MIRA INFORM REPORT

 

 

Report Date :

19.03.2013

 

IDENTIFICATION DETAILS

 

Name :

ILUKA RESOURCES LIMITED

 

 

Formerly Known As :

WESTRALIAN SANDS LIMITED (initial)

 

 

Registered Office :

Level 23, 140 St Georges Terrace Perth Western Australia 6000

 

 

Country :

Australia

 

 

Financials (as on) :

30.06.2012 (Consolidated)

 

 

Date of Incorporation :

21.07.1954

 

 

Com. Reg. No.:

008675018

 

 

Legal Form :

Australian Public Company

 

 

Line of Business :

Mineral sands exploration, project development, operations and marketing.

 

 

No. of Employees :

911 employees (Iluka Group)

 

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

(31.03.2011)

Current Rating

(30.06.2012)

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

 

Australia's abundant and diverse natural resources attract high levels of foreign investment and include extensive reserves of coal, iron ore, 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 also has a large services sector and is a significant exporter of natural resources, energy, and food. Key tenets of Australia's trade policy include support for open trade and the successful culmination of the Doha Round of multilateral trade negotiations, particularly for agriculture and services. The Australian economy grew for 17 consecutive years before the global financial crisis. Subsequently, the former RUDD government introduced a fiscal stimulus package worth over US$50 billion to offset the effect of the slowing world economy, while the Reserve Bank of Australia cut interest rates to historic lows. These policies - and continued demand for commodities, especially from China - helped the Australian economy rebound after just one quarter of negative growth. The economy grew by 1.4% during 2009 - the best performance in the OECD - by 2.7% in 2010, and by 1.8% in 2011. Unemployment, originally expected to reach 8-10%, peaked at 5.7% in late 2009 and fell to 5.0% in 2011. As a result of an improved economy, the budget deficit is expected to peak below 4.2% of GDP and the government could return to budget surpluses as early as 2015. Australia was one of the first advanced economies to raise interest rates, with seven rate hikes between October 2009 and November 2010. The GILLARD government is focused on raising Australia's economic productivity to ensure the sustainability of growth, and continues to manage the symbiotic, but sometimes tense, economic relationship with China. Australia is engaged in the Trans-Pacific Partnership talks and ongoing free trade agreement negotiations with China, Japan, and Korea

Source : CIA


IDENTIFICATION DETAILS

 

Verified Address Subject name   : ILUKA RESOURCES LIMITED

Business address                      : Level 23, 140 St Georges Terrace

Town                                         : Perth

Province                                    : Western Australia

 Zip/postal code                         : 6000

Country                                     : Australia

Tel                                            : +61 8 93604700

Fax                                           : +61 8 93604777

Website                                    : www.iluka.com

 

Registered address                    : Level 23, 140 St Georges Terrace

 Town                                        : Perth

Province                                    : Western Australia

 Zip/postal code                         : 6000

Country                                     : Australia

Postal address                          : GPO Box U1988

Town                                         : Perth

Province                                    : Western Australia

Zip/postal code                          : 6845

Country                                     : Australia

 

     

SUMMARY DETAILS

 

Executive Summary

Date founded or registered          : 21/07/1954

Legal form                                 : Australian Public Company

Chief executive                          : David Alexander Robb

Issued & paid up capital             : AUD 114,000,000

Sales turnover                            : AUD 1,631,400,000 (Consolidated 12 months, 31/12/2011)

Net income                                : AUD 541,800,000 (Consolidated 12 months, 31/12/2011)

Total fixed assets                       : AUD 2,453,800,000 (Consolidated 12 months, 31/12/2011)

Line of business             : Mineral sands exploration, project development, operations and marketing.

