MIRA INFORM REPORT

Report No. :	308310
Report Date :	23.02.2015

IDENTIFICATION DETAILS

Name :	MOLIBDENOS Y METALES S.A.
Registered Office :	Camino Nos a Los Morros N° 66, San Bernardo
Country :	Chile
Date of Incorporation :	28.05.1905
Legal Form :	Sociedad Anonima
Line of Business :	Metal Ore Mining Industry
No. of Employee :	2 650

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	Regular
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)
Chile	A1	A1

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

CHILE ECONOMIC OVERVIEW

Chile has a market-oriented economy characterized by a high level of foreign trade and a reputation for strong financial institutions and sound policy that have given it the strongest sovereign bond rating in South America. Exports of goods and services account for approximately one-third of GDP, with commodities making up some three-quarters of total exports. Copper alone provides 19% of government revenue. From 2003 through 2013, real growth averaged almost 5% per year, despite the slight contraction in 2009 that resulted from the global financial crisis. Chile deepened its longstanding commitment to trade liberalization with the signing of a free trade agreement with the US, which took effect on 1 January 2004. Chile has 22 trade agreements covering 60 countries including agreements with the European Union, Mercosur, China, India, South Korea, and Mexico. Chile has joined the United States and nine other countries in negotiating the Trans-Pacific-Partnership trade agreement. The Chilean Government has generally followed a countercyclical fiscal policy, accumulating surpluses in sovereign wealth funds during periods of high copper prices and economic growth, and generally allowing deficit spending only during periods of low copper prices and growth. As of 31 December 2012, those sovereign wealth funds - kept mostly outside the country and separate from Central Bank reserves - amounted to more than $20.9 billion. Chile used these funds to finance fiscal stimulus packages during the 2009 economic downturn. In May 2010 Chile signed the OECD Convention, becoming the first South American country to join the OECD.

