TIDMVED
RNS Number : 7463O
Vedanta Resources PLC
23 August 2017
Vedanta Resources plc
16 Berkeley Street
London W1J 8DZ
Tel: +44 (0) 20 7499 5900
Fax: +44 (0) 20 7491 8440
www.vedantaresources.com
23 August 2017
Vedanta Resources Plc
Production and Financial Results Release for the First
Quarter
ended 30 June 2017
Production results were announced on 26(th) July 2017. This
release contains additional financial and other updates.
Highlights
Financial
-- Revenue and EBITDA significantly higher y-o-y driven by higher commodity prices and volumes
-- Gross debt (excluding Zinc India temporary borrowing) reduced
by $1.3 billion in Q1 FY2018, further reduction of $385 million
post June 30 2017
Corporate
-- Proactive refinancing of $1.84 billion announced in August at
Vedanta Resources Plc through a combination of bond and bank debt;
extends average debt maturity by 1.5 years, lowers the average cost
of borrowing and results in no significant debt maturities until
December 2018
Tom Albanese, Chief Executive Officer, Vedanta Resources plc,
said: "We have made a positive start to the year with both revenue
and EBITDA significantly up year on year. In particular, our Zinc
and Oil & Gas businesses have delivered a strong quarter.
Vedanta is a world leader in zinc, and zinc prices have
strengthened since the quarter end on continued global supply
deficits. The Gamsberg zinc project remains on course to commence
production in mid-CY2018. We remain committed to improvements at
Copper-Zambia, while our continued ramp-up in the Aluminium
business has helped us exit the quarter with a strong production
run rate of 1.4 mtpa. Our recent comprehensive refinancing exercise
of $1.84 billion further helps to optimise our balance sheet and
create value for all our stakeholders."
Oil & Gas
Q1 Q4 Full
Year
--------------------------- ----------------------------- ------------------- ---------
Particulars FY2018 FY2017 % change FY2017 % change FY2017
YoY QoQ
--------------------------- -------- -------- --------- -------- --------- ---------
OIL AND GAS
--------------------------- -------- -------- --------- -------- --------- ---------
Average Daily Total
Gross Operated
Production (boepd)
(1) 196,656 206,455 (5)% 194,343 1% 199,574
--------------------------- -------- -------- --------- -------- --------- ---------
Average Daily Gross
Operated Production
(boepd) 187,203 196,861 (5)% 184,585 1% 189,926
--------------------------- -------- -------- --------- -------- --------- ---------
Rajasthan 159,351 166,943 (5)% 157,338 1% 161,571
--------------------------- -------- -------- --------- -------- --------- ---------
Ravva 18,361 19,637 (6)% 17,769 3% 18,602
--------------------------- -------- -------- --------- -------- --------- ---------
Cambay 9,491 10,281 (8)% 9,477 0% 9,753
--------------------------- -------- -------- --------- -------- --------- ---------
Average Daily Working
Interest Production
(boepd) 119,473 125,391 (5)% 117,926 1% 121,186
--------------------------- -------- -------- --------- -------- --------- ---------
Rajasthan 111,546 116,860 (5)% 110,137 1% 113,100
--------------------------- -------- -------- --------- -------- --------- ---------
Ravva 4,131 4,418 (6)% 3,998 3% 4,185
--------------------------- -------- -------- --------- -------- --------- ---------
Cambay 3,796 4,113 (8)% 3,791 0% 3,901
--------------------------- -------- -------- --------- -------- --------- ---------
Total Oil and Gas
(million boe)
--------------------------- -------- -------- --------- -------- --------- ---------
Oil & Gas- Gross 17.0 17.9 (5)% 16.6 3% 69.3
--------------------------- -------- -------- --------- -------- --------- ---------
Oil & Gas-Working
Interest 10.9 11.4 (5)% 10.6 2% 44.2
--------------------------- -------- -------- --------- -------- --------- ---------
Brent ($/bbl) 49.6 45.6 9% 53.7 (8)% 48.6
--------------------------- -------- -------- --------- -------- --------- ---------
Average Price Realisation
($/boe) 44.7 38.0 18% 47.7 (6)% 43.3
--------------------------- -------- -------- --------- -------- --------- ---------
Oil - $/bbl 44.9 37.9 18% 47.7 (6)% 43.3
--------------------------- -------- -------- --------- -------- --------- ---------
Gas - $/mscf 6.7 7.1 (6)% 6.0 12% 6.9
--------------------------- -------- -------- --------- -------- --------- ---------
Revenue($ million) 353.1 281.5 25% 318.1 11% 1,222.7
--------------------------- -------- -------- --------- -------- --------- ---------
EBITDA($ million) 218.0 119.2 83% 165.1 32% 597.2
--------------------------- -------- -------- --------- -------- --------- ---------
Oil & Gas delivered a consistent quarterly performance
during Q1 FY2018, with average gross production across assets at
187,203 barrels of oil equivalent per day (boepd), 1% higher q-o-q
on account of continued reservoir management practices and
production optimization activities. Average gross production
declined 5% y-o-y primarily due to natural decline in the fields,
partially offset by Enhanced Oil Recovery (EOR) and other
interventions.
Gross production from the Rajasthan block averaged 159,351 boepd
for the quarter, 1% higher q-o-q. Mangala EOR continued to
demonstrate strong performance with average volumes of 56 kboepd
during the quarter, at the same level as Q4 FY2017 (Q1 FY2017: 42
kboepd). During the quarter, we commenced production from two
satellite fields, Kaam West-2 and Guda. Gross production from
Development Area-1 (DA-1), Development Area-2 (DA-2) and
Development Area-3 (DA-3) averaged 142,148 boepd, 16,988 boepd and
215 boepd respectively
Gas production from RDG increased to an average of 35.4 million
standard cubic feet per day (mmscfd) in Q1 FY2018 with gas sales at
20.4 mmscfd (Q4 FY2017: RDG Gas production 20.9 mmscfd and sales
3.6 mmscfd).
The Ravva block produced at an average rate of 18,361 boepd for
the quarter. Lining up of new oil producing zones in two wells and
re-activation of a few gas wells through well intervention
activities have helped in generating additional production from the
field. Maintaining strong focus on safe operations, the asset has
been awarded the prestigious Golden Peacock Award for HSE
performance.
The Cambay block reported at an average production rate of 9,491
boepd for the quarter. Targeting incremental production
opportunities, an oil well has been re-activated and a gas zone has
been lined up by adding new perforations in a well, to offset the
natural decline.
