Hindustan Zinc Limited · NSE:HINDZINC
Hindustan Zinc — Investor Presentation (June 2024)
22 slides from Hindustan Zinc's investor presentation, Jun 12, 2024
Slide 1: Exchange intimation: Site Visit Presentation
HZL/2024-25/SECY/35 June 12, 2024 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, 5th Floor Plot No., C/l, G Block Dalal Street, Fort Bandra-Kurla Complex, Bandra (East), Mumbai – 400 001 Mumbai – 400 051 Kind Attn: General Manager – Department Kind Att
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 Leadership Vision, Mission Silver Focus Financial Project Team and Growth and Global Performance Update Narrative Leadership Hindustan Mineral Environment, Zinc Market Operational Key Zinc: Resource and Sustainability Outlook and Performance Take
Slide 4: Executive Leadership Team
Executive Leadership Team Arun Misra Chief Executive Officer David Finn Composition of our Technical Advisor - Geotech Chairman of International Zinc Association leadership team Subject matter expert with 30+ yrs (IZA) and Vice Chairman of Confederation experience in Geotech of Indian industry (CII)
Slide 5: Hindustan Zinc's Distinctive Competitive Advantage
Hindustan Zinc’s Distinctive Competitive Advantage • World’s 2nd largest integrated zinc producer and 3rd • Sustainability leader with first rank in S&P sustainability leading silver producer assessment globally, ESG focus with economic prudence Smelting Capacity • Fully integrated India’s only zinc
Slide 6: 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 7: 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 • 2017: 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 l
Slide 8: 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 9: 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 10: 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 11: 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 12: 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 13: 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 14: 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) (INR Cr) EBITDA (INR Cr) | EBITDA margin % Key Highlights 20,000 100% 34,098 52% 18,000 55% 90% 29,440 28,932 16,000 80% 14,
Slide 15: 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- 1075- • Hindustan Zinc’s 1125 1100 production has grown 1062 1079 1032 1033 750-775 at an industry leading 1017 746 972 967 706 714 930 CAGR of over 4% in 917 87
Slide 16: 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 effor
Slide 17: ESG Focus with Economic Prudence: Renewable Power Update
ESG Focus with Economic Prudence: Renewable Power Update Hindustan Zinc entered into Power Delivery Salient Features of the Project Updates and Agreements (PDA) with Project Milestones Serentica Renewable India • Solar project is being • Land acquisition and statutory Private Ltd (SRI4PL and constru
Slide 18: 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. commissioning being Hindustan Zinc, along The new roaster at Debari will enabl
Slide 19: 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 for Through Hindustan Zinc Fertilisers Hindustan Zinc has Privat
Slide 20: Implementing Technological Advancement and Innovation
Implementing Technological Advancement and Innovation Tele-remote operations THEN (1980) Additional production in drilling by utilizing automation features and tele-remote operations of production drills during shift changeover duration; tele-remote operations of loaders helps in maintenance of cons
Slide 21: 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 22: 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 21