MIRA INFORM REPORT

 

 

Report Date :

25.10.2013

 

IDENTIFICATION DETAILS

 

Name :

JX NIPPON MINING & METALS CORP

 

 

Registered Office :

JX Bldg 8F, 2-6-3 Ohtemachi Chiyodaku Tokyo 100-8154

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

September, 2002

 

 

Com. Reg. No.:

0100-01-133878 (Tokyo-Chiyodaku)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Non-ferrous metal mining, mfg of non-ferrous metal products, other

 

 

No. of Employees :

1,429

 

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)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

japan - ECONOMIC OVERVIEW

 

In the years following World War II, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (1% of GDP) helped Japan develop a technologically advanced economy. Two notable characteristics of the post-war economy were the close interlocking structures of manufacturers, suppliers, and distributors, known as keiretsu, and the guarantee of lifetime employment for a substantial portion of the urban labor force. Both features are now eroding under the dual pressures of global competition and domestic demographic change. Japan's industrial sector is heavily dependent on imported raw materials and fuels. A small agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. While self-sufficient in rice production, Japan imports about 60% of its food on a caloric basis. For three decades, overall real economic growth had been spectacular - a 10% average in the 1960s, a 5% average in the 1970s, and a 4% average in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the after effects of inefficient investment and an asset price bubble in the late 1980s that required a protracted period of time for firms to reduce excess debt, capital, and labor. Modest economic growth continued after 2000, but the economy has fallen into recession three times since 2008. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan into recession. Government stimulus spending helped the economy recover in late 2009 and 2010, but the economy contracted again in 2011 as the massive 9.0 magnitude earthquake and the ensuing tsunami in March disrupted manufacturing. The economy has largely recovered in the two years since the disaster, but reconstruction in the Tohoku region has been uneven. Newly-elected Prime Minister Shinzo ABE has declared the economy his government's top priority; he has pledged to reconsider his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus and regulatory reform and has said he will press the Bank of Japan to loosen monetary policy. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2012 stood as the fourth-largest economy in the world after second-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2012. The new government will continue a longstanding debate on restructuring the economy and reining in Japan's huge government debt, which exceeds 200% of GDP. Persistent deflation, reliance on exports to drive growth, and an aging and shrinking population are other major long-term challenges for the economy.

 

Source : CIA

 

Company name

 

JX NIPPON MINING & METALS CORP

 

 

REGD NAME

 

JX Nikko Nisseki Kinzoku KK

 

 

MAIN OFFICE

 

JX Bldg 8F, 2-6-3 Ohtemachi Chiyodaku Tokyo 100-8154 JAPAN

Tel: 03-5299-7000      Fax: 03-5299-7349

 

URL:                 http://www.jx-group.co.jp

E-Mail address: (thru the URL)

 

 

ACTIVITIES  

 

Non-ferrous metal mining, mfg of non-ferrous metal products, other

 

 

BRANCHES   

 

Osaka, Tsuruga

 

 

OVERSEAS   

 

Australia, Chile, Korea, China, Taiwan, Europe, other

 

 

FACTORIES

 

Ibaraki (4), Kanagawa (2), Fukui

 

 

OFFICERS

 

YOSHIMASA ADACHI, PRES    Masanori Okada, ch

Nobuyuki Yamaki, s/mgn dir       Keiichi Goto, s/mgn dir

Hirofumi Nakata, mgn dir           Shigeru Oi, mgn dir      

           

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 199,603 M

PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 40,000 M

TREND             UP                                WORTH            Yen 177,377 M

STARTED         2002                             EMPLOYES      1,429

 

 

COMMENT    

 

NON-FERROUS METAL SMEL MINING, MFG OF THEIR PRODUCTS, OWNED BY JX HOLDINGS INC.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

           

 

HIGHLIGHTS

           

