Hindustan Zinc Limited (HZL), India's largest integrated zinc producer, has announced exceptional operational and financial results for the fiscal year 2024-25, setting new benchmarks in production and profitability. The company also unveiled ambitious expansion plans, signaling a strong commitment to growth and sustainability.

Record-Breaking Financial Performance

HZL reported a robust financial performance for FY2024-25:

• EBITDA reached Rs. 17,465.00 crores, marking a significant 28% year-on-year growth.
• Profit after tax surged by 33% to Rs. 10,353.00 crores, underscoring its operational efficiency and market strength.

Production Milestones

The company achieved all-time high production figures:

• Mined metal production: 1,095.00 KT
• Refined metal production: 1,052.00 KT

These record-breaking numbers reflect HZL's enhanced operational capabilities and its position as a global leader in the zinc industry.

Cost Leadership and Market Dominance

• Production costs: $1,052.00 per ton, maintaining HZL's status as one of the world's lowest-cost zinc producers.
• Market share: 77% of India's primary zinc market.
• Value-added products share: 22%, the highest ever, indicating a strategic shift towards higher-margin offerings.

Financial Efficiency

The company's financial efficiency was highlighted by impressive returns:

• Return on Capital Employed (ROCE): 58%
• Return on Equity (ROE): 73%

These figures underscore HZL's ability to generate substantial value from its assets and equity.

Ambitious Expansion Plans

Hindustan Zinc has announced plans to double its production to 2 million tonnes. This expansion strategy involves:

• Potential investments of Rs. 30,000.00-35,000.00 crores over the next 3-5 years.
• Establishment of a new 250 KTPA smelter, requiring an investment of Rs. 12,000.00 crore.

Sustainability Initiatives

HZL is making significant strides in sustainability, aiming to increase its renewable energy use to 70% by FY28, aligning with global trends towards cleaner production methods in the mining sector.

Future Outlook

With its strong performance in FY2024-25 and ambitious growth plans, Hindustan Zinc is well-positioned to capitalize on the growing demand for zinc and other critical minerals. The company's focus on cost leadership, market dominance, and sustainability initiatives suggests a promising outlook for the years ahead.

As India's largest zinc producer expands its operations and ventures into critical minerals, it is set to play a crucial role in meeting both domestic and global demand for these essential materials.

Hindustan Zinc , a leading integrated producer of zinc, lead, and silver, is making strategic moves to expand its operations and enhance sustainability. The company's CEO has expressed readiness to venture into uranium mining, while the board has approved a significant investment in a tailings reprocessing plant.

Potential Entry into Uranium Mining

Hindustan Zinc's CEO has announced that the company is prepared to commence uranium mining operations, contingent upon government approval. This statement indicates Hindustan Zinc's interest in diversifying its portfolio and expanding into the strategic sector of uranium extraction. The move, if approved, could position the company as a key player in India's nuclear fuel supply chain.

₹3,823 Crore Investment in Tailings Reprocessing

In a separate development, Hindustan Zinc's Board of Directors has approved the establishment of a 10 Million Tonnes Per Annum (MTPA) Tailings Reprocessing plant. This decision is part of the company's ambitious 2X growth plan aimed at doubling its capacity.

Key points of the tailings reprocessing project include:

• Capital expenditure of up to ₹3,823.00 crore
• Aims to recover metal from tailing dumps
• First-of-its-kind plant in India
• Expected to reduce the environmental footprint associated with traditional wet tailings disposal
• Designed to enhance Hindustan Zinc's overall mineral recovery
• Aligns with the company's sustainability goals

Investor Conference

Hindustan Zinc is scheduled to participate in the Centrum Broking Virtual Investor Conference – Orion IV "Powering Through - India on the Global Stage". This event provides an opportunity for the company to engage with analysts and institutional investors, potentially discussing these recent developments and future strategies.

As Hindustan Zinc continues to explore new avenues for growth and sustainability, these initiatives demonstrate the company's commitment to innovation, environmental responsibility, and strategic expansion in the mining sector.