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MIRA INFORM REPORT
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Report No. : |
509539 |
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Report Date : |
23.05.2018 |
IDENTIFICATION DETAILS
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Name : |
LYDIAN ARMENIA CJSC |
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Registered Office : |
Vazgen
Sargsyan Street 26/1, 7th Floor, Kentron District ,Yerevan 0010 |
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Country : |
Armenia |
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Financials (as on) : |
31.12.2016 |
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Date of Incorporation : |
13.10.2005 |
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Com. Reg. No.: |
264.120.07314 |
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Legal Form : |
Closed Joint Stock Company |
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Line of Business : |
Subject
is a mineral exploration and development company. |
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No. of Employees : |
73 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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Maximum Credit Limit : |
DRAM 50,000,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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Armenia |
B2 |
B2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
ARMENIA - ECONOMIC OVERVIEW
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Source
: CIA |
Company
name
Lydian
Armenia CJSC (Correct)
LYDIAN
ARMENIA JSC (Requested)
ADDRESS
Street : Vazgen Sargsyan Street 26/1, 7th
Floor
Area : Kentron District
Town : Yerevan 0010
Country : Armenia
Telephone : (374 10) 546 037 / Mobile (374 43) 404 748
(Chief Accountant)
Fax : (374 10) 546 037
E-Mail : armen.martirosyan@lydianinternational.co.uk
Website : www.lydianarmenia.am
Extended Name : Lydian Armenia Closed Joint Stock Company
SENIOR
COMPANY PERSONNEL
Name Position
1. Dr.
Hayk Aloyan Managing Director
2.
Armen Martirosyan Financial Manager
3.
Tomas Merikyan Chief Accountant
Total
Employees : 73
PAYMENTS
No
complaints have been heard regarding payments from local suppliers or banks.
We
consider it is acceptable to deal with subject for MEDIUM amounts,
although
it is normal accepted practice for international suppliers to deal on secured
terms with Armenian importers.
Opinion
on maximum credit : DRAM 50,000,000
Trade
risk assessment: Normal
PRINCIPAL BANKERS
NAME :
AMERIABANK CJSC
Branch : Vazgen Sargsyan Street 2
Town : Yerevan 0010
Telephone:
(374 10) 561 111
Fax : (374 10) 561 111
FINANCIAL INFORMATION
Balance
Sheets as at 31 December 2016 showed (latest available) :
31/12/2016 31/12/2015
(in US DLRS)
Assets
Non-Current
Assets
Property
and equipment
7,199,289 5,419,459
Intangible
assets 142,191 35,226
Exploration
and evaluation assets
- 56,715,957
Development
assets
89,561,882 -
Derivative
asset
7,591,789 -
Prepayment
made 1,168,575 -
Receivables
from the State budget
4,767,007 3,637,859
Deferred
financing costs
18,057,861 -
Total
Non-Current Assets
128,488,594 65,808,501
Current
Assets
Inventories 247,466 128,366
Accounts
receivable
4,760,455 25,653,338
Borrowings
provided
- 5,873
Term
deposits 8,391 8,269
Cash
and bank balances
51,448,271 48,116
Total
Current Assets
56,464,583 25,843,962
Total
Assets
184,953,177 91,652,463
Equity
and Liabilities
Capital
and Reserves
Share
capital
207 275
Capital
contribution
95,394 125,095
Foreign
currency translation reserve
- 4,160,233
Accumulated
loss
(15,617,186) (24,782,226)
Total
Capital and Reserves
(15,521,585) (20,496,623)
Non-Current
Liabilities
Stream
liability
60,268,697 -
Payables
to related parties
33,105,438 20,406,139
Derivative
liabilities
21,177,962 -
Bank
loans
10,847,196 -
Payables
to the State budget
191,447 -
Restoration
liabilities
451,782 338,497
Total
Non-Current Liabilities
126,042,522 20,744,636
Current
Liabilities
Borrowings
70,654,207 66,275,988
Tarde
and other payables
3,778,033 202,874
Payables
on stream agreement
- 24,925,588
Total
Current Liabilities
74,432,240 91,404,450
Total
Equity and Liabilities
184,953,177 91,652,463
Income
Statement
Employee
benefits
(247,745) (479,786)
Administrative
and general expenses
(130,268) (386,868)
Consulting
and hospitality costs
(764,169) (242,223)
Depreciation
and amortization expenses
(16,736) (25,733)
Other
operating expenses
(144,677) (111,449)
Grants
and donations
(114,185) (321,764)
Operating
income 145,098 26,314
Loss
from operations
(1,272,682) (1,541,509)
Finance
income
107,471 18,431
Gain
on financial instruments at fair value 5,267,007 -
Foreign
currency exchange gain, net
1,177,248 1,018,443
Profit
(loss) before income tax
5,279,044 (504,635)
Income
tax expense
- -
Profit
(loss) for the year 5,279,044 (504,635)
Financial
year ends 31 December.
