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Bemax Resources Ltd.
Standard & Poors, May 2011
Abstract
Weak earnings and highly leveraged credit metrics Lack of business and asset diversity, although diversity should improve after the commissioning of the Snapper mine Exposure to commodity price volatility, particularly zircon Ownership by Cristal, an industry player and the second-largest producer of titanium dioxide in the world Adequate liquidity Good-quality reserves with high mineral grades The 'B-' issuer credit rating on Bemax Resources Ltd., an Australian-based miner of mineral sands and zircon, reflects our view of the company's historically weak earnings, highly leveraged credit metrics, lack of business and asset diversity, and exposure to volatile commodity prices. Partly offsetting these weaknesses is the company's ownership and support by an industry player-Cristal (not rated). We view Bemax as strategically important to...
Companies mentioned in this report are: Bemax Resources Ltd.
Action: Review
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Full Analysis
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