Hindustan Zinc Limited · NSE:HINDZINC
Hindustan Zinc — Investor Presentation (December 2024)
24 slides from Hindustan Zinc's investor presentation, December 2024
Slide 1: Hindustan Zinc Limited Management Presentation
Hindustan Zinc Limited Management Presentation
Slide 2: Cautionary Statement and Disclaimer
Cautionary Statement and Disclaimer The views expressed here may contain information derived from publicly acquired businesses; and from numerous other matters of national, available sources that have not been independently verified. regional and global scale, including those of environmental, clima
Slide 3: Presentation Outline
Presentation Outline 01 02 03 04 05 06 07 08 09 10 11 Hindustan Mineral Operational Zinc Market Environment, Zinc: Resource and Performance Outlook and Sustainability Competitive Ore Reserve Vision, Silver Focus Financial Market Share Project and Leadership Key Advantage, Base Mission and and Global
Slide 4: Hindustan Zinc's Distinctive Competitive Advantage
Hindustan Zinc’s Distinctive Competitive Advantage • World’s 2nd largest integrated zinc producer and 3rd • Irreplaceable resource and asset base, with technologies leading silver producer providing flexibility of running operations based on the Smelting Capacity market landscape • Fully integrated
Slide 5: India's only Zinc-Lead-Silver Producer & World's 2nd Largest Integrated Zinc Producer
India’s only Zinc-Lead-Silver Producer & World’s 2nd Largest Integrated Zinc Producer and 3rd Leading Silver Producer World’s largest underground mine Single located largest zinc lead smelter globally Rampura Agucha Mine Chanderiya Smelting Complex Reserves : 44.4 Mt Pyrometallurgical Lead Zinc Smel
Slide 6: Over Five Decades of Expertise in Mining and Smelting
Over Five Decades of Expertise in Mining and Smelting Integrated Operations 2016 2018 2020 2024 • HZL shared a Special • RAM - complete • Ranked #1 in the Metals and Mining • Record metal & silver production dividend of 1200% transition from OC to UG category in Asia Pacific in the Dow • 3rd largest
Slide 7: Hindustan Zinc's Vision, Mission & Growth Narrative
Hindustan Zinc’s Vision, Mission & Growth Narrative Vision to be the world’s largest and most admired Zinc, Lead & Silver Company 01 02 03 Capacity Expansion Mine Portfolio with long life Cost Optimization • Roaster of 160 ktpa at Debari: FY25 • Innovative technology and advanced • Efficient ore hau
Slide 8: Hindustan Zinc's Vision, Mission & Growth Narrative
Hindustan Zinc’s Vision, Mission & Growth Narrative Mission to enhance stakeholder value, be the lowest cost producer & maintain market leadership 04 05 Expanding VAP Portfolio Sustainable Future • Ramp up of 30 kt Alloy plant • RE power delivery agreement to cater 50% of HZL’s power requirement red
Slide 9: 2nd Highest Zinc R&R Base Globally with 25+ Years of Mine Life
2nd Highest Zinc R&R Base Globally with 25+ Years of Mine Life Increasing the longevity of the mines for business continuity and sustainable value accruals has been a key strategic priority for Hindustan Zinc. With a total R&R of 456.3 Mt and a metal content of 30.8 Mt, the Company maintains an over
Slide 10: World's 3rd Largest Silver Producer & India's Only Silver Producer
World’s 3rd Largest Silver Producer & India’s Only Silver Producer Growth Global Leadership Silver production grew over 2x in last 10 years and 15x Hindustan Zinc is India’s only silver producer and is in last 2 decades. With FY 2023-24 production of 746 now the 3rd largest silver producer globally
Slide 11: Showcasing Industry Leading Operational Performance
Showcasing Industry Leading Operational Performance Mined Metal (kt) Refined Metal (kt) Silver (MT) CAGR: 4.2% CAGR: 4.4% CAGR: 5.2% 1100- 1125 1075- • Hindustan Zinc’s 1079 1100 1062 1032 1033 750-775 production has grown 1017 746 972 967 706 714 at an industry leading 917 930 647 CAGR of over 4% i
Slide 12: Delivering Robust EBITDA Margin
Delivering Robust EBITDA Margin Backed by Operational Excellence, Technological Advancements, Cost Optimization and Strong Resource Base Revenue (incl. other operating income) (₹ Cr) EBITDA (₹ Cr) | EBITDA margin % Key Highlights 20,000 52% 34,098 18,000 55% 29,440 28,932 16,000 47% • First decile o
