Upload
pitamberverma
View
39
Download
1
Tags:
Embed Size (px)
DESCRIPTION
ghxdvgs
Citation preview
Corporate Presentation, January 2014
Safe Harbour Statement
The views expressed here may contain information derived from publicly available sources that have not been independently verified.
No representation or warranty is made as to the accuracy, completeness, reasonableness or reliability of this information. Any forward looking information in this presentation including, without limitation, any tables, charts and/or graphs, has been prepared on the basis of a number of assumptions which may prove to be incorrect. This presentation should not be relied upon as a recommendation or forecast by Hindustan Zinc Ltd (HZL"). Past performance of HZL cannot be relied upon as a guide to future performance.
This presentation contains 'forward-looking statements' that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as 'expects,' 'anticipates,' 'intends,' 'plans,' 'believes,' 'seeks,' or 'will.' Forwardlooking statements by their nature address matters that are, to different degrees, uncertain. For us, uncertainties arise from the behaviour of financial and metals markets including the London Metal Exchange, fluctuations in interest and or exchange rates and metal prices; from future integration of acquired businesses; and from numerous other matters of national, regional and global scale, including those of environmental, climatic, natural, political, economic, business, competitive or regulatory nature. These uncertainties may cause our actual future results to be materially different that those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.
This presentation is not intended, and does not, constitute or form part of any offer, invitation or the solicitation of an offer to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of, any securities in HZL or any other invitation or inducement to engage in investment activities, nor shall this presentation (or any part of it) nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision.
HZL: Leading the Way
Leading global producer of zinc-lead
Vedanta Group company in zinc-lead-silver business
1st Rampura AguchaLargest zinc mine globally
2nd Largest zinc-lead miner globally with: 10 million+ MT of ore production capacity
4th Largest zinc-lead smelter globally: 1 million+ MT of production capacity
(Rankings calculated from Wood Mackenzie, June 2013 Long Term Outlook)
Core Strengths
Reserves & Resources base of 348.3 million MT ensuring mine life of 25 years
Integrated metal production supported by captive power plants
Low cost of operations driven by quality assets and multi-metal recovery
Market leadership in India with strong presence in emerging economies of Asia
World Class Mining Assets
HZLs flagship mine at Rampura Agucha (RAM) is the largest Zinc mine in the world with Reserves & Resources of 110.4 Million MT and a mine life of over 25 years.
R&R Summary Tonnage Grade
Mt Zn (%) Pb (%) Ag (g/t)
Reserves 109.7 10.1 1.9 72.0
Resources 238.7 6.8 2.3 85.0
Sindesar Khurd Mine
Reserves : 21.4mtResources : 63.6mtReserve Grade Zn : 4.5%Reserve Grade Pb : 2.5%Ore Production Capacity : 2.0mtpa
Rajpura Dariba Mine
Reserves : 10.6mtResources : 40.6mtReserve Grade Zn : 6.5%Reserve Grade Pb : 1.6%Ore Production Capacity : 0.90mtpa
Zawar Mining Complex
Reserves : 9.5mtResources : 66.9 mtReserve Grade Zn : 3.7%Reserve Grade Pb : 2.0%Ore Production Capacity : 1.2mtpaCPP : 80MW
Rampura Agucha Mine
Reserves : 62.7mtResources : 46.1mtReserve Grade Zn : 13.6%Reserve Grade Pb : 1.8%Ore Production Capacity : 6.5mtpa
Kayar Mine
Reserves : 5.4mt Resources : 5.9mtReserve Grade Zn : 10.0%Reserve Grade Pb : 1.5%Ore Production Capacity : 0.35mtpa
Smelting and Power Capacities
Chanderiya Smelting Complex
Pyrometallurgical Lead Zinc Smelter:105,000 tpa Zinc35,000 tpa Lead168 tpa Silver
Hydrometallurgical Zinc Smelter:420,000 tpa Zinc
AusmeltTM Lead Smelter:50,000 tpa Lead
Captive Power Plant:234MW
Zinc Smelter Debari
Hydrometallurgical Zinc Smelter: 88,000 tpa Zinc
Dariba Smelting Complex
Hydrometallurgical Zinc Smelter:210,000 tpa Zinc
Lead Smelter:100,000 tpa Lead
Captive Power Plant:160MW
Wind Power Plants by State (MW)
Rajasthan : 88.8
Gujarat : 88.8
Maharashtra : 25.5
Karnataka : 49.4
Tamil Nadu : 21.0
Smelting & Power Summary
Zinc smelting, tpa 8,23,000
Lead smelting, tpa 1,85,000
Silver refining, tpa 518
Captive Power, MW 474
Wind Power, MW 274
Chanderiya Lead-Zinc Smelter (CLZS) is one of the largest Zinc smelting complexes in the world.
