- Highest-ever first half year mined metal production at 509 kt
- Lowest quarterly cost of $1,137/T in last 6 quarters marking the third consecutive quarter of cost optimisation
- Robust EBITDA margin of 46% and strong liquidity supported by healthy free cash flow from operations
- On track to achieve guided performance
- Project Update:
- Innovative commissioning of India’s first Fumer project: enabling waste recycling and recovery of additional silver and base metal
- Successful revamping of Rajpura Dariba Mill: resulting in better mill recovery and higher mined metal
- One of the largest Zinc alloy plant in India commissioned under the banner of Hindustan Zinc Alloys
- Progress on the new roaster at Debari and fertilizer project on track
- Only Indian company in mining sector with validated & approved SBTi targets in alignment with 1.5 °C target
- Tie up with GreenLine for 180 LNG based vehicle for logistics support providing 30% carbon footprint reduction
- 4,000 KLD Zero Liquid Discharge, first of its kind in mines installed at Zawar group of mines
Chennai: Hindustan Zinc Limited, the leading global integrated producer of zinc, lead and silver, reported its results for the second quarter and half year ended September 30, 2023.
Commenting on the performance, Mr. Arun Misra, CEO, said: “Hindustan Zinc witnessed significant milestone achievements in its expansion efforts during the quarter. I am pleased to share the commissioning of our Fumer plant, Rajpura Dariba concentrator and Zinc Alloy facility ensuring a more sustainable, circular and efficient operations. Catalysing growth, our plants and assets are also geared up to maximise performance. With delivery of steady operational performance in first half of the year and ramped up facilities, we are confident of delivering a standout financial year. Advancing swiftly towards our sustainability goals, this quarter we commissioned another 4,000 KLD zero liquid discharge plant at Zawar mines and entered in an agreement for 180 LNG vehicles for green transportation. I am happy to share that our ambitious net zero targets are now approved by SBTi making Hindustan Zinc the only Indian company in mining sector with validated targets.”
Mr. Sandeep Modi, CFO, said: “With our persistent focus on cost optimisation, operational efficiencies and working capital management, Hindustan Zinc delivered another quarter of steady margins and financial performance despite the complex economic landscape. I am happy to share that driven by our cost optimisation efforts, we have successfully achieved third consecutive quarter of sustained cost improvement and the lowest cost in last six quarters. We are well positioned to execute our strategic priorities in FY24 revolving around cost optimisation, digital advancement enhancing our competitive edge, healthy cash flows and robust balance sheet thereby generating long-term sustainable value for shareholders.”
Outlook for FY24
We would like to reiterate our guidance for FY24.
Mined metal is expected to be between 1,075-1,100 kt and refined metal production in the range of 1,050-1,075 kt. Saleable silver production is projected to be between 725-750 MT.
Zinc cost of production in FY24 is expected to be in between US$ 1,125-1,175 per MT. Project capex for the year is expected to be in the range of US$ 175-200 million.