Slide 13: Shareholder's Value Creation during H1 FY25
Shareholder’s Value Creation during H1 FY25 Hindustan Zinc is among the top Indian companies with highest total shareholder returns during the half year ▪ HZL’s market cap surged to 1.8 times by adding ₹97k Cr HZL vs Index Returns ▪ The Company touched its ever-highest market cap of ₹341k Cr 200% ▪
Slide 14: Capturing 75%+ market share in India's primary zinc market
Capturing 75%+ market share in India’s primary zinc market Steel Demand Forecasts (Mt) Zinc Demand Outlook 1763 1793 1815 896 896 887 2023 133 144 156 137 141 148 91 92 94 2024E • Global zinc demand is expected to recover, and domestic zinc demand is expected to 2025E remain strong owing to the effo
Slide 15: Growth Project Update
Growth Project Update New Roaster at Debari Status Update • Roasting is an essential part of the process of Update: producing saleable zinc in hydrometallurgical Project progress is on track with • Moving forward, smelters. Hindustan Zinc, along • The new roaster at Debari will enable commissioning
Slide 16: Strategic Growth via Focused Separate Companies
Strategic Growth via Focused Separate Companies HINDMETAL EXPLORATION HINDUSTAN ZINC ALLOYS HINDUSTAN ZINC FERTILISERS SERVICES PRIVATE LIMITED PRIVATE LIMITED PRIVATE LIMITED • Hindmetal Exploration Services • Given the foreseeable demand • Through Hindustan Zinc Private Limited was formed with for
Slide 17: Sustainability Goals 2025
Sustainability Goals 2025 Climate Change Diversity in Workforce Inclusive and diverse workplace with 0.5 mn tCO2e GHG emission 30% diversity savings from base year 2017 Water Stewardship Ensuring Zero Harm 5x water positive company and Zero work-related fatalities and 50% 25% reduction in freshwater
Slide 18: Sustainability Leader with First Rank in S&P Global Sustainability Assessment
Sustainability Leader with First Rank in S&P Global Sustainability Assessment Hindustan Zinc is amongst the top 10 CSR companies in the Country Ranked #1 in Metals and Mining sector at S&P Global Corporate Sustainability Assessment (CSA) 2023* Nand Ghar, Child Care Centres, Shiksha Sambal, Education
Slide 19: ESG Focus (1)
ESG Focus (1) Renewable Power Update • Hindustan Zinc entered into Project Updates and Milestones Power Delivery Agreements Salient Features of the (PDA) with Serentica Renewable Project • Transmission connectivity India Private Ltd (SRI4PL and secured • Solar project is being SRI5PL) for Dariba (20
Slide 20: ESG Focus (2)
ESG Focus (2) Recycling Business Energy Transition Low Carbon Zinc • Partnership with US-based AEsir • Launched Asia’s first Low Carbon ‘Green’ • Partnership with VEXL Environ Technologies as a preferred supplier of Projects Ltd (VEXL) for innovative Zinc , EcoZen, produced using renewable zinc for
Slide 21: ESG Focus (3)
ESG Focus (3) Women in Mining Hindustan Zinc boasts a gender diversity of 22% in FY24, significantly improved from 12% in FY19 Towards the Sustainability Goal of 30% Gender Diversity by FY 2025 India’s First All Women Underground Mine Rescue Team • Progressive Maternity Policies: Flexible working ho
Slide 22: Executive Leadership Team
Executive Leadership Team Arun Misra Composition of our David Finn Chief Executive Officer Technical Advisor - Geotech leadership team Chairman of International Zinc Association Subject matter expert with 30+ yrs (IZA) and Vice Chairman of Confederation experience in Geotech of Indian industry (CII)
Slide 23: Key takeaways
Key takeaways 1.2 Mtpa metal Silver Exclusive 75% + market Profitability 2nd highest 50% + power at US$ 1,000/t expansion: focus on share in India’s sourcing through cost; Target of Recycling: zinc R&R base primary zinc • Zinc Volume: 1.2 Mn MT globally with renewable reaching 1,000 Potential of mar
Slide 24: Then & Now
Then & Now Conventional drill rig Electric locomotive operation Drilling by hand- held hammer Mucking by auto loader Manual cell house Modern drill rig, drilling machine, LPDT, hi-tech cell house, robotic operations 24
Hindustan Zinc — Investor Presentation (December 2024) on 6ix