MIRA INFORM REPORT

 

 

Report Date :

02.09.2013

 

IDENTIFICATION DETAILS

 

Name :

KONKOLA COPPER MINES PLC

 

 

Registered Office :

Stand No M/1408,Fern Avenue, Chingola

 

 

Country :

Zambia

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

10.11.1999

 

 

Com. Reg. No.:

43628

 

 

Legal Form :

Limited Corporation 

 

 

Line of Business :

Registered to operate mining of copper and other metals

 

 

No. of Employees :

9,440

 

 

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 :

Regular

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)

Zambia

B2

B2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

ZAMBIA - ECONOMIC OVERVIEW

 

Zambia's economy has experienced strong growth in recent years, with real GDP growth in 2005-12 more than 6% per year. Privatization of government-owned copper mines in the 1990s relieved the government from covering mammoth losses generated by the industry and greatly increased copper mining output and profitability to spur economic growth. Copper output has increased steadily since 2004, due to higher copper prices and foreign investment. In 2005, Zambia qualified for debt relief under the Highly Indebted Poor Country Initiative, consisting of approximately US$6 billion in debt relief. Poverty remains a significant problem in Zambia, despite a stronger economy. Zambia's dependency on copper makes it vulnerable to depressed commodity prices, but record high copper prices and a bumper maize crop in 2010 helped Zambia rebound quickly from the world economic slowdown that began in 2008. Zambia has made some strides to improve the ease of doing business. A high birth rate, relatively high HIV/AIDS burden, and market distorting agricultural policies have meant that Zambia''s economic growth has not dramatically decreased the stubbornly high poverty rate

Source : CIA

SUBJECT'S NAME

 

Registered Name:

KONKOLA COPPER MINES PLC

Requested Name:

KONKOLA COPPER MINES PLC

Other Names:

None

 

ADDRESS AND TELECOMMUNICATION

 

Physical Address:

Stand No M/1408,Fern Avenue, Chingola

Postal Address:

Private Bag KCM, 2000

 

Chingola

Country:

Zambia

Phone:

260-212-350604/350001/350000/351000

Fax:

260-212-351234/350000/351249

Email:

corporate.communications@kcm.co.zm

Website:

www.kcm.co.zm

 

 

CREDIT OPINION

                              

Financial Index as of December 2009 shows subject firm with a medium risk of credit. However, bank and credit information obtained reveal a history of prompt payments.

 

LEGAL

           

Legal Form:

Limited Corporation 

Date Incorporated:

10-Nov-1999

Date Started:

31-March-2000

Reg. Number:

43628

VAT Number:

1014765513

Nominal Capital

ZMK. 300,000,001

Subscribed Capital

ZMK. 300,000,001

Subscribed Capital is Subscribed in the following form:

 

Position

Shares

Mr. Navin Agarwal

Chairman

 

Mr. Rajagopal Kishore Kumar

CEO

 

Mr. A. Mittal 

CCO

 

Mr. S. Gargiya

CFO

 

Mr. Deb Bandyopadhyay

Director

 

Dr. Victor Mutambo

Director

 

Mr. Hastings Mtine

Director

 

Mr. Liver Tembo

Director

 

Mr. C.V. Krishnan

Director

 

Mr. Kishore Kumar

Director

 

Mr. M. Lumamba

Director

 

Mr. W.S. Musama

Director

 

Mr. J.M.D. Patterson

Director

 

Mr. Chandra Prakash Baid

Director

 

Mrs. Bwalya Deborah Annie

Director

 

Mr. Lewanika Mbakusiha W.

Director

 

Mr. George Katuta Chibuye

Director

 

Mr. Holmes Jack Anthony

Director

 

Mr. Chikowa Joseph Mwanza

Director

 

Mr. Nkhata Leonard

Director

 

Mr. Hantuba Munakupya

Director

 

Vedanta Resources plc, United Kingdom

Holding Co.

51.00%

Zambia Copper Investments Ltd, Bermuda

Shareholder

28.40%

ZCCM Investments Holdings Plc, Zambia

Shareholder

20.60%

GRZ

Shareholder

Golden Share

 

 

RELATED COMPANIES

                              

None

Parent company.

Listed Below

Subsidiary company.

Listed Below

Affiliated company.

None

Shareholder of subject firm.

None

Branches of the firm

 

OPERATIONS

 

Registered to operate mining of copper and other metals

Imports:

India, China, Europe

Exports:

USA, Europe, China India

Trademarks:

None

Terms of sale:

Cash (40%) and 30 days (60%), invoices.

 

 

Main Customers:

Industries & Companies

Employees:

9,440 employees

Vehicles:

More than 40

Territory of sales:

Zambia

Location:

Rented/ Owned premises, 2.000 square feet,

AUDITORS AND INSURANCE  

 

Auditors:

KPMG, Deloitte LLP

Insurance Brokers:

AIG Assurance

 

FINANCE

                              

Currency Reported:

Zambian Kwacha (ZMK.)

Approx. Ex. Rate:

1 US Dollar = 5365.41 Zambian Kwacha

Fiscal Year End:

December 31, 2012

Inflation:

According to information given by independent sources, the inflation at December 31st, 2012 was of 13%.

 

Group Financial Information Submitted Below

 

 

 

BANK

                              

Bank Name:

Citi Bank or Indo Zambia

Account Number:

000 000 111 0012(Indo Zambia)

Comments:

Good

Other Bank

Development Bank of Zambia

 

TRADE REFERENCES   

 

Experiences:

Good

 

NOTARIAL BONDS

None

 

COMMENTS / ADDITIONAL INFORMATION    

 

This information was obtained from outside sources other than the subject company itself and confirmed the above subject.

 

AFFILIATED COMPANIES

BHARAT ALUMINIUM COMPANY LTD

COPPER MINES OF TASMANIA

HINDUSTAN ZINC LTD

MADRAS ALUMINIUM CO. LTD

STERLITE INDUSTRIES LTD

CHIBULUMA MINES PLC

MOPANI COPPER MINES PLC

NDOLA LIME COMPANY LTD

CHAMBISHI METALS PLC

KANSANSHI MINING PLC

MAAMBA COLLIERIES LIMITED

NLC AFRICA MINING

CNMC LUANSHYA COPPER MINES

LUBAMBE COPPER MINE LTD

ALBIDON LIMITED

COPPERBELT ENERGY CORPORATION

INVESTTRUST BANK ZAMBIA LIMITED

 

SUBSIDIARY COMPANIES

Copper flash smelting plant, Zambia

Konkola Deep copper-mine project (KDMP)

 

    

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.66.57

UK Pound

1

Rs.103.34

Euro

1

Rs.88.16

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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.