 Staff employed              : 911 employees (Iluka Group)

    

 

CREDIT RISK OPINION

 

Company Analysis

Country risk                               : Country risk is minimal

 Operation trend             : Operational trend is booming

Management experience : Management is adequately experienced

Financial performance                : Financial performance is very good

Organization structure                : Organizational structure is consistent

Detrimental                    : No detrimental found

Payment history                                    : No payment delays noted

     

STATUTORY DETAILS

 

Registry Data Registration date   : 21/07/1954

Legal form :                               Australian Public Company

Registration no                         Australian Company Number: 008675018

Registered authority :                 Australian Securities and Investments

Commission Fiscal/ Tax no :       Australian Business Number: 34008675018

Registry status :                        Live/Active

Previous name :                         WESTRALIAN SANDS LIMITED (initial)

 Change of legal form :                None reported.

 

      

MANAGEMENT / DIRECTORS

 

Key Management

 Name : David Alexander Robb

 Designation : Managing Director

 

Name : Alan Tate

Designation : Chief Financial Officer

 

Name : Steve Wickham

Designation : General Manager, Australian Operations

 

Name : Hans Umlauff

Designation : General Manager, Project Management

 

Name : Christopher Cobb

Designation : General Manager, Sales and Marketing

 

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

 

Appointments

Name : George John Pizzey

 Designation : Chairman

Appointment date : 07/11/05

Address : Royal Domain Tower, Unit 2902 368 St Kilda Road Melbourne, VIC 3004 Australia

Biography : Born on 28/07/1945 in Melbourne, Victoria, Australia.

Mr. George John Pizzey, BE (Chem), FellDip (Management), FTSE, FAICD, FAIM, has been Non-Executive Independent Chairman of the Board of Iluka Resources Limited since May 19, 2010. He has been on the Company's Board since November 7, 2005. He is Member of the Remuneration and Nomination Committee of the Company. He has experience in mining and mineral processing. Mr. Pizzey was Chairman of Alcoa of Australia Limited and held a number of senior executive positions at Alcoa Inc (USA). He is Director of Alumina Limited, Amcor Limited and St. Vincent's Medical Research Institute. He was formerly Chairman of the London Metal Exchange UK and a Director of WMC Resources Limited and Ivanhoe Grammar School. He has served as Director of Alumina Limited (appointed June 2007) and Amcor Limited (appointed September 2003).

 

Name : David Alexander Robb

Designation : Director

 Appointment date : 18/10/06 Address : 43 Minora Road

Dalkeith, WA 6009 Australia

Biography : Born on 04/07/1954 in Melbourne, Victoria, Australia.

Mr. David Alexander Robb, BSc, GradDip (Personnel Administration), FAIM, FAICD, has been Chief Executive Officer, Managing Director and Executive Director of Iluka Resources Limited since October 18, 2006. Mr. Robb was previously Managing Director of Wesfarmers Energy as well as Executive Director of Wesfarmers Limited. Prior to joining Wesfarmers, he held senior positions with British Petroleum in Australia and overseas, including chief executive responsibilities for a national service business in the United States for oil, chemicals, consumer goods, marine and aviation businesses in Malaysia and as Director responsible for oil marketing throughout South East Asia. He served as Director of Consolidated Rutile Limited from October 2006 to May 2009. He holds a Bachelor of Science degree from the University of Western Australia.

 

Name : Jennifer Anne Seabrook

Designation : Director

Appointment date : 01/05/08

Address : 29 Airlie Street Claremont, WA 6010 Australia

Biography : Born on 19/01/1957 in Katanning, Western Australia, Australia.

Ms. Jennifer (Jenny) Anne Seabrook, BCom, ACA, FAICD, has been Non-Executive Independent Director of Iluka Resources Limited since May 1, 2009. She is Chairman of the Audit and Risk Committee and Member of the the Remuneration and Nomination Committee of the Company. She is Special Advisor to Gresham Partners Limited. She is also Non-Executive Director of the Bank of Western Australia Limited, M G Kailis Holdings Pty Limited, IRESS Market Technology Ltd and Australia Post. Ms. Seabrook is Member of the Takeovers Panel and Financial Advisory Group of the Financial Services Institute of Australia (FINSIA) and Member of ASIC's External Advisory Group. She was formerly Director of West Australian Newspapers Holdings Limited, BWA Managed Investments Limited, St. Andrew's Superannuation Services Limited and Western Power. She has served as Director of IRESS Market Technology Limited (appointed August 2008) and Amcor Limited (appointed December 2011). She also acted as Director of West Australian Newspaper Holdings Limited (appointed February 2006, resigned December 2008). She holds a Bachelors degree in Commerce from the University of Western Australia.

