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Report Date : |
06.12.2014 |
IDENTIFICATION DETAILS
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Name : |
JORDAN PHOSPHATE MINES CO PLC (JPMC) |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
16.02.1964 |
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Com. Reg. No.: |
16, |
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Legal Form : |
Public Shareholding Company |
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Line of Business : |
Extraction, processing and export of phosphate rock and phosphoric fertilisers. |
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No of Employees : |
3,811 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
Jordan |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
JORDAN - ECONOMIC OVERVIEW
Jordan's economy is among the
smallest in the Middle East, with insufficient supplies of water, oil, and
other natural resources underlying the government's heavy reliance on foreign
assistance. Other economic challenges for the government include chronic high
rates of poverty, unemployment, inflation, and a large budget deficit. Since
assuming the throne in 1999, King ABDALLAH has implemented significant economic
reforms, such as opening the trade regime, privatizing state-owned companies,
and eliminating some fuel subsidies, which in the last decade spurred economic
growth by attracting foreign investment and creating some jobs. The global
economic slowdown and regional turmoil, however, have depressed Jordan's GDP
growth, impacting export-oriented sectors, construction, and tourism. In 2011
and 2012, the government approved two economic relief packages and a budgetary
supplement, meant to improve the living conditions for the middle and poor
classes. Jordan's finances have also been strained by a series of natural gas
pipeline attacks in Egypt, causing Jordan to substitute more expensive diesel
imports, primarily from Saudi Arabia, to generate electricity. Jordan is
currently exploring nuclear power generation in addition to the exploitation of
abundant oil shale reserves and renewable technologies to forestall energy
shortfalls. In 2012, to correct budgetary and balance of payments imbalances,
Jordan entered into a $2.1 billion, multiple year International Monetary Fund
Stand-By Arrangement. Jordan's financial sector has been relatively isolated
from the international financial crisis because of its limited exposure to
overseas capital markets. In 2013, Jordan depended heavily on foreign
assistance to finance the budget deficit, as the influx of about 600,000 Syrian
refugees put additional pressure on expenditures.
|
Source
: CIA |
Company Name :
JORDAN PHOSPHATE MINES CO PLC (JPMC)
Country of Origin :
Jordan
Legal Form :
Public Shareholding Company
Start Date :
March 1949
Registration Date :
16th February 1964
Commercial Registration Number :
16, Amman
Issued Capital :
JD 75,000,000
Paid up Capital :
JD 75,000,000
Total Workforce :
3,811
Activities :
Extraction, processing and export of phosphate rock and phosphoric
fertilisers.
Financial Condition :
Fair
Payments :
Nothing detrimental uncovered
Operating Trend :
Steady
JORDAN PHOSPHATE MINES CO PLC (JPMC)
Street : Al Sharif Al Radi Street, No. 5
Area : Shmeisani
PO Box : 30
Town : Amman 11118
Country : Jordan
Telephone : (962-6) 5607141
/ 5660141 / 5607010 / 5607141
Facsimile : (962-6)
5682290 / 5691290 / 5608229
Email : admin-jmpc@nets.com.jo
/ jpmc@nets.com.jo
/ info@jpmc.com.jo
Subject operates from a large suite of offices that are owned and
located in the Central Business Area of Amman.
Branch Office (s)
Location Description
· El Hassa Owned
mine
· El Abiad Owned
mine
· Rusifa Owned
mine
· Eshidiya Owned
mine
· Industrial Complex
for Fertilizers Owned
fertilizer complex
Aqaba
Tel: (962-3)
2014151 / 2017004
Name Position
· Wasef Azar Chairman
· Munther Haddadin Vice
Chairman
· Junaidi Masri Director
· Talal Al Saadi Director
· Saeed Shanan Director
· Hamad Al Omer Director
· Haethum Buttikhi Director
· Khaled Al Quran Director
· Najem Hummadi Chief
Executive Officer
· Mohammed Baderkhan Finance
Manager
· Iyad Al Azzab Operations
Manager
· Suhail Musleh Marketing
Manager
· Faisal Doudin Technical
Manager
Date of Establishment : Subject’s operations date back to March
1949, however it was registered on 16th February 1964.
