MIRA INFORM REPORT

 

 

Report Date :

24.09.2013

 

IDENTIFICATION DETAILS

 

Name :

KAGEM MINING LTD

 

 

Registered Office :

Plot 6374 Corner Dr. Agrey and kariba Roads Light Industrial Area, Kitwe

 

 

Country :

Zambia

 

 

Date of Incorporation :

15.07.1985

 

 

Com. Reg. No.:

12958

 

 

Legal Form :

Limited Corporation 

 

 

Line of Business :

Subject operate as mining and exploration services

 

 

No. of Employees :

400 employees.

 

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)

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:

KAGEM MINING LTD

Requested Name:

KAGEM MINING LTD

Other Names:

None

 

 

ADDRESS AND TELECOMMUNICATION

 

Physical Address:

Plot 6374 Corner Dr. Agrey and kariba Roads Light Industrial Area, Kitwe

Postal Address:

P. o. Box 21657

 

Kitwe

Country:

Zambia

Phone:

260-2216845/212212101/212216492

Fax:

260-2216324

Email:

kagem@coppernet.zm/ kagemm@zamnet.zm/ adminkagem@zamnet.zm

Website:

None

 

 

LEGAL

           

Legal Form:

Limited Corporation 

Date Incorporated:

15-July-1985

Reg. Number:

12958

Nominal Capital

ZMK. 20,000,000

Subscribed Capital

ZMK. 20,000,000

Subscribed Capital is Subscribed in the following form:

 

Position

Shares

Mr. Govind Gupta

Chairman

 

Mr. Alok Sood

Director

 

Mr. Godwin Nicholas Muyoba

Director

 

Mr. Mohanasund Aram Natarajan

Director

 

Mr. Sean Thomas Gilbertson

Director

 

Mr. Steven Malama

Director

 

Government of Zambia

Shareholder

5,000,000

Hagura Mining Limited

Holding Co

15,000,000

 

 

RELATED COMPANIES

 

Hagura Mining Limited

Parent company.

None

Subsidiary company.

None

Affiliated company.

None

Shareholder of subject firm.

None

Branches of the firm

 

 

OPERATIONS

 

Registered to operate as mining and exploration services

Imports:

Asia, Middle East

Exports:

Worldwide

Trademarks:

None

Terms of sale:

Cash (30%) and 25-90 days (70%), invoices.

 

 

Main Customers:

firms and organizations  

Employees:

400 employees.

Vehicles:

Several motor vehicles.

Territory of sales:

Zambia

Location:

Owned premises, 500,000 square feet,

 

 

AUDITORS AND INSURANCE  

 

Auditors:

Information not available.

Insurance Brokers:

Information not available.

 

                                                                    

FINANCE

                                                                    

Currency Reported:

Zambian Kwacha (ZMK)

Approx. Ex. Rate:

1 US Dollar = 5252.96 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%.

 

Financial Information not Submitted

 

 

 

 

 

Profit and Loss (expressed in USD.)

 

 

2012

Sales

 

17,500,000

 

 

BANK

 

Bank Name:

INDO- ZAMBIA BANK LIMITED

Branch:

Zambia

Comments:

Other Banks

 

ZAMBIA NATIONAL COMMERCIAL BANK

 

 

 

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.

On 1/11/2007 Gemfields was awarded a management contract by Hagura Mining Ltd ("Hagura") to manage and operate Kagem Mining Ltd in advance of the acquisition

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.52

UK Pound

1

Rs.100.26

Euro

1

Rs.84.67

 

 

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.