HINDZINC — earnings call

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Prepared remarks

HINDUSTAN ZINC LIMITED. · Management

MR. SANDEEP MODI – INTERIM CFO, HINDUSTAN

ZINC LIMITED. · MS. SHWETA ARORA – HEAD (INVESTOR RELATIONS),

MS. SHWETA ARORA – HEAD (INVESTOR RELATIONS),

HINDUSTAN ZINC LIMITED. · Management

Hindustan Zinc Limited April 22, 2022

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Moderator · Conference Operator

Ladies and gentlemen, good day and welcome to the Hindustan Zinc 4th Quarter and Full Year

Questions and answers

Moderator · Conference Operator

Thank you very much.

We will now begin the question-and-answer session.

The next question is from the line of Amit Dixit from Edelweiss.

Please go ahead.

Amit Dixit

I have two questions.

The first one is essentially on the guidance.

So, guidance for FY23 as far as mined metal production and refined metal is concerned, it seems that you are a little bit soft when compared with the initial guidance for FY22. And with Fumer volume expected to come in and we are already operating at 1.2 mtpa.

So, this seems to be a little bit soft, I just want to know what we are missing here, that is my first question.

Arun Misra

And how do we look at it, last year, we crossed the one million threshold as far as metal in concentrate is concerned.

And the focus shifts to smelting which always had the capacity to produce one million tonnes metal, but we have never been tested on that ground.

This year is the testing ground for smelters to be tested to produce 1 million tonnes metal, in a way that maximizes revenue from the quality of metal that it produces, along with the different value- added products, along with our ratio of domestic is to exports.

So, that's why if you look at the guidance, the focus has shifted more towards the metal than from the mining, because on the MIC one million tonnes plus we will be producing in any case, and that guidance will not be perhaps necessary guidance going forward.

Going forward the guidance will be more on the metal where we are focusing on one million tonnes plus production is the focus, but however our commitment remains to deliver 1.2 million tonnes metal as quickly as possible.

Amit Dixit

The second one is essentially on the zinc forward, you mentioned that you have the forward contract for 15% of volume for zinc.

Have you done anything for lead also and is there some currency hedging and at what price we have hedged?

Sandeep Modi

So, we have hedged the 15% of volume of our zinc, no hedging has been done for the lead.

And the prices are above the $4,000.

Amit Dixit

Okay, and there is no currency hedging.

Sandeep Modi

No currency hedge for this specific hedging.

Moderator · Conference Operator

Thank you.

The next question is from the line of Anuj Singla from Bank of America.

Please go ahead.

Anuj Singla

My first question relates to the cost of production.

There is a decline of around 1% QoQ.

Can you talk about the key drivers and also what was the coal linkage materialization in this quarter?

Sandeep Modi

So, during the coal linkage materialization, situation did not improve, we received a mere around a 3% of the linkage coal in our overall coal basket.

So, the better COP or the well-managed COP was attributable on account of the higher volume, operational efficiencies and various operational parameters, recovery kind of things, which have been helping us to improve the cost.

Hindustan Zinc Limited April 22, 2022

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Anuj Singla

And secondly, so we, I think, a couple of years back, we were looking at 1.2 to 1.5 million expansion for the mining capacity.

And we are still a long way away, or maybe a couple of years away from achieving 1.2.

Can you give us some kind of timeline?

When do we start investing for these 1.2 to 1.5 million tonne expansion?

And is there some amount of CAPEX already included in the CAPEX guidance for FY23?

And also an update on the custom smelter which we were contemplating, in Gujarat?

Arun Misra

So, I will start from the last, custom smelters are still a way of, because the public hearing has not been held.

And once the public hearing is held than we will perhaps come back with our project proposal.

What's in hand right now is, as I said earlier, to cross one million tonne plus, in the smelting capacities, and to put up some balance facilities that the smelting itself, it’s not only tested for one million tonne, also, he is able to produce slightly over and above 1.2 million tonnes.

So, that sets the pace for going to 1.5 mtpa.

All practically speaking, we should see that design work for 1.5 mtpa being over by another two quarters.

And then perhaps we will be able to let you know, what would be the project plan and when we would be commissioning those, when we will be embarking on those projects.

Moderator · Conference Operator

Thank you.

The next question is from the line of Abhiram Iyer from Deutsche CIB Center.

Please go ahead.

