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HZL its results for the third quarter

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14 Feb, 17 10:18
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Hindustan Zinc Limited announced its results for the third quarter ended December 31, 2016.It was an exceptionally strong quarterly result with Highest ever mined metal production and EBITDA at all-time record.
Mr. Agnivesh Agarwal, Chairman said, "2016 was a strong year as zinc prices surged over 55 percent during the quarter compared to a year ago. With no new zinc mines being commissioned in the near future, zinc market outlook remains positive for 2017 also. I am pleased to report a five year CAGR of 38 percent in our underground mined metal production. We are uniquely poised to benefit from these dynamics, being the only primary zinc producer in the country."Highest ever mined metal production was achieved during the quarter, up 44% from previous quarter and 21% y-o-y. The q-o-q increase was on account of higher volumes from Rampura Agucha open cast mine in accordance with mine plan and the y-o-y increase was driven by higher volumes from Rampura Agucha underground as well as open cast mines. During the nine month period, underground mines ramped up significantly to achieve a substantial 60% y-o-y increase in ore production and 53% y-o-y increase in mined metal production.
In line with the plan of substantially higher mined metal production in H2, mined metal production during the nine month period was lower by 15% y-o-y and will be higher than FY 2016 for full year with Q4 being higher than Q3.
During the quarter, EBITDA was an all-time record of Rs. 2,757 Crore, up 33% q-o-q and 88% y-o-y.Net profit during the quarter was at Rs. 2,320 Crore, up 22% q-o-q and 26% y-o-y. The impact of higher EBITDA was partly offset by higher depreciation & tax in both periods while investment income was sequentially lower on account of lower mark to market gains.
Expansion Projects
Total mine development, across all mines, increased by 26% sequentially and 17% y-o-y to 18,570 meters during the quarter. For nine month period, total mine development has reached 47,330 meters, up 16% from a year ago.
Rampura Agucha underground mine achieved a record ore production rate of over 2 million MT per annum (mtpa) at the exit of the quarter while mine development continued over 4,000 meters benchmark for the fourth quarter in a row. During the quarter, the main shaft sinking at Rampura Agucha reached its ultimate depth of 955 meters. Further, installation of production & service winders was also completed and shaft equipping work commenced during the quarter.
Sindesar Khurd mine achieved highest ever mine development during the quarter at 5,534 metres. Environmental clearance of expansion from 3.75 to 4.5 mtpa ore production and from 4.5 mtpa to 5 mtpa beneficiation at Sindesar Khurd was received in December. Casting of shaft collar and head gear foundation was completed during the quarter in line with the head gear erection completion scheduled for Q4.
The power up-gradation project was commissioned ahead of schedule in January. The mill expansion to 1.5 mtpa capacity was also completed ahead of schedule and commissioned in the month of January. However, the Company is deeply anguished to report an unfortunate accident at the project site post mill commissioning, where a rare crane collapse caused four fatalities of contractor employees.
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