Lloyds Metals & Energy has successfully completed its strategic acquisition in the Democratic Republic of Congo, with its wholly-owned subsidiary executing the final agreement for a significant mining deal. The company announced the completion of the Sale of Shares and Claims Agreement on January 16, 2026, marking a major milestone in its international expansion strategy.

Transaction Completion and Updated Terms

Lloyds Global Resources FZCO (LGRF), the company's wholly-owned subsidiary, has completed the execution of the Sale of Shares and Claims Agreement to acquire a 50% equity stake in Nexus Holdco FZCO. The transaction details have been updated from the initial board approval:

Strategic Mining Assets in Democratic Republic of Congo

The acquisition provides Lloyds Metals with significant exposure to copper mining operations in the Democratic Republic of Congo. Nexus Holdco FZCO serves as a holding company with substantial mining assets, holding approximately 80-90% equity stake in Surya Mines SARL and eight other companies incorporated in the Democratic Republic of Congo.

These subsidiary companies collectively control various copper mining concessions and operate a copper processing plant, positioning Lloyds Metals for expansion into the growing commodity segment in the Congo region. The strategic acquisition aligns with the company's mineral exploration and processing capabilities enhancement objectives.

Agreement Structure and Parties

The Sale of Shares and Claims Agreement was executed between multiple parties, creating a comprehensive ownership structure:

Ongoing Tata Steel Partnership Framework

Alongside the completed Congo acquisition, Lloyds Metals continues to pursue its comprehensive partnership with Tata Steel Limited through a non-binding Memorandum of Understanding. This strategic collaboration examines cooperation in raw material mining, logistics, pellets production, steel making, and greenfield projects, with specific focus on opportunities in Gadchiroli district of Maharashtra.

The dual-pronged strategy demonstrates Lloyds Metals' commitment to expanding its mineral exploration and processing capabilities while strengthening partnerships with established industry players. The completed USD 90.80 million investment in Congo mining operations, combined with the ongoing Tata Steel collaboration framework, positions the company for enhanced market presence in the competitive metals sector and significant expansion of existing business operations in mineral exploration and processing.

Lloyds Metals & Energy Limited (LMEL) has reported strong performance for the second quarter, with significant growth in revenue and profitability. The company's strategic investments in pellet production and operational efficiencies have begun to yield substantial returns.

Financial Highlights

• Total income stood at INR 25,754.00 million, up 75% year-on-year
• EBITDA reached INR 8,693.00 million, a 95% increase from the previous year
• EBITDA margin expanded by 348 basis points to 33.75%
• Profit after tax (PAT) grew by 22% year-on-year to INR 6,056.00 million

Operational Performance

The company's performance was driven by several key factors:

1. Iron Ore Production: Iron ore production reached 3.42 million tons, with sales of 2.50 million tons, up 77% and 10% year-on-year respectively.

2. Pellet Plant Ramp-Up: The newly commissioned 4 million ton pellet plant at Konsari achieved full utilization within four months of commencement.

3. Slurry Pipeline Efficiency: The 85-kilometer slurry pipeline has become a major enabler, providing seamless evacuation and structural cost reduction.

4. DRI Expansion: LMEL commissioned its DRI expansion at Ghugus during the quarter, further strengthening its integrated operations.

Financial Strategy and Outlook

LMEL's management highlighted several key points regarding their financial strategy and future outlook:

• The company plans to raise INR 9,500.00 crores through an NCD issue over the next six months.
• LMEL aims for a debt to EBITDA ratio of 1, focusing on internal accruals for future growth.
• The company expects to receive around INR 350.00-400.00 crores annually from Industrial Promotion Subsidy (IPS) benefits.

Future Projects and Expansion

LMEL continues to progress on several major projects:

1. BHQ Beneficiation: The company has mined 1.20 million tons of BHQ and plans to commission the first unit of its beneficiation plant by the last quarter of next fiscal year.

2. Pellet Capacity: LMEL aims to reach a total pellet capacity of 12 million tons in the coming years.

3. Steel Plant: The company is planning a 3 million ton integrated steel plant, with construction expected to start by the end of FY27.

4. Green Initiatives: LMEL plans to reduce conversion costs by transitioning to LNG and increasing green power usage to 25-35% in the next six months.

Management Commentary

Rajesh Gupta, Managing Director of LMEL, stated, "This has been a half year where operational commissioning of the pellet plant has taken center stage. DRI plant has started, the value-added products have further strengthened their profile, and our project pipeline has moved forward as predicted with the planning. Across the board, the business continues to demonstrate resilience and direction."

He further added, "We remain committed to creating a business at a structurally low cost, fully integrated, environmentally responsible and built to deliver sustainable shareholder value."

LMEL appears well-positioned to navigate the market cycles with its integrated operations and focus on cost efficiency. The company's strategic investments in pellet production and operational improvements are expected to drive growth in the coming quarters.