Vedanta Q2 Zinc India result update

Time:Mon, 15 Oct 2018 06:10:14 +0800

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Mined metal production from underground mines was at an all-time high of 232,000 tonnes, up 44% y-o-y and 10% q-o-q driven by 33% y-o-y increase in ore production. Total mined metal production increased by 6% y-o-y and 10% q-o-q after the closure of open-cast operations last year.

Integrated metal production was 212,000 tonnes, down 8% y-o-y and flat q-o-q . Integrated zinc production was down 16% y-o-y and 5% q-o-q to 162,000 tonnes due to temporary mismatch in zinc mined metal availability even as mine production ramped up towards the latter half of the quarter. Integrated lead production jumped by 30% y-o-y and 17% q-o-q to 49,000 tonnes. The pyro metallurgical smelter was retrofitted to produce more lead metal, considering the higher availability of lead mined metal, leading to higher lead production. Integrated silver production was a record 172 MT, up 23% y-o-y and 25% q-o-q on account of higher lead production and higher Sindesar Khurd mine production and better silver grades.

Projects Update
Capital mine development remained unchanged y-o-y at 9.8 km during the quarter and increased by 9% to 20.2 km in H1 FY2019.
Rampura Agucha underground mine continued to maintain a high total development rate at 5.3 km during the quarter. The mined metal production increased by 94% y-o-y and 35% q-o-q to 96,000 tonnes. Mid shaft loading system was commissioned at the end of quarter, allowing waste hoisting to be done through shaft ahead of schedule. This will help to improve volumes until the off shaft is fully commissioned. Off shaft development is on track and commercial production from main shaft is expected to start from Q4 FY2019.

Sindesar Khurd mine achieved 5.2 km total development during the quarter. The production shaft work is progressing well with winders commissioned in manual mode and material hoisting from shaft is expected to start in Q3 FY2019. The new 1.5 mtpa mill is expected to be commissioned in Q3 FY2019.

At Zawar, civil and erection works of the new 2 mtpa mill is on track and expected to commission by Q4 FY2019. The fumer project at Chanderiya is expected to commission in Q3 FY2019.

Planning for the next phase of expansion from 1.2 to 1.35 mtpa mined metal capacity announced in April 2018 is underway

H1 FY2019 vs. H1 FY2018
Mined metal production from underground mines for H1 FY2019 was 444,000 tonnes, 27% higher from a year ago even as the closure of open-cast operations caused total mined metal production to decline by 2% y-o-y.

Integrated metal production was 425,000 tonnes, down 7%. Integrated lead and silver production were at 91,000 tonnes and 310 MT, higher y-o-y by 25% and 22% respectively driven by higher lead mined metal production and better silver grades. Integrated zinc production was lower y-o-y by 13% in line with the availability of zinc mined metal.

Particulars (in'000 tonnes, or as stated)	Q2 ‘19	Q2 ‘18	% Change YoY	Q1 ‘19	% Change QoQ	HY ‘19	HY ‘8	% Change YoY
Mined metal content	232	219	6.00%	212	10.00%	444	452	-2.00%
Integrated metal	212	230	-8.00%	214	(1%)	425	459	(7%)
Refined Zinc - Integrated	162	192	-16.00%	172	-5.00%	334	386	-13.00%
Refined Lead – Integrated1	49	38	30.00%	42	17.00%	91	73	25.00%
Silver- Integrated (in MT)2	172	140	23.00%	138	25.00%	310	255	22.00%