{"id":158928,"date":"2024-02-16T11:55:46","date_gmt":"2024-02-16T16:55:46","guid":{"rendered":"https:\/\/44.250.171.167\/?p=158928"},"modified":"2024-02-16T11:55:47","modified_gmt":"2024-02-16T16:55:47","slug":"nmdc-limited-q3-fy24-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/nmdc-limited-q3-fy24-earnings-conference-call-insights\/","title":{"rendered":"NMDC Limited Q3 FY24 Earnings Conference Call Insights"},"content":{"rendered":"<p><strong>Key highlights from NMDC Limited (NMDC) Q3 FY24 Earnings Concall<\/strong><\/p>\n<ul>\n<li><strong>Volume Guidance<\/strong>\n<ul>\n<li>Original FY2023 volume guidance was 47 million tons.<\/li>\n<li>Will come very close to 47 million guidance for FY2023.<\/li>\n<li>Volume guidance for FY2024 is 50-53 million tons.<\/li>\n<li>Additional capacity additions driving growth.<\/li>\n<li>New line commissioned at Bacheli to add 2 million tons.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Price Outlook<\/strong>\n<ul>\n<li>Iron ore price outlook is stable currently.<\/li>\n<li>Could see minor fluctuations both up and down.<\/li>\n<li>No major price changes expected.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Capacity Expansion<\/strong>\n<ul>\n<li>Kumaraswamy mine expansion pending regulatory approvals.<\/li>\n<li>Once approved can produce additional 1 million tons.<\/li>\n<li>Further delays result in losing 20-30k tons per day.<\/li>\n<li>Multiple capacity expansions underway.<\/li>\n<li>RWLS to expand capacity at Kirandul by 1-2 million tons.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Slurry Pipeline Update<\/strong>\n<ul>\n<li>Slurry pipeline construction progressing faster now.<\/li>\n<li>Land acquisition completed except for two villages.<\/li>\n<li>Redesigning pellet plant and beneficiation plant for more capacity.<\/li>\n<li>Expect to commission full project by end of financial year 2025.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Coal Block Update<\/strong>\n<ul>\n<li>Coal block awaiting approvals for land acquisition.<\/li>\n<li>If secured, can begin mining in 16-18 months per guidance.<\/li>\n<li>Timeline suggests start of mining in early FY2026.<\/li>\n<li>Will reduce dependency on imported coal.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Australia Mining Operations<\/strong>\n<ul>\n<li>First Australian mine commenced operation.<\/li>\n<li>Gaining experience to inform exploration at other tenements.<\/li>\n<li>Looking to start mining additional deposits in 18-24 months.<\/li>\n<li>International expansion further enables growth.<\/li>\n<li>Australia gold mining project currently in early stages.<\/li>\n<li>Undertaking waste mining to access ore deposits.<\/li>\n<li>Expect to hit ore deposits in the next 1-2 months.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Expansion Plans<\/strong>\n<ul>\n<li>Plans underway to expand Kirandul capacity significantly.<\/li>\n<li>Targeting increase from current 16-17 million tons to 30-35 million tons.<\/li>\n<li>Additional crushing plants being tendered to add 5-6 million tons.<\/li>\n<li>Screening Plant 3 execution delayed but will add 12 million tons.<\/li>\n<li>Bacheli expansion plans being designed to also reach 30-35 million tons.<\/li>\n<li>Expect to ultimately expand Bacheli to 30-35 million tons as well.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Exports Update<\/strong>\n<ul>\n<li>Export currently uneconomical after duties and costs.<\/li>\n<li>However, critical to access global markets at scale.<\/li>\n<li>Reviewing options for potential strategic partnerships.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Steel Demand Outlook\/Realization<\/strong>\n<ul>\n<li>Concerns about impact of China overstated.<\/li>\n<li>India has massive steel demand growth potential.<\/li>\n<li>Per capita consumption expected to nearly double.<\/li>\n<li>Flagship initiatives to drive 100 million tons demand.<\/li>\n<li>Current HRC realization around INR51,000 per ton.<\/li>\n<li>Below realizations of industry peers due to cost disadvantages on logistics.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Cash Generation and Capex<\/strong>\n<ul>\n<li>Current cash balance exceeds INR11,000 crores.<\/li>\n<li>Adequate to fund 2-3 years of capex requirements.<\/li>\n<li>Capex expected at INR2,200 crores next fiscal year.<\/li>\n<li>Can fund average INR5,000-6,000 crores per year.<\/li>\n<li>No need seen for external fundraising currently.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Pellet Plant Update<\/strong>\n<ul>\n<li>Pellet plant losses declined from INR58 crores to INR17 crores.<\/li>\n<li>Recently increased production capacity to 200k tons.<\/li>\n<li>Utilizing tailings from Donimalai to feed plant.<\/li>\n<li>Exploring revenue sharing partnership to enhance operations to help drive profitability improvement.<\/li>\n<\/ul>\n<\/li>\n<li><strong>NMDC Steel<\/strong>\n<ul>\n<li>Significant financial support provided to NMDC Steel currently.<\/li>\n<li>Will be in position to start repaying once profitable.<\/li>\n<li>Targeting EBITDA breakeven when utilization reaches 65-75%.<\/li>\n<li>NMDC Steel breakeven targeted at 5,000 tons coils\/day.<\/li>\n<li>Recently achieved production of 1 lakh tons in January .<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from NMDC Limited (NMDC) Q3 FY24 Earnings Concall Volume Guidance Original FY2023 volume guidance was 47 million tons. Will come very close to 47 million guidance for FY2023. Volume guidance for FY2024 is 50-53 million tons. Additional capacity additions driving growth. New line commissioned at Bacheli to add 2 million tons. Price Outlook [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":154818,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,392,5753],"tags":[9766,10169,10157],"class_list":["post-158928","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-industrials","tag-coal","tag-earnings","tag-iron-ore-2"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":156642,"url":"https:\/\/alphastreet.com\/india\/nmdc-limited-q2-fy24-earnings-conference-call-insights\/","url_meta":{"origin":158928,"position":0},"title":"NMDC Limited Q2 FY24 Earnings Conference Call Insights","author":"Praveen","date":"November 24, 2023","format":false,"excerpt":"Key highlights from NMDC Limited (NMDC) Q2 FY24 Earnings Concall Production and Sales Growth Q2 production 25% higher than last year. 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