 

Name : Wayne Geoffrey Osborn

Designation : Director

 Appointment date : 26/03/10

Address : 26B Fraser Road Applecross, WA 6153

Australia

Biography : Born on 14/09/1951 in Stawell, Victoria, Australia.

Mr. Wayne Geoffrey Osborn, DipEng, MBA, FTSE, MIE(Aust), FAICD, has been Non-Executive Independent Director of Iluka Resources Limited since March 26, 2010. Mr. Osborn is Chairman of the Remuneration and Nomination Committee of the Company. Mr. Osborn is a former Managing Director of Alcoa of Australia Limited. He is a non-executive Director of Leighton Holdings Limited and Wesfarmers Limited, Chairman of Thiess Pty Limited, Chairman of the Australian Institute of Marine Science, a Director of the International Centre for Radio Astronomy Research and a Trustee of the Western Australian Museum. He was formerly a Director of the Australian Business Arts Foundation and Vice President of the Chamber of Commerce and Industry, Western Australia. He has served as Director of Leighton Holdings Limited (appointed 6 November 2008) and Wesfarmers Limited (appointed 24 March 2010).

 

Name : Stephen John Turner

Designation :

Director Appointment date : 26/03/10

Address : Unit 7, 4 Billyard Avenue Elizabeth Bay, NSW 2011 Australia

Biography : Born on 28/04/1961 in Gosford, New South Wales, Australia.

Mr. Stephen John Turner, BCom, ACA, has been Non-Executive Independent Director of Iluka Resources Limited since March 26, 2010. He is Member of the Audit and Risk Committee of the Company. Mr. Turner is Founder of the London Stock Exchange listed company, International Ferro Metals Limited. He was Chief Executive Officer of International Ferro Metals Limited from 2002 to 2009 and continues as Non-Executive Director of that Company. He is also Director of South American Ferro Metals Limited and Chairman of Vantage Goldfields Limited. Mr. Turner has had responsibility for resource projects in Australia, Africa and the Pacific Islands. He was Founding Director of the Australian subsidiary of PSG Investment Group, a South African investment bank. He is an Australian Chartered Accountant. He has also served as Director of International Ferro Metals Limited (appointed 26 January 2002), Vantage Goldfields Limited (appointed 22 October 2009), South American Ferro Metals Limited (appointed 11 November 2010), and Timpetra Resources Limited (appointed May 2010).

 

Name : Gavin Rezos

Designation : Director

 Appointment date : 20/06/06 Address : 19 John Street Cottesloe, WA 6011 Australia

Biography : Born on 13/04/1961 in Perth, Western Australia, Australia.

Mr. Gavin John Rezos, BA, LLB, B.JURIS, MAICD, has been Non-Executive Independent Director of Iluka Resources Limited since June 2006. He is Member of the Audit and Risk Committee and the Remuneration and Nomination Committee of the Company. He has Australian and international investment banking experience and is former Investment Banking Director of the HSBC Group with regional roles during his HSBC career based in London, Sydney and Dubai. Mr. Rezos has held Chief Executive positions and executive directorships of companies in the healthcare and technology areas in the UK, United States and Singapore and was formerly Non-Executive Director of Amity Oil NL (Antares). He is Chairman of Alexium International Group Limited, a principal of Viaticus Capital Pty Ltd and Director of Rowing Australia. He is Director of Alexium International Group Limited (appointed March 2010) and DFS International Holdings Limited (appointed November 2008, resigned 30 August 2011). He holds a Bachelors degree in Law and a Bachelor of Arts degree in International Politics from the University of Western Australia.

