In Q3, the average zinc prices on the London Metal Exchange at $2,388 a tonne was down 9 per cent year-on-year (YoY); sequentially, it was up marginally by 2 per cent
As per World Silver Survey 2019 by The Silver Institute, Hindustan Zinc is now the ninth-largest producer of the metal in the world, placing India among the top 10 silver producing countries.
Integrated metal production was 2,10,000 tonnes for the quarter, almost flat from a year ago
At present, the company is in the final leg of plan to raise capacity to 1.2 million tonnes, from 0.8 million tonnes
HZL is currently using line-of-sight drones while it waits to try fully autonomous drones by next year
Rising volumes and stable costs should support earnings despite volatile base metal prices
Digitisation has also helped the firms enhance safety and recovery, besides paring costs and improving logistics
Lower volumes, weak realisations and higher costs impacted the company's performance in the March quarter
Also, India has become the 12th largest silver producer in the world, from last year's position of 13
The company, which is a low cost producer, is changing its mining methodology from open cast to underground mining
The stock hit 52-week low of Rs 257, down 4 per cent on BSE, after the company reported 4 per cent year-on-year decline in net profit at Rs 2,211 crore in December quarter.
The company has seen softness in the first half of FY19 in terms of production volumes
Lower zinc prices and volumes, and rising cost of production affected performance
Hindustan Zinc today said its board has extended tenure of Sunil Duggal as CEO & whole-time Director of the company till 2020. "The board of directors has approved extension in the tenure of Sunil Duggal as CEO & whole-time Director of the Company from October 1, 2018 to July 31, 2020 on the existing terms and conditions," Hindustan Zinc said in a BSE filing. Duggal joined Hindustan Zinc in 2010 as executive director and became COO in 2012. In the year 2014, he was designated as Deputy CEO of Hindustan Zinc. He was appointed as CEO of Hindustan Zinc in 2015. The company is an integrated producers of zinc-lead and a leading producer of silver.
Shortage seen offsetting price volatility due to trade war
Metal production in the June quarter fell by 9 per cent year-on-year and 17 per cent, sequentially after closure of open-cast mining
Volume and costs are expected to improve going forward, but trade war concerns might keep base metal and stock prices volatile in the near term
While the company's fourth-quarter may be a blip, the road ahead looks good given the announcement of its next phase of expansion
HZL, that produces over 95 per cent of primary silver in India, is the 10th largest silver producer in the world
Hindustan Zinc is one of the largest integrated producers of zinc-lead with a capacity of 1.0 million MT per annum