Drilling of 15 infill wells at the Mangala field has commenced
from July 2017. Aishwariya Barmer Hill Phase I has been approved
and the production from existing appraisal wells has commenced from
July 2017. The multi-well polymer injection test at Bhagyam EOR and
Aishwariya EOR has been successfully completed and the Field
Development Plans are under discussion with JV Partner. RDG Phase I
is on track to complete in Q2 FY2018 and would increase gas
production to 40-45 mmscfd. For Phase II, the drilling rig contract
has been awarded. Tendering activity for new gas terminal is
progressing well. Phase II is expected to increase the gas
production to over 100 mmscfd and condensate production to about
5,000 boepd by H1 CY2019.
In Q1 FY2018, revenue increased by 11% q-o-q mainly due to the
impact of higher entitlement sales which were partly offset by
lower realization on account of lower crude oil prices. Overall oil
realization decreased by 6% q-o-q to $44.9 per bbl, primarily due
to lower Brent prices which declined by 8% q-o-q. EBITDA was 32%
higher q-o-q due to an increase in entitlement sales and lower
operating costs.
The water-flood operating cost in Rajasthan was $4.3 per boe in
Q1 FY2018 compared to $4.5 per boe in the previous quarter,
primarily due to cost optimization. Q1 FY2018 blended operating
cost for Rajasthan, including polymer, was $6.2 per boe compared to
$6.3 per boe in Q4 FY2017, despite an increase in polymer injection
activities.
Revenue and EBITDA were 25% and 83% higher y-o-y respectively,
largely due to
higher Brent prices, higher entitlement sales and optimized
spend.
As guided previously, we expect Rajasthan production volumes to
remain steady at 165 kboepd in FY2018, with potential upside from
execution of growth projects. We expect production from Ravva and
Cambay to be 16 kboepd and 10 kpoepd respectively in FY2018.
Zinc India
Q1 Q4 Full
Year
----------------------- --------------------------- ---------
FY2018 FY2017 % change FY2017 % change FY2017
Particulars YoY QoQ
----------------------- ------- ------- --------- ------- --------- ---------
Zinc India(kt)
----------------------- ------- ------- --------- ------- --------- ---------
Mined metal content 233 127 84% 312 (25)% 907
----------------------- ------- ------- --------- ------- --------- ---------
Refined Zinc -
Total 194 102 90% 215 (10)% 672
----------------------- ------- ------- --------- ------- --------- ---------
Refined Zinc -
Integrated 194 101 92% 215 (10)% 670
----------------------- ------- ------- --------- ------- --------- ---------
Refined Zinc -
Custom - 1 - - - 2
----------------------- ------- ------- --------- ------- --------- ---------
Refined Lead -
Total (2) 35 25 42% 45 (23)% 139
----------------------- ------- --------- ------- --------- ---------
Refined Lead -
Integrated 35 25 42% 45 (23)% 139
----------------------- ------- ------- --------- ------- --------- ---------
Refined Lead - - - - - - -
Custom
----------------------- ------- ------- --------- ------- --------- ---------
Silver - Total
(in mn ounces)
(3) 3.70 2.85 30% 4.47 (17)% 14.55
----------------------- ------- ------- --------- ------- --------- ---------
Silver- Integrated
(in mn ounces) 3.70 2.85 30% 4.47 (17)% 14.55
----------------------- ------- ------- --------- ------- --------- ---------
Silver- Custom - - - - - -
(in mn ounces)
----------------------- ------- ------- --------- ------- --------- ---------
Average LME - Zinc
($/t) 2,596 1,918 35% 2,780 (7)% 2,368
----------------------- ------- ------- --------- ------- --------- ---------
Average LME - Lead
($/t) 2,161 1,719 26% 2,278 (5)% 2,005
----------------------- ------- ------- --------- ------- --------- ---------
Average Silver
Prices ($/oz) 17.2 16.8 2% 17.4 (1)% 17.8
----------------------- ------- ------- --------- ------- --------- ---------
Revenue ($ million) 694.6 364.8 90% 920.9 (25)% 2,525.0
----------------------- ------- ------- --------- ------- --------- ---------
EBITDA ($ million) 367.2 160.3 - 560.7 (35)% 1,423.2
----------------------- ------- ------- --------- ------- --------- ---------
Mined metal production in Q1 was at 233kt, up 84% higher y-o-y.
The increase was primarily on account of higher volumes from all
mines, higher zinc grades and depletion of opening ore stock. Q-o-q
production was 25% lower as Q4 FY2017 performance was exceptionally
high as per mine plan in line with previously provided
guidance.
Integrated zinc metal production during the quarter was at
194kt, up 92% y-o-y. Integrated saleable lead metal production
during the quarter was at 35kt, up 42% y-o-y. The increase was in
line with availability of mined metal, supported by smelter
efficiencies. Integrated saleable silver production during the
quarter was 3.7 mn ounces (115 metric tonnes), up 30% y-o-y due to
higher grades and volumes from Sindesar Khurd mine.
At Rampura Agucha during the quarter, the equipping of the main
shaft was completed and winder will be commissioned in the current
quarter. We expect the production from the shaft to start in Q3
FY2019.
Sindesar Khurd mine main shaft headgear erection was completed
and preparatory work for equipping is in progress. We expect the
production from the shaft to start in Q2 FY2019. In Q1, we have
awarded an order for a new mill of 1.5 mtpa capacity, to take total
capacity to 5.8 mtpa.
Zawar mill debottlenecking project, upgraded to 2.7 mtpa, will
be completed by Q2 FY2018. Based on the encouraging exploratory
drilling results, we believe that the Zawar group of mines has
potential far beyond its existing R&R. We have hence increased
our focus on the exploration program for Zawar.
The fumer project is progressing as per schedule and expected to
complete by mid FY 2019. All long lead items are ordered and civil
works are in full swing.
Revenue for the quarter was $695 million, up 90% y-o-y on
account of strong zinc and lead prices as well as higher
volumes.
Zinc cost of production before royalties during the quarter was
at $973 per tonne, 6% higher y-o-y. The increase was due to a
significant rise in coal and input commodity prices and lower acid
realization, partly offset by higher volumes. EBITDA for the
quarter was $367 million.