Abhiram Iyer

Could you give us any guidance on the sort of an inorganic expansion plans that you were looking for in the last couple of quarters, particularly, let's say Zinc International and other companies that you were looking for an expansion?

That's the first question.

And the second question is, could you give any guidance on any dividend payout that the company is thinking about or the management is thinking about?

Arun Misra

So, again, let me, Arun Misra here, let me do it in the reverse order.

As far as dividends are concerned, it's a matter for the Board to consider and approve.

Whenever they do so surely, we will be able to let you know very happily.

On the other hand, as inorganic growth, yes, it's a part of our overall vision to be number one lead and zinc producer in the world.

And we are including the target that you are speaking of, Zinc International, if we add that to Hindustan Zinc, we are already number one in the world, if we add these two, then one plus one would make 11 that's our belief.

However, if it were to happen, it will happen with new regulatory approvals from all fronts.

So, we are still on the drawing board and wherever we do get the approvals we will surely let you know.

Abhiram Iyer

So, as of now, it's not imminent on the horizon, it's still going to take some more work.

Is that understanding --?

Hindustan Zinc Limited April 22, 2022

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Arun Misra

So, such kind of discussions cannot be time bound.

The tipping point can arrive sooner or later.

However, I would not speculate on the time when the tipping point arrives.

Moderator · Conference Operator

Thank you.

The next question is from the line of Vishal Chandak from Motilal Oswal Financial Services.

Please go ahead.

Vishal Chandak

So, my first question was with regard to the 1.2 to 1.35 million tonne expansion.

So, you have mentioned that your first target would be achieving a million tonne of metal sales.

So, when do we plan to hit 1.2 million tonne of metal sales?

Arun Misra

So, first task as I said, our smelting already has one million tonne plus capacity.

The guidance that has been given is on the 100% confidence factor on achieving those numbers, and on that the guidance is given.

So, that itself puts us closer to 1.2 million tonne.

However, there would be certain balance facilities that we would require so that we can produce the product of the grid, all that can be saleable with the maximum return.

So, those design work, we are already in and we should be able to commission certain projects, like we are doing the melting and casting project in Hindustan Zinc through a subsidiary, that would see addition of about 30 kT of value- added products in our product portfolio that we already have.

1.35 mtpa includes some of the expansions like Zawar mine has to go from 4 million tonne to 8 million tonne, ore mining capacity.

Our Rajpura Dariba mine, which is currently one million tonnes to be taken to 4 million tonne.

While we have launched the work through sustenance CAPEX of the seeding work for expanding these mines.

Just to give you a few examples, suppose Zawar mine have 4 to 8 million tonnes, couple of new portals to be made, some of the underground tunnels to be widened.

So, without launching another growth CAPEX through the sustenance CAPEX route, we have already started addressing few of that work, which provides us a base.

Similarly, Rajpura Dariba mines, complete hydro geological study for the best way to enter the deep floor of the mine that is being done now.

So, that's why I said another couple of quarters, we should be able to come back with a firm plan that this is the route to 1.5 million tonnes and these are the timelines.

Of course 1.35 mtpa is an intermediate milestones and that will also be equally clear at that point of time.

Vishal Chandak

My second question was with regards to the coal cost and coal sourcing, if you could please help us with what kind of coal sourcing are we currently doing and what are the costs?

Sandeep Modi

So, if you see the total cost bucket, coal used to be 25% to 28%.

So, I can give you the ballpark number, it’s currently around 35% in my total cost.

And the coal sources are mostly from the South Africa, Indonesia, and Australia.

And largely, as I said earlier, domestic coal availability is meager and we are getting only 3% to 4%.

So, obviously my large chunk is coming from the imported coal.

Hindustan Zinc Limited April 22, 2022

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Vishal Chandak

I see.

And finally, if I miss squeeze in just one more, you just mentioned that we have now started the process of hedging forward sales, and 15% has been done at $4,000 plus.

So, does that give you confidence that the $4,000 plus may not remain at the current levels?

And are you expecting a correction or is there any other thought process for hedging?

Sandeep Modi

There are concerns on global growth and expected ease on the supply constraint in Quarter 2, Calendar ’22, situations remains quite dynamic.

So, we believe that it was the right timing to enter hedges.

And we locked in a 15% of the volume.

And 85%, you can assume it still open.

So, we are keeping the wait and watch and see what can be the best in the interest of the business.

Moderator · Conference Operator

Thank you.

The next question is from the line of Vikash Singh from Phillip Capital.

