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Report Date : |
05.09.2013 |
IDENTIFICATION DETAILS
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Name : |
SAUDI ARABIAN MINING COMPANY (MAADEN) |
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Registered Office : |
2000 Building No. 395 Asseddiq Road, South Exit 6, North Ring Road PO
Box 68861 Riyadh 11537 |
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Country : |
Saudi Arabia |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
23.03.1997 |
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Com. Reg. No.: |
1010164391, Riyadh |
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Legal Form : |
Joint Stock Company |
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Line of Business : |
Subject is engaged in mineral extraction and exploration. |
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No. of Employees : |
2000 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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
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Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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Saudi Arabia |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
SAUDI ARABIA - ECONOMIC OVERVIEW
Saudi Arabia has an oil-based economy with strong government controls over major economic activities. It possesses about 17% of the world's proven petroleum reserves, ranks as the largest exporter of petroleum, and plays a leading role in OPEC. The petroleum sector accounts for roughly 80% of budget revenues, 45% of GDP, and 90% of export earnings. Saudi Arabia is encouraging the growth of the private sector in order to diversify its economy and to employ more Saudi nationals. Diversification efforts are focusing on power generation, telecommunications, natural gas exploration, and petrochemical sectors. Over 5 million foreign workers play an important role in the Saudi economy, particularly in the oil and service sectors, while Riyadh is struggling to reduce unemployment among its own nationals. Saudi officials are particularly focused on employing its large youth population, which generally lacks the education and technical skills the private sector needs. Riyadh has substantially boosted spending on job training and education, most recently with the opening of the King Abdallah University of Science and Technology - Saudi Arabia's first co-educational university. As part of its effort to attract foreign investment, Saudi Arabia acceded to the WTO in 2005. The government has begun establishing six "economic cities" in different regions of the country to promote foreign investment and plans to spend $373 billion between 2010 and 2014 on social development and infrastructure projects to advance Saudi Arabia''s economic development.
Source
: CIA
Company Name : SAUDI ARABIAN MINING COMPANY (MAADEN)
Country of Origin : Saudi Arabia
Legal Form : Joint Stock Company
Registration Date : 23rd March 1997
Commercial Registration Number : 1010164391, Riyadh
Issued Capital : SR 9,250,000,000
Paid up Capital : SR 9,250,000,000
Total Workforce : 2,000
Activities : Mineral exploration and extraction
Financial Condition : Good
Payments : Nothing detrimental uncovered
Operating Trend : Steady
SAUDI ARABIAN MINING COMPANY (MAADEN)
Building : Building No.
395
Street : Asseddiq
Road, South Exit 6, North Ring Road
PO Box : 68861
Town : Riyadh 11537
Country : Saudi Arabia
Telephone : (966-1) 4721222
/ 8748000
Facsimile : (966-1)
4721333 / 8748300
Email : maaden@maaden.com.sa
Subject operates from a large suite of offices that are owned and
located in the Central Business Area of Riyadh.
Branch Office (s)
Location Description
· Tabuk Street Owned
Office
PO Box: 13784
Jeddah 21414
Tel: (966-2)
6682992
Name Position
· Abdallah Bin Saif Al Saif Chairman
· Mansour Bin Saleh
Al Maiman Director
· Sultan Bin Jamal
Shawli Director
· Soliman Bin Saad
Al Humayyd Director
· Mohammed Bin
Abdullah Al Kharashi Director
· Dr Ziad Bin
Abdulrahman Al Sudairy Director
· Khalid Bin Hamad Al
Senani Director
· Khalid Bin Saleh
Al Mudaifer Director
· Abdulaziz Bin
Abdullah Al Sugair Director
· Dr Abdulaziz Bin
Saleh Al Jarbou Director
· Dr Abdallah Bin
Essa Al Dabbagh Director
· Khaled Al Rowais Chief
Financial Officer
· Abdullah I Al
Fallaj Finance
Manager
· Dr Mansour Nazer Planning
Manager
·
Dr Abdulrahman Abdullah Yamani Human
Resources Manager
·
Abdullah Abdulgader Project
Manager
Date of
Establishment : 23rd
March 1997
History : Maaden was
incorporated in 1997 with the transfer of mineral titles from Petromin, and the
General Petroleum and Minerals Organization.
Legal Form : Joint Stock
Company
Commercial Reg.
