27th Jan 2010 07:00
27 January 2010
Vedanta Resources Plc
Production Release for Third Quarter and Nine months
Ended 31 December 2009
Q3 Highlights
Zinc Business
During the quarter ended 31 December 2009 ("Q3"), the company achieved its highest ever zinc and lead mined metal production of 200,000 tonnes. During the same period, refined zinc and lead metal production was stable at 169,000 tonnes, whilst silver production was up 48% at 1.38 million ounces.
Sales in Q3 were augmented by sales of 41,000 dry metric tonnes of surplus zinc concentrate.
EBITDA during the quarter increased over 6 times to $290.6 million, compared with $44.3 million in the corresponding prior quarter. The positive impact of higher LME prices, production volume and operational efficiencies was partially offset by a decline in by-product realizations and the impact of the settlement of a long term wage agreement effective from 1 July 2007.
The Rampura Agucha mine expansion from 5mtpa to 6mtpa is on schedule for commissioning by mid 2010. Construction at the 210 kt Zinc smelter, 100 kt lead smelter and 160 MW CPP is progressing well and on schedule. Sindesar Khurd Mine's primary development is on schedule for progressive commissioning from mid 2010.
Iron Ore Business
During Q3, the company achieved record iron ore production of 5.40 million tonnes, an increase of 36% compared with the corresponding prior quarter. The increase in production was on account of the additional volumes from the Dempo acquisition. Iron Ore sales during the same period were higher by 25% at 6.79 million, compared with the corresponding prior period.
EBITDA in Q3 was $216.1 million compared with $85.8 million in the corresponding prior quarter due to higher volumes and improved realisations.
Copper - India/Australia Business
During Q3, copper cathode production at our Tuticorin smelter was up 12% at 85,000 tonnes compared with 76,000 tonnes in the corresponding prior quarter. The production volumes were marginally impacted by lower concentrate grades, which are expected to improve to normal levels during Q4 FY10.
Mined metal production at our Australian Mine was 4,000 tonnes in Q3. The production is rapidly ramping up after resumption of production in October 2009, post the temporary mine closure in August 2009 following a mud rush.
EBITDA for Q3 was higher at $39.3 million, compared with $22.3 million in the corresponding prior quarter, primarily on account of higher LME prices, partly offset by lower acid prices.
Copper - Zambia Business
During Q3, KCM produced 42,000 tonnes of copper cathodes including 14,000 tonnes from purchased concentrate, significantly higher than the 25,000 tonnes produced in the corresponding prior quarter. The increase was due to the ramp up of the new Nchanga smelter.
Mine output was 22,000 tonnes, 10% higher than the corresponding prior quarter reflecting improved mine performance as a result of ongoing operational improvement initiatives.
EBITDA in Q3 was $35.6 million compared with a loss of $159.4 million in the corresponding prior quarter. The positive impact of improved volumes, higher copper prices, and lower operating cost was partially offset by loss on metal price hedges.
The Konkola Deep Mine Project expansion is progressing well with the cold commissioning of the rock winder. We expect to commission the mid shaft loading station by end FY 2010 and full project completion by end 2011, on schedule.
Aluminium Business
Aluminium production in Q3 was 130,000 tonnes, an increase of 7% over the corresponding prior quarter despite closure of BALCO-I and MALCO smelters. Production at BALCO-II continues to be above rated capacity. The second 250 kt potline is on track for completion by the end of the financial year, with 448 pots out of the total 608 pots currently in operation.
The Lanjigarh alumina refinery produced 181,000 tonnes of alumina in Q3, an increase of 10% compared to the corresponding prior quarter. We await the final clearance for bauxite mining in Orissa.
EBITDA from the Aluminium business increased to $45.1 million, from $13.1 million in the correspondingprior quarter, primarily due to higher sales volume and LME prices, and stable costs.
The first metal tapping from the 1.25 mtpa Jharsuguda II aluminium smelter project is expected in Q1 FY11. Progress on the 3 mtpa alumina refinery expansion project and the 0.6 mtpa de-bottlenecking project at Lanjigarh remains on schedule.
The first metal tapping from the 325 ktpa aluminium smelter project at BALCO is expected in Q3 FY11.Construction at the associated 1,200 MW captive thermal power plant has resumed and the first unit is expected to commence power generation on schedule in October 2010.
Energy Business
We sold 589 million units of power in Q3 compared with 42 million units sold in the corresponding prior quarter.
EBITDA in Q3 was $36.7 million compared with $3.5 million in the corresponding prior quarter.
Construction work on the 2,400 MW (4x600 MW) power plant at Jharsuguda, Orissa is in progress, with the first unit of 600 MW expected to be commissioned by the end of this financial year, and the remaining units expected to be progressively commissioned by the end of CY 2010.