Please go ahead.

Vikash Singh

Just wanted to understand our CAPEX on the balancing facilities to make the smelter to 1.2 million tonne.

What could be the CAPEX or the CAPEX has already been happened for that.

If you could shed some thought process on that?

Arun Misra

Just now I said, we have already had the CAPEX approved by the Board for forming a subsidiary company and add 30 kT of value-added product additions.

So, that will take a little more above 1,123,000 tonnes capacity that this smelter is at.

We also have a CAPEX has already approved for debottlenecking of current smelters to push up their capacity.

So, as of now, I see no reason why we should not be producing close to 1.2 million tonne finished good metal through the existing facilities, whatever little balancing facilities required for to come to 1.2 mtpa we will do that.

But as I said, the way I would be working is first assure the mines produce equivalent amount of metal in concentrates.

Last year, we have demonstrated 1 million plus, this year we have to go even further than that, and at the same time test the current smelting capacities.

So, that's why I say 1.2 mtpa will just be crossed intermediately while we start launching program for 1.35 mtpa and then 1.5 mtpa.

Vikash Singh

No, so basically I just wanted to know the CAPEX, if you have already firmed up for these incremental volumes?

Arun Misra

It is already approved, so there is nothing, no new CAPEX is considered for that.

Vikash Singh

Amount actually, so how much we are going to spend in FY23, if I may ask differently --?

Sandeep Modi

In the smelter, there is no CAPEX to be done for achieving the capacity with Mr. Misra has said.

Vikash Singh

And overall FY23, CAPEX would be mostly maintenance CAPEX now then?

Sandeep Modi

So, Project CAPEX are $120 to $150 million that is the CAPEX guidance which we have given, that will be largely pertaining to our RD mill revamping, our alloy facility setup and the new Hindustan Zinc Limited April 22, 2022

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Vikash Singh

Just one last question, any thought process up to what percentage we would like to hedge, currently we are 15% but any threshold which you have decided that up to this percent we want to go to hedge or they have put be dynamic in it?

Sandeep Modi

So, as I said if the situations remain dynamic.

So, as we see the prices move forward and how the geopolitical situation improves.

And we will continue to be the wait and watch and take the decision which is in the best interest of the business.

Moderator · Conference Operator

Thank you.

Next question is from the line of Ritesh Shah from Investec.

Please go ahead.

Ritesh Shah

Couple of questions, first is can you provide some details on what the zinc TC-RC trends are and physical market premiums?

That's the first question.

Arun Misra

We are integrated producer; it is not applicable to us.

So, I don't think I will be commenting on TC-RC trends in the market.

Ritesh Shah

Physical market premiums --?

Sandeep Modi

So, on the zinc and lead, the premiums while we can't disclose the full number, but I can say it's an increasing trend.

Ritesh Shah

Would it be possible to quantify how it has moved on a sequential basis?

Sandeep Modi

Sequentially it will be up with a good amount.

Ritesh Shah

My second question is I think the company had taken approvals regarding shifting capital from general reserves to retained earnings.

Would it be possible for you to qualify what this quantum was?

Sandeep Modi

The quantum was around Rs.

10,000 crore and we have received the NOC from the National Stock Exchange.

And as of now, we are awaiting the SEBI clearance.

And they have asked the question, for which we have submitted the reply.

Ritesh Shah

And how should one understand the rationale for this Rs.

10,000 crores of movement, should one assume the more flexibility of funds, which could eventually translate to dividend payout or how should one read into this?

Hindustan Zinc Limited April 22, 2022

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Sandeep Modi

So, this was done in the last quarter, when we announced about this scheme.

It takes around a year to get it completely done.

Obviously, it gives the flexibility, however, it is an enabling provision, and at this point of time, I would like to limit my comments to that extent.

Ritesh Shah

And my third question is on Hindustan Zincs stake sale, has there been any progress from the government or is the company trying to move forward?

Where exactly is it stuck right now?

Arun Misra

I didn't get you Hindustan Zinc, you are asking about disinvestment?

Ritesh Shah

Yes.

Arun Misra

So, no so disinvestment, it was approved by Supreme Court, and after that there were certain procedural issues that had to be cleared.

And as far as my information is concerned government is ready for that.

Only government is working out what could be the modalities, should it be done in one go or should it be done in many tranches?

So, that's what they are working out and whatever suits to them, they will do that.

Ritesh Shah

So, this is something which is entirely with DIPAM right now and there is no legal hurdle which are there, right, would that understanding be correct?

