|
|
|
MIRA INFORM REPORT
|
Report No. : |
495837 |
|
Report Date : |
15.03.2018 |
IDENTIFICATION DETAILS
|
Name : |
RMG GOLD SHPS |
|
|
|
|
Registered Office : |
1 M. Aleksidze Street,
Tbilisi 0160 |
|
|
|
|
Country : |
Georgia |
|
|
|
|
Financials (as on) : |
2016 [Summarized] |
|
|
|
|
Date of Incorporation : |
16.08.1995 |
|
|
|
|
Com. Reg. No.: |
23/4-6 |
|
|
|
|
Legal Form : |
Limited Liability Company |
|
|
|
|
Line of Business : |
The company is involved in the following
activities: Mining and
Smelting of Gold. |
|
|
|
|
No. of Employees : |
2,000 [Subject and RMG Copper SS] |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January
2017)
|
MIRA’s Rating : |
B |
|
Credit Rating |
Explanation |
Rating Comments |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
Maximum Credit Limit : |
LARI 10,000,000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
No Complaints |
|
|
|
|
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
|
Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
|
Georgia |
C1 |
C1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
D |
GEORGIA - ECONOMIC OVERVIEW
Georgia's main economic activities include cultivation of agricultural products
such as grapes, citrus fruits, and hazelnuts; mining of manganese, copper, and
gold; and producing alcoholic and nonalcoholic beverages, metals, machinery,
and chemicals in small-scale industries. The country imports nearly all of its
needed supplies of natural gas and oil products. It has sizeable hydropower
capacity that now provides most of its electricity needs.
Georgia has overcome the chronic energy shortages and gas supply
interruptions of the past by renovating hydropower plants and by increasingly
relying on natural gas imports from Azerbaijan instead of from Russia.
Construction of the Baku-Tbilisi-Ceyhan oil pipeline, the South Caucasus gas
pipeline, and the Baku-Tbilisi-Kars railroad are part of a strategy to
capitalize on Georgia's strategic location between Europe and Asia and develop
its role as a transit hub for gas, oil, and other goods.
Georgia's economy sustained GDP growth of more than 10% in 2006-07,
based on strong inflows of foreign investment and robust government spending. However,
GDP growth slowed following the August 2008 conflict with Russia, and sunk to
negative 4% in 2009 as foreign direct investment and workers' remittances
declined in the wake of the global financial crisis. The economy rebounded in
the period 2010-17, but FDI inflows, the engine of Georgian economic growth
prior to the 2008 conflict, have not recovered fully. Unemployment remains
persistently high.
The country is pinning its hopes for faster growth on a continued effort
to build up infrastructure, enhance support for entrepreneurship, simplify
regulations, and improve professional education, in order to attract foreign
investment and boost employment, with a focus on transportation projects,
hydropower, agriculture, and tourism. Georgia has historically suffered from a
chronic failure to collect tax revenues; however, since 2004 the government has
simplified the tax code, increased tax enforcement, and cracked down on petty
corruption, leading to higher revenues. The government has received high marks from
the World Bank for improvements in business transparency. Since 2012, the
Georgian Dream-led government has continued the previous administration's
low-regulation, low-tax, free market policies, while modestly increasing social
spending, strengthening anti-trust policy, and amending the labor code to
comply with International Labor Standards. In mid-2014, Georgia concluded an
association agreement with the EU, paving the way to free trade and visa-free
travel. In 2017, Georgia signed Free Trade Agreement (FTA) with China as part
of Tbilisi’s efforts to diversify its economic ties. Georgia is seeking to
develop its Black Sea ports to further facilitate East-West trade.
|
Source
: CIA |
COMPANY REPORT
CO. NAME: RMG GOLD SHPS (CORRECT)
LTD
RMG GOLD (REQUESTED)
ADDRESS
Street : Dimitri Aleksidze Street 1, 3rd Lane
Area : Isani-Samgori District
Town : Tbilisi 0160
Country : Georgia
Telephone : (995 32) 247 4545 / Mobile (995 591) 194
919 (Assistant
Executive Director) / (995 599) 176 611
(Corporate
Manager) / (995 595) 908 147
(Import Department)
Fax : (995 32) 291 3861
E-Mail : kmtchedlishvili@richmetalsgroup.com /
tatabukia@mail.ru
Website : www.richmetalsgroup.com
English Translation: LTD RMG GOLD
SENIOR
COMPANY PERSONNEL
Name Position
1. Jondo
Shubitidze Executive Director
2. Kakhaber
Mtchedlishvili Corporate Manager
3. Tata Bukia Assistant Executive Director
Total Employees:
2,000 (subject and RMG Copper SS)
PAYMENTS
No complaints have
been heard regarding payments from local suppliers or banks.
Subject is a member
of RMG Rich Metals Group of Companies, which is the largest group in Georgia
and Caucasus region, engaged in mining activities in Bolnisi region, Georgia.
