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Metal miners stay firm in green with Hindustan Zinc, Vedanta, MOIL in focus

Here are Q4FY22 production numbers for the large private and state-run metal mining companies

April 05, 2022 / 10:58 AM IST
 
 
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Metal miners seem to be on a rally. Record production volumes and surging toplines have kept the stocks in the green through the last six months with the BSE Metal index gaining 13.8 percent during the period.

A look into the production figures of Indian metal mining companies for the fourth quarter of the financial year indicates that the rally will last for now.

Hindustan Zinc announced that it mined 2.95 lakh tonnes since UG transition in the fourth quarter. This is also the highest-ever mined metal production for the company during the period, with production up 17 percent over the third quarter, and up 3 percent over the previous corresponding period.

The record ore production was supported by better mining grades. Further, refined metal production in Q4 grew by 2 percent year-on-year (YoY) at 2.6 lakh tonnes, but stayed flat sequentially.

Hindustan Zinc recently also announced that it has entered into a long-term captive renewable power development plan, with a capacity of 200 MW. The project is in line with the government’s plan for ‘Net Zero’ emission. It has set an ambitious target of cutting 40 percent carbon footprint by 2030.

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The company will own 26 percent equity or up to Rs 350 crore in the Special Purpose Vehicle (SPV) which will build the project on Build Own Operate (BOO) basis. Delivery is expected within 24 months of the Power Delivery Agreement (PDA).

Hindustan Zinc shares gained 9.92 percent in the last six months.

Anil Agarwal-controlled Vedanta said in an exchange filing that it achieved the highest ever alumina production of 1.97 million tonne, while its aluminium output also rose 15 percent on-year to 2.27 million tonnes, helped by operational efficiencies.

The company's zinc output crossed 1 million tonnes in India in FY22, while its international production scaled 10 percent on-year to 2.23 lakh tonnes with a ramp-up at Gamsberg.

In the January-March period of the financial year 2021-22, the company's cast metal aluminium production at its smelters was at 572,000 tonnes, up 8 percent from 531,000 tonnes in the same quarter of the preceding fiscal.

The company also said its production of saleable iron ore in Karnataka rose by 18 percent to 1.4 million tonnes in Q4FY22 from 1.2 MT in Q4FY21. The total annual iron ore output from Karnataka mines increased by 8 per cent to 5.4 MT from 5 MT in FY21.

The stock surged over 50.19 percent in six months to March 2022.

State-owned Manganese Ore (India) posted a 22 percent rise in topline to Rs 1,436 crore in FY22 compared to Rs 1,771 crore a year ago and Rs 1,441 crore recorded in FY19, as per data from the steel ministry.

This has been the company’s historic best performance and was achieved despite the COVID-19 pandemic affecting operational activities, it said. MOIL also achieved production of 12.31 lakh tonne in FY22 compared to 11.43 lakh tonne in FY21 a 8 percent jump YoY. Total sales in FY22 increased 6 percent to 12.12 lakh tonne from 11.43 lakh tonne in FY21.

(With inputs from PTI)

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first published: Apr 5, 2022 10:58 am
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