Vedanta Limited
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Key numbers — 40 extracted
112%
₹2,868 crore
21%
₹34,968 crore
₹8,677 crore
4%
22%
29%
438 bps
507 bps
8%
₹4,306 crore
Guidance — 5 items
Registered Office
opening
“This presentation should not be relied upon as a recommendation or forecast by Vedanta Resources Limited and Vedanta Limited and any of their subsidiaries.”
Registered Office
opening
“✓ Sustained cost reduction for 6 consecutive quarters ✓ 900$/t reduction in CoP in last 6 quarters ✓ Expected to comfortably achieve annual guidance of $1800/t-$1900 per metric ton ✓ Strong foot-hold in the first decile of the global zinc mines cost curve ✓ Stands in the first quartile of the global zinc smelters cost curve.”
Registered Office
opening
“✓ Sustained cost reduction for 4 consecutive quarters ✓ Advancing towards achieving annual guidance of $1,125-$1,175 per metric ton 11 Vedanta Limited 3QFY24 Investor Presentation Sensitivity: Internal (C3) Aluminium Business Focused on growth and business integration Aluminium Production (kt) +3% y-o-y”
Key highlights
opening
“▪ Quarterly overall production at 41 kt due to mining challenges, and lower zinc and lead grades ▪ 9MFY24 Gamsberg CoP lower by 5% y-o-y ▪ Reinitiated 700ktpa Magnetite Project ▪ Engineering and Procurement are ~100% and ~87% completed, respectively.”
Growth Projects
opening
“Production commenced with initial plan to deliver > 2 kboepd.”
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Risks & concerns — 1 flagged
145 134 123 144 131 3Q FY23 2Q FY24 3Q FY24 9M FY23 9M FY24 Opex ($/boe) 13.6 13.7 13.4 13.4 12.9 3Q FY23 2Q FY24 3Q FY24 9M FY23 9M FY24 ▪ 3QFY24 production at 123 kboepd, natural decline in the MBA fields has been partially offset by infill wells brought online in ABH, Aishwariya, and Bhagyam fields.
— Key highlights
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Opening remarks
Registered Office
Regd. Office: 1st Floor, ‘C’ wing, Unit 103, Corporate Avenue, Atul Projects, Chakala, Andheri (East), Mumbai – 400 093 CIN: L13209MH1965PLC291394 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. The
Key Highlights
▪ Highest ever quarterly aluminium production up 6% y-o-y, +6% y-o-y 1,716 1,772 1% q-o-q 566 594 599 3Q FY23 2Q FY24 3Q FY24 9M FY23 9M FY24 Aluminium CoP & Margin COP ($/t) Margin ($/t) 2,149 209 1,814 1,735 2,412 403 578 3Q FY23 2Q FY24 3Q FY24 1,825 459 9M FY24 298 9M FY23 ▪ Highest ever production run rate ▪ Increasing trend for 4th consecutive quarter ▪ Quarterly aluminium CoP lower by 19% y-o-y, 4% q-o-q o Lower input commodity cost o Higher operational and buying efficiency o Quarterly Lanjigarh CoP at 323$/t, 8% lower y-o-y
Other Highlights
▪ Vedanta Aluminium joins International Aluminium Institute(IAI), strengthening commitment to Sustainability ▪ Lanjigarh expansion (2 → 5 MTPA) o Train-I of 1.5 MTPA expected 4QFY24 Vedanta Limited 3QFY24 Investor Presentation CoP: Cost of Production Sensitivity: Internal (C3) 12 Aluminium Business: Vision to be 3 MTPA Integrated Aluminium producer Aluminium Value Chain – Existing Post Expansion (< 2 years) Target Outcome Bauxite Alumina ~6 MTPA (50% – domestic procurement) Power 2 MTPA (45% Captive) 2.5 MTPA (55% 3rd Party) 3.6 MTPA Captive Coal ~23 MTPA 3rd Party Project\Timeline2 LNJ Expansion (2→5 MTPA) Captive Coal Captive Bauxite Aluminium Capacity (2.3 → 2.8 MTPA) VAP expansion (60 → 90%) Smelting Aluminium 2.3 MTPA Bauxite Alumina 9 MTPA (Captive Bauxite) 51 MTPA (~92% captive) Smelting Aluminium 2.8 MTPA 6 MTPA (3rd Party) Power ~34 MTPA Captive Coal 4QFY24 1QFY25 2QFY25 3QFY25 4QFY25 1QFY26 1.5 MTPA 1.5 MTPA 8 MTPA, Kurloi (N) 6 MTPA, Radhikapur (W) 20 MTPA, Ghogharpalli Siji
Key highlights
Gamsberg Phase 2 update: ▪ Highest recovery achieved at Gamsberg of 82.3% in Oct’23. ▪ Quarterly overall production at 41 kt due to mining challenges, and lower zinc and lead grades ▪ 9MFY24 Gamsberg CoP lower by 5% y-o-y ▪ Reinitiated 700ktpa Magnetite Project ▪ Engineering and Procurement are ~100% and ~87% completed, respectively. ▪ Concrete, structural steel erection and equipment erection are on track. Vedanta Limited 3QFY24 Investor Presentation MIC: Metal in concentrate; COP: Cost of production with TcRc cost. Sensitivity: Internal (C3) 15 Oil & Gas Focussed on volume enhancement through accelerating growth projects Gross Production (kboepd)
Key highlights
145 134 123 144 131 3Q FY23 2Q FY24 3Q FY24 9M FY23 9M FY24 Opex ($/boe) 13.6 13.7 13.4 13.4 12.9 3Q FY23 2Q FY24 3Q FY24 9M FY23 9M FY24 ▪ 3QFY24 production at 123 kboepd, natural decline in the MBA fields has been partially offset by infill wells brought online in ABH, Aishwariya, and Bhagyam fields. ▪ 3QFY24 per barrel opex higher by 6% q-o-q primarily driven by lower volumes.
Growth Projects
▪ OALP: First Field Development Plan submitted under OALP regime for Jaya field. Production commenced with initial plan to deliver > 2 kboepd. ▪ Infill wells: Drilled 6 infill wells across RDG & Mangla fields. ▪ Exploration: 5 well drilling campaign commenced to appraise the Durga discovery and further explore the prospects in the block. kboepd: Thousand barrel of oil equivalent per day; boe: barrel of oil equivalent; RDG: Raageshwari Deep Gas ; ABH: Aishwarya barmer hills ; 16 Vedanta Limited 3QFY24 Investor Presentation Sensitivity: Internal (C3) Iron and Steel Driving performance with consistent production growth, paving ways for future capacities Karnataka Iron Ore VAB ESL FACOR Sales (mnt) Production (kt) Saleable production (kt) Ferro Chrome production (kt) 4.2 3.3 633 510 +11% y-o-y 1,043 899 200 218 203 378 341 306 53 48 +15% y-o-y 22 22 19 +43% y-o-y 1.5 1.6 1.2 3Q FY23 2Q FY24 3Q FY24 9M FY23 9M FY24 3Q FY23 2Q FY24 3Q FY24 9M FY23 9M FY24 3Q FY23 2Q FY24 3Q FY24 9M FY23 9M F
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