,000 (Group-Consolidated 12 month, 31/12/2012)

Net income :                              USD 1,133,000,000 (Group-Consolidated 12 month, 31/12/2012)

Total fixed assets :                     USD 5,511,000,000 (Group-Consolidated 12 month, 31/12/2012)

Line of business :                       Marketing arm for the Tronox Group operations in Australia for titanium ore and

titanium dioxide.

Staff employed :                         20 employees (Subject)

 

CREDIT RISK OPINION

 

Company Analysis

Country risk :                             Country risk is minimal

Operation trend :                        Operational trend is steady

Management experience :           Management is adequately experienced

Financial performance :              Financial performance is good

Organization structure :              Organizational structure is stable

Detrimental :                  No detrimental found

Payment history :                      No payment delays noted

Comments :                              Larger credit can still be considered if guaranteed by Ultimate Holding Company.

 

STATUTORY DETAILS

 

Registry Data

Registration date :          22/07/1991

Legal form :                   Foreign Company (Bahamas)

Registration no              Australian Registered Body Number: 052533829

Registered authority :     Australian Securities & Investments Commission

Fiscal/ Tax no :              Australian Business Number: 63052533829

Registry status :            Live/Active

Previous name :             KERR-MCGEE PIGMENTS LTD

KERR-MCGEE PIGMENT LTD (initial)

Change of legal form :     None reported.

Comments :                  The Subject is registered as a Private Limited Company in Bahamas and

operates as a registered Foreign Company in Australia.

 

MANAGEMENT / DIRECTORS

 

Key Management

Name :              Anthony Martin Orell

Designation :     Director of Finance

 

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

 

Appointments

Name :              John David Romano

Designation :     Director

Appointment date : 15/07/08

Address :          316 Heritage Green Road

Edmond, OK 73003

United States

Biography :        Born on 22-11-1964 in Morgan City, United States.

 

Name :              Anthony Martin Orell

Designation :     Director

Appointment date : 05/05/10

Address :          5 Persimmon Place

Kalamunda, WA 6076

Australia

Biography :        Born on 06-09-1957 in Subiaco, Western Australia, Australia.

 

Name :              TRONOX WESTERN AUSTRALIA PTY LTD

Designation :     Local Agent

Appointment date : 28/06/91

Address :          Level 1, 1 Brodie-Hall Drive

Bentley, WA 6102

Australia

Staff employed : 20 employees (Subject)

 

 

SHARE CAPITAL

 

Composition

Authorized Capital :        N/A

Issued capital :              N/A

Paid up capital :             N/A

 

OWNERSHIP / SHAREHOLDERS

 

How listed :                   Full List

 

Composition

Shareholder name :        TRONOX WORLDWIDE PTY LIMITED

Address :                      Level 1, 1 Brodie-Hall Drive

Bentley, WA 6102

Australia

% of shares :                 100%

 

RELATED COMPANIES & CORPORATE AFFILIATIONS

 

Structure

Name :              TRONOX LIMITED

Affiliation type : Ultimate Holding Company

Address :          One Stamford Plaza, Suite 1100

263 Tresser Boulevard

Stamford, CT 06901

United States

Comments :      Tronox Limited produces and markets titanium ore and titanium dioxide in the

Americas, Europe, and the Asia-Pacific. It offers titanium dioxide pigment, which

is used in consumer products, such as paint, plastic, and certain specialty

products. In addition, the company manufactures and markets electrolytic and

specialty chemical products, such as electrolytic manganese dioxide; sodium

chlorate for manufacturing pulp and paper; and boron-based and other specialty

chemicals serving the semi-conductor, pharmaceutical, and igniter industries.

Further, it produces various mineral sands, including ilmenite, natural rutile,

titanium slag, synthetic rutile, zircon, activated carbon, staurolite, leucoxene, and

pig iron. The company was founded in 2005 and is headquartered in

headquartered in Stamford, Connecticut.