Arun Misra

I didn't get you, there was some, not clarity in the voice.

You were asking about this is with the government.

Government has to do that, right.

Ritesh Shah

Okay.

And is there any timeline here?

Arun Misra

No, there's no timeline.

I think the sooner the better.

And you know, as a citizen, I can say all of us expect that government has no business being in business.

So, the sooner they do it, the better it is.

Moderator · Conference Operator

Thank you.

The next question is from the line of Abhijit Mitra from ICICI Securities.

Please go ahead.

Abhijit Mitra

I have two questions.

First question is, if you can, highlight the ore production from some of your key mines for the fiscal year 2022.

And the total milled ore that you have seen for the fiscal as well as feed rate that you have seen for the fiscal?

That's the first question

Arun Misra

So, you want the full table of ore production, ore grade, treatment, mill grade --?

Abhijit Mitra

Ore milled and --

Arun Misra

I will tell you the large number, okay.

It’s year-on-year about 5.7% increase in the ore production.

It's about this year we finished at 16.34 million tonne, the breakup of mine wise it Hindustan Zinc Limited April 22, 2022

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Public (C4) will be too time consuming and will take away questions from others.

I will request our, Shweta Arora to get in touch and give you the mine wise details.

Ore grade was 7.08 in this year, this was slightly lower than our business plan that we had and it was lower than FY last year also, because we are going deep in underground, however, this year the areas in the mine we have reached we see the possibility of a better grade coming in.

Abhijit Mitra

The idea was to understand the drop in lead and silver production so --?

Arun Misra

No, that is not the reason for drop in production.

Drop in lead production and silver production is because we were producing huge amount of zinc concentrate and our Pyro facility can be run in two modes one when it runs with both zinc and lead concentrate to produce some PW zinc and SHG zinc as well as some lead or it can be done only 100% lead mode.

Last year we operated this facility on 100% lead mode because our mined metal production was low.

This time mined metal production has crossed 1 million tonne and zinc LME being more than $4,000 per tonnes, we wanted to take advantage of that and we operated Pyro mostly or all the time in zinc plus lead mode to produce more and more zinc.

So, to that account consumption of lead concentrate has been less.

And lead concentrate is staying with us as a stock.

So, this year we are planning that we will convert even with more zinc plus lead, but we are trying to create that balancing facility that I was talking about to see that how can I increase with little bit of tweaking in the process or some balancing facility in the process, consume more and more lead and produce the silver which is locked in that lead.

So, that is the reason, there is not no reason that the ore production has been less or mills have not operated.

Abhijit Mitra

So, essentially what we have seen as a total production is the peak production unless there is some debottlenecking which comes through probably over the course of the next year?

Arun Misra

Only in the lead circuit, I need some amount of debottlenecking.

Abhijit Mitra

And generally this debottlenecking will sort of take place through FY23 or you see it sort of spilling over to FY24 as well?

Arun Misra

See we are already on the job and with this first quarter maybe we will be still running on zinc and lead mode.

And we are suitably evaluating both on the LME depending upon how it goes and on the mined metal production wise, whether we run on zinc plus lead mode or only lead mode, or we are also parallelly debottlenecking work is on by quarter two, I think we should be able to push up our lead processing facility.

Moderator · Conference Operator

Thank you.

The next question is from the line of Pallav Agarwal from Antique Stock Broking Limited.

Please go ahead.

Hindustan Zinc Limited April 22, 2022

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Pallav Agarwal

So, I had a question on the supply side, so we have seen such elevated energy prices, which is probably leading to some smelter cuts on aluminum etc. So, have we started seeing something similar in zinc as well.

Arun Misra

I think the gas prices being high and Europe being badly affected because of the gas prices.

So, supply side there is still constraint, the smelter capacities are still not the full capacity that they were earlier.

So, that's what is supply constraint in the market and we see that prices are there.

And this input side of the pressure is not easing any sooner.

And our prediction is maybe another quarter or so, this will remain.

And that is the opportunity we are looking at.

And in fact the amount of mined metal we have produced last year and the zinc production the way last quarter we finished that 260,000 tonnes and we continue like that, we will have to have more, good amount of export of zinc as well.

And Europe and America are the two continents which provide lucrative business but the shipping freight costs are quite high.

So, that is another debottleneck we have to perform to find the solution how to cater to those markets, while paying lesser freight cost and get maximum earnings, because those are the continents where there will be high demand, but the supplies are constrainted.