As previously guided, mined metal production in FY2018 is
expected to be higher than FY2017. Refined zinc-lead metal
production is expected to be around 950kt. Silver production is
expected to be over 15 million ounces (500 metric tonnes). We are
on track to reach mined metal capacity of 1.2 mtpa in FY 2020. The
cost of production excluding royalties is expected to be slightly
higher than FY 2017, due to higher coal and input commodity
prices.
Zinc - International
Q1 Q4 Full
Year
------------------------ --------------------------- ------------------ -------
Particulars (in'000 FY2018 FY2017 % change FY2017 % change FY2017
tonnes, or as stated) YoY QoQ
------------------------ ------- ------- --------- ------- --------- -------
Zinc International 32 43 (25)% 41 (22)% 156
------------------------ ------- ------- --------- ------- --------- -------
Zinc -refined
-Skorpion 14 24 (42)% 21 (36)% 85
------------------------ ------- ------- --------- ------- --------- -------
Mined metal content
- BMM 18 19 (4)% 20 (7)% 70
------------------------ ------- ------- --------- ------- --------- -------
Revenue ($ million) 124.2 67.7 83% 75.3 65% 332.4
------------------------ ------- ------- --------- ------- --------- -------
EBITDA ($ million) 49.9 37.4 33% 20.2 - 138.3
------------------------ ------- ------- --------- ------- --------- -------
Total production for Q1 FY2018 was 32,000 tonnes, 25% lower
y-o-y and 22% lower q-o-q. The decrease was mainly due to the
planned shutdown at the acid plant, and lower recoveries at
Skorpion.
Production at Skorpion during the quarter was 14,000 tonnes, 42%
lower y-o-y and 36% lower q-o-q, mainly on account of a planned
shutdown at the acid plant, and lower recoveries. BMM production
for the quarter was 18,000 tonnes, 4% lower y-o-y and 7% lower
q-o-q, largely due to lower feed grades.
At the Gamsberg project, pre-start activities and
waste-stripping at the project have progressed well. The completion
of the North Access Ramp - critical milestone and part of the open
pit development has been achieved to schedule and the north pit
pre-stripping has fully ramped up in Q1 FY2018. As of July end, we
have excavated over 22.5 million tonnes of waste rock. All major
orders for the integrated process plant, water and power, mining
and other prestart activities have already been placed.
Manufacturing of critical machinery such as Mills, Crusher, and
Transformers is progressing well. Major contractors have been
mobilised to the site and site activities including civil works,
power lines and water lines are in full swing.
The first phase of the project is expected to have a mine life
of 13 years, replacing the production lost by the closure of the
Lisheen mine and restoring volumes to over 300,000 tonnes per annum
(tpa) at Zinc International. There is also significant potential
for further optimization at the Gamsberg North deposit. First
production is on track for mid-CY2018, with 9-12 months to ramp-up
to full production of 250 ktpa.
At Skorpion, the Pit 112 extension project is progressing well
and most equipment is in place. Waste mining has started in April
2017. This project, which involves push back of the high wall of
the existing pit, will increase the mine life from 0.5 years to 3
years and increase current reserves from 0.9 million tonnes (at
6.5% grade) to 4.2 million tonnes (at 9.9% grade).
During Q1 FY2018, the cost of production including royalty was
$1,690 per tonne compared with $1,226 per tonne in Q1 FY2017. This
was primarily driven by lower volumes at Skorpion and appreciation
of ZAR.
EBITDA was $50 million, up 33% compared to Q1 FY2017 largely due
to higher sales volume and higher realized LME partly offset by
higher cost of production.
As guided previously, production volumes are expected to be
around 160 ktpa in FY2018. The cost of production is expected to be
around $1,500 per tonne, due to appreciating local currency, higher
throughput and significant investment in exploration.
Iron Ore
Q1 Q4 Full
Year
------------------------ --------------------------- ------------------ -------
Particulars (in FY2018 FY2017 % change FY2017 % change FY2017
million dry metric YoY QoQ
tonnes, or as stated)
------------------------ ------- ------- --------- ------- --------- -------
IRON ORE
------------------------ ------- ------- --------- ------- --------- -------
Sales 2.3 2.6 (12)% 3.0 (24)% 10.2
------------------------ ------- ------- --------- ------- --------- -------
Goa 1.9 2.1 (11)% 2.3 (19)% 7.4
------------------------ ------- ------- --------- ------- --------- -------
Karnataka 0.4 0.5 (15)% 0.7 (40)% 2.7
------------------------ ------- ------- --------- ------- --------- -------
Production of Saleable
Ore 3.2 3.2 1% 3.7 (12)% 10.9
------------------------ ------- ------- --------- ------- --------- -------
Goa 2.2 2.4 (10)% 3.7 (42)% 8.8
------------------------ ------- ------- --------- ------- --------- -------
Karnataka 1.1 0.8 36% - - 2.1
------------------------ ------- ------- --------- ------- --------- -------
Production ('000
tonnes)
------------------------ ------- ------- --------- ------- --------- -------
Pig Iron 163 181 (10)% 182 (10)% 708
------------------------ ------- ------- --------- ------- --------- -------
Revenue ($ million) 106.6 145.0 (26)% 188.5 (43)% 615.4
------------------------ ------- ------- --------- ------- --------- -------
EBITDA ($ million) 7.5 54.0 (86)% 59.6 (87)% 194.2
------------------------ ------- ------- --------- ------- --------- -------
At Goa, production was 2.2 million tonnes and sales were 1.9
million tonnes during the quarter. Production was lower y-o-y
primarily due to the early onset of the monsoon as well as a
temporary halt of mining in some areas by the Goa government, which
is expected to be resolved in Q3 FY2018. Q-o-q production at Goa is
not comparable due to seasonality as well as additional allocation
granted to us in Q4 FY2017.
Sales in Goa were lower than production due to the low pricing
environment and widening of discount for our c. 56% grade as
compared to the benchmark price of 62% iron grade. We are working
on beneficiation and blending with high grades, to narrow the
discounts and improve our realisations per tonne. We currently have
inventory of 2.4 million tonnes, which will be sold in the future
quarters post beneficiation.
At Karnataka, we achieved c.50% of our annual mining cap, with
production of 1.1 million tonnes, during the quarter. Sales were
lower at 0.4 million tonnes due to muted e-auction sales. We have
inventory of 0.8 million tonnes, which will be sold in the coming
quarters.
Production of pig iron was lower y-o-y as well as q-o-q at
163,000 tonnes due to lower metallurgical coal availability on
account of weather-related supply disruptions in Australia. Coal
supplies have now normalized and production will pick up in the
coming quarters.
