Please note that this conference is being recorded. I now hand the conference over to Ms. Shweta Arora, Head of Investor Relations. Thank you, and over to you, ma'am. Thank you. Good afternoon, everyone. I welcome you all to Hindustan Zinc's Fourth Quarter and Full Year 2022 Results Briefing. Today on the call, we'll have with us our CEO, Mr. Arun Misra, and our interim CFO, Mr. Sandeep Modi. Mr. Misra will begin with an update on business performance, while Mr. Modi will walk you through financial performance. After which, we will open the floor for questions. I now request Mr. Misra to begin today's call. Over to you, Mr. Misra. Thank you, Shweta. Good afternoon, everyone. Thank you for joining us today for the fourth quarter and FY 2022 results briefing. I hope you and your loved ones are doing well and have taken the booster doses as per government protocols. I am happy to inform that we are progressing well on our administration of the booster dose for our employees and business partners, as well as their families, to curb the positivity rate and keep it under control. Before I begin today's results presentation, I regret to inform you all that we have lost one of our business partner colleagues in an unfortunate accident that happened at our Rajpura Dariba Mine on eleventh March this year. I would like to offer my deepest condolences to the bereaved family and friends of the deceased. One life lost is one too many. We commit to stand by the family in this hour of distress. An in-depth incident investigation is conducted through an independent investigation committee. The learning from the incident have been reviewed and are being implemented across all our operating assets. Further, we have deployed additional safety measures to mitigate any such incidents in the future. We have also initiated the appointment process for 3 global mining safety experts and safety officials for different mining locations. In addition, we have appointed ex-DGMS officials to enhance safety practices via rigorous training programs, and we have also initiated automation and mechanization plans in high-risk activities to the extent possible. In these trying times, our people have made us proud and have come together as one Hindustan Zinc family against all odds. Well-being of our people is a key priority for us, where we don't leave any stone unturned and invest both time and necessary resources to nurture them. From employee mental health and assistance programs to upskilling workshops and trainings, our people are at the heart of everything that we do. At Hindustan Zinc, we strongly believe that change is the only constant, and it is to be driven from the top to effectively percolate down into every facet of our organization. Towards this, we have conducted world-class training with external trainers on global concepts like theory of constraints, TQM, to drive the change agenda and with a sharp focus on outcomes which challenges traditional mental blocks and helps transcend boundaries in terms of performance. We also have a dedicated program running for talent identification and development, particularly focusing on younger talent and diversity mentoring. It gives me immense satisfaction to see that Hindustan Zinc has also broken many stereotypes from employing women in mining to providing equal opportunities to members of the LGBTQ community. We continue to nurture and protect the diverse and inclusive fabric of the company. I am delighted to share that company has received a Leadership in HR Excellence Award from CII for best in class HR practices. Coming to an update on the ESG front, it gives me immense satisfaction to witness that we are marching ahead on our ESG initiatives and working hard towards our commitment of net zero by 2050. I am happy to share that we have received board approval to undertake a long-term captive renewable power delivery plan up to a capacity of 200 MW. This is in line with our unwavering focus to reduce dependence on thermal power and bring the share of renewable energy to cover 50% in next three years. Hindustan Zinc has also put into operation its first batch of passenger electric vehicles for employees. The recent addition to the EV fleet are electric scooters for security staff, passenger EVs at locations, and specialized smart underground series EV for mine. We have also initiated task force on climate-related financial disclosure, qualitative and quantitative studies across Hindustan Zinc to identify the climate-related risks and opportunities and the financial implications of the same on our business. We have signed an MoU with CDP science-based incubator program for setting the targets in line with Science Based Targets initiative requirement for our commitment to reduce the greenhouse gas emission to zero by 2050. I am also delighted to inform you that Hindustan Zinc has featured in the Sustainability Yearbook for the fifth year in a row. We are also ranked in the top 100 global companies by the Sustainability Magazine. This is extremely encouraging and