LEGAL STATUS AND HISTORY
Date
Started : 13 October 2005
History
: The subject company was established in Yerevan on 13 October 2005. On 15 April
2006, subject received an exploration license for the complex research of
quartzite properties in the area of Amulsar in Vayots Dzor region from the
Ministry of Natural Protection of the Republic of Armenia. Subject is a legal
successor of Geoteam CJSC that was incorporated in 2005 and after an extensive
campaign of geological exploration in Armenia discovered what is now Lydian
Armenia’s flagship project.
C.R.
No. : 264.120.07314
Tax
No.: 00091919
Authorised
Capital : US DLRS 207
Paid-Up
Capital : US DLRS 207
Closed Joint Stock Company with the
following sole shareholder :
Lydian
International Limited 100%
Bourne
House 1st Floor
Francis
Street
St
Helier
Jersey
JE24QE
Channel
Islands
Affiliated
company of the subject company :
Associate
Lydian International Ltd
5655 S
Yosemite Street
Suite
400
Greenwood
Village, Co 80111
USA
ACTIVITIES
The
Company is involved in the following activities :
Subject
is a mineral exploration and development company.
Subject
is carrying out geological exploration in the Amulsar area of RA Vayots Dzor
Marz since 2006. Located along a high ridge top on the border of RA Vayots Dzor
and Syunik Marzes, the Amulsar deposit is 170 km south of Yerevan.
Subject
expects to extract annually some 10 million tons of ore containing 7.8 tons of
gold from Amulsar gold deposit for the rather short period of eleven years.
Amulsar license covers a total of 65 km2. Initially it was planned that around
426 million USD of capital investment will be spent on the project during the
first two years of its life. According to Lydian’s calculations, over the life
of the mine it will contribute around 488 million USD to the state budget
through taxes and royalties. Its total contribution to Armenia’s GDP annually
will be around 185 million USD or 1.4% of GDP.
The
project is expected to move into the development and construction stage mid
2016 targeting first gold production in early 2018. The Armenian Environmental
Impact Assessment was approved by the Ministry of Nature Protection (MNP) in
October 2014. The Mining Right for the Amulsar Gold Project was approved by the
Ministry of Energy and Natural Resources of Armenia in November 2014
NACE
Code: 0899
Imports
from USA and Europe.
Subject
does not export, all sales are domestic.
FACILITIES
The
Company has the following facilities :
Rented
premises comprising administrative offices located at the heading address as
well as a geological exploration area located elsewhere in the Amulsar area of RA
Vayots Dzor Marz.
REGISTERED OFFICE
Vazgen
Sargsyan Street 26/1, 7th Floor
Kentron
District
Yerevan
0010
SPECIAL NOTE
You
enquired on: LYDIAN ARMENIA JSC. Please note that the correct name is as per
heading.
Interviewed:
Armen Martirosyan (Financial Manager).
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 68.02 |
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1 |
INR 91.25 |
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Euro |
1 |
INR 80.07 |
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AMD |
1 |
INR 0.14 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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NIY |
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Report Prepared
by : |
KET |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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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.