History : JPMC’s operations date back to March 1949, however is was
registered and incorporated as a Public Shareholding Company on 16th
February 1964.
On 1st
May 1986, JPMC absorbed the operations of Jordan Fertiliser
Industries Company
(JFIC), whose accumulated losses by the end of 1985 had reached JD 40.3
million. JFIC is
now
operating as a division of JPMC.
Legal Form : Public Shareholding
Company
Commercial Reg.
No. : 16, Amman
Issued Capital : JD 75,000,000
Paid up Capital : JD 75,000,000
· Kamil Holdings Limited 37.00%
Jersey
· Ministry of
Finance 26.26%
· Social Security Corporation 16.03%
· Kuwait Investment
Authority 9.33%
· Passport Global
Master Fund SPC Ltd 2.77%
· Islamic
Development Bank 1.45%
Jeddah
Saudi Arabia
· Non Jordanian
investors 7.16%
· Indo-Jordan
Chemicals Company Limited
· Nippon
Jordan Fertilizer Company Limited
Activities: JPMC currently operates three mines in Jordan producing phosphate rock, with a fourth mine at Al Ruseifa having ceased production in 1985, and a downstream fertilizer and chemicals plant at Aqaba in the south of Jordan producing phosphoric acid, diammonium phosphate ("DAP"), sulphuric acid and Aluminium fluoride.
Subject was
founded in 1949 with a capital of JD 1 million to exploit the phosphate
deposits in Jordan. The first mine was opened at Rusifa,
north of Amman. In the early 1960s mining commenced at El Hassa,
south of Amman and in the late 1970s the El Abiad
mine was opened 20 Km north of El Hassa. In 1988 the Shidiya mine was opened. Production of fertilisers
started in 1982 at Aqaba.
The company’s
proven phosphate reserves amount to over 2 billion tonnes
and could total as much as 10 billion tonnes. The Shidiya mines has proven reserves of 1.2 billion tonnes and possible reserves of 4-5 billion tonnes, compared with 200-300 million tonnes
of proven reserves at Al Hassa and Al Abiad.
JPMC is currently producing 6.5 million metric tons of rock
phosphate per year from various mines.
Approximately 4.5
million metric tons is exported to 20 countries worldwide. The balance of the
quantity is used for manufacturing phosphoric acid at Aqaba
complex and to supply the joint ventures as well.
JPMC currently mines and produces phosphate
rock at its mines at Al-Hassa, Al-Abiad
and Eshidiya, producing various grades of phosphate
rock. JPMC is currently the only entity licensed to mine and produce phosphate
rock in Jordan. JPMC also has a dormant mine at Al-Ruseifa.
Eshidiya Mines
Eshidiya mines, which covers
an area of approximately 258 square km, is located in the south of Jordan,
approximately 125 km north-east of the port at Aqaba.
Phosphate bearing deposits were discovered
in the Eshidiya region in 1975 and, following
Government exploration and feasibility studies, JPMC took over implementation
of the mining project in 1987. Phosphate rock production commenced at Eshidiya in 1988 and amounted to 3.31 million mt in the year ended 31 December 2002. JPMC estimates that
the Eshidiya mining area has phosphate bearing
deposits of some 1.34 billion mt of which 810 million
mt are considered by JPMC to be "proven".
JPMC believes that ongoing exploration is likely to lead to an increase in
estimated reserves in JPMC's mine at Eshidiya. In 1999, a new deposit with 62 million mt proven reserves of a high grade were discovered in the
Upper Horizon area at Eshidiya. Production from this
mine during 2009 was 3,416,992 tonnes.
Hassa & Abiad Mines
Al-Hassa and Al-Abiad mines are located approximately 20 km apart, some 130
km south of Amman. Each of the mines has a railway terminal linking it to the
port at Aqaba, 200 km to the south.
The mines at Al-Hassa and Al-Abiad,
each covering an area of approximately 25 square km, were, until the
development of Eshidiya in 1988, the main mining and
production sites of JPMC.