gives us confidence to progress ahead and deliver on our ESG vision. Coming to an update on CSR activities, as a group, our core value and priority is to give back to the society, and our CSR team has doubled down on their efforts on ground training during this trying time. They have carefully balanced both the ongoing long-term core initiatives along with health and COVID-related support to the villages and communities surrounding our operations. The team has put in well-rounded efforts towards education, sustainable livelihood via skill development, and the establishment of self-reliant financial ecosystems for the communities, women empowerment, health, and sports. I am happy to inform that our Zinc Kaushal Kendra received the Indira Mahila Shakti Protsahan Evam Samman Yojana by Honorable Chief Minister Shri Ashok Gehlot in the field of women empowerment. Turning to a market update. On the global supply side equation, we don't see any major new development in the short term which will impact price significantly. Inflationary pressures have continued to pile on globally. As for zinc metal inventory, stocks are slowly and steadily moving from Europe to Asia. The zinc market did witness backwardation during the quarter. On demand side, we haven't witnessed much impact despite Europe being most exposed to Russia-Ukraine unrest. We see manufacturing PMI hovering around 55. Touching briefly on lead. Lower lead LME stocks have had little impact on prices. With battery demand generally soft and moving into season quiet period after winter, additional output from Chinese smelters only led to rising SHFE warehouse stocks. We do not foresee any significant change on this count in the short term. Coming to silver. Investment demand remained healthy while industrial demand for silver is expected to grow by 5% in 2022 according to Silver Institute. With expectations of an increase in interest rates by the Fed at one end, and war-like situation leading to supply chain uncertainties on the other, precious metal prices will at best remain in a delicate balance. Talking about the domestic market, demand remains healthy, and we are getting good realizations for our products. I'm happy to report that we reached our highest ever market share in primary zinc segment, reaching 83% by FY 2022. Coming to an update on operational performance. We have continued to set new operational benchmarks and delivered a year filled with new milestones. It was a stellar year with mined metal production crossing 1 million ton mark up to 1,017 thousand tons. This was possible only through higher ore production from all locations, driven by concerted efforts and grit of all our teams. Hindustan Zinc also produced its highest ever annual refined metal production and witnessed record high mine development during the year. All of this while maintaining our mine life at 25 years. During the quarter, mined metal production was at 295,000 tons, up 3% year-on-year. This was on account of higher ore production at Rajpura-Dariba, Sindesar Khurd, and Rampura Agucha mines. Sequentially, mined metal production grew by 17% with higher ore production from Rajpura Dariba, Rampura Agucha, Sindesar Khurd, and Zawar mines, supported by better mining grades. Integrated metal production was 260,000 tons for the quarter, up 2% year-over-year, and remained almost flat sequentially. This was supported by better plant and mined metal availability and improved operating parameters. Integrated zinc production was 211,000 tons, up 8% year-over-year, and was 1% lower sequentially. Integrated lead production for the quarter was 49,000 tons, up 5% sequentially, but was down 19% year-over-year on account of our pyro plant facility running on zinc and lead mode compared to last year of lead-only mode operation. For the full year, refined metal production was 967,000 tons, up 4% year-over-year on account of better plant and concentrate availability. Integrated silver production was 162 tons, down 20% year-over-year and 6% sequentially. In line with WIB buildup in quarter four and change in mix of lead concentrate, for the full year, silver production was 8% lower year-over-year to 647 tons, in line with lower lead metal production and reduction of silver WIB. At the current run rate production, we are confident to deliver another stellar performance in the fiscal year 2023. Coming to project update. I am delighted to inform that our alloys project under Hindustan Zinc Alloys Private Limited has progressed ahead and has received consent to establish for a 30,000 tons plant. We look forward to meeting the demand for zinc alloys in the Indian market. On the Fumer commissioning, we see the long wait coming to an end. The visa process for technical experts is in advanced stages, and we expect the commissioning to be completed by end of quarter 1 of this year. Post which we can expect output stepping up in a phased manner. I am also happy to update you on the progress of our mill revamping at Rajpura-Dariba mill for 1.1 million tons per annum capacity. Construction