TIDMVED
RNS Number : 9960H
Vedanta Resources PLC
20 March 2015
20 March 2015
Vedanta Resources plc
Capital Markets Day
Vedanta Resources Plc is today hosting a Capital Markets Day in
London, for analysts and investors, providing a corporate and
financial overview of the Group and outlining key developments in
its core businesses. As part of the presentation, senior management
and business leaders from across the Group will focus on the
progress being made by Vedanta against its strategic
priorities.
Highlights of today's presentation will include:
Diversified, Low-Cost Portfolio of High Quality, Well-invested
Assets
Vedanta's diversified business model and low-cost portfolio of
assets has consistently generated strong EBITDA margins: 43% EBITDA
margin in 9M FY2015.
Vedanta has been consistently generating industry leading EBITDA
margins with its suite of
world- class and low cost Zinc, Oil & Gas and Iron Ore
assets. The Aluminium assets are currently operating in the second
quartile, and are well positioned to further improve on costs with
ramp up of 800kt of new capacity in FY2016 and as we work towards
captive raw material linkages.
Since 2004, Vedanta has delivered copper equivalent production
growth of 25% CAGR. With its
well-invested assets, there is a potential to increase the
copper equivalent production by 59% in the
near- term.
With a clear focus on operational excellence, Vedanta will
continue to carry out productivity improvements, and reduce
operating costs. Specifically, Vedanta is undertaking an exercise
to drive significant savings and efficiencies in its procurement
and marketing spend. This includes over US$800mn of underlying
savings in procurement and more than US$500mn of additional value
from marketing the products to a broader selection of customers and
markets over the next four years.
Capital Expenditure, Leverage and Dividend Policy
Following a period of investment to increase production in its
key commodities, Vedanta is benefitting from a ramp up in volumes.
Vedanta remains focused on delivering volume benefits, optimising
operational and capital expenditure and consolidating its market
positions. The Group has revised its capital expenditure plans in
order to optimise free cash flow against the backdrop of the recent
downturn in commodity prices. Capital expenditure for FY2015 has
been revised from US$1.9bn to US$1.5bn, while FY 2016 capital
expenditure has been reduced from US$2bn to US$1bn.
The reduction in capital expenditure combined with cost
reductions reflects the Group's target of achieving gearing of 25%
in the medium term and maintaining a progressive dividend
policy.
Continued Focus on Safety and Sustainability
Safety remains a key part of Vedanta's operational excellence
and Vedanta is prioritising working with its 80,000 employees and
contractors to eliminate fatalities and institute a culture of
Zero-Harm.
Vedanta remains committed to working with its stakeholders and
the local communities in which it operates, to build a sustainable
business and improve the environment and lives of the people around
the Group's operations.
India's Growth Potential and Natural Resource Opportunities
India's potential as a major resource market, as well as a
resource producer, continues to provide significant opportunities
for Vedanta. According to the IMF and the World Bank, India is
poised to become the fastest growing economy in the world by 2017.
The country's substantial coal, zinc, iron ore and bauxite
reserves, coupled with a favourable regulatory and investment
environment, provide excellent pre-requisites for utilising these
resources for the benefit of the nation. Vedanta, which contributes
0.3% of India's GDP, is fully committed to working towards
improving the country's socio-economic situation, creating further
investment in infrastructure, education and healthcare for Indian
citizens.
Tom Albanese, Chief Executive Officer, Vedanta Resources Plc,
said "Vedanta's diversified and well-invested asset base, low cost
of production and exposure to the fast - growing Indian market puts
us in a strong position to manage the volatility in the commodity
markets. Our focus on operational excellence, reduction of costs
and optimisation of capex will help generate strong free cash flow,
delever and maintain a progressive dividend policy."
Today's presentations will be webcast live from 9.00 am UK time
at http://edge.media-server.com/m/p/7pnxetit. Presentations, as
well as the transcript and replay of the event will be available in
the Investor Relations section of our website,
www.vedantaresources.com.
Dial in:
UK toll free: 0 808 101 1573 USA toll free: 1 866 746 2133
International & UK: +44 203 478 5524 USA: +1 323 386 8721
India: +91 22 3938 1017 and +91 22 6746 Singapore toll free: 800 101
8333 2045
Hong Kong toll free: 800 964
448
For further information, please contact:
Communications Finsbury
Roma Balwani Gordon Simpson / Faeth Birch
President - Group Communications, Tel: +44 20 7251 3801
Sustainability
and CSR
Tel: +91 22 6646 1000
gc@vedanta.co.in Tel: +91 22 6646 1531
Investors ir@vedanta.co.in
Ashwin Bajaj
Director - Investor Relations
Anshu Goel
Vice President - Investor Relations
Radhika Arora
Associate General Manager - Investor
Relations
About Vedanta Resources plc
Vedanta Resources plc ("Vedanta") is a London listed diversified
global natural resources company. The group produces aluminium,
copper, zinc, lead, silver, iron ore, oil & gas and commercial
energy. Vedanta has operations in India, Zambia, Namibia, South
Africa, Ireland, Liberia, Australia and Sri Lanka. With an
empowered talent pool 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, please 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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