The subject company was established originally in 1905 as Nippon Mining Corp for mining non-ferrous metals & smelting, and in 2002 thru business tie up with Japan Energy Corp, jointly established a joint holding company, JX Holdings Inc (See REGISTRATION) and became its wholly owned subsidiary.  This is a specialized non-ferrous metal mining & smelting firm, with mfg division of non-ferrous metal products, others (See OPERATION).  Developing copper mining in Chile with investment of USD 3,000 million, aiming to commercial production in 2013 (already started production).  Also developing coal mining in Australia.  Clients include chemical makers, machinery makers, other, nationwide

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2013 fiscal term amounted to Yen 199,603 million, a 4% up from Yen 1992,283 million in the previous term.  The recurring profit was posted at Yen 45,901 million and the net profit at Yen 42,170 million, respectively, compared with Yen 52,853 million recurring profit and yen 15,085 million net profit, respectively, a year ago.

 

For the current term ending Mar 2014 the recurring profit is projected at Yen 50,000 million and the net profit at Yen 45,000 million, respectively, on a 3% rise in turnover, to Yen 205,500 million. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements. 

 

 

REGISTRATION

 

Date Registered:                       Sept 2002

Regd No.:                                             0100-01-133878 (Tokyo-Chiyodaku)

Legal Status:                            Limited Company (Kabushiki Kaisha)

Authorized:                              3.7 million shares

Issued:                                      928,460 shares

Sum:                                        Yen 40,000 million

Major shareholders (%):           JX Holdings Inc* (100)

 

*.. Holding company founded thru business consolidation of Nippon Oil & Nippon Mining

Holdings in Apr 2010, listed Tokyo S/E, capital Yen 100,000 million, sales Yen 11,219,474 million, operating profit Yen 251,467 million, recurring profit Yen 328,300 million, net profit Yen 159,477 million, total assets Yen 7,154,755 million, net worth Yen 2,003,627 million, employees 25,569, pres Isao Matsushita

 

Nothing detrimental is known as to the commercial morality of executives.

 

 

OPERATION

           

Activities: Non-ferrous metal mining/smeltering & mfg of non-ferrous metal products (--100%)

Exports (30%)

 

(Mfg Items): copper foil (electro-deposited copper foil, treated rolled copper foil), sputtering targets, compound semiconductors, surface treatment agents, metallic powder, precision rolled products, precision fabricated products, cathode materials, others

 

Clients: [Mfrs, wholesalers] Nippon Steel & Sumikin Chemical Co, Intel Corp, Samsung Japan, Panasonic Corp, Mitsui & Co, Pan Pacific Copper, other 

            No. of accounts: 500

            Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Mitsui & Co, Pan Pacific Copper, Mitsubishi Materials, Mitsui Metal Mining, other

 

Payment record: No Complaints

 

Location: Business area in Tokyo.  Office premises at the caption address are owned by the parent, JX Holdings Inc, and maintained satisfactorily.

 

Bank References:

Mizuho Corporate Bank (H/O)

SMBC (H/O)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

       Terms Ending:

31/03/2014

31/03/2013

31/03/2012

31/03/2011

Annual Sales

　

205,500

199,603

192,283

189,059

Recur. Profit

　

50,000

45,901

52,853

36,245

Net Profit

　

45,000

42,170

35,085

17,238

Total Assets

　

　

393,647

327,354

335,449

Current Assets

　

　

120,446

112,364

122,335

Current Liabs

　

　

174,473

110,341

122,734

Net Worth

　

　

177,377

141,085

123,358

Capital, Paid-Up

　

　

40,000

40,000

40,000

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

2.95

3.81

1.71

10.41

    Current Ratio

 

..

69.03

101.83

99.67

    N.Worth Ratio

..

45.06

43.10

36.77

    R.Profit/Sales

 

24.33

23.00

27.49

19.17

    N.Profit/Sales

21.90

21.13

18.25

9.12

    Return On Equity

..

23.77

24.87

13.97

 

Notes: Forecast (or estimated) figures for the 31/03/2014 fiscal term.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.41

UK Pound

1

Rs.99.53

Euro

1

Rs.84.82

 

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

 

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.