is ongoing, and we expect commissioning to be completed by quarter 3 of this year. Before I hand over the call to Sandip for an update on financial performance, I would like to present our production guidance for the fiscal year 2023. We expect mined metal for the year to be in the range of 1,050 to 1,075 thousand tons, and refined metal production for the year to be in the range of 1 million tons to 1,025 thousand tons. While FY 2023 saleable silver production is expected to be between 700 to 725 tons. With this, I hand over to Sandip to give an update on the financial performance. Thank you, Mr. Misra, and good afternoon, everyone. It was a record fiscal year where we touched significant milestones and continued positive momentum of our financial performance. We delivered higher historic high annual revenue, EBITDA, and net profit. This winning streak is supported by our consistent efforts on operational efficiencies, volume delivery, cost rationalization, as well as favorable LME environment. Being in the first quartile global cost curve, our margins exhibit resilience even in an input commodity inflationary environment. A positive correlation to LME prices create a favorable trade-off for us. Coming to an update on financial performance for the fourth quarter and full year ended March 2022. Revenue from operations during the quarter was at record INR 8,797 crore, an increase of 27% YoY, led by higher zinc volume and better premium, as well as higher zinc and lead LME prices, which were partly offset by lower lead and silver volumes. Zinc sales volume increased 8% YoY in line with higher production and robust demand. Over the year, zinc and lead LME prices were up 37% and 16% respectively. Sequentially, revenue was up 10%, primarily driven by higher zinc prices and lead volume, partly offset by lower silver volumes. Zinc LME prices were sequentially up 12%, while lead volume was up 5%. For the full year, revenue was higher by 30% to a record INR 29,440 crore, led by higher zinc volumes and stronger zinc and lead LME prices, as well as higher silver prices from a year ago. Zinc COP before royalty during the quarter was $1,136 per ton, lower 1% sequentially, though it was up by 24% YoY in INR terms and up 21% in USD terms. For the full year, zinc COP excluding royalty was $1,122 per ton, higher by 18% YoY. Overall, COP has been adversely affected by higher coal prices and higher use of imported coal owing to lower linkage coal availability. This was partially offset by operational efficiencies, higher volume and better recovery. EBITDA for the full year was a record INR 16,289 crore, up 39% from a year ago, primarily on account of higher volume, rise in LME prices, partially offset by higher imported coal prices, lower domestic linkage coal availability as well as rise in HSD and network prices. EBITDA for the fourth quarter was at INR 5,007 crore, 29% higher versus last year same quarter, and it was 14% sequentially on account of higher prices, better premium and well-managed operating costs. Tax rate for the year was at an average of approximately 31.7%. The higher level versus previous year was mainly due to the end of certain tax holidays and change in proportion of total business profit versus the total taxable profit. Our cash tax rate would still be around 17% as we have net credit available. For the full year, consolidated net profit was INR 9,629 crore, up 21%, whereas the impact of higher EBITDA was partially offset by lower investment income due to declining interest rate regime and higher ETR. Consolidated net profit for the quarter was INR 2,928 crore, up 18% YoY and 8% sequentially due to lower interest income and higher taxes. Another key update this quarter is on locking in future zinc prices. During the quarter, the company sold zinc forward for nearly 15% of FY 2023 projected zinc volume. Given fast evolving business situation, we have embarked on strategic hedges and will remain flexible and dynamic to harness right opportunities. Coming to our cost and CapEx guidance for the fiscal year 2023, we expect zinc COP in the range of $1,125 to $1,175 per ton for upcoming fiscal year, which is inclusive of higher mine development expenditure to support future volume growth. We would appreciate this guidance comes in an extremely uncertain environment with rising imported coal prices, lower domestic coal availability and geopolitical tensions, which is impacting supply chain globally. Given the fact that we have maintained our leadership position in the global cost curve, we remain confident to protect and improve our margins. Project CapEx for this year is expected to be in the range of $125-$125 million. We will continue to have a focused approach to invest in strategic projects with higher IRR and towards sustainability aspect of the business. With this, I open the floor for your questions. Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Reminder to the participants, anyone who wishes to ask a question may press star and one at this time. The first question on the line of Amit Dixit from Edelweiss. Go ahead. Yeah. Hi. Good evening. Thanks for the opportunity. I have two questions. The first one is essentially on the guidance. The guidance for FY 2023 as far as mine metal production and refined metal is concerned, it seems to be a little bit soft when I compare it with the initial guidance for FY 2022 and with the fumer volume expected to come in and, you know, we are already operating at 1.2 MTPA. This seems to be a little bit soft. I just want to know what we are missing here. That is my first question. Okay. Thank you for your question. Look at it. How do we look at it? Last year, we crossed the 1 million ton threshold as far as metal in concentrate is concerned, and the focus shifts to smelting, which always had the capacity to produce 1 million ton metal, but we have never been tested on that ground. This year is the testing ground for smelters to be tested to produce 1 million ton metal in a way that maximizes revenue from the quality of metal that it produces. Along with the different value-added products, along with our ratio of domestic to exports. That's why if you look at the guidance, the focus has shifted more towards the metal than from the mining. Because on the MIC 1 million ton plus we will be producing in any case, and that guidance will not be perhaps necessary guidance going forward. Going forward, the guidance will be more on the metal, where we are focusing on 1 million ton plus production is the focus. However, our commitment remains to deliver 1.2 million ton metal as quickly as possible. Okay. The second one is essentially on the zinc forward. You mentioned that, you know, we have the forward contract for 15% of volume sold. Have you done anything for lead also, and is there some currency hedging, and at what price we have hedged? We have hedged the 15% of volume of our zinc. No hedging has been done for the lead. The prices are above the $4,000. Okay, there is no currency hedging? No currency hedge for this specific hedging. Okay, great. Thanks a lot. I will come back if need be. Thank you. The next question is from the line of Anuj Singla from Bank of America. Please go ahead. Yeah. Thank you for the opportunity. My first question relates to the cost of production. There's a decline of around 1% QoQ. Can you talk about the key drivers and also what was the coal linkage materialization in this quarter? During the coal linkage materialization, situation did not improve. We received near around 3% of the linkage coal in our overall coal basket. The better COP or the well-managed COP was attributable on account of the higher volume, operational efficiencies and various operational parameters, recovery and our recovery kind of things which have been helping us to improve the cost. Okay. Okay, got it. Secondly, I think a couple of years back, we were looking at 1.2-1.5 million expansion for the mining capacity, and we are still a long way away or maybe a couple of years away from achieving 1.2. Can you give us some kind of timeline when we start investing for this 1.2-1.5 million ton expansion? Is there some amount of CapEx already included in the CapEx guidance for FY 2023? Also an update on the custom smelter which we were contemplating in Gujarat. I will start from the last. The custom smelters are still a way off because the public hearing has not been held, and once the public hearing is held, then we will perhaps come back with our firm project proposal. What's in hand right now is, as I said earlier, to cross 1 million tons plus in the smelting capacities and to put up some balance facilities that the smelting itself is not only tested for 1 million tons, also is able to produce slightly over and above 1.2 million tons. That sets the pace for going to 1.5. All practicalities speaking, we should see the design work for 1.5 being over by another 2 quarters, and then perhaps we'll be able to let you know what would be the project plan and when we would be commissioning that. when we would be embarking on those projects. Okay. Understood. Thank you very much. Thank you. The next question is from the line of Abhiram Iyer from Deutsche CIB Centre. Please go ahead. Hi. Thanks for the opportunity. Sir, could you give us any guidance on, you know, the sort of an inorganic expansion plans that you were looking for in the last couple of quarters, particularly with, say, you know, Zinc International and other companies that you were looking for an expansion? That's the first question. The second question is could you give any guidance on any dividend payout that the company is thinking about or the management is thinking about? Arun Misra here. Let me do it in the reverse order. As far as dividends are concerned, it's a matter for the board to consider and approve. Whenever they do so, surely we'll be able to let you know very happily. On the other hand, as an inorganic growth, yes, it's a part of our overall vision to be number one lead and zinc producer in the world, and we are including the target that you are speaking