 

Name :              TRONOX GLOBAL HOLDINGS PTY LIMITED

Affiliation type : Superior Holding Company

Address :          Level 1, 1 Brodie-Hall Drive

Bentley, WA 6102

Australia

 

Name :              TRONOX AUSTRALIA HOLDINGS PTY LIMITED

Affiliation type : Intermediate Holding Company

Address :          Level 1, 1 Brodie-Hall Drive

Bentley, WA 6102

Australia

 

Name :              TRONOX WORLDWIDE PTY LIMITED

Affiliation type : Parent Company

Address :          Level 1, 1 Brodie-Hall Drive

Bentley, WA 6102

Australia

 

Name :              TRONOX MINERAL SALES PTY LTD

Affiliation type : Sister Company

Address :          Level 1, 1 Brodie-Hall Drive

Bentley, WA 6102

Australia

Related companies and corporate

affiliations comments

: Other companies of the Tronox Group should be considered affiliates of the

Subject.

 

BANK & MORTGAGES

 

Bank Details

Name of bank :              Australia and New Zealand Banking Group Limited

Address :                      Australia

Account details :            Current Account

Comments :                  It is generally not the policy of local banks to provide credit status information to

non related parties, however interested parties would be advised to consult first

with the Subject if banker's references are required.

Mortgages :                   None reported.

 

Legal Fillings

Bankruptcy fillings :        None reported.

Court judgements :         None reported.

Tax liens :                     None reported.

Others :                                    None reported.

 

FINANCIAL DATA

 

Description

Source of financial statement :    Public Record Sources

Financial statement date :          31/12/12

Type of accounts :                     Full audited

Currency :                                 US Dollar (USD)

Consolidation type :                   Group Consolidated                    Group Consolidated

Currency :                                 US Dollar (USD)                        US Dollar (USD)

Denomination :                          (x1) One                                    (x1) One

Date of financial year end :          31/12/12                                    31/12/11

Length of accounts :                   12 months                                 12 months

Sale turnover / Income : 1,832,000,000                            1,543,000,000

Gross profit :                             264,000,000                             439,000,000

Operating profit :                        25,000,000                                302,000,000

Profit before tax :                       1,008,000,000                            262,000,000

Net income :                              1,133,000,000                            242,000,000

Non current assets :                   3,338,000,000                            888,000,000

Current assets :                         2,173,000,000                            769,000,000

Inventories :                               914,000,000                              311,000,000

Total assets :                            5,511,000,000                            1,657,000,000

Current liabilities :                      467,000,000                              281,000,000

Non current liabilities :                2,162,000,000                           624,000,000

Total liabilities :                          2,629,000,000                            905,000,000

Share equity :                            2,882,000,000                            752,000,000

Retained earning :                      1,314,000,000                            242,000,000

 

Comments : The group’s consolidated financial information above relates to the Subject’s

Ultimate Holding Company Tronox Limited and all its subsidiaries which include

the Subject.

 

OPERATION DETAILS

 

Main activities :              The Subject engages as a marketing arm for Tronox Group operations in

Australia for titanium ore and titanium dioxide.

The Subject is ultimately owned by Tronox Limited.

Tronox Limited is engaged in production and marketing of titanium bearing

mineral sands and titanium dioxide pigment (TiO2).The Company’s TiO2

products are components of everyday applications, such as coatings,

plastics, paper and other applications. The Company’s mineral sands

business consists primarily of two product streams: titanium feedstock and

zircon. The Company operates in three segments: minerals, pigment and

corporate and other. The corporate and other segments include its

electrolytic manufacturing business. The Company has operations in North

America, Europe, South Africa and the Asia-Pacific region. The Company

operates three TiO2 facilities at the locations in Hamilton, Mississippi,

Botlek, The Netherlands, and Kwinana, Western Australia, representing

approximately 465,000 tons of annual TiO2 production capacity. On June

15, 2012, the existing business of Tronox Incorporated was combined with

the mineral sands business under Tronox Limited.

Product & services : - Mineral Sands: Titanium feedstock and zircon

- Titanium dioxide pigment (TiO2)

 

Purchases

International : United States

 

Sales

Local : Yes

International : Asia, Europe, United States, New Zealand

 

Property & Assets

Premises : The Subject operates from premises at the verified heading address

consisting of an administrative office.

Branches : None reported.

