Oct 21 2010
Hindustan Zinc Limited today announced its results for the second quarter and half year ended 30 September 2010.
Operational Performance
During Q2, the company achieved its highest ever zinc and lead mined metal production at 204,836 tonnes, up around 6% compared with the corresponding prior quarter, primarily on account of stabilization of the new concentrator at Rampura Agucha.
During the same period, zinc refined metal production was highest ever at 176,239 tonnes, up around 25% compared with the corresponding prior quarter. The increase in the production was primarily on account of contribution from the new 210 ktpa Hydro Zinc smelter at the Dariba, which contributed around 39,000 tonnes in Q2.
Refined Lead metal production increased 20% to 16,167 compared with the corresponding prior quarter.
Refined silver production during Q2 was 43,953 kilograms, an increase of around 9% compared with the corresponding prior quarter. The increase in production was primarily on account of higher silver content in the mined ore and improved plant efficiencies.
Financial Performance
Revenues and net profit for Q2 were Rs 2,163 Crore and Rs 949 Crore, an increase of around 21% and 2% respectively, compared with the corresponding prior quarter. The increase was primarily on account of higher volumes and improved LME prices. The silver realization for Q2 was Rs 108 crores.
The positive impact of higher volumes and improved LME prices was partly offset by the impact of increase in coke and coal costs, increase in commodity prices and higher stripping cost at mines. As a result of the same, net zinc metal cost with royalty, during the quarter was Rs. 45,000 per MT (US$ 977), an increase of 21% compared with the corresponding prior quarter.
During Q2, average zinc and lead LME prices were $2,013 per tonne and $2,032 per tonne respectively, compared with $1,757 per tonne and $1,925 per tonne, in the corresponding prior quarter.
Expansion Projects
The 100 ktpa lead smelter at the Dariba Smelting Complex is expected to be commissioned by Q3 FY11. Primary mine development activity at Sindesar Khurd Mine (SKM) project is also on schedule. The new 1.50 mtpa mill at SKM is expected to commence production by end of Q3 FY11. We remain on track to achieve a capacity of 500 tonnes of silver by FY 2013.
Liquidity and investment
Company follows a conservative Investment Policy and invests in high quality Debt instruments in Mutual Fund and Fixed Deposit with Bank. As at 30 September 2010, the Company had cash and cash equivalents of Rs. 12,213 Crore, out of which Rs. 7,438 Crore was invested in debt mutual funds and Rs. 4,775 Crore were in fixed deposits with Banks.