 

Name : Cameron Wilson

Designation : Company Secretary

Appointment date : 08/12/04 Address : 46 Locke Crescent East Fremantle, WA 6158 Australia

Biography : Born on 29/08/1966 in Melbourne, Victoria, Australia.

Mr. Cameron Wilson, LLB, GAICD, is General Manager of Corporate Services and Company Secretary of Iluka Resources Limited. Mr. Wilson was appointed to the position of Company Secretary when he joined the Company in 2004. Before joining Iluka, Mr. Wilson held a range of legal and commercial roles at WMC Resources Limited and prior to that worked as Solicitor with a legal practice. He has specialised in mining, corporate and general commercial law for most of his professional career.

Staff employed : 911 employees (Iluka Group)

 

Key Advisors

Auditors : PRICEWATERHOUSECOOPERS Brookfield Place, Level 15 125 St Georges Terrace Perth, WA 6000 Australia

 

       

SHARE CAPITAL

 

Composition Authorized Capital :             AUD 114,000,000

No of shares :                                        38,000,000

Ordinary Shares Share par value :           AUD 3

Issued capital :                          AUD 114,000,000

Paid up capital :                         AUD 114,000,000

 

OWNERSHIP / SHAREHOLDERS

 

How listed : Major Shareholders Only

Composition

Shareholder name : BLACKROCK INVESTMENT MANAGEMENT (AUSTRALIA) LIMITED

 Address : Level 18, 120 Collins Street Melbourne, VIC 3000 Australia

% of shares : 9.58%

 

Shareholder name : FMR LLC AND FIL LIMITED

 % of shares : 5.88%

 

Shareholder name : NATIONAL AUSTRALIA BANK LIMITED

Address : Level 34, 500 Bourke Street Melbourne, VIC 3000 Australia

 % of shares : 5.16%

 

Shareholder name : M&G INVESTMENT MANAGEMENT LIMITED

Address : Laurence Pountney Hill London, EC4R 0HH United Kingdom

% of shares : 8.78%

 

Comments : The Subject was listed on the Australian Stock Exchange (ASX) on the 30th of June 1962.

 

RELATED COMPANIES & CORPORATE AFFILIATIONS

   

Structure

Name : WESTLIME (WA) LIMITED

Affiliation type : Wholly-owned Subsidiary

Address : Level 23, 140 St Georges Terrace Perth, WA 6000 Australia

 

Name : ILMENITE PROPRIETARY LIMITED

Affiliation type : Wholly-owned Subsidiary

Address : Level 23, 140 St Georges Terrace Perth, WA 6000 Australia

 

 Name : WESTERN MINERAL SANDS PROPRIETARY LIMITED

Affiliation type : Wholly-owned Subsidiary

Address : Level 23, 140 St Georges Terrace Perth, WA 6000 Australia

 

Name : ASSOCIATED MINERALS CONSOLIDATED LTD

Affiliation type : Wholly-owned Subsidiary

Address : Level 23, 140 St Georges Terrace Perth, WA 6000 Australia

 

Name : ILUKA CONSOLIDATED PTY LIMITED

 Affiliation type : Wholly-owned Subsidiary

Address : Level 23, 140 St Georges Terrace Perth, WA 6000 Australia

 

Name : ILUKA EXPLORATION PTY LIMITED

Affiliation type : Wholly-owned Subsidiary

Address : Level 23, 140 St Georges Terrace Perth, WA 6000 Australia

 

Name : ILUKA RESOURCES INC.

