Hindustan Zinc Sees Metal Production Decline, Eyes Strategic Expansion

3 Oct 2023 , 12:17 PM

Hindustan Zinc shares dip 0.45% on Oct 3 after announcing a decline in metal production for Q2 of the current fiscal year. Mined metal production drops by 1% YoY to 252 kilo tonnes due to lower ore production at key mines, partially offset by improved metal grades.

Refined metal production falls by 2% YoY to 241 kilo tonnes due to scheduled maintenance activities. Integrated zinc production decreases by 2% for the same period, while refined lead production remains flat compared to Q2FY23.

Wind power generation increases by 27% YoY to 157 MU in Q2FY24, attributed to higher wind velocity and seasonality. Hindustan Zinc CEO highlights the potential of the company’s silver business vertical in unlocking higher value, emphasizing its uniqueness as the sole silver producer in India.

The proposed Vedanta demerger is seen as a means to ease government disinvestment and maximize value through separate silver and recycling entities, attracting higher PE multiples. The strategy aims to enhance zinc capacities both organically and inorganically, aspiring to become the leading Zinc & Lead producer.

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