Revenue for the quarter was $107 million, 26% lower y-o-y and
43% lower q-o-q. The decrease was mainly due to lower realization
at Goa and lower volumes. Price realization at Goa in Q1 FY2018 was
$17 per tonne compared to $36 per tonne in Q1 FY2017 and $38 per
tonne in Q4 FY2017 due to the widening of discounts for our grades.
Price realization at Karnataka, where we sell in the domestic
market, was stronger at c.$25 per tonne in Q1 FY2018 compared with
$23 per ton in Q4 FY2017 and $13 per tonne in Q1 FY2017.
EBITDA was $8 million, 86% lower y-o-y and 87% q-o-q mainly due
to lower price realization and lower sales.
We remain confident of achieving our allocations of 5.5 million
tonnes and 2.3 million tonnes at Goa and Karnataka, respectively,
well ahead of the end of the financial year, and continue to engage
with the respective State governments for increased mining
allocations in both states.
Copper - India
Q1 Q4 Full
Year
------------------------ --------------------------- ------------------ ---------
Particulars (in'000 FY2018 FY2017 % change FY2017 % change FY2017
tonnes, or as stated) YoY QoQ
------------------------ ------- ------- --------- ------- --------- ---------
COPPER- INDIA
------------------------ ------- ------- --------- ------- --------- ---------
Copper - Cathodes 90 100 (10)% 103 (12)% 402
------------------------ ------- ------- --------- ------- --------- ---------
Tuticorin Power
Sales (MU) 30 60 (51)% 64 (54)% 200
------------------------ ------- ------- --------- ------- --------- ---------
Realized TC/RC
(USc/lb) 20.8 22.9 (9)% 23.8 (13)% 22.4
------------------------ ------- ------- --------- ------- --------- ---------
Revenue($ million) 783.2 695.5 13% 969.5 (19)% 3,133.7
------------------------ ------- ------- --------- ------- --------- ---------
EBITDA($ million) 35.2 65.7 (46)% 59.1 (40)% 252.2
------------------------ ------- ------- --------- ------- --------- ---------
The Tuticorin smelter produced 90,000 tonnes of cathodes during
Q1 FY2018, 10% lower y-o-y and 12% lower q-o-q. Production was
lower primarily due to a planned shutdown for eleven days, as well
as an unplanned shutdown for four days due to a boiler leakage at
the smelter. The planned shutdown was advanced to balance the
concentrate market disruptions experienced in Q1. Global
concentrate supply has recovered, as the affected mines have ramped
up production. The smelter is now operating at a high efficiency
following the shutdown.
The 160 MW power plant at Tuticorin operated at a lower Plant
Load Factor (PLF) of 48% during Q1 FY2018 (PLF of 60% in Q1 FY2017
and 62% in Q4 FY2017). PLF was lower due to low off-take by the
Telangana State Electricity Board (TSEB) during the contract
period, which ended on 25th May 2017. Due to the current demand
supply situation of power, we are yet to enter into a new power
purchase agreement and will continue to explore viable supply
agreement options. Under the earlier contract, we are entitled to
compensation at the rate of 20% of the contracted rate for the
off-take below 85% of the contracted quantity as per terms of
PPA.
Treatment Charges & Refining Charges (Tc/Rc) were USc 20.8
per lb in Q1 FY2018, lower y-o-y and q-o-q. This decrease was on
account of the reduction in global benchmark Tc/Rc rates and lower
spot Tc/Rc. More than 80% of our concentrate requirement is sourced
through long-term agreements.
The net unit cost of conversion in Q1 FY2018 was USc 8.4 per lb,
compared to USc 5.9 per lb in Q1 FY2017 and USc 4.8 per lb in Q4
FY2017. The increase was mainly on account of higher coal and input
commodity prices, lower acid credits and lower volumes due to the
maintenance shut down.
EBITDA for the quarter decreased to $35 million mainly due to
lower volumes, lower Tc/Rc and higher cost of production.
The smelter is expected to produce around 400,000 tonnes of
cathodes during FY2018.
We continue to evaluate the expansion of the Tuticorin smelter
by a further 400,000 tonnes per annum, and expect to provide
further updates during the course of the year.
Copper - Zambia
Q1 Q4 Full
Year
------------------------ --------------------------- ------------------- -------
Particulars (in'000 FY2018 FY2017 % change FY2017 % change FY2017
tonnes, or as stated) YoY QoQ
------------------------ ------- ------- --------- -------- --------- -------
COPPER -ZAMBIA
------------------------ ------- ------- --------- -------- --------- -------
Mined Metal 20 29 (30)% 15 35% 94
------------------------ ------- ------- --------- -------- --------- -------
Copper - Total 47 45 5% 51 (7)% 180
------------------------ ------- ------- --------- -------- --------- -------
Integrated 21 28 (26)% 19 9% 96
------------------------ ------- ------- --------- -------- --------- -------
Custom 27 17 56% 32 (17)% 84
------------------------ ------- ------- --------- -------- --------- -------
Average LME - Copper
($/t) 5,662 4,729 20% 5,831 (3)% 5,152
------------------------ ------- ------- --------- -------- --------- -------
Revenue($ million) 276.8 194.8 42% 263.9 5% 874.3
------------------------ ------- ------- --------- -------- --------- -------
EBITDA($ million) (3.4) 3.7 n/m (12.0) (72%) 5.9
------------------------ ------- ------- --------- -------- --------- -------
Mined metal production was 20,000 tonnes during Q1 FY2018, up by
35% q-o-q as a result of improvement in equipment availability at
the Konkola mine, increased throughput at the Nchanga operations
and improvement in Tailings Leach Plant availability.
Fleet availability at the Konkola mine improved to 53% in the
current quarter compared with 23% in Q4 FY2017. Productivity
improvement at Nchanga open pits along with concentrator plant
availability of 88% and Tailing Leach Plant availability of 86% has
led to an exit integrated production of 8,000 tonnes in the month
of June 2017, with the trend continuing into July.
Mined metal production was 30% lower on a y-o-y basis mainly due
to lower equipment availability at Konkola mine and availability at
Tailings Leach Plant compared to last year, which have now improved
significantly.
Custom volumes at 27,000 tonnes were 56% higher on a y-o-y basis
due to improved third party concentrate availability and our
ability to handle feed rates greater than 70 tonnes per hour at the
smelter, following the biennial shutdown during Q3 FY 2017. Custom
volumes were 17% lower q-o-q due to relatively lower availability
of local concentrate.
