Stock Report

Lloyds Metals and Energy Ltd reports the highest ever monthly iron ore dispatch volumes

Posted On : 2023-05-02 13:39:33( TIMEZONE : IST )

Lloyds Metals and Energy Limited ("LMEL") received an environmental clearance ("EC") to increase its ore mining to 10 Million Tonnes from 3 Million Tonnes in March'2023. The Company in pursuit of dispatching the expanded capacities had already mobilised as per the plan the mining equipment and related infrastructure. This led to the swift execution of mining of expanded capacities.

As a result, the Company has dispatched its highest-ever monthly volumes of ONE Million Tonne in April'2023. Production for the Month of April'2023 was at 1.2 Million Tonnes.

These production and dispatches lay strong importance on the Company's growth roadmap. It imparts great confidence in the Company's execution capabilities of mining and dispatching the rated capacity of 10Million Tonnes p.a.

Besides, this also clears the pathway of the Company's objective of being present in the complete value chain of steel making. To capture the best use of iron ore reserves i.e., via value addition, the Company laid out a detailed capex program in Q4 F.Y.23. The Company also aims to fund its entire Capex program via internal accruals only. This strategy of funding ensures sustainability during adverse Steel cycles. This program would transition the Company from being a DRI Manufacturer and merchant miner to an Integrated Steel Producer producing value added products in the form of Wire Rods and Pellets, ensuring the majority of revenue from the manufacturing activities.

Commenting on the same, Mr. Prabhakaran- Director, said: "The Surjagarh mine is of the finest mines in Maharashtra with rich iron ore reserves. When we began the mining operations in F.Y.22, it had several challenges in operations. The Company started building infrastructure piece by piece and was able to mine more than 2.5Million Tonnes in mere six months of F.Y.22 itself, this gave us immense confidence in the Company's execution capabilities. This led us to believe that we can go well beyond 3Million Tonnes as well. We are extremely delighted that the Company has dispatched its highest monthly volumes in April'2023 smoothly. We are extremely confident of mining the rated capacity of 10Million Tonnes p.a. going ahead. We look up to support from our devoted workforce, state and central administration, which have been strong pillars of our higher highs, and we aspire for such new milestones going ahead as well."

Commenting on the same, Mr. Rajesh Gupta - Director, said: "This production and dispatch volume of 1.2 Million Tonnes and 1 Million Tonne respectively in April'2023 holds significant importance in the Company's lifetime journey. This testifies to the Company's commitment and capabilities of delivering sustained output over a longer period. This milestone further affirms our roadmap for dispatches of 10 Million Tonnes p.a. in F.Y.24.

Besides dispatches, we also have laid out our detailed roadmap for forward integration of the DRI and mining operations to produce high-quality Wire Rods and Pellets. We aim in maximising the use of iron ore reserves and being present in the complete value chain of steel making. We believe that steel making with captive iron ore would be the most sustained journey for the company going ahead. We have strengthened our iron ore mining operations and have scaled up to the levels where steelmaking would be swifter, smoother and justifiable. The Company endeavoursto execute these projects in a time-bound manner which shall be another feather in our cap.

We are poised for a better and sustained journey over the long term."

Shares of LLOYDS METALS AND ENERGY LTD. was last trading in BSE at Rs. 323.40 as compared to the previous close of Rs. 282.10. The total number of shares traded during the day was 744069 in over 9396 trades.

The stock hit an intraday high of Rs. 329.70 and intraday low of 282.65. The net turnover during the day was Rs. 230470096.00.