of, Zinc International. If you add that to Hindustan Zinc, we are already number one in the world. What if we add these two, then one plus one would make eleven. That's our belief. However, if it were to happen, it will happen with due regulatory approvals from all fronts. We are still on the drawing board, and wherever we do get the approvals, we'll surely let you know. As of now, it's not imminent on the horizon. It's still gonna take some more work. Is that understandable? Such kind of discussions as cannot be time-bound. The tipping point can arrive sooner or later. However, I will not speculate on the time when the tipping point arrives. Got it, sir. Thank you very much. Thank you. The next question is from the line of Vishal Chandak from Motilal Oswal Financial Services. Please go ahead. Yeah. My first question was with regard to the 1.2 to 1.35 million ton expansion. You've mentioned that your first target would be achieving 1 million ton of metal sales. When do we plan to hit 1.2 million ton of metal sales? First task, as I said, our smelting already has 1 million ton plus capacity. The guidance that has been given is on the a hundred percent confidence factor on achieving those numbers, and on that the guidance is given. That itself puts us closer to 1.2 million tons. However, there would be certain balance facilities that we would require so that we can produce the product of the grade all that can be sellable with the maximum return. Those design work we are already in, and we should be able to commission certain projects like we are doing some melting casting project in Hindustan Zinc, we have subsidiary that would see addition of about 30 KT of value-added products in our product portfolio that we already have. 1.35 includes some of the expansions, like Zawar Mine has to go from 4 million tonnes to 8 million tonnes ore mining capacity. Our Rajpura-Dariba mine, which is currently 1 million tonne, to be taken to 4 million tonnes. While we have launched the work through sustenance CapEx of the seeding work for expanding these mines. Just to give you a few examples, suppose Zawar Mine has to go to 4 to 8 million tonnes, couple of new portals to be made, some of the underground tunnels to be widened. Without launching another growth CapEx, through the sustenance CapEx route, we have already started addressing a few of that work which provides us the base. Similarly, Rajpura-Dariba mine complete hydrogeological study for the best way to enter the east lode of the mine that is being done now. That's why I said another couple of quarters, we should be able to come back with a firm plan that this is the route to 1.5 million tonne, and these are the timelines. Of course, 1.35 million intermediate milestone, and that will also be equally clear at that point of time. Yeah, that's fine. Thank you for the elaborate response. My second question was with regards to the coal cost and coal sourcing. If you could please help us with you know, what kind of coal sourcing are we currently doing and what are the costs? If you see my total coal cost, total cost bucket, coal used to be 25%-28%. I can give you the ballpark number. It's currently around 35% in my total cost. The coal sources are mostly from South Africa, Indonesia and Australia. Largely, as I said earlier, domestic coal availability is merely meager, and we are getting only 3%-4%. Obviously my large chunk is coming from the imported coal. I see. Sir, finally, if I may just squeeze in just one more. You just mentioned that we've now started the process of hedging forward sales and 15% has been done at $4,000+. Does that give you confidence that, you know, the $4,000+ may not remain at the current levels? Are you expecting a correction or you see that, you know, or is there any other thought process for hedging? There are concerns on the global growth and expected ease on the supply constraint in the quarter 2 calendar 2022. Situations remain quite dynamic. We believe that it was the right timing to enter hedges. We locked in the 15% of the volume and 85% you can assume it is still open. We are keeping the wait and watch and see what can be the best in the interest of the business. Sure. Thank you very much. Thank you. The next question is from the line of Vikash Singh from PhillipCapital. Please go ahead. Good afternoon, sir. Good afternoon. Sir, just wanted to understand our CapEx on the balancing facility to make the smelter to 1.2 million tonnes. What could be the CapEx or the CapEx has already been happened for that? If you could share some thought process on that. Just now I said, we have already added CapEx approved by the board for forming a subsidiary company and add 30 KT of value-added product addition. That will take a little more above 1.1-1.3 thousand tonne capacity that the smelter has. We also have a CapEx already approved for debottlenecking of current smelter to push up their capacity. As of now, I see no reason why we should not be producing close to 1.2 million tonnes finished good metal through the existing