NMDC rallies after hiking iron ore prices

NMDC jumped 3.43% to Rs 102.6 after the state-owned miner hiked prices of iron ore with effect from Wednesday, 2 December 2020.

The company increased lump ore prices by 12.5% to Rs 4,500 per tonne from Rs 4,000 per tonne set on 17 November 2020. Prices of fines were hiked by 13.85% to Rs 4,110 per tonne from Rs 3,610 per tonne set on 17 November 2020. The new rates come into effect from 2 December 2020.

The state-owned mining company announced decent production and offtake numbers for the month of November 2020 yesterday. The company's iron ore production rose 13% to 3.32 million tonnes (MT) in November 2020 from 2.94 MT in November 2019. While, iron ore sales climbed 18.28% to 3.30 MT in November 2020 from 2.79 MT in November 2019.

NMDC is India's single largest iron ore producer, presently producing about 35 million tonnes of iron ore from 3 fully mechanized mines, two located in Chhattisgarh and one in Karnataka. As on 30 September 2020, Government of India held 69.65% stake in the company.

On a standalone basis, the state-run miner's net profit rose 10% to to Rs 773.66 crore on 0.5% decline in net sales to Rs 2,229.89 crore in Q2 September 2020 over Q2 September 2019.

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