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Report Date : |
07.02.2014 |
IDENTIFICATION DETAILS
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Name : |
SAUDI ARABIAN MINING COMPANY (MAADEN) |
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Registered Office : |
Building No. 395,
Abu Baker 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 operates a number of mines in Saudi Arabia engaged in mineral extraction and exploration. Subject mines gold, silver, phosphates, zinc, bauxite and
kaolin. |
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No. of Employees : |
2,000 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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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 – december 01, 2013
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Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
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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.
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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)
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
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
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%
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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.50 |
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|
1 |
Rs.101.92 |
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Euro |
1 |
Rs.84.50 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.