MIRA INFORM REPORT

 

 

Report No. :

306917

Report Date :

14.02.2015

           

IDENTIFICATION DETAILS

 

Name :

KARNALYTE RESOURCES INC.

 

 

Registered Office :

11410 27th Street SE, Ste 14, Calgary, Alberta T2Z 3R6

 

 

Country :

Canada

 

 

Date of Incorporation :

16.11.2007

 

 

Legal Form :

Public Company

 

 

Line of Business :

Subject is explores and develops agricultural and industrial potash, and magnesium products.

 

 

No. of Employee :

19

 

 

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 :

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 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

Canada

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

CANADA - ECONOMIC OVERVIEW

 

As a high-tech industrial society in the trillion-dollar class, Canada resembles the US in its market-oriented economic system, pattern of production, and high living standards. Since World War II, the impressive growth of the manufacturing, mining, and service sectors has transformed the nation from a largely rural economy into one primarily industrial and urban. The 1989 US-Canada Free Trade Agreement (FTA) and the 1994 North American Free Trade Agreement (NAFTA) (which includes Mexico) touched off a dramatic increase in trade and economic integration with the US, its principal trading partner. Canada enjoys a substantial trade surplus with the US, which absorbs about three-fourths of Canadian merchandise exports each year. Canada is the US's largest foreign supplier of energy, including oil, gas, uranium, and electric power. Given its abundant natural resources, highly skilled labor force, and modern capital plant, Canada enjoyed solid economic growth from 1993 through 2007. Buffeted by the global economic crisis, the economy dropped into a sharp recession in the final months of 2008, and Ottawa posted its first fiscal deficit in 2009 after 12 years of surplus. Canada's major banks, however, emerged from the financial crisis of 2008-09 among the strongest in the world, owing to the financial sector's tradition of conservative lending practices and strong capitalization. Canada achieved marginal growth in 2010-13 and plans to balance the budget by 2015. In addition, the country's petroleum sector is rapidly expanding, because Alberta's oil sands significantly boosted Canada's proven oil reserves. Canada now ranks third in the world in proved oil reserves behind Saudi Arabia and Venezuela.

 

Source : CIA


Company name

 

KARNALYTE RESOURCES INC.

 

Address:                       11410 27th Street SE, Ste 14, Calgary, Alberta T2Z 3R6 –

                                    Canada

 

Telephone:                    +1 403-995-6560

 

Fax:                              +1 403-995-1678

 

Website:                       www.karnalyte.com

 

Corporate ID#:              AB-2013635137

 

State:                           Alberta

 

Judicial form:                Public Company

 

Date incorporated:        11-16-2007

 

Stock:                           27,479,010 shares issued and outstanding

 

Market value:                 CAD 22,532,788=

 

Name of manager:         Stephen GOODMAN

 

 

ACTIVITIES & OPERATIONS

 

IST

 

Business:

 

Karnalyte Resources Inc. explores and develops agricultural and industrial potash, and magnesium products.

It intends to develop and extract a carnallite - sylvite mineral deposit.

The company owns a 100% interest in subsurface Permit KP 360A comprising 68,301 acres; and subsurface mineral lease KLSA-010 consisting of 16,825 acres located near Wynyard, Saskatchewan.

Karnalyte Resources Inc. was incorporated in 2007 and is headquartered in Calgary, Canada.

 

 

Staff:    19

 

Operations & branches:

 

At the headquarters, we find the corporate office.

 

The Company maintains an office located:

 

3150B Faithfull Avenue
Saskatoon, SK S7K 8H3
Telephone (306) 986-1486
Fax (306) 986-1495

 

 

SHAREHOLDERS & MANAGERS

 

Shareholders:

 

The Company is listed with the TSX under symbol KRN.

 

Management:

 

Stephen GOODMAN is the President and CEO.

Effective since November 14, 2014, Stephen Goodman has been appointed as the President and Chief Executive Officer, and a Director of the Corporation. Prior to joining Karnalyte, Mr. Goodman held increasingly senior positions in the banking sector. He has worked at Canaccord Genuity, KCG Holdings Inc. and most recently KGS-Alpha Capital Markets L.P. In addition, Gerald Offet was appointed a director of the corporation, also effective November 14, 2014.

 

Ronald LOVE, Executive Vice-President and Chief Financial Officer.

 

 

Subsidiaries And partnership:              None

 

 

FINANCIALS

 

On attachment:

 

- 10K 2013

 

On November 14, 2014, the company reported unaudited earnings results for the third quarter and nine months ended September 30, 2014.

For the quarter, the company reported net loss and comprehensive loss of CAD 1,480,000 or CAD 0.05 per basic and diluted share compared to CAD 2,006,000 or CAD 0.07 per basic and diluted share reported a year ago.

For the nine months, the company reported net loss and comprehensive loss of CAD 4,081,000 or CAD 0.15 per basic and diluted share compared to CAD 5,332,000 or CAD 0.20 per basic and diluted share reported a year ago.

Cash used in operating activities was CAD 2,674,000 compared to CAD 3,944,000 reported a year ago. Additions to intangible assets were CAD 219,000 compared to CAD 765,000 reported a year ago. Additions to capital assets were

CAD 1,544,000 compared to CAD 10,835,000 reported a year ago.

 

Banks:  Bank of Montreal

           

 

LEGAL FILINGS

 

Legal filings & complaints:

 

As of today date, there is no legal filing pending with the Courts.

 

Secured debts summary:   Yes

 

 

COMPANY CREDIT HISTORY

 

TRADE REFERENCES:

 

 

Date reported:               January 2015

High credit:                   CAD 30,000

Now owing:                   0

Past due:                      0

Last purchase:              December 2014

Line of business:           Payroll

Paying status:               As agreed

 

Date reported:               January 2015

High credit:                   CAD 308,000

Now owing:                   0

Past due:                      0

Last purchase:              December 2014

Line of business:           Telecommunications

Paying status:               On terms

 

DOMESTIC CREDIT HISTORY:

 

National Credit Bureaus gave a correct credit rating.

 

According to our credit analysts, during the last 6 months, domestic payments were made with an average of 2 to 5 days beyond terms.

 

 

Other comments:

 

The Company is in good standing.

This means that all local and federal taxes were paid on due date.

The risk is low.

 

Our opinion:

 

The Company reported losses for last 5 years.

 

We suggest you to be careful.

 

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.13

UK Pound

1

Rs.95.77

Euro

1

Rs.71.05

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

ASH

 

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.