In Q1 FY2018, the cost of production (excluding royalty) was
higher by 30% at USc 258/lb on a y-o-y basis mainly due to lower
volumes and by-product credits, whilst this was partly offset by
cost optimisation initiatives. On a q-o-q basis, there was a 13%
improvement in unit cost, mainly driven by higher volumes and cost
savings programmes initiated in the current quarter.
Phase I of the elevated temperature leaching project targeted at
improving TLP recoveries is under stabilization and we are in the
process of appointing an engineering consultant for Phase II.
Construction of Heap Leach pilot test pads is progressing well and
commissioning is expected before Q3 FY 2018.
On the Cobalt project, preliminary proposals have been received
and the process of identifying an off-take and techno-economic
partner through an RFP led process is underway, which is expected
to be completed before Q3 FY 2018.
Water level at the Kariba Dam are improving and are currently at
56% compared with 34% y-o-y. Power cuts in the country have been
stopped but the force majeure declared by ZESCO and CEC
continues.
Revenue for the quarter was $277 million, 42% higher y-o-y
mainly due to higher custom sales volumes and higher metal prices
partially offset by lower by-product credits.
The outlook on volumes for FY 2018 is 95-110kt of integrated
production with cost of production revised upwards to USc
200-220/lb. Custom smelting production is expected at 80-90kt. We
expect c.25kt of integrated production in Q2 FY2018.
Aluminium
Q1 Q4 Full
Year
------------------------- --------------------------- ------------------ ---------
Particulars(in'000 FY2018 FY2017 % change FY2017 % change FY2017
tonnes, or as stated) YoY QoQ
------------------------- ------- ------- --------- ------- --------- ---------
Aluminum
------------------------- ------- ------- --------- ------- --------- ---------
Alumina-Lanjigarh 303 275 10% 313 (3)% 1,208
------------------------- ------- ------- --------- ------- --------- ---------
Total Aluminum
Production 352 244 44% 353 0% 1,213
------------------------- ------- ------- --------- ------- --------- ---------
Jharsuguda-I 92 129 (29)% 132 (30)% 525
------------------------- ------- ------- --------- ------- --------- ---------
Jharsuguda-II(4) 120 28 - 100 20% 261
------------------------- ------- ------- --------- ------- --------- ---------
Korba-I 63 63 0% 64 (2)% 256
------------------------- ------- ------- --------- ------- --------- ---------
Korba-II(5) 77 24 - 57 35% 171
------------------------- ------- ------- --------- ------- --------- ---------
Power Sales (million
units)
------------------------- ------- ------- --------- ------- --------- ---------
BALCO 270 MW * - - - - - -
------------------------- ------- ------- --------- ------- --------- ---------
Jharsuguda 1800
MW (Surplus Power
Sales) * - 355 - - - 511
------------------------- ------- ------- --------- ------- --------- ---------
Average LME - Aluminium
($/tonne) 1,909 1,572 21% 1,851 3% 1,688
------------------------- ------- ------- --------- ------- --------- ---------
Revenue($ million) 657.2 412.0 60% 644.0 2% 2,040.0
------------------------- ------- ------- --------- ------- --------- ---------
EBITDA($ million) 83.7 39.3 - 147.1 (43)% 344.2
------------------------- ------- ------- --------- ------- --------- ---------
* Jharsuguda 1,800MW and BALCO 270 MW power plants have been
moved from the Power to the Aluminium segment from 1(st) April
2016.
The Lanjigarh refinery produced 303,000 tonnes of alumina in Q1
FY2018, 10% higher y-o-y but 3% lower q-o-q.
Aluminium production in Q1 was at 352,000 tonnes, 44% higher
y-o-y driven by ramp ups at the Jharsuguda-II and BALCO-II
smelters. The BALCO-II smelter was ramped up and capitalised during
the quarter. Aluminium production was flat q-o-q, as the continued
ramp up at Jharsuguda-II & BALCO-II was offset by lower
production from the Jharsuguda-I smelter due to the pot outage in
early April 2017.
At Jharsuguda-I, out of the 228 pots that were affected in the
April outage, 35 pots are operational as of mid-July, and the
balance will be operational by Q3 FY2018.
Stabilised production (i.e. production excluding trial run) was
c.320,000 tonnes in Q1 FY2018. We exited the quarter at a run rate
of 1.4 million tonnes per annum of stabilised production.
During Q1 FY2018, there were no external sales from the 1,800 MW
Jharsuguda power plant due to a weak power market. However, the
PLF's will continue to increase as we ramp up the Jharsuguda-II
smelter.
On coal supplies, domestic linkages contribute to the long-term
security of our coal requirements at a competitive price. We
experienced temporary disruptions in domestic coal supply from Coal
India during the quarter. This resulted in an increase in captive
power cost.
From the coal linkages of 6mtpa, which were secured through
auctions in Q2 FY2017 for the captive power plants at BALCO and
Jharsuguda, 1.8 mn tonnes of coal were received during the quarter
compared to 1.4 mn tonnes in Q4 FY2017. In addition to this, we
secured further linkages of 2 mtpa in July. Coal imports continue
to be minimal for Aluminium business.
The cost of production of hot metal was $1,727 per tonne, higher
y-o-y (Q1 FY2017: $1,476 per tonne, Q4 FY 2017: $1,492 per tonne).
The increase was primarily due to input commodity inflation,
currency appreciation and pot outages. About $40 per tonne of the
Q1 FY2017 cost of production pertains to pot revival costs which
will be phased out by Q3 FY2018 as the pots are repaired and
Jharsuguda-I smelter ramps up. Q2 FY2018 COP is likely to be at c.
$1,700 per tonne. COP for H2 FY2018 is estimated at c. $1,575-1,600
per tonne.
EBITDA for the quarter was $84 million, significantly higher
y-o-y on account of higher realized prices, higher premia and
volume ramp up.
We expect to produce c.1.5 to 1.6 million tonnes of aluminium
(excluding trial run production) in FY2018.
