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Vedanta Resources (VED)

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Thursday 28 July, 2005

Vedanta Resources

1st Quarter Results

Vedanta Resources PLC
28 July 2005


28th July 2005

Vedanta Resources plc

Results for the 1st quarter ended 30 June 2005

Highlights

   •Group EBITDA almost doubled to US $155 million
   •Higher production volumes and EBITDA across all metals
   •Zinc and copper expansions ramping up well with increased production this
    quarter
   •Expansions at Korba and Orissa remain on schedule

Summary

EBITDA increased to $155 million compared to $79 million for the first quarter
of 2004, an increase of 97 % (an increase of 32 % excluding KCM). This strong
growth has been driven by higher production and higher prices across all metals,
which have more than offset tariff reductions and higher energy costs. During
this quarter our copper and zinc expansion projects were brought on stream and
production is building at both. The 250,000 tpa Aluminium smelter project at
Korba is on course for its completion in March 2006 and the first 72 pots out of
288 will be fully online in August 2005.

Anil Agarwal, Executive Chairman of Vedanta commented:

'We are delivering increased production and are continuing to make good progress
on our expansion pipeline. Vedanta continues with its established strategy of
growth in each of our core metals and our growth projects will create
substantial additional value for shareholders. The long-term outlook for demand
in India remains positive.'

For further information please contact:

John Smelt, Head of Investor Relations             Tel: +44 20 7659 4734
Vedanta Resources plc                                   +44 787 964 2675

James Murgatroyd                                   Tel: +44 20 7251 3801
Robin Walker
Finsbury


Aluminium

The existing plants at BALCO and MALCO continue to operate at full capacity.
Production in the first quarter of the current financial year was higher than
the corresponding quarter of the previous year as a result of productivity
enhancement measures. Better metal prices and product mix have outweighed the
impact of higher energy and input costs, resulting in a 7% increase in EBITDA.
Input costs have risen mainly as a consequence of our decision to improve
availability of coal by blending imported coal with domestic coal.

The production of 36,000 tonnes during this quarter includes 2,000 tonnes from
pots at the new Korba smelter. Since the commissioning of the first unit of the
power plant in June, pots have been progressively commissioned and the first
cluster of 72 pots is planned to be fully operational by Aug 2005. The phased
introduction of the next three units of the power plant will enable
commissioning of all the 288 pots by the scheduled date of March 2006.

The alumina refinery in Orissa is proceeding according to plan, with orders for
all major packages placed with suppliers and the civil engineering and
construction work progressing satisfactorily. We continue to address public
interest submissions concerning the environmental clearances for the bauxite
mining to a Supreme Court of India sub-committee.

Copper - India & Australia

The strong ramp up of the new 300,000 tpa smelter has increased production by
about 8,000 tonnes over the preceding quarter bringing total production to
56,000 tonnes. The new furnace at Tuticorin has already achieved maximum
through-put and the refinery ramp up is progressing well and will achieve full
capacity in the second half of the financial year.

The 60% increase in EBITDA of the copper business over the corresponding period
of the previous year has been driven by higher volumes, prices and TCRCs. As
expected, TC/RC levels have improved considerably over both the corresponding
quarter of the previous year and on the overall levels of last year. These
positive factors have more than offset the negative impact of tariff reductions
since July 2004.

The Australian copper mines continue to benefit from better metal prices. As
planned, operations at Thalanga Copper Mines are expected to close in the second
quarter of the current financial year. The estimated closure costs have been
fully provided for in the accounts.

Copper - Zambia

The various management actions initiated at KCM since the acquisition in
November 2004 have started to yield results, with production of copper in this
quarter higher than the preceding quarter in spite of a planned shutdown at the
smelter. The improvements made during this shutdown, will further enhance
performance. The new acid plant, due to be commissioned in November 2005, is on
schedule and will also support the achievement of cost reduction targets. Since
the end of the quarter industrial action lasting 8 days resulted in the loss of
around 7,500 tonnes of production.

Zinc

There has been a substantial increase in the production of raw material for zinc
due to the expansion of Rampura Agucha mine. Total production of zinc was 57,000
tonnes in the quarter, an increase of 13% over the comparable period last year.
The new 170,000 tpa smelter at Chanderiya was commissioned in May 2005 and ramp
up of production is progressing well, adding over 3,000 tonnes of zinc over the
preceding quarter.

The EBITDA of the zinc business increased by 25% over the corresponding period
of the previous year. Higher metal prices and volumes have more than off set the
negative impact of tariff reductions and higher energy costs. While production
has been strong, sales have lagged because of sluggish demand from the domestic
steel sector, which is expected to recover in the second half of the year.

Financials:

Financial Summary                              Q1                     12 months
(US$m)
                                 2005-06    2004-05    % change        2004-05
Turnover:
Aluminium                           73.3       61.2        19.8%         281.7
Copper - India                     234.4      148.6        57.7%         765.5
Copper - Zambia(1)                 154.2          -                      249.2
Zinc                               120.9       93.8        28.9%         486.4
Other                               20.6       20.0         3.0%         101.4
Total                              603.4      323.6        86.5%        1884.2

EBITDA:
Aluminium                           17.7       16.5         7.3%          75.6
Copper - India/Australia            33.2       20.7        60.4%          85.2
Copper - Zambia(1)                  49.8          -                       76.0
Zinc                                53.1       42.4        25.2%         218.8
Other                                1.3       (0.8)                      (0.6)
Total (existing)                   155.1       78.8        96.8%         455.0

US$: INR average rates, 43.60 for 3 months ended 06/05 and an average of 44.96
in 2004-05.

Operations:

Production summary                                Q1                 12 months
(mt, 000's)
                                    2005-06    2004-5     % change     2004-05

Alumina                                  71        67          6.1%        279
Aluminium                                36        33          9.0%        136
Copper - India/Australia
Mined metal content                      10        11         -8.1%         36
Copper - Cathode                         56        34         64.0%        172
Copper - Rods                            39        26         46.3%        125
Copper - Zambia(1)
Mined metal content                      25         -            -          46
Copper - Cathode                         43         -            -          68
Zinc Metal content in concentrate       114        82         38.3%        355
Refined Zinc                             57        50         13.4%        212

(1)There is no comparative data for KCM as these were acquired in November 2004.
The 12 month numbers includes data for the five months from November 2004 to
March 2005.




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