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Hindustan Zinc Ltd.

BSE: 500188 Sector: Metals & Mining
NSE: HINDZINC ISIN Code: INE267A01025
BSE LIVE 15:56 | 18 Aug 293.75 -0.75
(-0.25%)
OPEN

297.90

HIGH

298.00

LOW

291.00

NSE 15:57 | 18 Aug 294.50 -0.30
(-0.10%)
OPEN

295.85

HIGH

298.25

LOW

290.60

OPEN 297.90
PREVIOUS CLOSE 294.50
VOLUME 143909
52-Week high 333.40
52-Week low 210.30
P/E 13.56
Mkt Cap.(Rs cr) 124,118
Buy Price 293.75
Buy Qty 10.00
Sell Price 0.00
Sell Qty 0.00
OPEN 297.90
CLOSE 294.50
VOLUME 143909
52-Week high 333.40
52-Week low 210.30
P/E 13.56
Mkt Cap.(Rs cr) 124,118
Buy Price 293.75
Buy Qty 10.00
Sell Price 0.00
Sell Qty 0.00

Hindustan Zinc Ltd. (HINDZINC) - Chairman Speech

Company chairman speech

We are committed to pursue excellence

At the onset I am proud to be a part of Hindustan Zinc team that has created enormousvalue for its shareholders and public at large over the last decade and last fifty years.Despite a volatile commodity environment several new regulatory headwinds and achallenging on-going transition to an underground mining company the team delivered thebest ever free cash flow in its history. Today it is one of the largest zinc producingcompanies in the world. As your Company celebrated its Golden Jubilee this year the Boardof Directors declared a special dividend 1200% to its shareholders which is the largestsingle dividend in India’s private sector and second largest in Indian corporatehistory. We will continue to demonstrate our commitment towards delivering value for ourshareholders.

Our unwavering focus on production growth is evident from our resolute performancewhich continued in FY 2016.

While the market conditions remained challenging we continued to report healthyfinancial performance with Rs 6655 Crore of EBITDA and Rs 8167 Crore of net profit forthe year. We will maintain our operational growth over the next few years as we executethe next phase of growth which will enhance our global market share in zinc lead andsilver.

The zinc market was not immune to the volatility of global commodities markets. Zincprices collapsed to the level of $1500-$1600 per MT for a period of nearly three monthsbefore regaining ground towards end of the year. The demand for zinc was steady during theyear as emerging economies led the growth in metal consumption though at a slower pacewhile demand in developed economies of USA and some European countries was better thanwhat we had expected. At the same significant tightness in mine supply is anticipatedwith the closure of certain high profile mines as well as production cuts owing todifficult commodity environment.

Our strategy to tide over the current commodity market challenges has been to increaseproduction control costs maintain our domestic market share and increase our presence inour focus regions of emerging markets.

I am happy to report that we delivered record mined metal and integrated metalproduction during the year reduced cost of production enhanced efficiencies improvedthe productivity of our mines and smelters as well as accelerated mine development acrossour expansion projects.

We are committed to increase our reserve & resource base by continuous explorationand adding more than we deplete to maintain a mine-life of 25+ years. We are fortunate tobe in a resource rich country which is still largely unexplored. It will be our endeavourto create an offshoot of the ‘Make in India’ programme to ‘Mine inIndia’ programme taking our exploration programme well beyond the boundaries of ourmining leases and the mineral rich Rajasthan. We will develop our existing tenements andalso participate in select auctions leveraging the era of transparent and investorfriendly mining policies now in vogue.

During the year we revisited some parts of our current phase of expansion and madecertain adjustments in the mine plan based on the current environment and geo-technicalconditions of the rock ensuring that our road map to increase our zinc-lead mined metalproduction capacity to 1.2 million MT annually is not compromised despite the vacuumcreated by volume reduction from our flagship open pit mine. We have the confidence tomarch ahead with our plans as our mining projects are low-risk and we are expanding at ourexisting locations where we have adequate land ore bodies are well-explored andregulatory clearances are largely in place. The mine expansions are being undertaken usingbest-in-class technology and equipment that will accelerate the pace of ramp-ups and makeus the benchmark in the country and in the years ahead globally.

Our efforts towards sustainability and governance were recognised by leadingorganisations. During FY 2016 we were awarded CII ITC Corporate Excellence - OutstandingAccomplishment and significantly reduced total recorded injuries. Despite our best effortstowards safety I regret to report that we had four fatalities during the year in ouroperations. We have tightened our review system and safety practices towards hazardidentification and near-misses to achieve our target of zero harm we are focusing onculture change at grass-root level.

Going beyond business we have made sustainable efforts to uplift rural communities inthe vicinity of our operations. In FY 2016 we invested over Rs 63 Crore in our socialprogrammes and plan to increase it in the coming years.

We focus on providing education to children vocational training for sustainablelivelihood promoting women empowerment organising health and medical camps providingwater and sanitation facilities encouraging sports and culture environment preservationand community development among others. These programmes are bringing significant changesin the lives of over 500000 rural people in Rajasthan.

Overall the stage is set for sustainable growth in future and with sustainability asthe centre stone of our operations I am confident that going forward team Hindustan Zincwill continue to move ahead and outperform expectations while continuing to create valuefor all our stakeholders.

Warm Regards

Agnivesh Agarwal

Chairman