No. : 1010164391, Riyadh
Issued Capital : SR 9,250,000,000
Paid up Capital : SR 9,250,000,000
· Public Investment
Fund 50.0%
· General
Organisation for Social Insurance 9.6%
· Public Pension
Agency 7.2%
· Local businessmen
and private investors 33.2%
Name Stake
Held
· Maaden Gold and
Base Metals Company (MGBM)
100%
· Maaden
Infrastructure Company (MIC)
100%
· Maaden Industrial
Minerals Company (MIMC)
100%
· Maaden Aluminium
Company
74.9%
· Maaden Bauxite and
Alumina Company
74.9%
· Maaden Rolling
Company
74.9%
· Maaden Phosphate
Company (MPC)
70.0%
· Sahara and Maaden
Petrochemicals Company
50.0%
Activities: Saudi Arabian Mining Company (Maaden) operates a number of mines in
Saudi Arabia engaged in mineral extraction and exploration. Subject mines gold,
silver, phosphates, zinc, bauxite and kaolin.
The company operates the following mines:
- Mahd Ad Dahab – 49,517 ounces (oz) of gold per
annum
- Sukhaybarat – 6,580 oz of gold per
annum
- Al Hajar – 5,740 oz of gold
per annum
- Bulgah – 34,387 oz of gold per annum
- Al Amar – 52,050 oz of gold per annum
Import Countries: Canada, United States of America, United Kingdom
and the Far East.
Operating Trend: Steady
Subject has a workforce of approximately 2,000 employees.
Financial highlights provided by local sources are given below:
Currency: Saudi Riyals (SR)
Consolidated Balance Sheet 31/12/12 31/12/11
Assets
Current assets
Cash and cash equivalents 6,175,213,800
5,044,478,181
Short-term investments 3,071,348,447
6,181,085,507
Trade and other receivables 563,040,896
481,514,210
Inventories 1,089,934,377
561,796,672
Advances and prepayments 94,110,375
41,873,687
10,993,647,895 12,310,748,257
Non-current assets
Property, plant and equipment 18,541,120,048
7,450,689,814
Pre-operating expenses and deferred charges 812,580,660 356,794,916
Capital work-in-progress 22,948,564,475
22,227,549,345
Exploration and evaluation assets 415,261,216
143,330,308
Intangible assets 263,676,732
12,334,823
Investment in jointly controlled entity 444,851,735
448,154,100
Advances and prepayments 722,246,220
624,123,837
44,148,301,086 31,262,977,143
Total assets 55,141,948,981
43,573,725,400
Liabilities
Current liabilities
Projects and other payables 2,011,450,745
1,332,495,045
Accrued expenses 2,905,811,921
1,503,425,929
Zakat payable 63,600,191
141,108,124
Severance fees payable 91,516,753
83,433,989
Current portion of long-term borrowings 861,409,329
762,383,304
5,933,788,939 3,822,846,391
Non-current liabilities
Provision for mine closure and reclamation 90,743,156 90,884,799
Employee benefits 170,955,102
139,515,024
Long-term borrowings 25,809,386,783
18,815,478,234
Due to related party 52,411,992
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26,123,497,033 19,045,878,057
Total liabilities 32,057,285,972
22,868,724,448
Equity
Share capital 9,250,000,000
9,250,000,000
Statutory reserve
Share premium 5,250,000,000
5,250,000,000
Transfer of net income 393,422,274
284,327,877
Retained earnings 3,183,958,193
2,202,108,620
Equity attributable to shareholders’ of the parent company 18,077,380,467 16,986,436,497
Non-controlling interest 5,007,282,542
3,718,564,455
Total equity 23,084,663,009
20,705,000,952
Total liabilities and equity 55,141,948,981
43,573,725,400
Consolidated Statement of Income
Sales 5,576,655,383
1,533,026,381
Cost of sales (2,982,429,073)
(531,711,939)
Gross pro t 2,594,226,310
1,001,314,442
Operating expenses
Selling, marketing and logistic expenses (384,810,033) (53,741,290)
General and administrative expenses (324,668,780)
(235,455,326)
Exploration expenses (114,293,922)
(116,056,918)
Technical services expenses (9,419,645)
(14,188,139)
Operating income 1,761,033,930
581,872,769
Other (expenses) / income
Share in net loss of jointly controlled entity (3,302,365) (1,845,900)
Income from short-term investments 65,025,678
75,155,805
Financial charges (285,776,406)
(11,369,399)
Other (expenses) /income (5,440,429)
13,813,569
Income before zakat 1,531,540,408
657,626,844
Provision for zakat (51,713,294)
(119,547,535)
Net income for the year 1,479,827,114
538,079,309
Local sources consider subject’s financial condition to be Good.
·
National Commercial Bank
Airport Road
PO Box: 2800
Riyadh 11461
Tel: (966-1)
4772281
Fax: (966-1)
4730322
No complaints regarding subject’s payments have been reported.
During the course of this investigation nothing detrimental was
uncovered regarding subject’s operating history or the manner in which payments
are fulfilled. As such the company is considered to be a fair trade risk.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs. 67.03 |
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1 |
Rs. 104.32 |
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Euro |
1 |
Rs. 88.24 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.