We consider it is
acceptable to deal with subject for LARGE amounts, although it is normal accepted
practice for international suppliers to deal on secured terms with Georgian
importers.
Opinion on maximum
credit : LARI 10,000,000
Trade risk
assessment: Normal
PRINCIPAL BANKER
NAME
: BANK OF GEORGIA
JSC
Branch
: Gagarin Street 29A
Town
: Tbilisi 0160
Telephone :
(995 32) 244 4444
Fax
: (995 32) 244
4444
FINANCIAL INFORMATION
Private companies
in Georgia are not required to publish or disclose balance sheets. However, the
subject interviewed offered the following information (latest available) :
Sales : US DLRS 681,100,000 – 2016 – exact
Net Profit :
Not given but stated to be profitable
Financial year ends 31 December.
The following financial
information applies to subject’s parent company, RMG Copper SS (latest
available):
Sales : US DLRS 270,600,000 - 2015 – exact
: US DLRS 311,700,000 – 2016 – exact
Net Profit :
Not given but stated to be profitable
Total Invested
Capital :
LARI 30,000,000 – 2018/2023 – projected
New Deposit
Tetritsqaro
Financial year ends 31 December.
LEGAL STATUS AND HISTORY
Date Started : 16
August 1995
History: The
subject company was established in Georgia on 16 August 1995.
C.R. No. : 23/4-6
ID Code: 225359947
Capital: Not given
Shazguduli Pasukhismbgeblobis Sazagadoeba
(Limited Liability Company) ShPS) with the following director and shareholders:
Director
Jondo
Shubitidze
(Georgian national / Personal No.:
01008025549)
Shareholders Percentage
1. Rich Metals
Group B.V.
96.21%
The Netherlands
2. RMG Copper
SS 3.79%
Dimitri Aleksidze Street 1, 3rd Lane
Isani-Samgori District
Tbilisi 0163
Georgia
Telephone: (995 32) 247 4545
C.R. No. : 23/5-2
ID Code : 225358341
Affiliated
companies of the RMG Gold ShPS:
Associates
Subject is a member of Rich Metals Group, which includes the following
company:
Kavkasiis Samto
Jgupi ShPS
(aka Caucasian
Mining Group LLC)
Merab Aleksidze
Street 1/9
Vake-Saburtalo
District
Tbilisi 0193
Mobile : (995 595) 908 147 (Office Manager)
E-Mail : nkalichava@cmg.ge
Website : www.cmg.ge
General Director:
Jondo Shubitidze
Est.: 30 August
2011
ID Code :
404908775
Capital : LARI
1,600
Shareholder:
- Pemtilon Holding Limited
Cyprus
C.R. No.: 288293
Personal Profile
on Dmitri Troitsky:
Dmitry Troitsky is
a Russian businessperson and co-owns O'KEY Group (retail chain) along with his
partner Dmitry Korzhev. As of per Forbes list 2011, he is the 1,140th richest person
in the world and 94th richest person in Russia. Troitsky has net worth of $1.0
billion. He is a first generation entrepreneur and his wealth is self made.
Troitsky has
obtained Bachelor of Arts & Bachelor of Science degrees from Leningrad
Shipbuilding Institute. His company (O'KEY Group) was listed on London Stock
Exchange in 2010 and the current market capitalization is $3.0 billion.
Dmitry Troitsky
& Dmitry Korzhev started working together as students. Their first venture
was car sales that lead to formation of Mega-auto company in 1993. Mega-auto is
now one of the biggest car dealers in Saint Petersburg. In 1995 Dmitry Troitsky
& Dmitry Korzhev founded juice producing plant (Multon). Multon was sold to
Coca-Cola after 10 years for $500 million. In 2001 they both co-founded O-Key
chain of supermarkets.
ACTIVITIES
The company is
involved in the following activities:
Mining and
smelting of gold.
NACE Code: 0729 -
Mining of other non-ferrous metal ores
Imports from
Europe.
Exports to Europe.
Subject’s
principal buyer is Trafigura Pte Ltd (Singapore).
FACILITIES
The company has the following facilities:
Owned
premises comprising administrative offices located at the heading address.
REGISTERED OFFICE
1 M. Aleksidze Street
Tbilisi 0160
SPECIAL NOTES
You enquired on: LTD
RMG GOLD. Please note that this name
applies to an English translation of the subject’s name. Subject’s correct
registered name is as per heading.
The address given by you: 1 M. ALEKSIDZE STR., 0160 TBILISI, GRUZJA is misspelt. Please note that the correct spelling is as per heading.
The telephone
number given by you: +995-322913861 applies to subject's fax number. Please note that subject's
administrative office telephone number is as per heading.
Interviewed: Tata
Bukia (Assistant Executive Director).
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 64.99 |
|
|
1 |
INR 90.83 |
|
Euro |
1 |
INR 80.58 |
|
GEL [LARI] |
1 |
INR 26.64 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
PRI |
|
|
|
|
Report Prepared
by : |
TPT |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on
secured terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.