Green Energy
HZL is one of Indias largest wind power producers with a generation capacity of around 274 MW
Registered under the United Nations Framework Convention on Climate Changes (UNFCCC) Kyoto Protocol for Clean Development Mechanism (CDM)
25 MW produced from steam generation from non-fossil sources
Total annual certified emission reduction (CER) potential of over 600,000 MT of CO2
Reserves & Resources (mt) 2.5X Growth
8
Journey So Far - Mines
Ore Production(mt) 3X Growth
RAM Debottlnecking
Ore Production increased from 1.35 Million TPA to 2.35 Million TPA
2004
RAM Expansion
Ore Production increased from 2.35 Million TPA to 3.75 Million TPA
2005
RAM Expansion
Ore Production increased from 3.75 Million TPA to 5.00 Million TPA
2008
RAM Expansion
Ore Production increased from 5.00 Million TPA to 6.00 Million TPA
2010
SKM Expansion
Ore Production increased to 1.5 Million TPA
2011
SKM Expansion
Ore Production increased from 1.5 Million TPA to 2.00 Million TPA
2012
Capacity Expansion at Mines
57 54 67 69 7780 89 102 97
109 110
87 9298 109
133152
183197 216
223 239
144 146165
178
210232
272299
313 332 348
FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13
Reserves Resources Net R & R
1.6 1.82.2 2.5
3.5 3.7 4.15.0 5.1
6.1 5.9 6.1
1.2 1.31.4 1.5
1.3 1.41.7
1.7 2.01.4 2.1
2.5
2.7 3.03.6 3.9
4.85.1
5.8
6.77.1
7.58.0
8.6
FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13
Ore UG Ore OC Total Ore
172 203261 266
318 349426
552 578
712 759 677
3233
25 1624
45
58
6064
5792
118
2666
78 55
101
161
156
71129
525
61
230
301
364337
442
554
641683
772821 856 856
FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13
Zinc Lead MIC Sale Total
Silver 48 47 35 11 24 51 80 105 139 148 207 374
214 262317 355
472 505551
651 683752 739 765
3336
4754
6067
78
8486
88 92106
247298
364409
532572
629
735769
840 830 870
FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13
MIC - Zinc MIC - Lead Total MIC
Journey So Far - Smelters
9
Saleable Metal (KT) 3.7X Growth
Mined metal (kt) 3.5X Growth
Debari & Vizag Zinc Debottle-necking
DZS- 59 KTPA to 80 KTPA
VZS 40 KTPA to 56 KTPA
2003
CLZS debottlenecking
Capacity 70 KTPA to 105 KTPA
2004
CLZS Hydro-1 Smelter
Capacity 170 KTPA
2005
Chanderiya Ausmelt Lead Smelter
Capacity 50 KTPA
2006
Chanderiya Hydro II Smelter
Capacity 170 KTPA
2007
Chanderiya & Debari Zinc DBN
Capacity 170 to 210 KTPA (both Hydros)
DZS- 80 KTPA to 88 KTPA
2008
Capacity Expansion at Smelters
Dariba Zinc Smelter
Capacity 210 KTPA
2010
Dariba Lead Smelter
Capacity 100 KTPA
2011
Journey So Far - Power
10
WPP (MW)
CPP (MW)
Chanderiya CPP
Capacity 154 MW
2005
Chanderiya & Zawar CPP expansion
CLZS 80 MW
ZWM 80 MW
2008
Dariba CPP
Capacity 160 MW
2010
Samana I
Capacity - 38.4 MW
2007
Samana II, Gadag
Capacity 50.4, 34.4 MW
2008
Gopalpura, Mokal I, II, III, Osiyan, Chakala
Capacity 15, 35.7, 16.8, 27.3, 9, 25.5 MW
2011
Commissioning of Captive Power Plants (CPP)
Muthiyampatti
Capacity 21 MW
2012
Commissioning of Wind Power Projects (WPP)
154 154 154
314 314
474 474 474
2005 2006 2007 2008 2009 2010 2011 2012
38
123 123 123
253
274
2007 2008 2009 2010 2011 2012
11
Financial Performance
UOM FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 CAGR
EBITDA Rs Cr 199 271 824 984 2359 6489 5595 2874 4789 5623 6108 6553 34%
PAT Rs Cr 68 142 405 655 1472 4442 4396 2728 4041 4900 5526 6899 47%
