Hindustan Zinc - BLACK GOLD !!

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Topic: Hindustan Zinc - BLACK GOLD !!

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basant
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Posted: 23/Apr/2011 at 1:02pm

Originally posted by dilip.r

can HZL be a proxy to Silver play...

is it true...

It is always better to buy a pure commodity producer or just the underlying commodity.

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vinvestor2010
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Posted: 24/Apr/2011 at 9:42pm

Originally posted by basant

Originally posted by dilip.r

can HZL be a proxy to Silver play...

is it true...

It is always better to buy a pure commodity producer or just the underlying commodity.

Sirs the 2010 contribution of silver was 3.5 % of sales i.e. 103125 kg contributing 209.89 cr at Rs 20439 per kilo. This is till 2010 march.

Now price is triple (at least for March closing). So if sales this year was same quantity then 3.5x3 = 10.5 % would have been contribution.

However not sure about final results, but it might have contributed 7-15% of sales this year.

So would it be a marginal contributor or it could lead to actual spike in stock price?????

This is assuming price @Rs 60k per kilo and same level of sale. If sale is higher qty or avg price it could change.

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dilip.r
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Posted: 25/Apr/2011 at 12:22pm

Expansion Projects

The new 1.50 mtpa mill at Silver-rich SK Mine is ramping up well and is expected to achieve its rated capacity in FY 2012. With the accelerated capacity ramp up at SK mine, the Company is poised to exit FY 2012 with Silver production capacity of 500 tonnes (16 million oz). Commissioning of the 100 ktpa Lead smelter at Dariba is expected to be completed in Q1 FY2012, post which, the total Zinc-Lead metal production capacity will increase to 1,064 ktpa.

Source: company website

http://www.hzlindia.com/common/images/Final-PR.pdf

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dilip.r
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Posted: 25/Apr/2011 at 12:31pm

Please note current year 2010-11 relaisation is Apox Rs 30000/kg for 179000kg.

With production capacity going to 500,0000 kg and reliasation @ 65000/kg (rate now) - the excess price reliasation addes to bottem line.

People (jim roger/peter schieff) are speaking about silver going higher.

Current PE 13.22 times

I excpect PE expansion and earning growth is silver price goes up.

Basanji please add ur views.

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dilip.r
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Posted: 25/Apr/2011 at 12:35pm

Originally posted by basant

Originally posted by dilip.r

can HZL be a proxy to Silver play...

is it true...

It is always better to buy a pure commodity producer or just the underlying commodity.

i did vist a silver jewller last week to buy 1 kg silver bar

they will charge me 12% as making charges. which i felt is too high.

What is ur opnion on buying silver from commodity spot exchange in demat format.

I guess there are no Silver ETFs in India..

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dilip.r
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Posted: 25/Apr/2011 at 12:37pm

Do we have any listed playes pure commodity (Sliver) produers...

i just found HZL....

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kmp_saij
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Joined: 19/Feb/2010
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Posts: 277

Posted: 01/Dec/2011 at 6:30pm

I entered in Hindustan zinc at Rs.117. Now I am worried that SP Tulsian has recommended it to BUY.

Balance sheet and all looks good in this company. but as it is recommended by tulsian I am little worried though it is only entry level exposure(less than 1% of portfolio Wink

).

on sidenote, he also has recommended HDFC Bank.

link: http://m.moneycontrol.com/newscenter_news.php?type=nc_market&storyid=627726&category=nc_market

Edited by kmp_saij - 01/Dec/2011 at 6:33pm

Own whatever’s feared, shun whatever’s beloved.

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