Vedanta Resources Reports Mixed Output Results for Q2

Strategic Insights -

Vedanta Resources PLC, a London-listed company with a focus on India, released its second-quarter output results, which showed a mixed picture. While the company reported increases in zinc, lead, copper, and power output, its iron ore and aluminum output decreased.

Key Takeaways:

  • Second-quarter India refined zinc production rose 5% year-over-year to 185,000 metric tons.
  • India refined lead production increased 6% year-over-year to 17,000 tons.
  • Silver production in India rose 12% year-over-year to 1.58 million ounces.
  • Zinc International's refined zinc production at Scorpion was 37,000 tons in the second quarter.
  • Saleable iron ore output fell 61% year-over-year to 1.12 million tons.
  • Copper India-Australia copper cathode output increased 28% year-over-year to 87,000 tons.
  • Zambia copper cathode output declined 10% year-over-year to 52,000 tons, but integrated production increased 3% year-over-year to 33,000 tons.
  • Total aluminum production decreased 8% year-over-year to 149,000 tons.
  • Energy output rose 437% year-over-year to 1.44 billion units.
  • The SK mine is on track to reach 2 million tons per annum capacity by the end of the year.
  • The 100kt Dariba lead smelter was commissioned during the second quarter.
  • Iron ore sales were impacted by the Karnataka mining ban and the discontinuation of Orissa operations.
  • The Tuticorin power plant is expected to be commissioned in the fourth quarter.
  • Aluminum output decreased due to a pot outage in the first quarter at the Jharsuguda-I smelter.
  • The 1.25 mtpa Jharsuguda-II smelter is in the final stages of completion.
  • Higher energy sales were mainly due to the new 2,400MW Jharsuguda power plant.
  • The third unit at the Jharsuguda 2,400MW power plant is expected to be commissioned in the third quarter.
  • Vedanta's shares closed Thursday up 8.2% at 1,113p, with a market capitalization of GBP2.99 billion according to FactSet.

Statistics:

  • 5% year-over-year increase in India refined zinc production in the second quarter.
  • 6% year-over-year increase in India refined lead production in the second quarter.
  • 12% year-over-year increase in silver production in India in the second quarter.
  • 61% year-over-year decline in saleable iron ore output in the second quarter.
  • 28% year-over-year increase in Copper India-Australia copper cathode output in the second quarter.
  • 10% year-over-year decline in Zambia copper cathode output in the second quarter.
  • 437% year-over-year increase in energy output in the second quarter.
  • 2 million tons per annum capacity expected at the SK mine by the end of the year.
  • 100kt Dariba lead smelter commissioned during the second quarter.
  • GBP2.99 billion market capitalization of Vedanta according to FactSet.

Sources:

  • Dow Jones Commodities News via Comtex
  • FactSet
  • Dow Jones Newswires
  • Alex MacDonald, Dow Jones Newswires; +44 (0)20 7842 9328; alex.macdonald@dowjones.com