Affiliation type : Wholly-owned Subsidiary

Address : 1301 Riverplace Boulevard, Suite 2601 Jacksonville, Florida 32207 United States

 

Name : ILUKA INTERNATIONAL (BRAZIL) PTY LTD

Affiliation type : Wholly-owned Subsidiary

Address : Level 23, 140 St Georges Terrace Perth, WA 6000 Australia

 

Name : ASHTON COAL INTERESTS PTY. LIMITED

Affiliation type : Subsidiary

 Address : Level 23, 140 St Georges Terrace Perth, WA 6000 Australia

   

Name : BASIN MINERALS HOLDINGS PTY LTD

Affiliation type : Wholly-owned Subsidiary

Address : Level 23, 140 St Georges Terrace Perth, WA 6000 Australia

Related companies and corporate affiliations comments

: Other companies of the Iluka Group should be considered affiliates of the Subject.

 

      

BANK & MORTGAGES

 

Bank Details Name of bank : National Australia Bank 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 :                      31/12/11

Type of accounts :                                 Full audited

Currency :                                             Australia Dollar (AUD)

Exchange rate :                                     1 USD = AUD 0.96 as of 28-12-2012

 

Summarized Financial Information

Consolidation type :                   Consolidated                 Consolidated                 Consolidated

Currency :                                 Australia Dollar (AUD)    Australia Dollar (AUD)    Australia Dollar (AUD)

Denomination :                          (x1) One                        (x1) One                        (x1) One

Date of financial year end :          30/06/12                        31/12/11                       31/12/10

Length of accounts :                   6 months                       12 months                     12 months

Sale turnover / Income : 711,000,000                  1,631,400,000                964,100,000

Profit before tax :                       388,600,000                  760,700,000                  39,900,000

Net income :                              274,400,000                  541,800,000                  36,100,000

Non current assets :                   1,525,300,000                1,500,300,000                1,544,000,000

Current assets :                         888,900,000                  953,500,000                  395,900,000

Inventories :                               546,600,000                 376,200,000                  201,000,000

Total assets :                            2,414,200,000                2,453,800,000                1,939,900,000

Current liabilities :                      366,200,000                  364,400,000                  188,100,000

Non current liabilities :                465,200,000                  554,700,000                  627,200,000

Total liabilities :                          831,400,000                  919,100,000                 815,300,000

Share equity :                            1,582,800,000                1,534,700,000                1,124,600,000

Reserve :                                   15,800,000                   16,400,000                   20,400,000

Retained earning :                      461,400,000                  416,300,000                  -4,100,000

 

Comments : The consolidated financial information above relates to the Subject and its

subsidiaries.

 

OPERATION DETAILS

 

Main activities :              The Subject engages in exploration, development, mining, and marketing

of mineral sands primarily in Australia and the United States. Subject also

has royalty over iron ore produced from specific parts of BHP Billiton's

Mining Area C in Western Australia.

The Subject principally produces zircon; titanium dioxide products of rutile

and synthetic rutile; and ilmenite.

The Subject’s products are used in various consumer, lifestyle, and

industrial applications, including pigment production used in paints,

plastics, papers, titanium metal production, welding electrodes, floor and

wall tiles, sanitary ware, zirconium based chemicals, and zirconia metal

applications.

Its mining operations are located in Jacinth-Ambrosia, Eucla Basin, South

Australia; Perth Basin, Western Australia; Murray Basin, Victoria, Australia;

and Virginia, the United States.

Iluka Resources Limited was founded in 1954 and is based in Perth,

Australia.

Product & services :       Titanium dioxide products: rutile, synthetic rutile, ilmenite

Zircon

 

Purchases

Local : Yes

International :                 Asian countries, Europe, United States

 

Sales

Local :                          Yes

International :                 Worldwide

Key events :                  23 May 2012

Iluka Resources Limited: Iluka Says 1Q Zircon Sales Soft, But Sees Higher

2012 Earnings

Australian mineral sands producer Iluka Resources Ltd. (ILU.AU)

Wednesday said its sales of zircon in the first three months of 2012 were

soft, but that the company continues to expect a considerable rise in

earnings and free cash flow this year and will likely maintain a "cash buffer"

until the current global economic turmoil eases.

