The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Krishan M. Agarwal - Citigroup Inc, Research Division - Analyst
: I have 3 questions, if I may. You mentioned that there is a limited impact from the higher zinc TC settlement in the first quarter, so I was wondering
if you can give us an idea as in how much of the volumes you have on the spot TC basis for the zinc? And then how much of the impact we should
build in our model in the second quarter as in the cumulative for the first 6 months or just second quarter? That's my first question.
Question: Krishan M. Agarwal - Citigroup Inc, Research Division - Analyst
: Okay. Quite clear. Second question is on the operating expenses. If I look at the number for both the Mines and the Smelting Unit, the year-on-year
increase is running at close to 8%. Can you please give us a little bit of color as in is it the kind of a cost inflation running high? Or how should we
see these operating expenses going forward in the rest of the 2019?
Question: Krishan M. Agarwal - Citigroup Inc, Research Division - Analyst
: Okay. And finally, I'm in working capital. So second quarter is seasonally that quarter where you see no reversal of the working capital as in the
release of the working capital. Do we expect a higher magnitude of release in this quarter, in the second quarter '19, given that we had higher
outflow in the first quarter?
Question: Olivia Du - BofA Merrill Lynch, Research Division - Analyst
: I just have 2 brief follow-ups to what has been discussed before. So the first is that on your grade, and now we understand that of course the mines
have been heading toward the reserve grade, but how about the pattern of grade change over the long time, i.e., is there any potential for we to
go back to higher grade areas over some period? Or it's more like a graduate decline towards the reserve grade?
Question: Olivia Du - BofA Merrill Lynch, Research Division - Analyst
: Good. And then the second question is so far that we understand the crusher has been working well in Aitik. And then going forward, if everything
goes well, when would be the earliest time that you also roll out a similar upgrade initiative at other mines, continuing your electrification program?
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