Hindustan Zinc Limited (“HZL” or the “Company”) today announced results for the first quarter (“Q1”) ended 30 June 2012.
HIGHLIGHTS OF THE QUARTER
Net profit up 6% to Rs. 1,581 Crore
Refined Lead up 91% from a year ago
Silver production up 75% from a year ago
Cash and cash equivalents of Rs. 19,404 Crore, as at 30 June 2012
HZL Chairman, Agnivesh Agarwal said"“During the first quarter of FY 2013, we ramped up Sindesar Khurd mine (SKM) resulting in a strong 70%+ increase in integrated Lead and Silver production. Ore production at SKM has increased to more than 1.5 times from a year ago. SKM’s steady ramp-up and low cost of production reflect high mechanisation of our operations, which will be emulated at all our future underground mining projects”, said Mr. Agnivesh Agarwal, Chairman of Hindustan Zinc.
Mined metal production during the quarter was in line with current year’s mine plan at 187,000 tonnes, compared to 188,000 tonnes in the corresponding prior quarter. Mined metal output at Sindesar Khurd mine increased by around 60% from a year ago, offsetting lower output from Rampura Agucha mine. In line with the mine plan and as announced earlier, production in H1 FY2013 is expected to be marginally lower than H1 FY2012, but will be more than made up in H2 FY2013.
Refined Lead production and refined Silver production in Q1 FY2013 increased by 91% and 75% from a year ago, to 31,000 tonnes and 82 tonnes respectively. The increase was primarily due to ramp-up of SK mine and stabilization of the new Lead & Silver refining capacities. Refined Zinc production was 161,000 tonnes, in line with the anticipated mine production and our guidance.
Revenues for Q1 FY2013 were Rs. 2,713 Crore, down 4% compared to the corresponding prior quarter. During the quarter, the positive impact of higher Lead-Silver volumes and Rupee depreciation was offset by lower Zinc volume, LME prices of Zinc & Lead and LBMA price of Silver.Net profit for the quarter was up 6% at Rs. 1,581 Crore, compared to the corresponding prior quarter.The Zinc COP, excluding royalty, during the quarter was Rs. 45,759 per MT ($844), compared to Rs. 39,117 ($874) in the corresponding prior quarter. The increase was due to higher prices of consumables due to Rupee depreciation and lower metal production.
During the first quarter of FY 2013 we continued to invest in our mining assets achieving significant progress in the underground mine development at Rampura Agucha and are progressing well in Kayar mine development. We expect developmental ore from RA underground mine and Kayar mine in the second half of FY2013. Commercial production from both these mines will start next year.We are in the final stages of developing technical feasibility of our next phase of expansions.
LIQUIDITY AND INVESTMENTS
As at 30 June 2012, the Company had cash and cash equivalents of Rs. 19,404 Crore. This includes Rs. 10,540 Crore in debt mutual funds, Rs. 1,540 in bonds and Rs. 7,310 Crore in fixed deposits with banks. The Company follows a conservative investment policy and invests in high quality debt instruments.