In an address to shareholders, Managing Director David Robb said global

economic conditions remain challenging. While the company doesn't

publish revenue figures until its June quarter report, he confirmed

first-quarter zircon sales were weighed by global economic worries and the

cooling of the Chinese economy.

Shipment "timing issues" for Iluka's titanium dioxide products also meant a

substantial volume of its first-quarter output wasn't shipped, he said,

without elaborating.

Robb said there has been some signs of improved economic traction in

major economies like the U.S. and China, but that European demand

remains subdued and may be at risk of deteriorating further if the sovereign

debt crisis in the eurozone worsens.

"However, a positive sign is that European customer zircon sand stocks are

almost exhausted, which should now require replenishment," he said.

"We still expect a material increase in earnings and free cash flow in 2012,"

he said. "Iluka will maintain a prudent balance sheet. This may entail a

'cash buffer' until the level of global turmoil recedes," Robb said.

Iluka is the world's largest zircon producer, accounting for about a third of

global market share, and one of the biggest producers of titanium dioxide

minerals. Zircon has a number of applications, including in ceramics, while

titanium dioxide is predominantly used for producing pigments. The two

mineral sands are Iluka's main products.

Earlier this month, Iluka announced it would reduce planned zircon output

this year due to continued global economic uncertainty, a move that will

mean lower sales of the commodity for the full year, and a rise in

production costs.

Still, Robb said zircon prices are holding steady around US$2,400 a metric

ton. Interest in bulk orders also appears to be resuming, he said.

Iluka's share price moved slightly higher after Robb's remarks. It recently

traded at A$13.32 a share, down 2.8% on Tuesday's close but up 2.2% on

its earlier session low. The price reached an intraday high at A$13.49 a

share. The ASX 200, meanwhile, was trading down 1.1%.

7 May 2012

Iluka Resources Limited : Iluka Resources To Cut Planned Zircon

Production This Year

Australian mineral sands producer Iluka Resources Ltd. (ILU.AU) Tuesday

said that it would reduce planned zircon output this year due to continued

global economic uncertainty, a move that will mean lower sales of the

commodity and a rise in production costs.

The Perth-based company expects to produce around 430,000 metric tons

of zircon, less than the 500,000 tons it forecast in February and a further

drop from the 601,000 it produced last year, it said in a statement. Sales of

zircon for the year are expected to total around 400,000 tons, rather than

the 450,000 previously forecast.

The company left its guidance for production and sales of titanium dioxide

unchanged.

Iluka is the world's largest zircon producer, with about a third of global

market share, and one of the biggest producers of titanium dioxide

minerals. Zircon has a number of applications, including in ceramics.

Titanium dioxide is predominantly used to produce pigments.

Iluka had previously cautioned that demand for zircon was likely to be soft

for the first quarter or two of 2012. It said that sales volumes improved in

April following a weak first quarter, but large euro-zone countries facing

austerity measures have shown increasing weakness even as the U.S. and

China showed signs of improved economic traction.

The adjustment to zircon output will be achieved mainly through mining

lower-grade ore at Iluka's Jacinth-Ambrosia operation in South Australia

and processing less zircon-rich concentrate at its Narngulu and Hamilton

mineral separation plants, Iluka said.

Lower zircon output is expected to raise unit cash costs for production to

roughly A$700 a ton of zircon, rutile and synthetic rutile, from previous

guidance of about A$650/ton. But Iluka said revenue per ton it expects to

receive will still mean a material increase in margins over 2011.

16 January 2012

Iluka Resources: Revenues jump by 75%, but I’m steering clear

Iluka Resources Limited (ASX:ILU) revenues are growing quickly, but lower

zircon production and sales levels in 2012 is the warning sign that this may

be as good as it gets.

Iluka Limited released its quarterly production report on 12 January 2012.

The 75 per cent increase in revenues from $874.4m to $1,536.7m was

mainly thanks to an 83 per cent increase in zircon and titanium dioxide

prices.

