10th Apr 2014 07:26
LONDON (Alliance News) - Vedanta Resources PLC Thursday said it failed to reach its revised mined metal production estimate at Zinc India, but posted strong full year production of oil and gas due to the ramp-up of operations at its Rajasthan Block.
In January, the India-focused oil and metals company warned that it expected mined metal production at its Zinc India operations in the full year ending March 31 to be about 900,000 tonnes due to a slower-than-expected ramp up of its underground mining project and a change in mining sequence that is giving preference to primary mine development.
However on Thursday the company said it had failed to meet this revised estimate, achieving 880,000 tonnes, a 1% increase on its 870,000 tonnes the previous year.
At Zinc India, the company said its total refined zinc content increased 11% to 749,000 tonnes from 677,000 tonnes, and its total refined lead increased 4% to 130,000 tonnes from 125,000 tonnes, with particular improvement in its integrated production of refined metals due to operational efficiencies and higher availability of its smelters.
However, the Zinc India site's total saleable silver content fell 6% to 11.2 million ounces from 12.0 million ounces despite an increase in its integrated production.
The company also said that total production at its Zinc International operations fell 15% to 364,000 tonnes from 426,000 tonnes, as lower mined metal production due to lower ore grades, accidents and unplanned shutdowns hit the company.
In contrast Vedanta achieved strong production from its Oil & Gas operations, where average daily gross operated production increased 6% to 218,651 barrels of oil equivalent per day from 205,323 barrels, and average daily working interest production increased 7% to 137,127 barrels of oil equivalent per day from 127,843 barrels previously.
The company said its total working-interest oil and gas produced during the period increased 7% to 50.1 million barrels of oil equivalent from 46.7 million barrels of oil equivalent, as its Rajasthan block achieved landmark oil production of 200 million barrels and 200,000 barrels of oil equivalent per day in March 2014.
Vedanta said production of saleable iron ore fell 60% to 1.5 million dry metric tonnes from 3.7 million dry metric tonnes, as the company resumed mining for iron ore at the end of December 2013 following clearance from the Supreme Court of India.
The company said its total copper production fell 18% to 177,000 tonnes from 216,000 tonnes with a particular fall in mined metal content at both the company's India/Australia operations and Zambia operations.
Furthermore, the company said its total power sales also fell 7% to 9.37 billion units from 10.13 billion units, with a 21% fall in its fourth quarter due to lower sales from its Jharsuda and BALCO sites on account of weak market demand and evacuation constraints.
In the company's previously announced third quarter figures, it noted that earnings before interest, tax, depreciation and amortisation were USD294.2 million in the three months to end-December, compared with USD276.3 million a year earlier, even though revenues declined to USD546.6 million, from USD574.8 million for the quarter.
Earlier in April, Tom Albanese took over as chief executive officer at Vedanta, a move that marked his return to the helm of a major mining company just a year after he quit Rio Tinto PLC when the mining giant swung to net loss amid an industry-wide downturn.
Albanese, who was one a several high-profile victims of the downturn that struck the mining industry in late 2012 and early 2013, joined Vedanta's board in April after taking over from MS Mehta, who retired at the end of March.
Vedanta Resources shares were down 0.2% to 935.50 pence in early trading Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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