The mines at Al-Hassa and Al-Abiad
produce two main grades of phosphate rock, although selective mining and
blending can produce other grades. The principal grades produced are a standard
grade 70/72 BPL, which requires only crushing and screening followed by drying
of the mined ore, and a higher grade 73/75 BPL resulting from additional
beneficiation by washing followed by subsequent drying to reduce the moisture
content to a maximum of three percent.
Production from the two mines was 491,808 tonnes (Hassa) and 1,371,893 tonnes (Abiad) during 2009.
Al-Ruseifa
The mine at Al-Ruseifa commenced production in 1935.
However, owing to the depletion of economically exploitable reserves, this mine
has been dormant since 1985 and JPMC has no plans to recommence mining
operations. The total quantity of phosphate produced during the year 2008 from
this mine amounted to 44,000 tonnes, which was
derived exclusively from existing stockpiles of mined ore
Aqaba fertilizer Complex
The Aqaba
fertilizer complex is located at WADI 2, 15 Km south of Aqaba
city on the Red Sea coast and approximately 360 Km south of Amman.
Production started in 1982 to produce Sulphuric acid, Phosphoric acid, Diammonium
phosphate and Aluminium fluoride.
In the early nineties JPMC decided to
rehabilitate the phosphoric acid plant and sulphuric
acid plant in order to upgrade its annual production capacity, product quality
& yield. The complex now comprises the following plants & production
facilities:
-
Utilities plant producing steam, water & electricity.
- Sulphuric acid plant rehabilitated in 1994, comprising two
lines of production, producing
1.45 million tons per year of sulphuric acid.
-
Phosphoric acid plant rehabilitated in 1993, producing 350,000 tons per
year of
phosphoric acid.
-
Granulation plant, comprises two lines of production, producing 650,000
tons per year
DAP.
- Aluminium fluoride plant, producing 14,000 tons per year of
aluminium fluoride.
Import Countries: Germany, the United States of America and the Far
East.
Export Countries : Subject exports approximately 85 percent of
phosphate output with a significant
portion of it going to Norway and Asian
countries, as well as Germany, Australia and
New Zealand.
Operating Trend: Steady
Subject has a workforce of 3,811 employees.
Financial highlights provided by local sources are given below:
Currency: Jordanian Dinars (JD)
Balance Sheet 31/12/13 31/12/12 31/12/11
|
Cash on Hand & at Banks |
27,675,000 |
34,675,000 |
112,169,000 |
|
Accounts Receivable, Net |
41,205,000 |
60,459,000 |
56,797,000 |
|
Notes Receivable |
0 |
0 |
0 |
|
Post Dated Cheques |
0 |
0 |
0 |
|
Short Term Investments |
1,283,000 |
196,000 |
227,000 |
|
Inventory |
272,824,000 |
232,106,000 |
130,429,000 |
|
Spare Parts |
0 |
0 |
37,614,000 |
|
397,458,000 |
379,368,000 |
376,884,000 |
|
|
Long Term Investments |
222,189,000 |
164,030,000 |
114,500,000 |
|
Fixed Assets, Net |
170,994,000 |
162,564,000 |
175,739,000 |
|
Lands |
0 |
0 |
0 |
|
Projects in Progress |
261,631,000 |
253,316,000 |
182,169,000 |
|
Total Fixed Assets |
432,625,000 |
415,880,000 |
357,908,000 |
|
Other Assets |
60,222,000 |
35,519,000 |
62,429,000 |
|
1,112,494,000 |
994,797,000 |
911,721,000 |
|
Accounts and Notes Payable |
71,616,000 |
39,683,000 |
25,314,000 |
|
Credit Banks |
87,288,000 |
12,535,000 |
16,384,000 |
|
Short Term Loans |
0 |
0 |
0 |
|
Accrued Part of Long Term Loans |
18,096,000 |
12,236,000 |
15,138,000 |
|
Total Current Liabilities |
