|
Report No. : |
310185 |
|
Report Date : |
07.03.2015 |
IDENTIFICATION DETAILS
|
Name : |
JORDAN PHOSPHATE MINES CO PLC (JPMC) |
|
|
|
|
Registered Office : |
Al Sharif Al Radi Street, No. 5,
Shmeisani, PO Box 30, Amman 11118 |
|
|
|
|
Country : |
Jordan |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
Marsh, 1949 |
|
|
|
|
Com. Reg. No.: |
16, Amman |
|
|
|
|
Legal Form : |
Public Shareholding Company |
|
|
|
|
Line of Business : |
Extraction, Processing and Export of Phosphate Rock and Phosphoric
Fertilisers. |
|
|
|
|
No. of Employees : |
3,811 |
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 : |
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) |
|
Jordan |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
JORDAN - ECONOMIC OVERVIEW
Jordan's economy is among the
smallest in the Middle East, with insufficient supplies of water, oil, and other
natural resources underlying the government's heavy reliance on foreign
assistance. Other economic challenges for the government include chronic high
rates of poverty, unemployment, inflation, and a large budget deficit. Since
assuming the throne in 1999, King ABDALLAH has implemented significant economic
reforms, such as opening the trade regime, privatizing state-owned companies,
and eliminating some fuel subsidies, which in the last decade spurred economic
growth by attracting foreign investment and creating some jobs. The global
economic slowdown and regional turmoil, however, have depressed Jordan's GDP
growth, impacting export-oriented sectors, construction, and tourism. In 2011
and 2012, the government approved two economic relief packages and a budgetary
supplement, meant to improve the living conditions for the middle and poor
classes. Jordan's finances have also been strained by a series of natural gas
pipeline attacks in Egypt, causing Jordan to substitute more expensive diesel
imports, primarily from Saudi Arabia, to generate electricity. Jordan is
currently exploring nuclear power generation in addition to the exploitation of
abundant oil shale reserves and renewable technologies to forestall energy
shortfalls. In 2012, to correct budgetary and balance of payments imbalances,
Jordan entered into a $2.1 billion, multiple year International Monetary Fund
Stand-By Arrangement. Jordan's financial sector has been relatively isolated
from the international financial crisis because of its limited exposure to
overseas capital markets. In 2013, Jordan depended heavily on foreign
assistance to finance the budget deficit, as the influx of about 600,000 Syrian
refugees put additional pressure on expenditures.
|
Source
: CIA |
Company Name :
JORDAN PHOSPHATE MINES CO PLC (JPMC)
Country of Origin :
Jordan
Legal Form :
Public Shareholding Company
Start Date :
March 1949
Registration Date :
16th February 1964
Commercial Registration Number :
16, Amman
Issued Capital :
JD 75,000,000
Paid up Capital :
JD 75,000,000
Total Workforce : 3,811
Activities :
Extraction, processing and export of phosphate rock and phosphoric
fertilisers.
Financial Condition :
Fair
Payments :
Nothing detrimental uncovered
Operating Trend : Steady
JORDAN PHOSPHATE MINES CO PLC (JPMC)
Registered &
Physical Address
Street : Al Sharif Al
Radi Street, No. 5
Area : Shmeisani
PO Box : 30
Town : Amman 11118
Country : Jordan
Telephone : (962-6) 5607141
/ 5660141 / 5607010 / 5607141
Facsimile : (962-6)
5682290 / 5691290 / 5608229
Email : admin-jmpc@nets.com.jo / jpmc@nets.com.jo / info@jpmc.com.jo
Premises
Subject operates from a large suite of offices that are owned and
located in the Central Business Area of Amman.
Branch Office (s)
Location Description
El Hassa Owned
mine
El Abiad Owned
mine
Rusifa Owned
mine
Eshidiya Owned
mine
Industrial Complex for Fertilizers Owned
fertilizer complex
Aqaba
Tel: (962-3) 2014151 / 2017004
Name Position
Amer Almajali Chairman
Jnaidi Masri Director
Talal Al Saadi Director
Abdulkareem Al
Malahmeh Director
Dr Munther Haddadeen Director
Saeed Shenan Director
Hamad Al Omar Director
Khaled Al Qouraan Director
Haitham Al Battiekhi Director
Dr Shafiq Al Ashqar Chief Executive Officer
Mohammed Baderkhan Finance
Manager
Iyad Al Azzab Operations
Manager
Suhail Musleh Marketing
Manager
Faisal Doudin Technical
Manager
Date of Establishment : Subject’s operations
date back to March 1949, however it was registered on
16th
February 1964.
