pl check on if china cools off due to a usa, japan slowdown what effect it will have on zinc and commodity prices in general.although at the presnt there are no signs of china slowing down

Another set of good results from Hindustan Zinc despite falling prices internationally.

Mar '07	Jun '07	Sep '07	Dec '07	Mar '08
Sales Turnover	2,021.00	1,970.00	1,984.00	1,658.00	2,266.00
Other Income	74.00	270.00	144.00	111.00	326.00
Total Income	2,095.00	2,240.00	2,128.00	1,769.00	2,592.00
Total Expenses	621.00	534.00	565.00	614.00	785.00
Operating Profit	1,400.00	1,436.00	1,419.00	1,044.00	1,481.00
Profit On Sale Of Assets	--	--	--	--	--
Profit On Sale Of Investments	--	--	--	--	--
Gain/Loss On Foreign Exchange	--	--	--	--	--
VRS Adjustment	--	--	--	--	--
Other Extraordinary Income/Expenses	--	--	--	--	--
Total Extraordinary Income/Expenses	--	--	--	--	--
Tax On Extraordinary Items	--	--	--	--	--
Net Extra Ordinary Income/Expenses	--	--	--	--	--
Gross Profit	1,474.00	1,706.00	1,563.00	1,155.00	1,807.00
Interest	2.00	7.00	6.00	6.00	5.00
PBDT	1,472.00	1,699.00	1,557.00	1,149.00	1,802.00
Depreciation	45.00	45.00	49.00	54.00	74.00
Depreciation On Revaluation Of Assets	--	--	--	--	--
PBT	1,427.00	1,654.00	1,508.00	1,095.00	1,728.00
Tax	492.00	469.00	360.00	310.00	450.00
Net Profit	935.00	1,185.00	1,148.00	785.00	1,278.00
Prior Years Income/Expenses	--	--	--	--	--
Depreciation for Previous Years Written Back/ Provided	--	--	--	--	--
Dividend	--	--	--	--	--
Dividend Tax	--	--	--	--	--
Dividend (%)	--	--	--	--	--
Earnings Per Share	22.10	28.01	27.14	18.56	30.21
Book Value	--	--	--	--	--
Equity	423.00	423.00	423.00	423.00	423.00
Reserves	--	--	--	--	--
Face Value	10.00	10.00	10.00	10.00	10.00

Edited by shivkumar - 24/Apr/2008 at 12:20pm

MUMBAI: Hindustan Zinc Limited (HZL), a lead – zinc company of Vedanta Resources Group is poised to become Asia's largest silver producer with production of 500,000 KGs of silver by 2013. Hindustan Zinc is today the largest primary silver producer in India with about 100,000 KGs of silver production. With on going expansion in mines, Hindustan Zinc would be producing about 500,000 kgs of silver by 2013 and with it become the largest silver producer in Asia and also will count amongst the World’s top 6 silver producing companies

During the current financial year 2008-09, till December 2008, Hindustan Zinc has already produced about 70,000 KGs of silver. There has been a constant growth in silver production by the Company. With production of about 51,300 Kgs of silver in 2006-07, the company increased its production to 80,405 Kgs in the year 2007-08.

Silver is a co-product of Hindustan Zinc and comes out with Lead. Zinc- Lead mines are present only in the state of Rajasthan and are owned by Vedanta Resources Group company Hindustan Zinc. The 'Sindesar Khurd' mine of the Company is known for rich silver content and this mine is already under expansion. Once the ongoing expansion is completed, the silver production would increase substantially.

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Going by the domestic market in India, the annual demand of silver is of about 3,200,000 kgs. The supply comes 77.1 % from imports, 18.8 % from secondary silver and 2.5% from Hindustan Zinc. Hindalco too shares about 1.7% of market. In the domestic market of about 3,200,000 Kgs, with almost 50% demand coming from industrial uses, 39% from jewellery and silver ware, 9% from coins and medals and about 1% each from photography and implied net investment. As the domestic supply of silver is so low, India is meeting most of the demand by either imports, through RBI - 77.1%, or through recycled silver - 18.8%. Hindustan Zinc has 2.5% share in the domestic market as of now and is the largest silver producer in the country.

Global silver mine production rose by 4% in the year 2007, with strong gains from Chile, China and Mexico. The silver mine production reached 20,674,000 Kgs last year. Peru was the world's biggest silver mining country with 3,462,000 tonnes of silver, followed by Mexico, China, Chile and Australia. India at current is way behind with just 89,000 Kgs - 2007 of silver production and demand for 3,200,000 Kgs of silver.

According to HZL, the increase in domestic supply would result in:- Reduction in import of silver – thus saving of foreign exchange, direct benefit to ancillary industries and exports may increase of the finished products,Hindustan Zinc positioning would also position India as the largest silver producer in Asia and a strong position globally and employment generation in the ancillary industry.

HZL pointed out that a large supply of silver comes from the secondary market.and the secondary markets position is important in terms of meeting the demand as there is a huge gap in primary silver production and demand. Global mine production increased 23.6% and the demand 8.5%. But the large difference has always been met through recycled silver (secondary market). Interestingly secondary silver market supply has gone down.

There has been significant gain - 23.6%, in the global silver mine production in the last about 10 years - 16,716,000 Kgs in 1998 to 20,675,000 Kgs in 2007. The demand has also increased from 25,413,000 Kgs in 1998 and 27,577,000 Kgs in 2007, about 8.5%. But there has always been a large gap and that has been met through old silver scrap and net government sales. The major demand comes from Industrial applications, that has increased from 9,752,000 Kgs in 1998 to 14,03,000 Kgs in 2007. The increase in demand has also been seen in Jewellery (16.2%) and coins & medals (36%). Ironically, the supply in old silver scrap has declined from 5,978,000 Kgs in 1998 to 5,599,000 Kgs in 2007, about 6.5%. The demand in photography and Silverware has decreased marginally.

Demand for silver comes from Traditional, Industrial and new areas - about 95%, and is based on its unique properties that includes its strength, malleability and ductility, its electrical and thermal conductivity, its sensitivity to and high reflectance of light and also the ability to endure extreme temperature ranges. Silver properties make it a unique metal with no substitute. Silver is largely used in jewelry, coinage, photography, batteries, electronic equipments, medical applications, mirrors & coatings, solar energy, water purification, brazing & soldering and bearings to name a few.

With Hindustan Zinc third phase expansion seeing increase in metal production by 310,000 tonnes - 210,000 of zinc and 100,000 tonnes of lead, the silver production is bound to rise. The company is moving ahead to become the World's largest integrated producer of zinc-lead by 2010 and will achieve its mission to produce one million of metal as well.

All silver data source : World Silver Survey, 2008

http://www.commodityonline.com/news/HZL-to-become-Asias-largest-silver-producer-15455-3-1.html

yss dilip it is.