Thread by @CAALOKJAIN_NIRC

#GMDC (Gujarat Mineral Development Corporation) Share Analysis (For Education Purpose Only)
1) LCP-187(29-04-2022)
2) 52WH-228.50(07-04-2022)
3) 52WL-54.20(26-04-2021)
4) EPS-12.74, PE-14.68, IPE-6.98, BV-149.90, No of shares-31.80 Cr, FV-2, ROCE- (-)8.55%

5. Shareholding-Promoters-74% (Govt of Gujarat), FII-2.93%, DII-2.71%, NII-20.36%,
6. Results Q4FY22-Sale 1057 Cr Vs 725 Cr in Dec21 and 566 Cr in Mar21. Sales Rise by 46% QOQ and 87% YOY. PAT 176 Cr Vs 149 Cr in Dec21 and Loss (-)186 Cr in Mar21.

7) Diversification Planned- currently 85% of revenues from lignite. Non-lignite revenue Vision of 50%. Company Appointed 3 advisory firms- Boston Consulting for strategic transformation, AT kearney for transformation of Power Business, & Deloitte as Project Management consultant.

8) Huge Liquid Cash Vs Market Cap-Current Market Cap is just 2200 Cr and Company has a 1200 Cr liquid cash cash
9) On 21-02-2022 Union Environment Ministry approved GMDC to go deeper to 135 meters for lignite mining from Tadkeshwar Mines from existing approval of 94 Mtr.

During the year 2021-22, lignite production at Bhavnagar mines achieved was 16.37 lakh MT, an increase of 11.45 lakh MT, as against 4.92 Lakh MT in 2020-21

Key Business Segments
1) LIGNITE PROJECTS- During FY21 Company operated five lignite mines, namely, Mata-No-Madh, Rajpardi, Tadkeshwar, Bhavnagar and Umarsar. Total output was 60.04 Lakh MT. Number of customers have gone up from 600 to 1,200 customers right now.

Company to Focus on 6 new lignite projects each project require an outlay of Rs.200 to 250 crores. Production is up by 72% in quantity and in sales up by 128%. Recently allotted Six lignite blocks.

GMDC ramped up production capacity to 8 million tonne (mt) in FY-22, up from 6 mt in FY-21. It is looking to grow its production by 10-15% during the current financial year. Its is planning to seek joint venture partner in Alumina and solar plant as part of a diversification Plan

2) POWER PROJECT (NANI CHHER)- During the year FY21, 2 x 125 MW Akrimota Thermal Power Station has generated 435.05 MUs having 20% PLF. Losses in power plant will be down as thier PLF has moved up from 20% to 55%.

3) WIND & SOLAR POWER-Wind Farm Projects of 200.9 MW are situated at different locations in Gujarat and 5 MW Solar Project is situated. The 200.9 MW Wind Projects have achieved 16% PLF (Plant Load Factor), whereas Solar Project is running at 14% CUF (Capacity Utilization Factor).

Growth Triggers
1) Fluorspar project and Multi-Metal project-two projects, Huorspar and Ambaji Multi-Metal projects have been have resulted into just being expense centres for the time being. They are both very ambitious projects, especially Ambaji Multi-Metal project.

GMDC along with M/s. Gujarat Fluoro and M/s Navin Fluorine International Limited is setting up the fluorspar beneficiation plant, a single largest project of 40,000 MTPA capacity at Kadipani. Based on pilot test report, Global tender will be floated for selection of EPC contract

2) Worlds Best Consultant on Board-Soo one of worlds best consultant will be on board to speed up this transformation.

3) Entry in manganese ore-entered JV with MOIL India. JV with Aikya Chemicals for Manganese Oxide, Manganese dioxide & Manganese Sulphate plant set by JVC has been commissioned. During FY21 sold 57,554.61 MT of Sub grade Manganese Ore from Waste dump of Shivrajpur Project.

4) Bauxite Mining-JV with Gujarat Credo Mineral Industries-In FY21 Dry beneficiation of low grade bauxite and Zeolite manufacturing plant has been commissioned. In FY21 sold 41,610.35 MT (>52% Al2O3) Plant Grade bauxite from Mevasa Mines, District - Devbhoomi Dwarka.

5 Rare Earth Minerals (approx 1.5kg required / vehicle) could change the whole profile of company. Lot of developments on cards over next few quarters. Rare Earth magnets are mostly made of neodymium (REE) which are the most effective way to power electric vehicles.

China controls 90% of the supply. Doing partnership with the Government of Gujarat. Gujarat Mineral Research & Development Society (GMRDS) has brought out an RFP which is in the final stages of being concluded, which will help us steer in that journey towards

developing rare earth and making Gujarat rare earth hub. Only company in India where rare earth elements (lithium and special magnets used in EV etc) story is in the making.

@darshanvmehta1 @drprashantmish6 @Prakashplutus @Milind4profits @EquityBuzzz @AshVerma111 @thedumbtrader @arc1471

Key Takeaways of Q4FY22 Conference call on 2nd May

https://twitter.com/CAALOKJAIN_NIRC/status/1521395211343069184

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