Full year 2011 sales revenue per tonne of zircon/rutile and synthetic rutile

(Z/R/SR) was A$1,480/tonne compared with A$809/ tonne in 2010. This

was partially offset by a higher Australian/US Dollar exchange rate (2011

average was 103.2 cents compared with 2010 average of 92 cents).

Full year cash costs of production are estimated at A$537/tonne, which

compares favourably with 2010 costs of A$539/tonne.

The company

Iluka is one of the world’s largest producers of mineral sands products.

The company engages in the exploration, mining, concentration, and

separation of mineral sands.

It produces and sells titanium based products (ilmenite, rutile and synthetic

rutile) and zircon. The company’s products are used in a range of

consumer, lifestyle, and industrial applications, including pigment

production used in paints, plastics, papers, titanium metal production,

welding electrodes, floor and wall tiles, sanitary ware, zirconium based

chemicals, and zirconia metal applications.

Property & Assets

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

address consisting of an administrative office.

Branches :        In addition, the Subject operates from branch offices located at:

 

South West, Western Australia

PO Box 96

Capel, WA 6271

Australia

Tel: +61 8 93604700

 

Mid West – Narngulu, Western Australia

PO Box 84

Geraldton, WA 6531

Australia

Tel: +61 8 93604700

 

Murray Basin, Victoria

Locked Bag 1001

Hamilton, VIC 3300

Australia

Tel: +61 3 55512300

 

Adelaide , South Australia

11 Dequetteville Terrace

Kent Town, SA 5067

Australia

Tel: +61 8 83002000

 

SUMMARIZED COUNTRY RISK

 

Gross Domestic Products (GDP) & Economic Overview

Central bank :                                        Reserve Bank of Australia

Reserve of foreign exchange & gold :       US$ 43.879 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 :                                               2009: 1.8%

2010: 2.8%

2011: 3.4%

Unemployment rate :                              2009: 5.6%

2010: 5.2%

2011: 5.1%

Public debt

(General Government gross debt as

a % GDP):                                            2009: 16.9%

2010: 20.4%

2011: 22.9%

Government bond ratings :                      Standard & Poor's: AAA/Stable/A-1+

Moody's rating: Aaa

Moody's outlook: STA

Market value of publicly traded

shares:                                                             US$1.258 trillion

Largest companies in the country : Commonwealth Bank (Banking), BHP Billiton (Materials), Westpac Banking

Group (Banking), Rio Tinto (Materials), National Australia Bank (Banking),

ANZ Banking (Banking), Telstra (Telecommunications)

 

Trade & Competitiveness Overview

Total exports :                           US$210.7 billion

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

Total imports :                           US$187.2 billion

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

telecommunication equipment and parts, crude oil and petroleum products

Export - major partners :             Japan 18.9%, China 14.2%, South Korea 8%, US 6%, NZ 5.6%, India

5.5%, UK 4.2%

Import - major partners :             China 15.5%, US 12.8%, Japan 9.6%, Singapore 5.6%, Germany 5.2%,

UK 4.3%, Thailand 4.2%

FDI Inflows :                              2008: US$46,843 million

2009: US$25,716 million

2010: US$32,472 million

FDI Outflows :                            2008: US$33,604 million

2009: US$16,160 million

2010: US$26,431 million

Best countries for doing business : 10 out of 183 countries

Global competitiveness ranking : 20 (ranking by country on a basis of 142, the first is the best)

 

Country and Population Overview

Total population :                       22.23 million

Total area :                                7,692,024 km2

Capital :                                    Canberra

Currency :                                 Australian dollars (AUD)

Internet users as % of total

population:                                76%

 

PAYMENT HISTORY

 

Purchase Term

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

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

Sales Term

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

International : L/C, Prepayment, 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.54.29

UK Pound

1

Rs.81.93

Euro

1

Rs.70.01

 

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

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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.