Sesa Sterlite Limited

Hindustan Zinc Limited: Results for the Fourth Quarter and Full Year Ended March 31, 2015 - Seite 2

(1)   Excluding captive consumption of 1,910 MT in Q4 FY 2015 and 7,755 MT in FY 2015 as compared with 1,991 MT and 7,262 MT in respective corresponding prior period.  

(2)   Excluding captive consumption of 9.9 MT in Q4 FY 2015 and 40.2 MT in FY 2015 as compared with 10.4 MT and 38.3 MT in respective corresponding prior period.  

(3)   Silver occurs in Lead & Zinc ore and is recovered in the smelting and silver-refining processes    .                  

(4) Historical CoP has changed due to re-allocation of administrative expenses between zinc and lead.  

Note: Numbers may not add up due to rounding off.

Operational Performance 

Mined metal production during the year was 887kt, marginally higher from a year ago and a new annual record. In Q4 FY 2015, mined metal output was the highest ever at 269kt as compared with 200kt in corresponding prior period and 242kt in previous quarter. The increase was as per the guidance and mine plan of Rampura Agucha mine & Sindesar Khurd mine, driven by higher ore production during the quarter.

Integrated refined zinc, lead and silver metal production was lower by 3%, 5% and 11% respectively during the year due to lower mined metal production in the first half and temporarily lower silver grades at Sindesar Khurd mine. However, higher mined metal production volumes were achieved in the second half resulting in accretion to mined metal inventory, a large part of which will be consumed in FY 2016.

Integrated zinc and lead metal production during the quarter were record high due to higher feed availability and enhanced smelter utilization. Integrated refined zinc production was 217kt, up by 21% y-o-y and 13% sequentially. Production of integrated refined lead was up by 14% y-o-y at 33kt and up 33% sequentially. Integrated saleable silver production during the quarter was up 9% y-o-y and 6% sequentially at 74 MT on account of higher recovery.

The zinc metal cost of production per MT before royalty during the quarter was Rs. 50,831 ($820), lower by 8% from a year ago in dollar terms due to higher production volumes, lower diesel cost and higher acid credits, partly offset by higher landed coal cost and increased employee expense on account of long-term wage agreements signed in mid-year. For FY 2015, net zinc metal cost per MT before royalty was Rs. 53,228 ($870) as compared to Rs. 50,654 ($837) in previous year. The increase was primarily on account of long term wage agreement and higher landed coal cost, partly offset by higher acid realization and lower diesel cost.