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The mining and refining company is betting on stable commodity prices and strong demand from India's steel industry, amid targets for steel capacity to reach 300 million tonne by FY30. It expects commodity prices to average around $2,650 per tonne for zinc, $1,950 per tonne for lead, and $34 per troy ounce for silver, based on the latest consensus for FY26.
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HINDUSTAN ZINC PROJECTS RS 50,000 CRORE PRE-CAPEX FREE CASH FLOW ON EFFICIENCY GAINS
INTRODUCTION The mining and refining company is betting on stable commodity prices and strong demand from India's steel industry, amid targets for steel capacity to reach 300 million tonne by FY30. It expects commodity prices to average around $2,650 per tonne for zinc, $1,950 per tonne for lead, and $34 per troy ounce for silver, based on the latest consensus for FY26.
Vedanta group firm Hindustan Zinc expects to generate cumulative free cash flow (FCF) of around Rs 50,000 crore (pre-project capex) over the next five years based on conservative estimates, chief financial officer Sandeep Modi told analysts.
"Even without major expansion, we are increasing production each year by 3–4 percent through small improvements and better operational efficiency. Costs have also come down significantly. With these factors, we are confident of generating around Rs 50,000 crore in free cash flow before project capex over the next five years," Modi told analysts. HZL's FCF pre-capex stood at Rs 13,784 crore in FY25, according to an investor presentation.
In summary The mining andrefining company is betting on stable commodity prices and strong demand from India's steel industry, amid targets for steel capacity to reach 300 million tonne by FY30. It expects commodity prices to average around $2,650 per tonne for zinc, $1,950 per tonne for lead, and $34 per troy ounce for silver, based on the latest consensus for FY26.