Hindustan Zinc Q3 Silver Production Jumps 10% As Price Rally Draws Focus
Hindustan Zinc reported strong Q3 performance with record mined metal production of 276kt and notable 10% sequential growth in silver production to 158 tonnes, positioning the company to benefit from rising silver prices expected to remain above $50 per ounce. The world's largest integrated zinc producer achieved improved operational efficiency through debottlenecking projects while maintaining its dominant 77% market share in India's primary zinc market.
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Hindustan Zinc Limited reported steady improvement in production volumes during the third quarter, with mined and refined metal output rising on higher ore production, debottlenecking initiatives and improved plant availability. The company achieved its highest ever third quarter mined metal and refined metal production since transitioning to underground mining operations, with particular focus on silver production amid a strong price rally.
Record Third Quarter Performance
The company's Q3 performance showcased mixed results across production parameters:
| Production Metric | Q3 Current | Q3 Previous | YoY Change | Q2 Current | QoQ Change |
|---|---|---|---|---|---|
| Mined Metal (kt): | 276 | 265 | +4% | 258 | +7% |
| Saleable Metal (kt): | 270 | 259 | +4% | 246 | +9% |
| Refined Zinc (kt): | 221 | 204 | +8% | 202 | +10% |
| Refined Lead (kt): | 49 | 55 | -11% | 45 | +9% |
| Silver (tonnes): | 158 | 160 | -1% | 144 | +10% |
| Wind Power (MU): | 50 | 47 | +5% | 132 | -62% |
Mined metal production reached 276 kt, marking a 4.00% increase year-on-year, driven by higher ore production. Saleable metal production also rose 4.00% from the previous year to 270 kt, reflecting improved refined output during the quarter.
Silver Production Highlights Amid Price Rally
Silver output during the quarter stood at 158 tonnes, demonstrating a notable 10.00% quarter-on-quarter increase in line with lead production trends, despite a marginal 1.00% year-on-year decline. The sequential growth in silver production comes at a time when silver prices are expected to remain above $50.00 per ounce, creating a compelling growth narrative for the company.
Analysts project that silver's contribution to operating revenue will increase significantly from 28% to 42% over the coming years, highlighting the strategic importance of the company's silver production capabilities. As one of the top five silver producers globally, Hindustan Zinc is well-positioned to benefit from the ongoing price rally.
Operational Performance and Market Position
Refined zinc production demonstrated robust growth of 8.00% year-on-year to 221 kt, supported by the commissioning of debottlenecking projects at the Chanderiya and Dariba smelters, ramp-up of the 160 ktpa roaster at Debari, and better operational availability across plants.
Refined lead production declined 11.00% year-on-year to 49 kt, attributed to pyro operations being conducted on lead-only mode in the corresponding period last year and lower availability at pyro plants during the quarter. However, quarter-on-quarter performance showed a 9.00% improvement.
Global Market Leadership
Hindustan Zinc maintains its position as the world's largest integrated zinc producer, supplying to more than 40 countries and holding approximately 77% market share of the primary zinc market in India. The company's operations span technologically advanced underground zinc-lead mines including Rampura Agucha, Sindesar Khurd, Zawar, Kayad and Rajpura Dariba.
Wind power generation reached 50 million units, marking a 5.00% year-on-year increase aided by favourable wind velocity conditions, demonstrating the company's commitment to sustainable energy practices.
Historical Stock Returns for Hindustan Zinc
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +4.56% | +6.80% | +15.20% | +57.65% | +48.87% | +153.47% |
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