History : JPMC’s operations
date back to March 1949, however is was registered and incorporated as
a
Public Shareholding Company on 16th February 1964.
On
1st May 1986, JPMC absorbed the operations of Jordan Fertiliser
Industries Company
(JFIC), whose
accumulated losses by the end of 1985 had reached JD 40.3 million. JFIC is now
operating as a division of JPMC.
Legal Form : Public
Shareholding Company
Commercial Reg. No. : 16, Amman
Issued Capital : JD 75,000,000
Paid up Capital : JD 75,000,000
Shareholders (s) Percentage
Kamil Holdings Limited 37.00%
Jersey
Ministry of Finance 26.26%
Social Security Corporation 16.03%
Kuwait Investment Authority 9.33%
Passport Global Master Fund SPC Ltd
2.77%
Islamic Development Bank 1.45%
Jeddah
Saudi Arabia
Non Jordanian investors
7.16%
· Indo-Jordan Chemicals Company Limited
· Nippon Jordan Fertilizer Company Limited
Activities:
JPMC currently operates three mines in Jordan producing phosphate rock,
with a fourth mine at Al-Ruseifa having ceased production in 1985, and a
downstream fertilizer and chemicals plant at Aqaba in the south of Jordan
producing phosphoric acid, diammonium phosphate ("DAP"), sulphuric
acid and Aluminium fluoride.
Subject was founded in 1949 with a capital of JD 1 million to exploit the
phosphate deposits in Jordan. The first mine was opened at Rusifa, north of
Amman. In the early 1960s mining commenced at El Hassa,south of Amman and in
the late 1970s the El Abiad mine was opened 20 Km north of El Hassa. In 1988
the Shidiya mine was opened. Production of fertilisers started in 1982 at
Aqaba.
The company’s proven phosphate reserves amount to over 2 billion tonnes
and could total as much as 10 billion tonnes. The Shidiya mines has proven
reserves of 1.2 billion tonnes and possible reserves of 4-5 billion tonnes,
compared with 200-300 million tonnes of proven reserves at Al Hassa and Al
Abiad.
JPMC is currently producing 6.5 million metric tons of rock phosphate
per year from various mines.
Approximately 4.5 million metric tons is exported to 20 countries
worldwide. The balance of the quantity is used for manufacturing phosphoric
acid at Aqaba complex and to supply the joint ventures as well.
JPMC currently mines and produces phosphate rock at its mines at
Al-Hassa, Al-Abiad and Eshidiya, producing various grades of phosphate rock.
JPMC is currently the only entity licensed to mine and produce phosphate rock
in Jordan. JPMC also has a dormant mine at Al-Ruseifa.
Eshidiya Mines
Eshidiya mines, which covers an area of approximately 258 square km, is
located in the south of Jordan, approximately 125 km north-east of the port at
Aqaba.
Phosphate bearing deposits were discovered in the Eshidiya region in
1975 and, following Government exploration and feasibility studies, JPMC took
over implementation of the mining project in 1987. Phosphate rock production
commenced at Eshidiya in 1988 and amounted to 3.31 million mt in the year ended
31 December 2002. JPMC estimates that the Eshidiya mining area has phosphate
bearing deposits of some 1.34 billion mt of which 810 million mt are considered
by JPMC to be "proven". JPMC believes that ongoing exploration is
likely to lead to an increase in estimated reserves in JPMC's mine at Eshidiya.
In 1999, a new deposit with 62 million mt proven reserves of a high grade were
discovered in the Upper Horizon area at Eshidiya. Production from this mine
during 2009 was 3,416,992 tonnes.
Hassa & Abiad Mines
Al-Hassa and Al-Abiad mines are located approximately 20 km apart, some 130 km south of Amman. Each of the mines has a railway terminal linking it to the port at Aqaba, 200 km to the south.
The mines at Al-Hassa and Al-Abiad, each covering an area of approximately 25
square km, were, until the development of Eshidiya in 1988, the main mining and
production sites of JPMC.
The mines at Al-Hassa and Al-Abiad produce two main grades of phosphate rock,
although selective mining and blending can produce other grades. The principal
grades produced are a standard grade 70/72 BPL, which requires only crushing
and screening followed by drying of the mined ore, and a higher grade 73/75 BPL
resulting from additional beneficiation by washing followed by subsequent
drying to reduce the moisture content to a maximum of three percent.
