Hindustan Zinc logs 3% y-o-y growth in mined metal production at 2,55,000 tonnes; stock gains ~2%

4 Oct 2022 , 02:17 PM

Hindustan Zinc Limited announced its production figures for the second quarter and half-year ending September 30, 2022, on Monday.

The company has reported the highest-ever second-quarter mined metal output of 2,55,000 tonnes, up by 3% year-on-year, on the back of increased grades and mill recoveries. Better grades accounted for the majority of the 1% sequential gain.

Refined metal output was 2,46,000 tonnes, up by 18% yoy, due to increased smelter performance, improved mined metal supply, and base effect from the previous year’s prolonged maintenance outage.

However, refined metal was down 6% QoQ due to decreased roaster availability because of the collapse of an acid storage tank at the Chanderiya facility in 2QFY23 and the time required to ramp up output after restoration, stated the company.

Integrated zinc production was at 1,89,000 tonnes, up 16% yoy and down 8% QoQ. Refined lead production was 57,000 tonnes up 21% yoy and 5% QoQ. Saleable silver production was 6.2 million ounces, up 28% yoy and 10% QoQ in line with lead metal production and WIP liquidation.

For H1FY23, mined metal production stood at 5,07,000 tonnes, 8% higher yoy. It was on account of an increase in ore production, further supported by better grades & improved operational efficiency.

H1FY23 integrated zinc output stood at 3,95,000 tonnes, up by 13% on a y-o-y basis, while refined lead production was 110,000 tonnes, up 16% yoy. In accordance with lead metal output, saleable silver production was 11.9 million ounces, up 19% year on year.

The company stated that Wind power generation for Q2FY23 was reported at 124 MU, down by 20% yoy & 17% sequentially, owing to lower wind velocity & seasonality impact.

At around 2.20 PM, Hindustan Zinc was trading at Rs270.55 up by 1.88% from its previous closing of Rs265.55 on the BSE. The scrip touched intraday high and low of Rs276.10 and Rs266.20 respectively.

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