ArmInfo. "Zangezur Copper-Molybdenum Combine" CJSC (ZCMC) is the first company in Armenia to be assigned an international corporate rating "B2" with outlook "Stable" by Moody's Investors Service ("Moody's") , the official statement of the company reads.
"It is noteworthy that the "B2" rating with a "Stable" outlook is equal to and higher than the ratings of such international mining companies as the British First Quantum Minerals and Petropavlovsk plc, the Canadian Eldorado Gold Corporation and Taseko Mines Limited, and the American HudBay Minerals. Inc.", the statement reads.
To note, the procedure of assigning the company an international rating is related to the fact that in July the company announced its entry into the bond market, having in advance setting the amount of securities issue-50 million US dollars. The company does not provide other information about the parameters of the bonded loan. According to ArmInfo, "Ameriabank" acts as an underwriter and market-maker of bonds.
To recall, the Zangezur Copper-Molybdenum Combine operates the Kajaran Copper-Molybdenum deposit. The plant's ore sources are estimated to provide about 150 years of supply. The plant produces molybdenum and copper concentrates. Molybdenum concentrate contains 50% molybdenum, the copper content in copper concentrate is at least 15%. The copper-molybdenum concentrate produced by the company is delivered to Europe through Iran and Georgia. The company's shareholders are the German company Cronimet Mining (60%), Yerevan Pure Iron Plant OJSC (15%), Armenian Molybdenum Production LLC and Zangezur Mining LLC (12.5% each). Products processed by the plant are delivered to Europe. In the first half of 2019, the Zangezur Copper-Molybdenum Combine led the list of major taxpayers of Armenia, having paid 29.5 billion drams to the state treasury in the first half of 2019, of which 837.1 million drams - as customs duties, 17 billion drams - direct taxes ( including income tax, profit tax), 839.7 mln drams - as indirect taxes (including VAT, excise tax).
According to published data, as of January 1, 2019, the company's assets amounted to 583.2 million US dollars. Liabilities amounted to 364.1 million dollars. Net profit for 2018 amounted to 32.1 million dollars. The company recorded positive dynamics in 2017, while at the end of 2016, it had a net loss of $ 85 million. The company's revenue for 2018 amounted to 413.2 million US dollars. Last year's gross profit was $ 200.1 million. Earnings Before Interest Depreciation Taxes And Amortization (EBIDTA) was 7.77. According to the source, . To note, the rating obtained by Zangezur Copper-Molybdenum Combine CJSC (ZCMC) is two scales lower than the sovereign rating of Armenia assigned by Moody's on August 27, 2019 (Ba3 - stable outlook).