Hindustan Zinc (500188) Investor presentation summary

Market position and asset base

• World's second-largest integrated zinc producer and third-largest silver producer; India's only integrated zinc-lead-silver producer, with 75% share of the primary zinc market.

• FY24 resources and reserves totaled 456.3 Mt, including 30.8 Mt of metal content, supporting 25+ years of mine life.

• FY24 capacities: zinc smelting 913 ktpa, lead smelting 210 ktpa, silver refining 800 tpa and total metal capacity 1.12 Mt.

Operational performance and cost

• FY24 silver production was 746 MT, up c.5% YoY; output grew over 2x in 10 years and 15x in 2 decades.

• FY20-FY24 production CAGR: mined metal 4.2%, refined metal 4.4% and silver 5.2%.

• Zinc operations ranked in the first decile of the global mining cost curve; cost declined for 5 consecutive quarters, with cumulative improvement of c.$240/t.

• FY25E targets: mined metal 1,100-1,125 kt, refined metal 1,075-1,100 kt and silver 750-775 MT.

• FY25E zinc cost of production target: $1,050-$1,100/t, compared with $1,117/t in FY24.

Growth plans and projects

• Long-term ambition includes 1.2+ Mtpa refined metal capacity; a techno-commercial study to double production to 2+ Mtpa is underway.

• Debari's 160 ktpa roaster is targeted for commissioning by Q3 FY25 to support sustainable operations and 1.2+ Mt of refined metal capacity.

• Chanderiya's 510 ktpa DAP/NPK fertilizer plant is targeted for completion by Q2 FY26, using sulphuric acid generated in operations.

• A 30 ktpa zinc alloy facility was commissioned in FY24; alloy penetration target is an increase of over 60% in 3 years.

• Recycling opportunity identified at 1 Mt of metal and 3 kt of silver recovery potential.