 

SUMMARIZED COUNTRY RISK

 

Gross Domestic Products (GDP) & Economic Overview

Central bank :                                        Reserve Bank of Australia

Reserve of foreign exchange & gold :       US$ 46.714 billion

Gross domestic product - GDP :             US$ 1.586 trillion

GPP (Purchasing power parity) :             954.296 billion of International dollars

GDP per capita - current prices :             US$ 68,916

GDP - composition by sector :                agriculture: 4%

industry: 25.6%

services: 70.4%

Inflation :                                               2010: 2.8%

2011: 3.4%

2012: 2.7%

Unemployment rate :                              2010: 5.2%

2011: 5.1%

2012: 5.2%

Public debt

(General Government gross debt as

a % GDP):                                            2010: 20.4%

2011: 22.9%

2012: 24%

Government bond ratings :                      Standard & Poor's: AAA

Moody's rating: Aaa

Moody's outlook: STA

Market value of publicly traded

shares:                                                             US$1.198 trillion

Largest companies in the country :          Qantas Airways (Airline),Coca-Cola Amatil (Beverages), CSL (Biotechs),

Brambles (Business & Personal Services),Crown Ltd (Casinos & Gaming), Amcor (Containers & Packaging),Suncorp-Metway (Diversified Insurance), BHP Billiton (Diversified Metals & Mining),Newcrest Mining (Diversified Metals & Mining), Orica (Diversified Metals & Mining), Iluka Resources (Diversified Metals & Mining), Origin Energy (Electric Utilities), AGL Energy (Electric Utilities), Wesfarmers (Food Retail), Woolworths (Food Retail), Metcash (Food Retail), Macquarie Group (Investment services), AMP (Investment services), Challenger Ltd (Investment services), Fortescue Metals Group (Iron & Steel), Bluescope Steel (Iron & Steel), Commonwealth Bank (Major Banks), Westpac Banking Group (Major Banks), National Australia Bank (Major Banks), ANZ (Major Banks), Woodside Petroleum (Oil & Gas Operations), Santos (Oil & Gas Operations), Caltex Australia (Oil & Gas Operations), WorleyParsons (Oil Services & Equipment), Toll Holdings (Other Transportation), Transurban Group (Other Transportation), QBE Insurance Group (Property & Casualty Insurance), Insurance Australia Group (Property & Casualty Insurance), QR National (Railroads), Westfield Group (Real Estate), Stockland Australia (Real Estate), Westfield Retail Trust (Real Estate), Lend Lease (Real Estate), CFS Retail Property Trust (Real Estate), Goodman Group (Real Estate), Bendigo & Adelaide Bank (Regional Banks), Bank of Queensland (Regional Banks), Incitec Pivot (Specialized Chemicals), Telstra (Telecommunications Services)

 

Trade & Competitiveness Overview

Total exports :                           US$263.9 billion

Exports commodities :               Coal, iron ore, gold, meat, wool, alumina, wheat, machinery and transport

equipment

Total imports :                           US$239.7 billion

Imports commodities :                Machinery and transport equipment, computers and office machines,

telecommunication equipment and parts; crude oil and petroleum products

Export - major partners :             China 27.4%, Japan 19.2%, South Korea 8.9%, India 5.8%

Import - major partners :             China 18.5%, US 11.4%, Japan 7.9%, Singapore 6.3%, Germany 4.7%

FDI Inflows :                              2009: US$26,554 million

2010: US$35,556 million

2011: US$41,317 million

FDI Outflows :                            2009: US$16,693 million

2010: US$12,791 million

2011: US$19,999 million

Best countries for doing business : 10 out of 185 countries

Global competitiveness ranking : 20 (ranking by country on a basis of 144, the first is the best)

 

Country and Population Overview

Total population :           22.68 million

Total area :                    7,692,024 km2

Capital :                        Canberra

Currency :                     Australian dollars (AUD)

Internet users as % of total

population:                    79%

PAYMENT HISTORY

 

Purchase Term

International : L/C, Telegraphic transfer, Credit 60-120 days

 

Sales Term

Local : Bank transfer, D/P, Credit 30-120 days

International : L/C, Telegraphic transfer, D/P, Credit 30-120 days

 

Trade Reference/ Payment

 

Behaviour

Comments : As local and international trade references were not supplied, the Subject's

payment track record history cannot be appropriately determined but based

on our research, payments are believed to be met without delay.

 

Investigation Note

Sources : Interviews and material provided by the Subject

: Other official and local business sources


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.44

UK Pound

1

Rs.91.24

Euro

1

Rs.78.43

 

 

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.