Thread by @CAALOKJAIN_NIRC

#GMDC Key Takeaways From From Q4FY22 Conference Call on 2nd May 22

1.Base metal deposit is situated in Banaskantha district of Gujarat and the Northern part of the Gujarat and GMDC is holding a mining lease over an area of 184 hectare and they are having the best base metal

deposit of the world having 1.5% copper and they are planning to start the geological study of this area followed by geophysical mapping and drilling so for that purpose they have planned to hire a senior geologist for that post. The site also contains Lead and zinc.

Total metal content is around 10%. Out of that approx 1.5% copper, Lead is around 3.5% and zinc 5%.

2) Bauxite resources and prospects of bauxite mining and sales in future- GMDC able to sale its cream grade bauxite that is called plant grade bauxite and there are certain slackness in this NPG grade bauxite, but Company trying hard to sale this inventories lying at various

stacks since long and for that on Pan India Advertisement regarding the tender notice has been published. Recently GMDC engaged BCG and GMDC is also chalking out the plan to actually increase the the sale of bauxite in a big way.

3) Receivables Very High-receivable gone up because of our bills for our renewable energy we had some issues with GUVNL the matter went up to judge, but now matter has been resolved and we have received this payments in the month of April.

4.Lignite Production-Company Projecting a Sale of 10 MT in FY23 with an EBITDA OF 1600 per Ton. So possible EBIDTA for FY23 could be 1600 Cr from lignite operation itself. Company has already planned to increase production by 10-15%. Recently obtained 6 new lignite blocks

that will add to its reserves in the existing operating mines. Around 540 million ton of lignite reserves in these 6 blocks. The Other is limestone deposit of around 2,000 million ton and also getting silica sand. The demand in project field in Gujarat is almost 25 millon tonnes

to 28 million tonnes and GMDC is producing 8.5 million tonnes; so there is a huge gap. Second is pricing scenario the pricing of GMDC jury dynamics and it is related to imported coal, landed price at the customer’s doorsteps.

5) Fluorspar Mineral plant going to start probably in this fiscal year
6) Non Lignite business- Company has a Target to Increase the share of Non-Lignite business to 50% of total Revenue.

7) Potential of investment in joint venture Gujarat Credo- This JV is basically producing zeolite from low grade bauxite. Zeolites are basically detergent based zeolite and in India they are used to produce detergent.

8) Investment in Gujarat State Financial Services (GSFS)- Its a Govt Undertaking and Company is required to invest surplus Funds in GSFS. Company getting an interest @5.25%.

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