Pallav Agarwal

Also the situation in China with again Corona cases going up over there.

So, are we actually seeing the utilization levels over there also, zinc smelters declining and probably you know they anyway never used to export too much, but probably there, some sort of, we can actually start importing some amount of zinc and lead, is that a possibility?

Arun Misra

So, in China, mostly, the news that we get to is, the city based population, urban population are affected as of now.

As of now it is not showing any impact on the industry as such.

However, the question is, although the Russia-China trade remains all time high last quarter, also, the trade between Russia-China was all time high, and that means their internal trade volumes -- China's economy, so to say.

So, their production levels are not an issue.

Issue is, its mostly the European production level, because there energy prices are too much.

China already had huge amount of coal production by themselves.

Pallav Agarwal

So, last, if you could just give us a broad percentage of our zinc volumes, how much is domestic and how much are we exporting, let's say in FY22?

Arun Misra

So, roughly about 60% to 62% of our productions are domestic, and that quantity itself is 83% of our domestic market.

Moderator · Conference Operator

Thank you.

The next question is from the line of Rahul Jain from Systematix.

Please go ahead.

Rahul Jain

One thing again on your, coming to your guidance, we are consistently missing our guidance quite sharply.

And especially on silver, how confident are we with a fumer commissioning and other things -- expansion that we will move closer to our guidance for FY23?

Hindustan Zinc Limited April 22, 2022

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Arun Misra

So, this time, the guidance that talks about 700-725 tons of silver includes Quarter 3 and Quarter 4 production of silver through the fumer route.

The fumer experts where we were stuck with the visa not being approved or they were not able to travel because of various COVID restrictions, as well as Indo-China relations.

But now about seven or eight experts have already gone there, got their visa, rest of the workmen are getting the visa.

As I say we our team is working with the project of getting their visas done.

And then we are expecting that this quarter end most of the repair work is already over.

It's only they are coming and commissioning, which should be anytime between towards this quarter end, the commissioning should be over.

And then slowly it will ramp up.

So, Quarter 3 or Quarter 4 we should see full volume coming from there.

So, that should add another 16 to 17 tonne of silver from there.

The rest of the silver will come from our current operation that way we have designed this year.

Rahul Jain

Also on the government slowly probably exiting in say next two to three quarters.

So, do we see any kind of change in our management approach, in the sense will we be more willing to take up more projects or doing more acquisitions, I am sure there will be lot of smelters, which would be available cheap in today's market?

Would that be a possibility in future?

Arun Misra

Possibility of, your meaning, merger and acquisition on smelters?

Rahul Jain

Or some kind of because it's like, we have had government hand in our company, and with that getting away, would there be a change in approach?

Arun Misra

So, let me put it the other way of government being in the Board restricting our ability to expand, perhaps that’s not true, government still remaining in the Board, we have expanded from hundred thousand tonnes to about 1 million tonnes which is 10 hundred thousand tonnes.

So, we have been able to do that.

So, I don't see that as the bottleneck.

What is at stake is private participation in management brings in more innovation and creativity.

So, disinvestment happens it throws up more opportunities very difficult to fathom just now.

But one thing for sure the company with its cash reserves can grow both organically/inorganically with a much speedier decision making perhaps.

And also, there are certain articles of shareholder agreement and limitations that puts in, but those will be the issues to be talked about.

But I would not put that our current growth in any way is impeded by government being on the Board, rather they have been very supportive.

Rahul Jain

And the last mine we opened was Kayad after that we really haven't done much in terms of new mining exploration, any possibility on that also?

Arun Misra

So, new mine if we say exploration, we have already waiting for, we had some earlier prospecting licenses on which we are talking to government.

At the same time, we are waiting Hindustan Zinc Limited April 22, 2022

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So, whenever they are open, we are in touch with state government of Rajasthan whenever they are open, Hindustan Zinc will be the first participant at least to all the nearby blocks wherever we can mine.

Moderator · Conference Operator

Thank you.

The next question is from the line of Mr. Dixit from Edelweiss.

Please go ahead.

Amit Dixit

I have a couple of questions.

The first one is on the Capital mine development in this quarter, if you can give the number?

Sandeep Modi

13 kilometer of the Capital mine development during this quarter.

Amit Dixit

And the second question is on essentially tax guidance.

So, you mentioned in your opening remarks that the tax rate was 31.7% due to tax holiday ending.