Power
Q1 Q4 Full
Year
----------------------- --------------------------- ------------------ --------
Particulars (in FY2018 FY2017 % change FY2017 % change FY2017
million units) YoY QoQ
----------------------- ------- ------- --------- ------- --------- --------
Power
----------------------- ------- ------- --------- ------- --------- --------
Total Power Sales 1,838 3,010 (39)% 3,462 (45)% 12,916
----------------------- ------- ------- --------- ------- --------- --------
Jharsuguda 600
MW 564 892 (37)% 952 (41)% 3,328
----------------------- ------- ------- --------- ------- --------- --------
TSPL 563 1,272 (56)% 1,596 (61)% 6,339
----------------------- ------- ------- --------- ------- --------- --------
BALCO 600 MW 551 607 (9)% 793 (31)% 2,609
----------------------- ------- ------- --------- ------- --------- --------
MALCO 4 90 (96)% 46 (93)% 190
----------------------- ------- ------- --------- ------- --------- --------
HZL Wind Power 156 148 5% 75 - 448
----------------------- ------- ------- --------- ------- --------- --------
TSPL - Availability 20% 72% - 85% - 79%
----------------------- ------- ------- --------- ------- --------- --------
Revenue($ million) 113.8 176.7 (36)% 225.1 (49)% 835.9
----------------------- ------- ------- --------- ------- --------- --------
EBITDA($ million) 17.2 51.3 (66)% 69.5 (75)% 244.8
----------------------- ------- ------- --------- ------- --------- --------
During Q1 FY2018, power sales were 1,838 million units, lower
y-o-y and q-o-q, primarily due to the TSPL plant being out of
operation for most of quarter following the fire incident in April,
announced earlier.
The TSPL plant was shut for around 65 days during the quarter.
The plant was restarted at the end of June and is now running at an
availability of above 90%. Consequently, the availability of the
plant was lower at 20% in Q1 FY2018 compared to 85% in Q4 FY2017.
The Power Purchase Agreement with the Punjab State Electricity
Board (PSEB) compensates us based on the availability of the plant.
We are targeting an average availability of over 70% for the full
year.
The 600MW Jharsuguda power plant operated at a plant load factor
(PLF) of 47% in Q1 FY2018 (PLF of 78% in Q4 FY2017, 74% in Q1
FY2017). Power sales from this plant were significantly lower due
to a temporary coal shortage.
The 100MW MALCO power plant operated at a lower PLF of 2% in Q1
FY2018. The plant has been put under care and maintenance effective
from 26th May 2017 due to low demand in Southern India. The plant
has been selling commercial power for the last 8 years, and has
generated a significant cumulative EBITDA of c. $ 170 million over
these years.
The 600 MW BALCO IPP (2x300MW) operated at a PLF of 68% in Q1
FY2018 compared to 72% Q4 FY2017 (Q1 FY2017: 64%).
Average power realisation for Q1 FY2018, excluding TSPL, was INR
2.71 per unit (USc 4.20 per unit), lower compared to INR 2.77 per
unit (USc 4.14 per unit) in Q1 FY2017. Realizations were lower
compared to the corresponding prior quarter on account of weaker
demand, resulting in a lower power price environment in India.
Average power CoP, excluding TSPL, for Q1 FY2018 was INR 1.87 per
unit (USc 2.90 per unit) compared to INR 1.99 per unit (USc 2.97
per unit) in Q1 FY2017.
For the quarter, revenue was $114 million, lower 36% y-o-y and
49% q-o-q. EBITDA was $17 million, lower 66% y-o-y and 75% q-o-q
due to lower volume and realization.
Financial Update and Balance Sheet Management
Our financial position remains robust, with total cash and
liquid investments of $7.4 billion and undrawn committed facilities
of $1.1 billion as at 30 June 2017.
At 30 June 2017, gross debt and net debt were at $16.8 billion
and $9.4 billion, respectively compared to $18.2 billion and $8.5
billion, respectively, as at 31 March 2017. Gross Debt is inclusive
of temporary borrowing at Zinc India which amounted to $1.1 billion
as at 30 June 2017 ($1.2 billion at 31 March 2017). Increase in Net
Debt was on account of dividends paid out from Vedanta Ltd and HZL
in Q1 FY2018.
Further, in line with its deleveraging strategy, gross debt was
reduced by $385 million post 30 June 2017 taking total gross debt
reduction to $1.7 billion till date.
In August 2017, Vedanta Resources plc announced a comprehensive
refinancing plan of $1.84 billion funded through a mix of bank
loans and bonds. The transaction is leverage neutral and extends
the company's average debt maturity by 1.5 years, lowers its
average cost of borrowing and results in no significant debt
maturities until December, 2018. The transaction comprised of a
seven year $1 billion bond issuance at a coupon of 6.125% and $840
million bank loan commitments secured from global and Indian banks
with final maturity of 5 years.
The company received strong investor interest for its bond
issuance. The bond coupon of 6.125% for a seven year maturity
compares favourably to Vedanta's previous bond offering in January
2017 of 6.375% for a 5.5 year maturity.
Proceeds from the bond issuance were utilized towards part
refinancing of the 2019 and 2021 bonds. $752.4 million of face
value of the 2019 and 2021 bonds were tendered (2019: $522.5
million, 2021: $229.8 million). The balance proceeds from bond
issue and term loans shall be applied towards addressing other
near-term maturities of the company.
