Investment Case

Why
Hindustan Zinc?

WORLD-CLASS OPERATIONS

Our tier-1 assets, fully integrated operations from ore to refined metal, market leadership and low cost of production comprise our intrinsic capabilities to create value over a long-term horizon, despite market volatilities.

Our operations are now becoming increasingly digitalised and we are automating processes to reduce the level of human intervention. Ours is a transformational business, fuelled by data-driven decision-making and a holistic approach to value creation.

We are constantly focusing on deepening our integration and driving excellence across the operational canvas.

TRACK RECORD OF VALUE CREATION

Over the last two decades, we have delivered multi-fold increase in the size of our operations and have become a global market leader in zinc, lead and silver. We have invested in projects with above average Internal Rate of Returns (IRRs), generating industry-leading returns for our shareholders.

We have consistently demonstrated our ability to grow production, optimise cost and implement sustainability strategies effectively. Our commitment to growth and strong balance sheet will continue our value creation story in the future.

6,999%

Total shareholder return since divestment in 2002

108%

5-year average dividend payout

30%

5-year CAGR in mined metal production at underground mines

18%

5-year CAGR in silver production volume

COMMITTED TO GROWTH

Our focus on campaigns such as 'Make in India' for nation building and self-sufficiency in key metals will drive our long-term growth. During the year, we completed a large part of our capacity expansion. As new capacities start catering to the rising domestic demand to galvanise the nation’s infrastructure, we will witness momentum in our growth. Our next phase of expansion along with investments in minor metal capacity will strengthen our market position and cost leadership. Technology will drive our ore-to-metal ratio, while new VAP introduction will shield us from commodity price fluctuations.

1.123 MN MT

Integrated metal capacity

1.2 MN MT

Mined metal capacity

800MT

Silver capacity

STRONG FINANCIALS

We have always followed a very disciplined approach while deploying capital. As a result, we enjoy robust credit rating (AAA from CRISIL), a strong balance sheet and industry-leading EBITDA margin.

We continue to strengthen our balance sheet by investing in new opportunities, rationalising our cost structure and focusing on enhancing our margins.

ZERO DEBT^

Balance sheet

52%

3-year average EBITDA margin

$2.89 BN

Net cash

SUSTAINABLE OPERATIONS

We have proven ore deposits with above average zinc-lead grades and long mine life of over 25 years. We are driving ourselves to a low-carbon economy and optimising our water, waste and land footprint through innovation and technology.

Our constant focus is on making our operations safer, utilising our natural resources prudently and enhancing our sustainability quotient constantly.

^`611 Crore working capital and fund-based banking facilities as on March 31, 2020 and zero long-term debt.

2.41X WATER POSITIVE

Certified by DNV-GL

FIRST DRY TAILING PLANT IN INDIA

Managing our tailings

348.5MW

Renewable energy