Source : CIA

STATUTORY INFORMATION
Legal Name:	MOLIBDENOS Y METALES S.A.
Trade Name:	Molymet
RUT:	93.628.000-5
Date Created:	1975
Date Incorporated:	28/05/1905
Legal Address:	Camino Nos a Los Morros N° 66, San Bernardo, Chile
Operative Address:	Camino Nos a Los Morros N° 66, San Bernardo, Chile
Telephone:	+(56-2) 2937 6600
Fax:	+(56-2) 2937 6653
Legal Form:	Sociedad Anonima
Email:	info@molymet.cl
Registered in:	Chile
Website:	www.molymet.com
Contact:	Carlos Hurtado Ruiz-Tagle
Staff:	2 650 employees
Activity:	Metal Ore Mining Industry
BANKS
	Santander Rio
	The company does not make its banking data public
HISTORY
	Molibdenos y Metales S.A. was formed in 1975 after the division of Carburo y Metalurgia S.A., taking the visionary path of the production and sale of molybdenum oxide, ferromolybdenum and their by-products, while Carburo y Metalurgia maintained its production lines of calcium carbonate and basic ferroalloys. Subsequently, through its globalization process, Molymet acquired Molymex S.A. in 1994 from C.V. in the area of Cumpas, Sonora, Mexico. In 2000 Molymet Corporation was formed in Baltimore, USA: in 2001 CM Chemiemetall GMBH was bought in Bitterfeld, Sajonia-Anhalt, Germany. They acquired Sadaci N.V. in the Port of Ghent in Belgium in 2003 and at the end of 2005 they formed Molymet Services Ltd in the UK. In 2010 Molynor plant began operations at the port of Mejillones, located at Chile's second region and during this year Molymet through ChinaMoly makes a 50% Joint Venture with the company Luoyang High-Tech from China. In March 2012, Molymet enters into the ownership of Molycorp, where its share is 20.82%. For Molymet, the share in the Rare Earths industry is the foundation to consolidate its worldwide leadership in the sector of strategic metals.
PRINCIPAL ACTIVITY
	Molibdenos y Metales SA is a company engaged in the treatment and processing of molybdenum and related products, which are used in a range of industrial activities. The Company offers Molybdenum- and Rhenium-based products to different industries, such as the iron and steel industry, the chemical industry, the metal/superalloy industry and others.
Products/Services description:	Ammonium Dimolybdate - ADM, Ammonium Heptamolybdate - AHM, Ammonium Perrhenate, Ferromolybdenum, Molybdenum Dioxide, Molybdenum Metal Briquettes, Molybdenum Metal Briquettes Vacuum Grade, Molybdenum Metal Powder, Molybdenum Metal Powder High Density, Pure Molybdic Oxide - Floury Grade, Pure Molybdic Oxide - Sandy Grade, Rhenium Metal - Briquettes, Rhenium Metal - Powder, Special Molybdenum Products, Technical Molybdic Oxide - Briquettes, Technical Molybdic Oxide - High Solubility, Technical Molybdic Oxide - Powder
Brands:	MOLYMET
Sales are:	Wholesale
Clients:	C. Steinweg (Handelsveem BV), C.Steinweg (Baltimore) Inc.
Suppliers:	Minerales Del Sur S.A.,
Operations area:	National and International
The company imports from	Sweden, Netherlands, Kenya, USA, Mexico, China, Denmark, Saudi Arabia.
The company exports to	America
The subject employs	2 650 employees
Payments:	Regular
LOCATION
Headquarters :	Camino Nos a Los Morros N° 66, San Bernardo, Chile
Branches:	Molymet Nos, Molynor, Molymex, Sadaci, Chemiemetall, Louyang
Industry:	Companies in this industry develop mine sites, mine and quarry metallic minerals, and prepare minerals for sale. Demand is driven by industrial production and economic growth, both domestic and foreign. Individual company profitability depends on volume and operating efficiency. Large companies can afford to discover and develop new deposits and increase reserves. Small companies typically own just one mine, limit exploration to that one property, and operate it as efficiently as possible. Major US products include copper and nickel ores (40 percent of revenue); gold ore (25 percent); and iron ore (10 percent). Iron ore is used to make steel for many industries. Precious metals such as gold and silver are used in jewelry and electronics; copper is commonly used in construction.
GROUP STRUCTURE AND SUBSIDIARY COMPANIES
Listed at the stock exchange:	YES
Capital:	USD 422 187 000
Shareholders %:	Plansee Ltda. 20.04%, Nueva Carenpa S.A 9.75%, Inversiones Lombardia S.A 9.11%, The Atlantic S.A 7.58%, Fundacion Gabriel y Mary Mustakis 5.98%, Phil White International Corp. 4.48%, Ed Harvey Trust Corp 4.48%, Oswald Wagner Trust Co. Inc 4.48%, Marea Sur S.A 3.97%, Inversiones Octay Limitada 3.88%
Management:	Carlos Hurtado Ruiz-Tagle President, George Anastassiou Mustakis Vice-President, Raúl Alamos Letelier Director, José Miguel Barriga Gianoli Director, Gonzalo Ibáñez Langlois Director, Jorge Gabriel Larraín Bunster Director, Alberto Pirola Gianoli Director, Michael Schwarzkopf Director, Eduardo Guilisasti Director, Bernhard Schretter John Graell Moore Executive Chairman, Héctor Garrido Sepúlveda Vice-President of MolymetNos, Gonzalo Bascuñán Obach Vice-President of Commercial, Francisco Fernández Cañas Vice-President of Management Control, Carlos Letelier González Vice-President of Fabricated Molybdenum Products, Gonzalo Concha Parada Vice-President of Engineering, Jorge Ramírez Gossler Vice-President of Finance, Manuel Guzmán Manzo Vice-President of Research, Development and Technological Innovation, Alfredo Ortega Director Manager.
Related Companies:	MolymetNos (Santiago de Chile) and Molynor (Mejillones in northern Chile); Molymex (Sonora State in Mexico); CM Chemiemetall (Bitterfeld in Germany) and Sadaci (in the Port of Ghent, in Belgium)
FINANCIAL INFORMATION
	This is a private company which does not make its financial statements public. The following data has been provided by outside sources.
	2013 M USD CURRENT ASSETS Cash and cash equivalents 173 901 Other current financial assets 51,169 Other non-financial assets, current 3,560 Accounts receivable and other current receivables 8 95,236 Accounts receivable from related parties, stream 9 1,667 Inventories 10 254 413 Current tax assets 5,411 11 Total current assets 585,357 NON-CURRENT ASSETS Other non-current financial assets 20,405 Other non-current financial assets 240 Trade receivables and other non-current receivables 751 Accounts receivable from related parties, not current 206 - Non-current inventories 24,498 Investments accounted for using the equity method 581 948 Intangible assets other than goodwill 2,014 Property, Plant and Equipment 475 028 Non-current biological assets 29,024 Deferred tax assets 38,771 Total non-current assets 1,172,885 Total assets 1,758,242
	Chilean company with a capacity of 204 million pounds a year.
LEGAL FILINGS
	There are no legal connected to the subject
SUMMARY
	Molibdenos y Metales S.A. is engaged in the treatment and processing of molybdenum and related products used in various industrial activities.
	The Company has reached revenues of USD 800 000 000 with a large sized structure and no negative.
RISK INFORMATION
DEBTS	Controlled
PAYMENTS	Normal
CASH FLOW	Regular
STATUS	Active
INTERVIEW
NAME	NA
POSITION	NA
COMMENTS	The person contacted only confirmed activity and president. She refused to confirm more data.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.25
UK Pound	1	Rs.96.01
Euro	1	Rs.70.72

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	ANK

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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