Closing Cash Balance Rs Cr 56 257 1016 710 1704 4654 7695 9646 11875 15197 18283 22000 64%
Free Cash Flow Rs Cr 77 201 448 652 1435 4671 4560 3286 4471 4950 5675 6327 44%
EPSRs/Shar
e0.16 0.34 0.96 1.55 3.48 10.51 10.40 6.46 9.56 11.60 13.08 16.33 47%
Avg LME - Zinc $/MT 830 777 899 1110 1614 3580 2992 1563 1936 2185 2098 1948 7%
Avg LME Lead $/MT 476 445 611 921 1041 1426 2875 1660 1990 2244 2269 2113 13%
Key Parameters Trend
Robust Fundamentals
Setting new norms of business performance
Consistently improving value to stakeholders
34 % EBITDA growth despite of LME growth of 7%
Experienced management team supporting minimal-risk growth
Growth Roadmap - Mining
Journey ahead - Projects
Increase in ore production capacity from current
10mtpa to 15mtpa
Increase in equivalent metal production capacity
from 1mtpa to 1.2mtpa
World class mines using state-of the-art
technology and equipment, ensuring maximum
productivity at lowest cost
RAM UG RajpuraDariba
SindesarKhurd
Kayad* Zawar BamniaKalan
3.75 1.753.8
1.2 0.50.3 2 0.65
0.350.9
Current Capacity, (mtpa) Capacity Addition, (mtpa)
PLAN:
Develop 3.75 mtpa RAM underground mine
Expand Kayad mine from 0.35 to 1.0 mtpa
Expand SK mine from 2 to 3.75 mtpa
Expand RD mine from 0.6 to 1.2 mtpa
Expand Zawar Mine from 1.2 to 5 mtpa
Develop 0.5 mtpa Bamania Kalan underground
mine, an extension of SK block
OUTCOME:
12
Sustainability Initiatives
Target of Zero Harm
Promoting behavioral safety
Formal Consequence Management system for all LTI /fatalities
Focus on hazard identification and near misses
Zero water discharge
Effluent treatment plant and Reverse Osmosis plant for recycling 100% of waste water
Adiabatic Cooling for process cooling towers
Sewage Treatment Plant as sustainable water source
Water Consumption (cum/MT)
14
15
16
17
18
19
2009-10 2010-11 2011-12 2012-13
Declining lost time injuries per million man-hours worked (LTIFR )
0
1
2
3
4
2008-09 2009-10 2010-11 2011-12 2012-13
Community Engagement
RAJASTHAN
Fostering Self-Reliance through Community Development
Reaching to more than half a million people in Rajasthan
Positively impacting lives of more than 55,000 families in 184 Villages in Rajasthan
Members of United Nations Global Compact (UNGC), TERI-BCSD (Business Council for Sustainable Development) and National Population Stabilization Fund
CSR initiatives undertaken on local needs of the community focusing on:
Health & Nutrition
Education
Water & Sanitation
Sustainable Livelihood
Agriculture & Livestock Development
Women Empowerment
Social Forestry
Community Asset Creation
CSR Initiatives
Health & Nutrition Education Water & Sanitation
Bal Shakti Anganwadi(Crche) Project
Centralized Kitchens for Mid-day Meal program
Vedanta- Hindustan Zinc Heart Hospital, Udaipur
Model School Development
Vedanta Post Graduate college for girls
Adult Education Centers
Vedanta Computer Literacy Program
Rural Safe Drinking Water Project
Rural Sanitation Program
CSR Initiatives
Sustainable Livelihood (Farm & Non-farm)
Women Empowerment
Environment Conservation
Improved Agriculture Program
Livestock Development Program
Vocational Trainings
SHG Development Program
Capacity Building Interventions
Income Generation Programs
Women Literacy Programs
Mega Plantation Drive
Water Conservation Drive
Sewage Treatment Plant at Udaipur
Thank You