Hindustan zinc held a conference call on 21 January 2022 to discuss the results for the quarter ended Dec'21 and way forward. Mr. Arun Misra- Chief Executive Officer and Mr. Sandeep Modi - Interim CFO of the company addressed the call.

Highlights of the Concall

• Integrated metal production was 261000 tonne for the quarter, up 11% YoY & up 25% sequentially. This was supported by better plant & mined metal availability and improved operating parameters.

• Integrated zinc production was 214000 tonne, up 17% YoY and up by 32% sequentially.

• Integrated lead production for the quarter remained flat sequentially at 47000 tonne but was down 10% YoY on account of Pyro plant (CLZS) operations on Zinc-Lead mode compared to Lead mode only.

• Overall, for the nine-month period, metal production was 707000 tonne up 5% YoY in line with better plant and mined metal availability.

• Integrated silver production was 173 MT, down 5% YoY in line with lead production & up 14% sequentially due to depletion of WIP. For the nine-month period, silver production was 4% lower YoY to 485 MT in line with the lower lead metal production and depletion of the Silver WIP.

• The commissioning of the Fumer plant at Chanderiya is delayed owing to Covid-19 restrictions including stringent visa guidelines for Chinese nationals. All efforts (including support from alternative parties) are in place to get the visa applications cleared and all efforts are in place to complete the commissioning by end of FY22.

• The company mentioned that the revival of pent-up demand has been impacted by the new COVID variant (Omicron).

• Zinc cost of production before royalty (COP) was $1,148 (Rs 85,969) per MT for the quarter, higher by 21% YoY and 2% sequentially. The COP for the nine months ended Dec'21 was $1,116 (Rs 82,834) per MT, up 16% YoY. The COP has been affected by higher coal & commodity price increase (diesel, met coke etc.) partially offset by benefits from better volumes, operational efficiencies, and recoveries. As on Dec 31, 2021, the company's gross investments and cash & cash equivalents were Rs 17,040 crore as compared to Rs 23,662 crore at end of Sept'21. The company also repaid part of its debt in the quarter, which contributed to reduction in cash balance

• The company has guided 1,025-1,050 thousand tonne per annum mined metal production. FY22 silver production is expected to be 720 tonne while project capex guidance for the year stands at US$100 million.

• The company will invest 1 billion dollars over next 5 years in its climate change initiatives to bring down dependence on thermal power & progress on its journey of net zero by 2050.