Now what would be the tax guidance for FY23?

Sandeep Modi

This continues to be remain largely at the same level for FY23.

Amit Dixit

That is 32% or there about.

Sandeep Modi

Yes.

Moderator · Conference Operator

Thank you.

The next question is from the line of Saket Reddy from Polsani Enterprises.

Please go ahead.

Saket Reddy

The FY23 15% of projected sales that we have sold through moving forward, so what we have committed, what is the pricing for that, moving forward price?

Sandeep Modi

So, the hedging price has been above the $4,000 per tonne.

Saket Reddy

And the second question is we have been doing a lot on the ESG front, be it EVs, be it the Captive powerplant.

So, just wanted to know over the longer run say over 5 to 10 years post effect, post commission, will these be cost accretive for us the powerplant or usage of EVs in the mines in….

Arun Misra

So, you are talking about on the ESG vision, what we do with the powerplants in the long run?

Saket Reddy

No, the ESG vision for the powerplant is fine, the renewable power plant, but will it be cost accretive for us over a longer run?

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Arun Misra

It will be, looking at the geographical location of our facilities, where we are not surrounded by huge coal mining blocks or domestic coal suppliers.

And as you can see our cost pressure also, over the years our domestic coal supply has not been up to that percentage that we require.

We require about 30% in our mix as domestic coal which keeps our costs down, but we have not been getting more than 2% or 3%, some quarters, absolutely nothing.

So, when we look at our current purchase price cost with the RE power as of now whatever options we have looked at, it is economically lucrative as well.

Saket Reddy

And last question.

What is the guidance on debt?

We have reduced it by more than 50%.

I think we have taken it in FY21. Any plans to be debt free again or do we plan to raise some more debt?

Sandeep Modi

If you see our net debt levels, we are already debt free.

We have NCD of Rs.

2800 crore so which will be paid as per the schedule maturity.

So, Rs.

700 Crore will be paid in September ‘22 and remaining Rs.

2100 in September ’23.

So, there is no plan on taking any new loan.

Moderator · Conference Operator

Thank you.

Ladies and gentlemen, we will take the last question from the line of Vishal Chandak from Motilal Oswal Financial Services.

Please go ahead.

Vishal Chandak

My question was with regards to the merger with Zinc International again.

You mentioned that there are a lot of possible synergies if these two entities merge.

But what I was trying to understand that, is there really a talk going on?

Is there a possibility in the current year, next year for the merger or we are just envisaging that if this happens then there would be a lot of synergy?

Arun Misra

So, as far as what is happening now is we have done our homework and understanding the properties, resources, how to upgrade them, what would be the project plan.

Because current status of Zinc International is somewhat like what Hindustan Zinc was at the time of first disinvestment.

So, how do we bring it up to speed the way Hindustan Zinc is now, that will be one value addition #1.

And with our experience, we feel that we can do that a bit better.

And #2 when and how it will happen, of course, this takes a lot of approvals, which are in progress.

And whenever it happens, we can let you know.

But also that does not stop us from thinking, growing, our numbers here in India as well.

Our entire game plan was, once we crossed 1 million tonnes we should start our project thinking for 1.35 million tonnes and once we go past 1.2 million tonnes, we should start project work of 1.5 million tonnes in India.

In the meantime work on at least 0.5 to 1 million tonne capacity abroad, which will be maybe Zinc International provided everything goes through.

Vishal Chandak

My last question was with regard to your guidance.

The guidance that you have given for FY23, in terms of volumes, how much of that takes into consideration that the fumer would get commissioned by the end of Q1. And what is the fumer contribution in that volume.

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Arun Misra

Fumer contribution as far as this number is concerned important contribution is in terms of silver.

If you look at zinc contribution, this is marginal.

Silver contribution would be about 30 tonnes in the year, if I get two quarters, then it will be about 15 tonnes.

Moderator · Conference Operator

Thank you.

Ladies and gentlemen that was the last question.

I now hand the conference over to Ms. Shweta Arora for closing remarks.

Thank you.

And over to you ma’am.

Shweta Arora

With this, we close today's earnings call.

For any follow up questions or clarifications on the result please feel free to reach out to Investor Relations Team.

Thanks for joining.

Moderator · Conference Operator

Thank you.

Ladies and gentlemen on behalf of Hindustan Zinc that concludes this conference call.

Thank you for joining us and you may now disconnect your lines.