Hindustan Zinc announces first quarter financial results: Record production of refined metals and silver, net profit of Rs 1,983 crore

Major achievements of the first quarter of the financial year:-
Mined Metal Production: 221kt
Refined Metal Production: 236KT
Production of salable silver: 161 tonnes
Zinc COP: $1070 (Dollar) per ton
Udaipur, 22 July 2021: Hindustan Zinc, a leading global integrated producer of zinc, lead and silver, announced its first quarter financial results on 30 June 2021.
On the performance of the first quarter, CEO Arun Mishra said, “We have once again produced a record production of ore, refined metals and silver in the first quarter. After exiting the run-rate of 1.2 MTPA in the year 2021, we have maintained the pace of production and despite the increase in cases in the second wave of the covid pandemic, yr in the first quarter of 15 per cent, refined metal There has been an increase of 17 percent in India and 37 percent in silver. In addition to outstanding operational performance, I am pleased to share that Hindustan Zinc has been awarded the ‘Most Sustainable Company in the Mining Industry-2021’ award from the World Finance Sustainability Awards-2021. Also, our Rampura Agucha mine has won CII’s ‘Best Application and Use of Renewable Energy’ award in the 5th edition of National Energy Efficiency Circle-2021.

Vinay Jain, Senior Vice President and Head Finance, Hindustan Zinc said, “We have delivered the best ever Q1 Revenue, EBITDA and Profit After Tax. Our strong balance sheet enables us to make active investments in operations and digitization which will further drive our mining production. We recognize the constraints posed by rising raw material prices and are redoubled our efforts to address them through long-lasting structural cost initiatives. Additionally, we remain committed to our ESG goals and will continue to deploy the necessary resources towards them. Cost leadership and increased focus on profitability, while building a sustainable business, will ensure long-term value for all stakeholders.

operational performance
Mined metal production in the first quarter stood at 221kt, up 9 per cent over the same period last year, partially offset by higher ore production with slightly lower composite grades. Sequentially, MIC production resulted in 23 per cent lower ore production and overall grades.

In the first quarter of the financial year, the integrated metal production stood at 236KT, an increase of 17 percent over the previous year, due to higher availability of mined metal. Integrated zinc production stood at 188KT which is 20 per cent higher than the same period last year. Integrated lead production stood at 48 kt which is 9 per cent higher than the same period last year.

Integrated silver production stood at 161 tonnes, up 37 per cent over the previous year; Higher lead production was partially offset by lower grades in SK.
financial performance
6,378 crore during the first quarter of operations, which is 64 percent higher than the corresponding period last year, due to higher metal volume, higher prices of zinc and silver. Zinc sales grew 15 percent and lead 9 percent in the quarter, driven by higher production and strong demand.

EBITDA in the first quarter of the financial year stood at Rs 3,558 crore, which is 123 per cent higher than the previous year. Higher EBITDA in LME over last year has been due to increase in zinc, lead and silver prices and higher metal.

The company has earned a net profit of Rs 1,983 crore in the first quarter of the financial year, showing an increase of 46 percent over the previous year. The increase in net profit has been mainly due to correction in metal prices and higher volumes.

We maintain our guidance below on operational and financial metrics for fiscal year 2022. In respect of Input Commodity, the Management is closely monitoring the situation and taking necessary action to tackle the same.
The production of both mined and finished metals is expected to be 1025.1050 K in the financial year 2022.
The production of salable silver in the financial year 2022 is expected to be ₹720.
The cost of production of zinc in the financial year 2022 is likely to be less than $ 1000 (dollar) per metric ton.
The project capital expenditure for the financial year is expected to be around US$ 1000.

The digitization drive will continue in all the mines during the quarter of the financial year. Initiatives like installation of Digital Control Room with short interval control to reduce stop cycle time, online analyzer for Imperity Tracking to maintain high current capability are in progress.
After integration, shafts at Rampura Agucha mine and Sindesar Khurd mine are fully operational. Ventilation and cooling systems (chiller units) have been installed to facilitate this in a comfortable manner. In addition, there is an increasing use of Advanced Process Control (APC) in both SK and RD mills for grinding purposes to improve recovery.

Apart from the restrictions related to Kovid-19, strict visa guidelines for Chinese citizens remained in this quarter, due to which the commissioning of the Fumar plant in Chanderia was delayed. The Fumar plant is likely to be commissioned by the end of November 2021.

cash and investment
The company’s gross cash and cash equivalents in the fourth quarter as on June 30, 2021 stood at Rs. 22,308 crores which was Rs. 23,902 crores.

The company’s net cash and cash equivalents in the fourth quarter as on June 30, 2021 stood at Rs. 15,130 crores which was Rs.15,130 crores in the quarter, this figure was Rs. 17,249 crore and invested in high quality debt instruments.

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