MIRA INFORM REPORT

Report Date :

30.08.2014

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) :	31.03.2014
Date of Incorporation :	September 2002
Com. Reg. No.:	0100-01-133878
Legal Form :	Limited Company
Line of Business :	Subject is engaged in non-ferrous metal mining, mfg of non-ferrous metal products
No. of Employees	1,339

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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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. Prime Minister Shinzo ABE has declared the economy his government's top priority; he has overturned his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus, monetary easing, and structural reform. Japan joined the Trans Pacific Partnership negotiations in 2013, a pact that would open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2013 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 is exceeding 230% of GDP. To help raise government revenue and reduce public debt, Japan decided in 2013 to gradually increase the consumption tax to a total of 10% by the year 2015. Japan is making progress on ending deflation due to a weaker yen and higher energy costs, but reliance on exports to drive growth and an aging, shrinking population pose other major long-term challenges for the economy.

Source : CIA

Company name and address

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, Hitachi, Kanagawa, Tsuruga

OVERSEAS

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

FACTORIES

Ibaraki (3), Kanagawa, Fukui

OFFICERS

SHIGERU OHI, PRES Nobuyuki Yamaki, s/mgn dir

Keiichi Goto, s/mgn dir Hirofumi Nakata, mgn dir

Ichiro Sawamura, dir Yoshihiro Nishiyama, dir

Yen Amount: In million Yen, unless otherwise stated

SUMMARY

FINANCES FAIR A/SALES Yen 216,937 M

PAYMENTS NO COMPLAINTS CAPITAL Yen 40,000 M

TREND UP WORTH Yen 212,890 M

STARTED 2002 EMPLOYES 1,339

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/2014 fiscal term amounted to Yen 216,937 million, a 9% up from Yen 199,603 million in the previous term. The recurring profit was posted at Yen 57,742 million and the net profit at Yen 40,388 million, respectively, compared with Yen 45,901 million recurring profit and yen 42,170 million net profit, respectively, a year ago.

For the current term ending Mar 2015 the recurring profit is projected at Yen 60,000 million and the net profit at Yen 42,000 million, respectively, on a 5% rise in turnover, to Yen 228,000 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 12,412,013 million, operating profit Yen 213,657 million, recurring profit Yen 302,329 million, net profit Yen 107,042 million, total assets Yen 7,781,775 million, net worth Yen 2,135,058 million, employees 26,616, 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 Bank (H/O)

SMBC (H/O)

Relations: Satisfactory

FINANCES

(In Million Yen)

Terms Ending:		31/03/2015	31/03/2014	31/03/2013	31/03/2012
Annual Sales		228,000	216,937	199,603	192,283
Recur. Profit		60,000	57,742	45,901	52,853
Net Profit		42,000	40,388	42,170	35,085
Total Assets			479,597	393,647	327,354
Current Assets			126,250	120,446	112,364
Current Liabs			152,772	174,473	110,341
Net Worth			212,890	177,377	141,085
Capital, Paid-Up			40,000	40,000	40,000
Div.P.Share(¥)			0.00	0.00	0.00
<Analytical Data>		(%)	(%)	(%)	(%)
S.Growth Rate		5.10	8.68	3.81	1.71
Current Ratio		..	82.64	69.03	101.83
N.Worth Ratio		..	44.39	45.06	43.10
R.Profit/Sales		26.32	26.62	23.00	27.49
N.Profit/Sales		18.42	18.62	21.13	18.25
Return On Equity		..	18.97	23.77	24.87

Notes: Forecast (or estimated) figures for the 31/03/2015 fiscal term.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.48
UK Pound	1	Rs.100.35
Euro	1	Rs.79.86

INFORMATION DETAILS

Analysis Done by :	SUM
Report Prepared by :	NIS

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.