Production Summary (Unaudited)
( in '000 tonnes, except as stated)
|
|
Quarter ended 31 December |
Nine months ended 31 December |
||||
|
Particulars |
2009 |
2008 |
Change |
2009 |
2008 |
Change |
|
Alumina |
||||||
|
Lanjigarh |
181 |
165 |
9.7% |
559 |
415 |
34.7% |
|
Korba/Mettur |
3 |
57 |
(94.7%) |
43 |
200 |
(78.5%) |
|
Aluminium |
130 |
122 |
6.6% |
375 |
328 |
14.3% |
|
Jharsuguda |
65 |
26 |
150.0% |
174 |
33 |
427.3% |
|
Korba/Mettur |
65 |
96 |
(32.3%) |
201 |
295 |
(31.9%) |
|
Copper India / Australia |
||||||
|
Copper mined metal content |
4 |
7 |
(42.9)% |
17 |
19 |
(10.5%) |
|
Copper - Cathodes |
85 |
76 |
11.8% |
255 |
224 |
13.8% |
|
Copper - Zambia |
||||||
|
Copper mined metal content |
22 |
20 |
10.0% |
59 |
62 |
(4.8%) |
|
Copper - Cathodes |
42 |
25 |
68.0% |
120 |
98 |
22.4% |
|
Zinc and Lead |
||||||
|
Mined metal content |
200 |
192 |
4.2% |
575 |
538 |
6.9% |
|
Zinc -refined |
148 |
152 |
(2.6%) |
428 |
401 |
6.7% |
|
Lead -refined 1 |
21 |
16 |
31.3% |
52 |
47 |
10.6% |
|
Silver (in 000' ounces) 2 |
1,384 |
938 |
47.5% |
4,018 |
2,712 |
48.2% |
|
Iron Ore |
||||||
|
Saleable Ore 3 |
5,396 |
3,977 |
35.7% |
13,600 |
11,106 |
22.5% |
|
Energy |
||||||
|
Units sold (in Million) |
589 |
42 |
1302.4% |
1570 |
184 |
753.3% |
Including captive consumption of 2000 tonnes vs 1000 tonnes in Q3FY10 vs Q3 FY09 and 6,000 tonnes vs 2,000 tonnes in 9months FY 2010 vs 9 months FY2009
Including captive consumption of 238,000 ounces vs 138,000 ounces in Q3FY10 vs Q3FY09 and 948,000 ounces vs 466,000 ounces in 9months FY 2010 vs 9 months FY2009
Iron ore is reported on wet tonnes basis
Financial Summary (Unaudited)
|
|
Quarter Ended 31 December |
Nine Months Ended 31 December |
||||
|
Particulars |
2009 |
2008 |
Change |
2009 |
2008 |
Change |
|
Revenue |
|
|
|
|
|
|
|
Aluminium |
221.4 |
183.2 |
20.9% |
486.4 |
775.3 |
(37.3%) |
|
Copper |
|
|
|
|
||
|
India/Australia |
753.4 |
528.9 |
42.4% |
1,960.6 |
2,100.6 |
(6.7%) |
|
Zambia |
264.6 |
121.9 |
117.1% |
694.5 |
636.2 |
9.2% |
|
Zinc |
460.3 |
191.9 |
139.9% |
1120.2 |
969.2 |
15.6% |
|
Iron Ore |
389.3 |
277.4 |
40.3% |
705.5 |
780.7 |
(9.6%) |
|
Energy |
69.3 |
3.6 |
1825.0% |
178.2 |
18.1 |
884.5% |
|
Elimination |
(13.0) |
- |
- |
(21.5) |
- |
- |
|
Total |
2,145.3 |
1,306.9 |
64.2% |
5,123.9 |
5,280.1 |
(3.0%) |
|
|
|
|
|
|
|
|
|
EBITDA |
|
|
|
|
|
|
|
Aluminium |
45.1 |
13.1 |
244.3% |
91.0 |
192.8 |
(52.8%) |
|
Copper |
|
|
|
|
|
|
|
India/Australia |
39.3 |
22.3 |
76.2% |
109.3 |
253.7 |
(56.9%) |
|
Zambia |
35.6 |
(159.4) |
- |
103.9 |
(88.5) |
- |
|
Zinc |
290.6 |
44.3 |
556.0% |
664.0 |
495.5 |
34.0% |
|
Iron Ore |
216.1 |
85.8 |
151.9% |
346.5 |
408.7 |
(15.2%) |
|
Energy |
36.7 |
3.5 |
948.6% |
95.8 |
17.6 |
444.3% |
|
Others |
(0.9) |
0.5 |
- |
(1.7) |
2.7 |
- |
|
Total |
662.5 |
10.1 |
6,459.4% |
1,408.8 |
1,282.5 |
9.8% |
For further information, please contact:
Ashwin Bajaj [email protected]
Vice President - Investor Relations Tel: +91 22 6646 1531
Vedanta Resources plc
Saurabh Kothari [email protected]
AGM - Investor Relations Tel: +91 22 6646 1531
Vedanta Resources plc
Robin Walker Tel: +44 20 7251 3801
Gordon Simpson
Finsbury
About Vedanta Resources plc
Vedanta Resources plc ("Vedanta") is a London listed FTSE 100 diversified metals and mining
major. The group produces aluminium, copper, zinc, lead, iron ore and commercial energy.
Vedanta has operations in India, Zambia and Australia and a strong organic growth pipeline of
projects. With an empowered talent pool of 30,000 employees globally, Vedanta places strong
emphasis on partnering with all its stakeholders based on the core values of entrepreneurship,
excellence, trust, inclusiveness and growth. For more information visit www.vedantaresources.com
Disclaimer
This press release contains "forward-looking statements" - that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "should" or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, uncertainties arise from the behaviour of financial and metals markets including the London Metal Exchange, fluctuations in interest and or exchange rates and metal prices; from future integration of acquired businesses; and from numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive or regulatory nature. These uncertainties may cause our actual future results to be materially different that those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.
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