The Group continues to actively manage its maturities and
evaluate various options to optimise and strengthen its balance
sheet, extend its maturity profile and reduce financing costs
Production Summary (Unaudited)
(In '000 tonnes, except as stated)
Particulars Q1 Q4 Full
Year
------------------------- ----------------------------- ------------------- ---------
FY 2018 FY 2017 % Change FY 2017 % Change FY 2017
YoY QoQ
------------------------- -------- -------- --------- -------- --------- ---------
OIL AND GAS
------------------------- -------- -------- --------- -------- --------- ---------
Average Daily Total
Gross Operated
Production (boepd)
(1) 196,656 206,455 (5)% 194,343 1% 199,574
------------------------- -------- -------- --------- -------- --------- ---------
Average Daily Gross
Operated Production
(boepd) 187,203 196,861 (5)% 184,585 1% 189,926
------------------------- -------- -------- --------- -------- --------- ---------
Rajasthan 159,351 166,943 (5)% 157,338 1% 161,571
------------------------- -------- -------- --------- -------- --------- ---------
Ravva 18,361 19,637 (6)% 17,769 3% 18,602
------------------------- -------- -------- --------- -------- --------- ---------
Cambay 9,491 10,281 (8)% 9,477 0% 9,753
------------------------- -------- -------- --------- -------- --------- ---------
Average Daily Working
Interest Production
(boepd) 119,473 125,391 (5)% 117,926 1% 121,186
------------------------- -------- -------- --------- -------- --------- ---------
Rajasthan 111,546 116,860 (5)% 110,137 1% 113,100
------------------------- -------- -------- --------- -------- --------- ---------
Ravva 4,131 4,418 (6)% 3,998 3% 4,185
------------------------- -------- -------- --------- -------- --------- ---------
Cambay 3,796 4,113 (8)% 3,791 0% 3,901
------------------------- -------- -------- --------- -------- --------- ---------
Total Oil and Gas
(million boe)
------------------------- -------- -------- --------- -------- --------- ---------
Oil & Gas- Gross 17.0 17.9 (5)% 16.6 3% 69.3
------------------------- -------- -------- --------- -------- --------- ---------
Oil & Gas-Working
Interest 10.9 11.4 (5)% 10.6 2% 44.2
------------------------- -------- -------- --------- -------- --------- ---------
Zinc India
------------------------- -------- -------- --------- -------- --------- ---------
Mined metal content 233 127 84% 312 (25)% 907
------------------------- -------- -------- --------- -------- --------- ---------
Refined Zinc -
Total 194 102 90% 215 (10)% 672
------------------------- -------- -------- --------- -------- --------- ---------
Refined Zinc -
Integrated 194 101 92% 215 (10)% 670
------------------------- -------- -------- --------- -------- --------- ---------
Refined Zinc -
Custom - 1 - - - 2
------------------------- -------- -------- --------- -------- --------- ---------
Refined Lead -
Total (2) 35 25 42% 45 (23)% 139
------------------------- -------- -------- --------- -------- --------- ---------
Refined Lead -
Integrated 35 25 42% 45 (23)% 139
------------------------- -------- -------- --------- -------- --------- ---------
Refined Lead - - - - - - -
Custom
------------------------- -------- -------- --------- -------- --------- ---------
Silver - Total
(in mn ounces)
(3) 3.70 2.85 30% 4.47 (17)% 14.55
------------------------- -------- -------- --------- -------- --------- ---------
Silver- Integrated
(in mn ounces) 3.70 2.85 30% 4.47 (17)% 14.55
------------------------- -------- -------- --------- -------- --------- ---------
Silver- Custom - - - - - -
(in mn ounces)
------------------------- -------- -------- --------- -------- --------- ---------
Zinc International 32 43 (25)% 41 (22)% 156
------------------------- -------- -------- --------- -------- --------- ---------
Zinc -Refined -Skorpion 14 24 (42)% 21 (36)% 85
------------------------- -------- -------- --------- -------- --------- ---------
Mined metal content
- BMM 18 19 (4)% 20 (7)% 70
------------------------- -------- -------- --------- -------- --------- ---------
IRON ORE (in million
dry metric tonnes,
or as stated)
------------------------- -------- -------- --------- -------- --------- ---------
Sales 2.3 2.6 (12)% 3.0 (24)% 10.2
------------------------- -------- -------- --------- -------- --------- ---------
Goa 1.9 2.1 (11)% 2.3 (19)% 7.4
------------------------- -------- -------- --------- -------- --------- ---------
Karnataka 0.4 0.5 (15)% 0.7 (40)% 2.7
------------------------- -------- -------- --------- -------- --------- ---------
Production of Saleable
Ore 3.2 3.2 1% 3.7 (12)% 10.9
------------------------- -------- -------- --------- -------- --------- ---------
Goa 2.2 2.4 (10)% 3.7 (42)% 8.8
------------------------- -------- -------- --------- -------- --------- ---------
Karnataka 1.1 0.8 36% - - 2.1
------------------------- -------- -------- --------- -------- --------- ---------
Pig Iron 163 181 (10)% 182 (10)% 708
------------------------- -------- -------- --------- -------- --------- ---------
Q1 Q4 Full Year
----------------------- ----------------------------- ------------------- ------------
Particulars FY 2018 FY 2017 % Change FY 2017 % Change FY 2017
YoY QoQ
----------------------- -------- -------- --------- -------- --------- ----------
COPPER - INDIA
----------------------- -------- -------- --------- -------- --------- ----------
Copper - Cathodes 90 100 (10)% 103 (12)% 402
----------------------- -------- -------- --------- -------- --------- ----------
Tuticorin Power
Plant Sales (MU) 30 60 (51)% 64 (54)% 200
----------------------- -------- -------- --------- -------- --------- ----------
COPPER - ZAMBIA
----------------------- -------- -------- --------- -------- --------- ----------
Mined metal 20 29 (30)% 15 35% 94
----------------------- -------- -------- --------- -------- --------- ----------
Copper - Total 47 45 5% 51 (7)% 180
----------------------- -------- -------- --------- -------- --------- ----------
Integrated 21 28 (26)% 19 9% 96
----------------------- -------- -------- --------- -------- --------- ----------
Custom 27 17 56% 32 (17)% 84
----------------------- -------- -------- --------- -------- --------- ----------
Aluminum
----------------------- -------- -------- --------- -------- --------- ----------
Alumina-Lanjigarh 303 275 10% 313 (3)% 1,208
----------------------- -------- -------- --------- -------- --------- ----------
Total Aluminum
Production 352 244 44% 353 0% 1,213
----------------------- -------- -------- --------- -------- --------- ----------
Jharsuguda-I 92 129 (29)% 132 (30)% 525
----------------------- -------- -------- --------- -------- --------- ----------
Jharsuguda-II(4) 120 28 - 100 20% 261
----------------------- -------- -------- --------- -------- --------- ----------
Korba-I 63 63 0% 64 (2)% 256
----------------------- -------- -------- --------- -------- --------- ----------
Korba-II(5) 77 24 - 57 35% 171
----------------------- -------- -------- --------- -------- --------- ----------
Balco 270 MW - - - - - -
----------------------- -------- -------- --------- -------- --------- ----------
Jharsuguda 1800
MW (Surplus Power
Sales) - 355 - - - 511
----------------------- -------- -------- --------- -------- --------- ----------
POWER (in million
units)
----------------------- -------- -------- --------- -------- --------- ----------
Total Power Sales 1,838 3,010 (39)% 3,462 (45)% 12,916
----------------------- -------- -------- --------- -------- --------- ----------
Jharsuguda 600
MW 564 892 (37)% 952 (41)% 3,328
----------------------- -------- -------- --------- -------- --------- ----------
TSPL 563 1,272 (56)% 1,596 (61)% 6,339
----------------------- -------- -------- --------- -------- --------- ----------
BALCO 600 MW 551 607 (9)% 793 (31)% 2,609
----------------------- -------- -------- --------- -------- --------- ----------
MALCO 4 90 (96)% 46 (93)% 190
----------------------- -------- -------- --------- -------- --------- ----------
HZL Wind Power 156 148 5% 75 - 448
----------------------- -------- -------- --------- -------- --------- ----------
TSPL - Availability 20% 72% - 85% - 79%
----------------------- -------- -------- --------- -------- --------- ----------
Ports - VGCB (in
million tonnes)
(6)
----------------------- -------- -------- --------- -------- --------- ----------
Cargo Discharge 1.2 1.6 (23)% 0.8 53% 4.3
----------------------- -------- -------- --------- -------- --------- ----------
Cargo Dispatches 1.1 1.5 (28)% 0.8 34% 4.4
----------------------- -------- -------- --------- -------- --------- ----------
1. Including Internal Gas consumption
2. Excluding Captive consumption of 1,956 tonnes in Q1 FY2018 vs
1,084 tonnes in Q1 FY 2017 & 1,633 tonnes in Q4 FY 2017.
