Hindustan Zinc Limited · NSE:HINDZINC
Hindustan Zinc — Investor Presentation (June 2015)
14 slides from Hindustan Zinc's investor presentation, June 2015
Slide 1: Corporate Presentation
Corporate Presentation Hindustan Zinc June 2015
Slide 2: Hindustan Zinc - A Sustainable Enterprise
Hindustan Zinc - A Sustainable Enterprise 1st Rampura Agucha Largest zinc mine globally 2nd Largest zinc-lead miner globally with: 9 million+ MT of ore production capacity 4th Largest zinc-lead smelter globally: 1 million+ MT of production capacity (Rankings calculated from Wood Mackenzie, March 201
Slide 3: Safety & Sustainability
Safety & Sustainability Safety LTIFR (per million man-hours worked) Zero harm to people, host communities and environment 2.29 2.15 72% 1.95 Safety cultural transformation journey from reactive to interdependent; engagement with 1.01 “Dupont” 0.88 0.64 Integrated safety organisation structure Promot
Slide 4: Portfolio of Tier-1 Assets
Portfolio of Tier - 1 Assets Rampura Agucha Mine Reserve : 49.5mt Chanderiya Smelting Complex Resource : 53.5mt Reserve Grade : Zn 14.0%, Pb 1.9% Pyrometallurgical Lead Zinc Smelter: Current Ore Capacity : 6.15 mtpa 105,000 tpa Zinc and 85,000 tpa Lead Hydrometallurgical Zinc Smelter: 420,000 tpa Zi
Slide 5: Defining the Benchmark
Defining the Benchmark 1400 1st Quartile Glencore 1200 2nd Quartile Mine Production (kt Zn) 1000 3rd Quartile Vedanta Group 800 4th Quartile 600 Tech Hindustan Zinc MMG 400 Boliden Minera Volan Industrias Penoles Votorantim Nyrstar 200 VZI Noranda Dongling Huludao Zinc Korea Zinc 0 0 200 400 600 800
Slide 6: Strong Track Record of Growth
Strong Track Record of Growth Reserve & Resource (mt) – 2.5X Growth Mined metal (kt) – 3X Growth 375 880 887 348 365 840 830 870 332 769 735 113 299 313 88 92 106 110 272 629 84 86 232 572 532 210 267 78 239 261 67 178 223 409 60 165 197 216 364 146 183 152 298 54 752 739 765 770 774 133 47 651 683
Slide 7: Robust Financial Performance
Robust Financial Performance EBITDA CAGR 29% despite Zinc LME growth of only 7% Rs bn EBITDA Rs bn PAT Cash & Cash Equivalents* Rs bn 80 90 350 70 80 300 60 70 250 60 50 50 200 40 40 150 30 30 20 100 20 10 10 50 - - - FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY02 FY03 FY
Slide 8: Way Forward
Way Forward Journey ahead - Projects Resource driven growth Current Capacity, (mtpa) Six major projects to increase mined metal Capacity Addition, (mtpa) capacity by 20% to 1.2 mtpa, including replacement from RAM OC 3.75 1.75 3.8 Total capex of $1.5 billion, out of which ~$0.5 bn is spent 0.3 2 0.6
Slide 9: Rampura Agucha Mine
Rampura Agucha Mine Open Pit Ultimate Pit Depth: 420 meters from surface Added: Added legend for clarity of current Open pit Mine Life: FY 2019-20 depth and pit extension Open Pit To Feb 2015 UG Mine Production Capacity: 3.75 mtpa Mine Life: +20 years R&R: 35.2 mn MT & 55.1 mn MT Main Decline Open P
Slide 10: Sindesar Khurd Mine
Sindesar Khurd Mine Declines Vent. Raise Vent. Raise Production Shaft Ore & Waste Passes Salient Features Access to mine: Through two ramps Method of working: Blast hole open stoping LHS with back filling Underground Crusher Ore hauling: Ramps & shaft & Loading Stations Mine ventilation: Two ventila
Slide 11: Global Refined Zinc Market Overview
Global Refined Zinc Market Overview Refined Market Balance Emerging Markets Driving Demand 100% ‘000 MT 90% 18,000 80% 17,000 70% EM share in 60% global 16,000 demand to 50% increase 10% in 10 years 15,000 40% 20102011201220132014201520162017201820192020 Emerging Markets Developmed Economies 14,000
Slide 12: Summary
Summary Leading the way with fully integrated operations Core Strengths Among the lowest cost producers of zinc Captive mines with Reserve & Resource base of 375.1 million MT ensuring mine life of 25 2500 years 2250 Glencore Xstrata Nyrstar MMG Limited 2000 Boliden Integrated metal C1 Cash Cost ($/t
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Slide 14: Reserve & Resource
Reserve & Resource As on March 31, 2015 14 Hindustan Zinc Limited