Hindustan Zinc (500188) Investor presentation summary

Competitive position and resource base

• World's 2nd-largest integrated zinc producer and 3rd-largest silver producer; India's only integrated zinc-lead-silver producer, with 75%+ share of the primary zinc market.

• Resources and reserves totaled 456.3 Mt with 30.8 Mt of metal content in FY24, supporting 25+ years of mine life; global 2nd-highest zinc R&R base.

• FY24 ore production across five mines: Rampura Agucha 4.93 Mt, Sindesar Khurd 5.65 Mt, Rajpura Dariba 1.34 Mt, Zawar 4.03 Mt and Kayad 0.56 Mt.

Operating performance and growth

• FY20-FY24 production CAGR: mined metal 4.2%, refined metal 4.4% and silver 5.2%; FY25E refined metal 1,075-1,100 kt and silver 700-710 t.

• FY24 silver production was 746 t, up ~5% YoY; ranked 3rd globally in the World Silver Survey 2024.

• Growth priorities include 160 ktpa Debari roaster, targeted for commissioning by Q4 FY25, and a 510 ktpa DAP/NPK fertilizer plant at Chanderiya, targeted for completion by Q4 FY26.

• A 30 ktpa zinc alloy facility was commissioned in FY24; alloy penetration is targeted to rise by over 60% in the next 3 years.

• A techno-commercial study is underway to double production to 2+ Mtpa; silver targets include 1,000 t through the Fumer route and 1,500 t with 2 Mtpa metal production.

Financial performance and shareholder returns

• Zinc COP was $1,041/t in Q3 FY25, positioned in the first decile of the global zinc mining cost curve; 9M FY25 free cash flow from operations was ₹9.7k crore, pre-capex.

• 9M FY25 market capitalization rose over 50% to ₹188k crore, adding ₹64k crore; dividend payout was ₹12k crore, or 1,450% of face value.

• Total shareholder return per share through Dec. 2024 was ₹180.70, including ₹151.70 capital appreciation and ₹29 dividend; year-to-date returns were 10x NIFTY 50 and 13x NIFTY Metal returns.