254,572,000 |
131,911,000 |
156,228,000 |
|
Long Term Loans & Notes Payable |
58,065,000 |
46,690,000 |
33,426,000 |
|
Corporate Bonds |
0 |
0 |
0 |
|
Other Liabilities |
37,576,000 |
38,140,000 |
45,079,000 |
|
350,213,000 |
216,741,000 |
234,733,000 |
|
Authorized Capital |
75,000,000 |
75,000,000 |
75,000,000 |
|
75,000,000 |
75,000,000 |
75,000,000 |
|
|
Paid in Capital |
75,000,000 |
75,000,000 |
75,000,000 |
|
Compulsory Reserves |
75,000,000 |
75,000,000 |
75,000,000 |
|
Voluntary Reserve |
75,000,000 |
75,000,000 |
75,000,000 |
|
Other Reserves |
75,000,000 |
75,000,000 |
75,000,000 |
|
Issuance Premium |
0 |
0 |
0 |
|
Issuance Discount |
0 |
0 |
0 |
|
Treasury Stocks |
0 |
0 |
0 |
|
0 |
18,750,000 |
33,750,000 |
|
|
Proposed Stock Dividends |
0 |
0 |
0 |
|
Accumulated Change in Fair Value |
-29,000 |
-128,000 |
-25,000 |
|
453,147,000 |
451,392,000 |
334,764,000 |
|
|
753,118,000 |
770,014,000 |
668,489,000 |
|
|
Minority Interest |
9,163,000 |
8,042,000 |
8,499,000 |
|
1,112,494,000 |
994,797,000 |
911,721,000 |
Income Statement
|
Operating Sales |
574,412,000 |
759,426,000 |
812,415,000 |
|
Operating Expenses |
471,140,000 |
478,304,000 |
493,398,000 |
|
Gross Profit |
103,272,000 |
281,122,000 |
319,017,000 |
|
General and Administrative Expenses |
20,313,000 |
20,153,000 |
15,219,750 |
|
Selling and Distribution Expenses |
48,599,000 |
56,739,000 |
15,712,000 |
|
Depreciation (Period) |
20,319,000 |
20,025,000 |
20,339,000 |
|
Other Operating Expenses |
15,683,000 |
36,314,000 |
25,786,000 |
|
Net Operating Income |
18,677,000 |
167,916,000 |
262,299,250 |
|
Other Sales |
13,803,000 |
7,658,000 |
24,756,000 |
|
Other Expenses |
21,204,000 |
20,271,000 |
8,600,000 |
|
Income Before Interest & Tax |
11,276,000 |
155,303,000 |
278,455,250 |
|
Interest Expenses |
4,449,000 |
2,855,000 |
3,416,000 |
|
Net Income Before Tax |
6,827,000 |
152,448,000 |
275,039,250 |
|
Income Tax (Period) |
4,129,000 |
20,670,000 |
19,129,000 |
|
Income Tax (Previous Years) |
0 |
0 |
0 |
|
Universities and Research Train Fees |
0 |
0 |
0 |
|
Board of Directors Remuneration |
103,000 |
45,000 |
76,000 |
|
Net Income |
2,595,000 |
131,733,000 |
255,834,250 |
|
Minority Interest |
1,121,000 |
-457,000 |
-576,000 |
|
1,474,000 |
132,190,000 |
256,410,250 |
Local sources consider subject’s financial condition to be Fair.
·
Arab Bank Plc
Shmeisani Branch
PO Box: 950545
& 950544
Amman 11195
Tel: (962-6)
5607231 / 5607115
Fax: (962-6)
5606793 / 5606830
·
Housing Bank
Parliament Street
PO Box: 7693
Amman
Tel: (962-6)
5667126
·
Jordan National Bank
Jabal Amman Branch
PO Box: 1578
Amman 11118
Tel: (962-6)
5642391
Fax: (962-6)
5628809
No complaints regarding subject’s payments have been reported.
JPMC is the sole entity currently operating under licence
to mine and produce phosphate rock in Jordan. In the year ended 31 December
2000, Jordan was the sixth largest phosphate rock producer in the world, the
fourth largest exporter of phosphate rock in the world and the largest exporter
in terms of revenue in the Jordanian economy. JPMC is the largest mining and
industrial employer in Jordan.
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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.85 |
|
|
1 |
Rs.96.73 |
|
Euro |
1 |
Rs.76.53 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
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|
Report Prepared
by : |
SMN |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.