Hindustan Zinc Ltd Q1 2023 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Vishal Chandak - Motilal Oswal Securities Limited, Research Division - Analyst : So my first question was with regard to your production with projects. So what is the due date for the Fertilizer plant and the Roaster?

Question: Vishal Chandak - Motilal Oswal Securities Limited, Research Division - Analyst : And for the Roaster?

Question: Vishal Chandak - Motilal Oswal Securities Limited, Research Division - Analyst : Both, okay. And are you still sufficient on the captive power for the expansion beyond 1.2 million tonnes or beyond 1.2 million tonnes, you'd be looking at some power expansion also? Because I understand till 1.2 million tonnes, we would be captive for the power plant.

Question: Vishal Chandak - Motilal Oswal Securities Limited, Research Division - Analyst : Just a follow-up on this power cost. The power you mentioned on the renewable side, what would be the expected power cost over year compared to our existing power?

Question: Vishal Chandak - Motilal Oswal Securities Limited, Research Division - Analyst : So there's a long-term PPA that we are looking at? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 21, 2022 / 10:30AM, HZNC.NS - Q1 2023 Hindustan Zinc Ltd Earnings Call

Question: Vishal Chandak - Motilal Oswal Securities Limited, Research Division - Analyst : Without any escalation, or that would be with some escalations?

Question: Vishal Chandak - Motilal Oswal Securities Limited, Research Division - Analyst : On the renewable front, what would be the power cost going forward?

Question: Vishal Chandak - Motilal Oswal Securities Limited, Research Division - Analyst : No, I understand. Sure.

Question: Kirtan Mehta - BOB Capital Markets Limited, Research Division - Analyst : Am I audible?

Question: Kirtan Mehta - BOB Capital Markets Limited, Research Division - Analyst : Yes. On the -- just going back to the Fertilizer and Roaster plant, would you indicate sort of the capacities that you are finally planning? What would be sort of the cost advantage that you have with the in-house sulfuric acid. What kind of return you are targeting?

Question: Kirtan Mehta - BOB Capital Markets Limited, Research Division - Analyst : One more cost question, if I may. In terms of the current cost of production, it's higher than 11 -- guidance of the $1,125 to $1,175. So to come back to the annual run rate, what are the drivers that you are advertising which will help you come sort of near to your annual guidance?

Question: Kirtan Mehta - BOB Capital Markets Limited, Research Division - Analyst : Can I take the opportunity to ask one more question, particularly on the value added projects? You have launched [130] value addition project. Apart from this, which are the ones on the planning mode that could -- we could see sort of getting finalized over the next couple of years?

Question: Kirtan Mehta - BOB Capital Markets Limited, Research Division - Analyst : Yes.

Question: Kirtan Mehta - BOB Capital Markets Limited, Research Division - Analyst : And could you also quantify the premium that you are currently earning on this 15% value-added product? And how much could it expand when you actually reach it to 20%, 25% after completion of project? And also in terms of the -- sort of net of operating costs, how much EBITDA could it add? For Sandeep.

Question: Vishal Chandak - Motilal Oswal Securities Limited, Research Division - Analyst : My question was again with respect to your guidance and cost of production. You've mentioned that you would like to continue with the guidance that you have given in the last year of $1,125 to $1,175 per tonne, while Q1 cost came at $1,264 per tonne. If I do a simple math, what we are implying is for the rest of the 9 months, our cost of production would be about 14% to 15% lower versus what Q1 is, and you also mentioned that the coal prices are still not trading downwards. So if you could just help me reconcile, how are we planning to achieve a 15% reduction in cost when coal prices do not seem to be moving down any time soon? Are we expecting a significant addition from FSA coal, or is there something else that you have missed out?

Question: Vishal Chandak - Motilal Oswal Securities Limited, Research Division - Analyst : Sir, just to add on to this, are we also sourcing some thermal coal from Russia to bring down our costs?