Hindustan Zinc Rises 5% After Vedanta Unit Posts Record Mined Metal Output In Q4

Vedanta subsidiary Hindustan Zinc’s shares jumped 4.6 per cent in the afternoon trade on April 3 after it reported the highest-ever quarterly refined metal production at 273 kilo tonne (KT) in March on account of better plant availability.

Mined metal production in the March quarter stood at 299 KT, up 11 per cent from the previous quarter, led by a mix of improved mined metal grades and higher ore production across mines.

The stock of Udaipur-headquartered HZL, a producer of zinc, lead, silver, commercial power, and alloys, rose nearly five per cent to as high as Rs 330.3 during the session on NSE.

After market hours on Tuesday, the firm reported the highest-ever quarterly refined metal production at 273 kt, up 6 per cent sequentially on account of better plant availability and up 1 per cent on a year-on-year (YoY) basis.

Last week, news agency Reuters reported that the government rejected the miner’s proposal to split the company into different units.

The government is the largest minority shareholder in Hindustan Zinc, owning a 29.54 per cent stake, but was not consulted by the company when it decided to split the firm to create separate entities for its zinc, lead, silver and recycling business, the reported said.

In March, the government had opposed another proposal by Hindustan Zinc to buy two Vedanta entities. It had written to the market regulator underscoring its opposition, and the company eventually decided to dissolve the plan. Vedanta has a 64.9 per cent stake in Hindustan Zinc.