3. Excluding Captive consumption of 3,28,077 ounces in Q1 FY2018
vs 1,77,000 ounces in Q1 FY 2017 & 2,78,000 ounces in Q4 FY
2017
4. Including Trial Run production of 19 kt in Q1 FY2018 vs 13 kt
in Q1 FY 2017 and 28 kt in Q4 FY2017
5. Including Trial Run production of 15 kt in Q1 FY2018 vs 6 kt
in Q1 FY 2017 and 19 kt in Q4 FY2017
6. VGCB refers to Vizag General Cargo Berth
Financial Summary (Unaudited)
(in $ million, except as stated)
Group Revenue Q1 Q4 Full
Year
-------------------- ------------------------------- -------------------- ----------
FY 2018 FY 2017 % Change FY 2017 % Change FY
YoY YoY 2017
-------------------- --------- --------- --------- --------- --------- ----------
Zinc 818.9 432.5 89% 996.2 (18)% 2,857.4
-------------------- --------- --------- --------- --------- --------- ----------
India 694.6 364.8 90% 920.9 (25)% 2,525.0
-------------------- --------- --------- --------- --------- --------- ----------
International 124.2 67.7 83% 75.3 65% 332.4
-------------------- --------- --------- --------- --------- --------- ----------
Oil and Gas 353.1 281.5 25% 318.1 11% 1,222.7
-------------------- --------- --------- --------- --------- --------- ----------
Iron Ore 106.6 145.0 (26)% 189 (43)% 615.4
-------------------- --------- --------- --------- --------- --------- ----------
Copper 1,060.1 890.3 19% 1,233 (14)% 4,008.0
-------------------- --------- --------- --------- --------- --------- ----------
India/ Australia 783.2 695.5 13% 969.5 (19)% 3,133.7
-------------------- --------- --------- --------- --------- --------- ----------
Zambia 276.8 194.8 42% 263.9 5% 874.3
-------------------- --------- --------- --------- --------- --------- ----------
Aluminium 657.2 412.0 60% 644.0 2% 2,040.0
-------------------- --------- --------- --------- --------- --------- ----------
Power 113.8 176.7 (36)% 225.1 (49)% 835.9
-------------------- --------- --------- --------- --------- --------- ----------
Others (21.6) 2.7 - (20.5) 5% (59.3)
-------------------- --------- --------- --------- --------- --------- ----------
Total 3,087.9 2,340.7 32% 3,584.8 (14)% 11,520.1
-------------------- --------- --------- --------- --------- --------- ----------
(in $ million, except as stated)
Group EBITDA Q1 Q4 Full
Year
-------------------- ----------------------------- -------------------- ---------
FY 2018 FY 2017 % Change FY 2017 % Change FY
YoY YoY 2017
-------------------- -------- -------- --------- --------- --------- ---------
Zinc 417.1 197.7 - 580.9 (28)% 1,561.5
-------------------- -------- -------- --------- --------- --------- ---------
India 367.2 160.3 - 560.7 (35)% 1,423.2
-------------------- -------- -------- --------- --------- --------- ---------
International 49.9 37.4 33% 20.2 - 138.3
-------------------- -------- -------- --------- --------- --------- ---------
Oil and Gas 218.0 119.2 83% 165.1 32% 597.2
-------------------- -------- -------- --------- --------- --------- ---------
Iron Ore 7.5 54.0 (86)% 59.6 (87)% 194.2
-------------------- -------- -------- --------- --------- --------- ---------
Copper 31.8 69.4 (54)% 47.1 (32)% 258.1
-------------------- -------- -------- --------- --------- --------- ---------
India/ Australia 35.2 65.7 (46)% 59.1 (40)% 252.2
-------------------- -------- -------- --------- --------- --------- ---------
Zambia (3.4) 3.7 - (12.0) (72)% 5.9
-------------------- -------- -------- --------- --------- --------- ---------
Aluminium 83.7 39.3 - 147.1 (43)% 344.2
-------------------- -------- -------- --------- --------- --------- ---------
Power 17.2 51.3 (66)% 69.5 (75)% 244.8
-------------------- -------- -------- --------- --------- --------- ---------
Others 2.3 (3.7) - 6.5 (65)% (8.9)
-------------------- -------- -------- --------- --------- --------- ---------
Total 777.8 527.1 48% 1,075.8 (28)% 3,191.1
-------------------- -------- -------- --------- --------- --------- ---------
For further information, please contact:
Communications Finsbury
Zarin Amrolia Daniela Fleischmann
Manager, Group Communications Tel: +44 20 7251 3801
Tel: +91 22 6646 1000
gc@vedanta.co.in
Investors
Ashwin Bajaj Tel: +44 20 7659 4732
Director - Investor Relations Tel: +91 22 6646 1531
ir@vedanta.co.in
Sunila Martis
Associate General Manager - Investor
Relations
Veena Sankaran
Manager - Investor Relations
About Vedanta Resources
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 and Australia. With an empowered talent pool
globally, Vedanta places strong emphasis on partnering with all its
stakeholders based on the core values of trust, sustainability,
growth, entrepreneurship, integrity, respect and care. To access
the Vedanta Sustainable Development Report 2017, please visit
http://www.vedantaresources.com/media/214366/vedanta_sd_report_2016-17.pdf.
For more information on Vedanta Resources, 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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