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Favourable price outlook, low output cost key triggers for Hindustan Zinc

The company, which is a low cost producer, is changing its mining methodology from open cast to underground mining

Representative Image. Photo: Twitter (@Hindustan_Zinc)
Representative Image. Photo: Twitter (@Hindustan_Zinc)

The Hindustan Zinc (HZL) stock has gained over 15 per cent since its February lows, on the back of rising zinc prices on the London Metal Exchange (LME). Zinc is trading at about $3,000 a tonne in April, compared to $2,603-levels in mid-February. The near-term zinc price outlook remains steady, driven by multi-year low warehouse inventory (LME and Shanghai futures exchange inventory) and the deficit forecast for CY19 by the International Lead and Zinc Study Group, say analysts. It may be noted that the per-tonne zinc prices in 2018 had corrected from highs of around $3,600 to close ...