NMDC inches up after signing MoU for mineral projects in Zimbabwe

The announcement was made after market hours on Friday, 7 June 2013.

Meanwhile, the S&P BSE Sensex was up 38.54 points or 0.2% at 19,467.77.

On BSE, 15,000 shares were traded in the counter as against average daily volume of 6.58 lakh shares in the past one quarter.

The stock hit a high of Rs 117.10 and a low of Rs 116 so far during the day. The stock had hit a 52-week low of Rs 113.95 on 6 June 2013. The stock had hit a 52-week high of Rs 203.40 on 4 July 2012.

The stock underperformed the market over the past one month till 7 June 2013, sliding 10.79% compared with the Sensex's 2.3% fall. The scrip had also underperformed the market in past one quarter, declining 20.6% as against Sensex's 0.08% gain.

The large-cap company has equity capital of Rs 396.47 crore. Face value per share is Re 1.

NMDC has signed the memorandum of understanding (MoU) with MOSI OA TUNYA DEVELOPMENT COMPANY of Zimbabwe under the administrative control of Ministry of Tourism and Hospitality Industry, Government of Zimbabwe. NMDC plans to develop mineral assets overseas to secure raw materials for the steel industry. The designated organization of the Ministry of Tourism and Hospitality Industry, Government of Zimbabwe has invited NMDC as a strategic partner to invest in the exploration and development of the iron ore, coal, gold and chrome tenements. This MoU will provide exclusivity to NMDC for participation in mineral projects at Zimbabwe.

Commenting on the occasion, Mr. C.S. Verma, CMD, NMDC said, "The signing of this MoU is a significant step towards ensuring augmentation of NMDC's mineral reserves and globalization of its operations".

NMDC's net profit declined 10.8% to Rs 1464.95 crore on 23.5% growth in net sales to Rs 3202.10 crore in Q4 March 2013 over Q4 March 2012.

State-run NMDC is India's single largest iron ore producer and exporter. The Government of India (GoI) holds 80% stake in NMDC (as per the shareholding pattern as on 31 March 2013).

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