Production from the two mines was 491,808 tonnes (Hassa) and 1,371,893
tonnes (Abiad) during 2009.
Al-Ruseifa
The mine at Al-Ruseifa commenced production in 1935. However, owing to the
depletion of economically exploitable reserves, this mine has been dormant
since 1985 and JPMC has no plans to recommence mining operations. The total
quantity of phosphate produced during the year 2008 from this mine amounted to
44,000 tonnes, which was derived exclusively from existing stockpiles of mined
ore
Aqaba fertilizer Complex
The Aqaba fertilizer complex is located at WADI 2, 15 Km south of Aqaba
city on the Red Sea coast and approximately 360 Km south of Amman.
Production started in 1982 to produce Sulphuric acid, Phosphoric acid,
Diammonium phosphate and Aluminium fluoride.
In the early nineties JPMC decided to rehabilitate the phosphoric acid
plant and sulphuric acid plant in order to upgrade its annual production
capacity, product quality & yield. The complex now comprises the following
plants & production facilities:
- Utilities plant producing
steam, water & electricity.
- Sulphuric acid plant
rehabilitated in 1994, comprising two lines of production, producing 1.45
million tons
per year of sulphuric acid.
- Phosphoric acid plant
rehabilitated in 1993, producing 350,000 tons per year of phosphoric acid.
- Granulation plant, comprises
two lines of production, producing 650,000 tons per year DAP.
- Aluminium fluoride plant,
producing 14,000 tons per year of aluminium fluoride.
On 14th January 2015, Dr Shafiq Al Ashqar,
the CEO of the Jordan Phosphate Mines Co signed a Memorandum of Understanding
with the Indian company (GNFC) to establish a factory producing phosphoric acid
in India using around one million tons annually of the Jordanian phosphate ore.
Import Countries: Germany, the United States of America and the Far
East.
Export Countries : Subject exports approximately 85 percent of
phosphate output with a significant
portion of it going to Norway and
Asian countries, as well as Germany, Australia and
New Zealand.
Operating Trend: Steady
Subject has a workforce of 3,811 employees.
Financial highlights provided by local sources are given below:
Currency: Jordanian Dinars (JD)
Balance Sheet
31/12/13 31/12/12 31/12/11
|
Cash on Hand & at Banks |
27,675,000 |
34,675,000 |
112,169,000 |
|
Accounts Receivable, Net |
41,205,000 |
60,459,000 |
56,797,000 |
|
Notes Receivable |
0 |
0 |
0 |
|
Post Dated Cheques |
0 |
0 |
0 |
|
Short Term Investments |
1,283,000 |
196,000 |
227,000 |
|
Inventory |
272,824,000 |
232,106,000 |
130,429,000 |
|
Spare Parts |
0 |
0 |
37,614,000 |
|
397,458,000 |
379,368,000 |
376,884,000 |
|
|
Long Term Investments |
222,189,000 |
164,030,000 |
114,500,000 |
|
Fixed Assets, Net |
170,994,000 |
162,564,000 |
175,739,000 |
|
Lands |
0 |
0 |
0 |
|
Projects in Progress |
261,631,000 |
253,316,000 |
182,169,000 |
|
Total Fixed Assets |
432,625,000 |
415,880,000 |
357,908,000 |
|
Other Assets |
60,222,000 |
35,519,000 |
62,429,000 |
|
1,112,494,000 |
994,797,000 |
911,721,000 |
|
Accounts and Notes Payable |
71,616,000 |
39,683,000 |
25,314,000 |
|
Credit Banks |
87,288,000 |
12,535,000 |
16,384,000 |
|
Short Term Loans |
0 |
0 |
0 |
|
Accrued Part of Long Term Loans |
18,096,000 |
12,236,000 |
15,138,000 |
|
Total Current Liabilities |
254,572,000 |
131,911,000 |
156,228,000 |
|
Long Term Loans & Notes Payable |
58,065,000 |
46,690,000 |
33,426,000 |
|
Corporate Bonds |
0 |
0 |
0 |
|
Other Liabilities |
37,576,000 |
38,140,000 |
45,079,000 |
|
350,213,000 |
216,741,000 |
234,733,000 |
|
