MIRA INFORM REPORT

 

 

Report Date :

12.12.2014

 

 

IDENTIFICATION DETAILS

 

Name :

SAUDI ARABIAN MINING COMPANY (MAADEN)

 

 

Registered Office :

Building No. 395, Abu Baker Asseddiq Road, South Exit 6, North Ring Road, PO Box 68861, Riyadh 11537

 

 

Country :

Saudi Arabia

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

23.03.1997

 

 

Com. Reg. No.:

1010164391

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Subject operates a number of mines in Saudi Arabia engaged in mineral extraction and exploration. Subject mines gold, silver, phosphates, zinc, bauxite and kaolin.

 

 

No of Employees :

2,000

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

Payment Behaviour :

Regular

Litigation :

--

 

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

Saudi Arabia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

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 16% 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 6 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


SUMMARY

 

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

 

 


COMPANY NAME

 

SAUDI ARABIAN MINING COMPANY (MAADEN)

 

 

ADDRESS

 

Registered & Physical Address

 

Building                        : Building No. 395

Street               : Abu Baker Asseddiq Road, South Exit 6, North Ring Road

PO Box            : 68861

Town                : Riyadh 11537

Country : Saudi Arabia

Telephone         : (966-1) 4721222 / 8748000 / 8748045

Facsimile          : (966-1) 4721333 / 8748300

Email                : maaden@maaden.com.sa

 

Premises

 

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 premises

PO Box: 822 & 13784

Jeddah 21414

Tel: (966-2) 6682992

 

 

KEY PRINCIPALS

 

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

 

 

LEGAL FORM & OWNERS

 

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

 

Name of Shareholder (s)                                                       Percentage

 

Public Investment Fund                                                             50.0%

 

General Organisation for Social Insurance                                     9.6%

 

Public Pension Agency                                                                7.2%

 

Local businessmen and private investors                                                33.2%

 

 

AFFILIATED COMPANIES

 

 

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%

 

 

OPERATIONS

 

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 DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Saudi Riyals (SR)

 

Consolidated Balance Sheet                                                                     31/12/12                          31/12/13

 

Assets

Current assets

Cash and cash equivalents                                                                    6,175,213,800                4,336,642,990

Short-term investments                                                                          3,071,348,447                52,437,776

Trade and other receivables                                                                   563,040,896                  760,446,009

Inventories                                                                                            1,089,934,377                1,883,019,869

Advances and prepayments                                                                   94,110,375                    147,361,191

10,993,647,895 7,179,907,835

Non-current assets

Property, plant and equipment                                                               18,541,120,048 18,130,467,596

Pre-operating expenses and deferred charges                                        812,580,660                  -

Capital work-in-progress                                                                        22,948,564,475 36,993,696,476

Exploration and evaluation assets                                                          415,261,216                  145,883,817

Intangible assets                                                                                   263,676,732                  274,183,998

Investment in jointly controlled entity                                                      444,851,735                  441,370,614

Deferred stripping expense                                                                    -                                   33,381,669

Advances and prepayments                                                                   722,246,220                  32,336,297

Due from joint venture partners                                                              -                                   720,000,000

44,148,301,086 56,771,320,467

Total assets                                                                                          55,141,948,981 63,951,228,302

Liabilities

Current liabilities

Projects and other payables                                                                  2,011,450,745                2,051,281,265

Accrued expenses                                                                                 2,905,811,921                3,261,021,743

Zakat payable                                                                                       63,600,191                    54,295,070

Severance fees payable                                                                        91,516,753                    36,430,433

Current portion of obligation under lease capital                                     -                                   9,881,978

Current portion of long-term borrowings                                                             861,409,329                  1,198,190,354

5,933,788,939                6,611,100,843

Non-current liabilities

Provision for mine closure and reclamation                                             90,743,156                    83,490,623

Employee benefits                                                                                170,955,102                  214,830,581

Long-term borrowings                                                                            25,809,386,783 31,544,709,390

Due to related party                                                                               52,411,992                    439,533,088

26,123,497,033 32,332,677,034

Total liabilities                                                                                       32,057,285,972 38,943,777,877

 

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                  561,660,119

Retained earnings                                                                                  3,183,958,193                4,698,098,798

Equity attributable to shareholders’ of the parent company                      18,077,380,467 19,759,758,917

Non-controlling interest                                                                          5,007,282,542                5,247,691,508

Total equity                                                                                           23,084,663,009 25,007,450,425

Total liabilities and equity                                                                       55,141,948,981 63,951,228,302

 

Consolidated Statement of Income

 

Sales                                                                                                    5,576,655,383                6,047,264,454

Cost of sales                                                                                        (2,982,429,073) (4,471,902,878)

Gross pro t                                                                                           2,594,226,310                1,575,361,667

Operating expenses

Selling, marketing and logistic expenses                                                (384,810,033)                (246,008,083)

General and administrative expenses                                                      (324,668,780)                (513,943,670)

Exploration expenses                                                                            (114,293,922)                (141,835,064)

Technical services expenses                                                                  (9,419,645)                    -

Operating income                                                                                  1,761,033,930                673,574,850

Other (expenses) / income

Share in net loss of jointly controlled entity                                             (3,302,365)                    (3,481,121)

Income from short-term investments                                                       65,025,678                    26,627,550

Financial charges                                                                                  (285,776,406)                (182,585,150)

Other (expenses) /income                                                                      (5,440,429)                    1,357,387,711

Income before zakat                                                                              1,531,540,408                1,871,523,840

Provision for zakat                                                                                (51,713,294)                  (55,448,293)

Net income for the year                                                                                     1,479,827,114                1,816,075,547

 

Local sources consider subject’s financial condition to be Good.

 

 

BANKERS

 

National Commercial Bank

Airport Road

PO Box: 2800

Riyadh 11461

Tel: (966-1) 4772281

Fax: (966-1) 4730322

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

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.62.21

UK Pound

1

Rs.97.80

Euro

1

Rs.77.48

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

TPT

 


 

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.