NMDC gains on raising iron ore prices

NMDC rose 1.99% to Rs 125.55 after the state-owned iron ore miner has increases prices of lump ore and fines, effective from 1 January 2023.

The prices of lump ore (65.5%, 6-40mm) have been increased by Rs 200 or 4.88%, to Rs 4,300 per ton compared with Rs 4,100 per ton fixed on 30 November 2022.

The prices of iron ore fines (64%, -10 mm) have been raised by Rs 500 or 17.18%, to Rs 3,410 per ton from Rs 2,910 per ton set on 30 November 2022.

Separately, miner said that its iron ore production slipped 8.6% to 3.61 million tonnes (MT) in December 2022 as against 3.95 MT in December 2021.

Iron ore sales in the month of December 2022 stood at 3.32 MT, registering a fall of 2.35% from 3.40 MT sold in December 2021.

On a sequential basis, the PSU minor's iron ore production remained constant while iron ore sales jumped 9.2% in December 2022 over November 2022.

Further, the company announced that Somnath Nandi, director (technical) of NMDC has been relieved from the services of the company on 31 December 2022 on attaining the age of superannuation. Accordingly, he ceased to be a director on the board of the company with effect from 1 January 2023.

NMDC is India's single largest iron ore producer, presently producing about 35 million tonnes of iron ore from 3 fully mechanized mines, two located in Chhattisgarh and one in Karnataka. As of 30 September 2022, the Government of India held 60.79% stake in the firm.

On consolidated basis, NMDC's net profit tumbled 58.2% to Rs 972.22 crore on 51% drop in net sales to Rs 3,328.45 crore in Q2 FY23 over Q2 FY22.

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