MIRA INFORM REPORT

Report No. :	355616
Report Date :	28.12.2015

IDENTIFICATION DETAILS

Name :	SAVANA MINING INVESTMENT LIMITED
Registered Office :	Mine De Yenkah, Wasyah Commune Yenkah, BP 15 Conakry
Country :	Guinea
Date of Incorporation :	14.06.2010
Legal Form :	Limited Corporation
Line of Business :	Subject operates mining and exploration services.
No. of Employees :	10 Employees.

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear

NOTES:

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ECGC Country Risk Classification List – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
Guinea	C1	C1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

GUINEA - ECONOMIC OVERVIEW

Guinea is a poor country of approximately 11.7 million people that possesses the world's largest reserves of bauxite and world’s largest untapped high-grade iron ore reserves (Simandou), as well as gold and diamonds. In addition, Guinea has fertile soil, ample rainfall, and is the source of several West African rivers, including the Senegal, Niger, and Gambia. Guinea's hydro potential is enormous and the country could be a major exporter of electricity. The country also has tremendous agriculture potential. Gold, bauxite, and diamonds are Guinea’s main mineral exports. Following the death of long-term President Lansana CONTE in 2008 and the coup that followed, international donors, including the G-8, the IMF, and the World Bank, significantly curtailed their development programs in Guinea. However, the IMF approved a new 3-year Extended Credit Facility (ECF) arrangement in 2012, following the December 2010 presidential elections. In September 2012, Guinea achieved Heavily Indebted Poor Countries (HIPC) completion point status. Future access to international assistance and investment will depend on the government’s ability to be transparent, combat corruption, reform its banking system, improve its business environment, and build infrastructure. In April 2013, the government amended its mining code to reduce taxes and royalties. In September 2013, legislative elections were held and the National Assembly was seated in January 2014. In 2014, Guinea also complied with requirements of the Extractive Industries Transparency Initiative by publishing its mining contracts and was found to be compliant. International investors have shown interest in Guinea's unexplored mineral reserves, which have the potential to propel Guinea's future growth.

The biggest threats to Guinea’s economy are political instability, the continuation of the Ebola epidemic, and low international commodity prices. Rising international donor support and reduced government investment spending will lessen fiscal strains created by the Ebola epidemic, but economic recovery will be a long process while the government continues to fight the disease. As of March 2015, Guinea had approximately 3,200 confirmed and suspected cases of Ebola with over 2,100 deaths (65.6% mortality rate). The economic toll of Ebola on the Guinean economy is considerable. Ebola stalled promising economic growth in 2014 and unless the epidemic ends in 2015, the economy will continue to stagnate. Normal economic growth has not returned and several projects have stalled, such as offshore oil exploration and the giant Simandou iron ore project. Promising reductions in Ebola cases in the first half of 2015 could see Guinea turn the corner on the disease and have Ebola eradicated later in the year. The 240 Megawatt Kaleta Dam is expected to be commissioned in late June or early July 2015 and President Alpha CONDE’s administration has stated that Conakry will have full time electricity once Kaleta comes online. Currently the capital only receives six to eight hours of electricity per day. Although the recent political stability has brought renewed interest in Guinea from the private sector, an enduring legacy of corruption, inefficiency, and lack of government transparency, combined with fears of Ebola, continue to undermine Guinea's economic viability.

Successive governments have failed to address the country's crumbling infrastructure, which is needed for economic development. Guinea suffers from chronic electricity shortages; poor roads, rail lines and bridges; and a lack of access to clean water continue to plague economic development. Presidential elections are scheduled for October 2015 and investors are cautiously awaiting the outcome. Guinea is a new democracy and past election violence as well as Ebola may keep investors on the sideline until 2016. The Guinean government, led by President CONDE, is working to create an economy to attract foreign investment and hopes to have greater participation from western countries/firms in Guinea's economic development.

Source : CIA

SUBJECT'S NAME
Registered Name:	SAVANA MINING INVESTMENT LIMITED
Requested Name:	SAVANA MINING INVESTMENT LIMITED
Local Names:	SAVANA MINING INVESTMENT S.A.R.L
ADDRESS AND TELECOMMUNICATION
Physical Address:	Mine De Yenkah, Wasyah Commune Yenkah,
Postal Address:	BP 15
	Conakry
Country:	Guinea
Phone:	224-621877740/624088389
Fax:	224-621877740
Email:	None
Website:	None
LEGAL
Legal Form:		Limited Corporation
Date Incorporated:		14-June-2010
Reg. Number:		Guinea
Nominal Capital		GNF. 1,000,000
Subscribed Capital		GNF. 1,000,000
Subscribed Capital is Subscribed in the following form:
		Position		Shares
Mr. David Kaba		CEO
RELATED COMPANIES
None		Parent company.
None		Subsidiary company.
None		Affiliated company.
None		Shareholder of subject firm.
BP124 Communed de Kouroussa, Kouroussa Village, Conakry, Guinea		Branches of the firm
OPERATIONS
Registered to operate mining and exploration services
Imports:		None
Exports:		Asia
Trademarks:		None
Terms of sale:		Cash (40%) and 25-90 days (60%), invoices.
Main Customers:		firms and organizations
Employees:		10 employees.
Vehicles:		Several motor vehicles.
Territory of sales:		Guinea
Location:		Rented premises, 1,500 square feet,
AUDITORS AND INSURANCE
Auditors:		Information not available.
Insurance Brokers:		Information not available.
FINANCE
Currency Reported:		Guinean Franc (GNF.)
Approx. Ex. Rate:		1 US Dollar = 7751.85 Guinean Franc
Fiscal Year End:		December 31, 2014
Inflation:		According to information given by independent sources, the inflation at December 31st, 2014 was of 13%.
Financial Information not Submitted
Profit and Loss (expressed in GNF.)
			2014
Sales			2,500,000,000
BANK
Bank Name:		ECOBANK
Branch:		Guinea
Comments:		None
COMMENTS/ ADDITIONAL INFORMATION
This information was obtained from outside sources other than the subject company itself and confirmed the above subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.66.20
UK Pound	1	Rs.98.30
Euro	1	Rs.72.41
GNF	1	Rs.0.0086

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	KAR
Report Prepared by :	NIT

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%)

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