Hindustan Zinc trades 4% higher amid record refined metal production

Hindustan Zinc: During afternoon trading on April 3, Hindustan Zinc Limited experienced a significant surge of 4.6 percent in its shares. This increase followed the company’s announcement of its highest-ever quarterly refined metal production, reaching 273 kilotonnes (KT) in March. This achievement was attributed to improved plant availability.

In the March quarter, mined metal production stood at 299 KT, marking an 11 percent increase from the previous quarter. This growth was driven by a combination of enhanced mined metal grades and increased ore production across various mines.

In fiscal year 2024, mined metal production reached 1,079 KT, reflecting a 2 percent increase from the previous year. This record-breaking achievement was propelled by enhancements in mined metal grades.

At 12:15 pm, the Hindustan Zinc stock was priced at Rs 328 on the NSE, indicating a rise of 4.1 percent from the previous close. Trading volumes were robust, with 46 lakh shares exchanged, significantly surpassing both the monthly and weekly averages of 6 lakh shares each.

Last week, Reuters reported that the government rejected the miner’s proposal to divide the company into separate units.

The government, holding a 29.54 percent stake in Hindustan Zinc, serves as the largest minority shareholder. However, it was not consulted by the company when it decided to split the firm into separate entities for its zinc, lead, silver, and recycling businesses, as reported.

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In March, the government had opposed another proposal put forward by Hindustan Zinc to acquire two Vedanta entities. It communicated its opposition to the market regulator, emphasizing its concerns, which led the company to ultimately abandon the plan. Vedanta holds a 64.9 percent ownership stake in Hindustan Zinc.