Authorized Capital |
75,000,000 |
75,000,000 |
75,000,000 |
|
75,000,000 |
75,000,000 |
75,000,000 |
|
|
Paid in Capital |
75,000,000 |
75,000,000 |
75,000,000 |
|
Compulsory Reserves |
75,000,000 |
75,000,000 |
75,000,000 |
|
Voluntary Reserve |
75,000,000 |
75,000,000 |
75,000,000 |
|
Other Reserves |
75,000,000 |
75,000,000 |
75,000,000 |
|
Issuance Premium |
0 |
0 |
0 |
|
Issuance Discount |
0 |
0 |
0 |
|
Treasury Stocks |
0 |
0 |
0 |
|
0 |
18,750,000 |
33,750,000 |
|
|
Proposed Stock Dividends |
0 |
0 |
0 |
|
Accumulated Change in Fair Value |
-29,000 |
-128,000 |
-25,000 |
|
453,147,000 |
451,392,000 |
334,764,000 |
|
|
753,118,000 |
770,014,000 |
668,489,000 |
|
|
Minority Interest |
9,163,000 |
8,042,000 |
8,499,000 |
|
1,112,494,000 |
994,797,000 |
911,721,000 |
Income Statement
|
Operating Revenues |
574,412,000 |
759,426,000 |
812,415,000 |
|
Operating Expenses |
471,140,000 |
478,304,000 |
493,398,000 |
|
Gross Profit |
103,272,000 |
281,122,000 |
319,017,000 |
|
General and Administrative Expenses |
20,313,000 |
20,153,000 |
15,219,750 |
|
Selling and Distribution Expenses |
48,599,000 |
56,739,000 |
15,712,000 |
|
Depreciation (Period) |
20,319,000 |
20,025,000 |
20,339,000 |
|
Other Operating Expenses |
15,683,000 |
36,314,000 |
25,786,000 |
|
Net Operating Income |
18,677,000 |
167,916,000 |
262,299,250 |
|
Other Revenues |
13,803,000 |
7,658,000 |
24,756,000 |
|
Other Expenses |
21,204,000 |
20,271,000 |
8,600,000 |
|
Income Before Interest & Tax |
11,276,000 |
155,303,000 |
278,455,250 |
|
Interest Expenses |
4,449,000 |
2,855,000 |
3,416,000 |
|
Net Income Before Tax |
6,827,000 |
152,448,000 |
275,039,250 |
|
Income Tax (Period) |
4,129,000 |
20,670,000 |
19,129,000 |
|
Income Tax (Previous Years) |
0 |
0 |
0 |
|
Universities and Research Train Fees |
0 |
0 |
0 |
|
Board of Directors Remuneration |
103,000 |
45,000 |
76,000 |
|
Net Income |
2,595,000 |
131,733,000 |
255,834,250 |
|
Minority Interest |
1,121,000 |
-457,000 |
-576,000 |
|
1,474,000 |
132,190,000 |
256,410,250 |
Local sources consider subject’s financial condition to be Fair.
Figures for the year ending 31st December 2014 were not made
available.
· Arab Bank Plc
Shmeisani Branch
PO Box: 950545 & 950544
Amman 11195
Tel: (962-6) 5607231 / 5607115
Fax: (962-6) 5606793 / 5606830
· Housing Bank
Parliament Street
PO Box: 7693
Amman
Tel: (962-6) 5667126
· Jordan National Bank
Jabal Amman Branch
PO Box: 1578
Amman 11118
Tel: (962-6) 5642391
Fax: (962-6) 5628809
Regular
JPMC is the sole entity currently operating under licence to mine and
produce phosphate rock in Jordan. In the year ended 31 December 2000, Jordan
was the sixth largest phosphate rock producer in the world, the fourth largest
exporter of phosphate rock in the world and the largest exporter in terms of
revenue in the Jordanian economy. JPMC is the largest mining and industrial
employer in Jordan.
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.
This report is produced in accordance
with and subject to the terms of an agreement between Arab Research &
Information Company Ltd (Aric Ltd) and the customer and contains unconfirmed
information compiled from third parties. Any reproduction or republication of
this report without Aric Ltd’s express written consent is prohibited. Aric Ltd
disclaims all warranties, expressed or implied, with respect to the accuracy or
reliability of the report or its fitness for any purpose.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.85 |
|
|
1 |
Rs.94.96 |
|
Euro |
1 |
Rs.69.10 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.