Hindustan Zinc Limited reported unaudited earnings and operating results for the second quarter and six months ended September 30, 2018. For the quarter, the company reported sales of INR 47,770 million against INR 53,090 million a year ago. EBITDA was INR 23,150 million against INR 30,520 million a year ago. Profit after tax was INR 18,150 million against INR 25,840 million a year ago. Earnings per share basic and diluted were INR 4.3 against INR 6.11 per share a year ago. Capital mine development remained unchanged year-on-year at 9.8 km during the quarter.

For the six months, the company reported sales of INR 100,870 million against INR 98,850 million a year ago. EBITDA was INR 51,000 million against INR 54,560 million a year ago. Profit after tax was INR 37,330 million against INR 44,730 million a year ago. Earnings per share basic and diluted were INR 8.83 against INR 10.59 per share a year ago. Capital mine development increased by 9% to 20.2 km in the first half of fiscal 2019.

For the quarter, mined metal production from underground mines for was at an all-time high of 232kt, up 10% sequentially and 44% y-o-y driven by 33% y-o-y increase in ore production. Total mined metal production increased by 10% sequentially and 6% y-o-y after the closure of open-cast operations last year. Integrated metal production was 212kt, flat sequentially and down 8% from a year ago. Integrated zinc production was down 5% sequentially and 16% y-o-y to 162kt 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 17% sequentially and 30% y-o-y to 49kt. 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 25% sequentially and 23% y-o-y on account of higher lead production and higher Sindesar Khurd mine production & better silver grades.

For the six months, mined metal production from underground mines was 444kt, 27% higher from a year ago even as the closure of open-cast operations caused total mined metal production to decline 2% y-o-y. Integrated metal production for first half was 425kt, down 7% y-o-y. Integrated lead and silver production were at 91kt and 310 MT, higher by 25% y-o-y and 22% y-o-y respectively driven by higher lead mined metal production and better silver grades. Integrated zinc production at 334kt was lower y-o-y by 13% in line with the availability of zinc mined metal.

For the fiscal 2019, mined metal and refined zinc-lead production are expected to be significantly higher than that in first half with the continued ramp-up of underground mines and the overall production in year 2019 will be slightly higher than that of last year, as guided earlier. The guidance of silver production to be in the range of 650 to 700 MT is reiterated. COP before royalty is projected to be in the range of USD 950 to 975 per MT in second half 2019. capex for the year will be around USD 400 – USD 450 million.

For the fiscal 2019, the project capex for the year will be around USD 400 – USD 450 million.