Hindustan Zinc Limited · NSE:HINDZINC
Hindustan Zinc — Investor Presentation (August 2019)
15 slides from Hindustan Zinc's investor presentation, Aug 7, 2019
Slide 1: Intimation of Investor Meet / Site Visit
Se vedanta ca HZL/ 2019-Secy August 07,2019 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza Dalal Street, Plot No.C/1, G Block Mumbai 400 001 Bandra — Kurla Complex Bandra (East) Mumbai 400 051 Scrip Code: 500188 Trading Symbol: “HINDZINC” Sub:- Intimati
Slide 2: Hindustan Zinc Limited Investor Presentation August 2019
Hindustan Zinc Limited I N V E S T O R P R E S E N TAT I O N AUGUST 2019
Slide 3: Cautionary Statement and Disclaimer
Cautionary Statement and Disclaimer The views expressed here may contain information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness, reasonableness or reliability of this information. Any forwa
Slide 4: A premium zinc-lead and silver company
A premium zinc-lead and silver company Vedanta set to become the largest Zinc-Lead miner globally in the next 2 years 2 nd L A R G E S T Z I N C - L E A D M I N E R G L O B A L LY 2000 2019 Mined metal in kt 1500 4 th 1000 HZL L A R G E S T Z I N C - L E A D S M E LT E R G L O B A L LY 500 Largest 0
Slide 5: Hindustan Zinc – A sustainable enterprise
Hindustan Zinc – A sustainable enterprise Sustainability efforts are centred around safe mining and optimizing waste, water, land & carbon footprint Safe Mining – Setting right Culture • 60% of tailings to be used for void filling in UG mines Paste fill plant back fill, Reduce land required for tail
Slide 6: Social Licence to Operate - Impactful projects target key areas of need & development
Social Licence to Operate - Impactful projects target key areas of need & development 5
Slide 7: Strong foundation driving growth and transformation
Strong foundation driving growth and transformation R&R ZINC – LEAD SILVER COSTS 1.35 mT 1,000 t 600 mT 1.2mT 800 t $900 /t 400 mT 1.0 mT 679 t $1000 /t • Expanding R&R across the mines • Completion of 1.2 mtpa capacity in H2 • Focus on silver rich deposits Key structural initiatives on • Digital tr
Slide 8: Confident of delivering FY2020 guidance
Confident of delivering FY2020 guidance Production ramp up to 1.0 million tonne mined metal H2 – Completing 1.2 mtpa project activities 1200 YOY +7% 1,200 1000 1,000 Mined metal , H1 vs H2 Mined Metal in kt 800 800 600 52% 53% 54% UG CAGR 600 65% 400 39% 400 200 200 0 - FY2014 FY2015 FY2016 FY2017 F
Slide 9: Setting Business for 1.35 mtpa and beyond – concurrent mining
Setting Business for 1.35 mtpa and beyond – concurrent mining Rampura Agucha (3.3 → 4.5 → 5) Sindesar Khurd (5.3 → 6 → 8) Zawar ( 2.8→ 4.0 → 8 ) Safe Transition Fully Digitised Mine Integrating Mines Kayad (1.2, extending mine life) Rajpura Dariba (0.9 → 2 → 4) Sindesar Khurd and Rampura Agucha are
Slide 10: On track to become top silver producers globally
On track to become top 3 silver producers globally Fastest growing silver company with a CAGR of 18% Ranked 9th globally in primary silver production 1000 2500 Hindustan Zinc 750-800 2000 679 Silver in tonnes 558 1500 425 453 328 1000 500 0 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 E Target E* 1 2 3
Slide 11: Reserve & Resource upgrade – World class technology adopted
Reserve & Resource upgrade – World class technology adopted Opportunities across mines ( 400 → 600 mT ) Motorised Motorised Directional Drilling technology creates Directional multiple branches from a parent hole resulting in Drilling saving cost and time Mine Technical program • Galena & Main orebo
Slide 12: Time bound cost optimization programs in place
Time bound cost optimization programs in place Structural cost optimization Zinc COP: $1000 per MT 1 Technology Ore to metal index Advanced Process Controls $ 17 2 Productivity Autonomous machines Digitalisation of mines Current efficiency $ 15 Higher development factor $7 3 Mining Techniques Narrow
Slide 13: Zinc supply shortfall and low stocks expected to support price
Zinc supply shortfall and low stocks expected to support price Mine supply increasing at slower then expected rate Underperformance of smelters keeping stocks at all time lows and • Slower start at key projects and some smaller mines market in deficit • Reduction in production at some existing mines
Slide 14: Hindustan Zinc - Strong Value Proposition
Hindustan Zinc - Strong Value Proposition Strong Financial Profile Proven Execution Clear Growth Path Sustainable Enterprise Derisked Business • Net Cash of $2.65bn • ~35% 5-yr CAGR of UG • 1.2 mtpa MIC capacity • Globally 1st in • Low cost producer • Strong FCF ~$1BN in FY19, mines to 936kt MIC in
Slide 15: Thank You
Thank You HINDUSTAN ZINC LIMITED ZINC | LEAD | SILVER |