facilities. Whatever little balancing facilities required for to come to 1.2, we will do that. As I said, the way I would be working is first assure the mines produce equivalent amount of metal in concentrate. Last year we have demonstrated 1 million plus. This year we have to go even further than that and at the same time test the current smelting capacities. That's why I said 1.2 will just be crossed intermediately while we start launching program for 1.35 and then 1.5. No. Basically, I just wanted to know the CapEx if you have already firmed up for this incremental volumes. No, it is already approved, so there is nothing. No new CapEx is considered for that. Amount actually. How much we are going to spend in FY 2023, if I may ask, differently. FY 2023 CapEx plans. This is Sandip here. In the smelter there is no CapEx to be done for achieving the capacity which Mr. Mishra has said. Overall FY 2023 CapEx would be mostly maintenance CapEx now then? Project CapEx are $120 million-$150 million. That is the CapEx guidance which we have given. That will be largely pertaining to our RD mill revamping, our alloy facility setup and the new solar renewable energy power project which we have announced. These will be three projects and the remaining that will be the sustaining CapEx or maintenance CapEx, whatever you say. Understood, sir. Sir, just one last question. Any thought process up to what percentage we would like to hedge? Currently we are 15%, but any threshold which you have decided that up to this percent we want to go to hedge or it would be dynamic in nature? Situations remain dynamic. As we see the prices move forward and how the geopolitical situation improves, we will continue to wait and watch and see what decision is to be taken which is in the best interest of the business. Okay, sir. Thank you. Thank you. The next question is from the line of Ritesh Shah from Investec. Please go ahead. Yeah, hi, sir. Thanks for the opportunity. Couple of questions. First is, can you provide some details on what the zinc TC/RC trends are and the physical market premiums? That's the first question, sir. We are integrated producer. It is not applicable to us, so I don't think I'll be commenting on TC/RC trends in the market. Sure, sir. Physical market premiums, it can help me. On the zinc and lead, the premiums, while we can't disclose the full number, but I can say it's an increasing trend. Would it be possible to quantify how it has gone on a sequential basis? Sequentially, it will be up, with a good amount. Sure. My second question is, I think the company had taken approvals regarding shifting capital from general reserves to retained earnings. Would it be possible for you to qualify what this quantum was? The quantum was around INR 10,000 crore, and we have received the NOC from the National Stock Exchange. As of now, we are awaiting the SEBI clearance, and they have asked a question which we have submitted the reply. Okay. Sir, how should one understand the rationale for this INR 10,000 crore movement? Is it or should one assume more flexibility of funds, which could eventually translate to dividend payout or how does one read into this? This was done in the last year, last quarter when we announced about this scheme. It takes around a year to get it completely done. Obviously, it gives the flexibility. However, it is an enabling provision, and at this point of time, I would like to limit my comments to that extent. Okay. Sure. My third question is on Hindustan Zinc stake sale. Has there been any progress from the government side or is the company trying to move forward? Where exactly is it stuck right now? I didn't get you. Hindustan Zinc, you are asking of disinvestment? Yes, sir. Okay. No, disinvestment, it was approved by Supreme Court, and after that there were certain procedural issues that had to be cleared. As far as my information is concerned, government is ready for that. Only government is working out what could be the modalities. Should it be done in one go or should it be done in many tranches? That's what they are working out, and whatever suits to them, they will do that. This is something which is entirely with DIPAM right now, and there is no legal hurdles which are there, right? Would that understanding be correct, sir? I didn't get you. There was some noise, not clarity in the voice. You are asking about this? This is with the government. Government has to do that, right? Okay. Sir, is there any timeline over here? No, there's no timeline. I think the sooner the better. You know, as a citizen, I can say all of us expect that government has no business being in business. The sooner they do it, the better it is. Sure, sir. This is very helpful. Thank you so much. I appreciate it. Thank you. The next question is from the line of Abhijit Mitra from ICICI Securities. Please go ahead. Yes, thanks for taking my question. I have two questions. First question is, if you can, you know, highlight the ore production from some of your key mines, for the year, for the fiscal 2022, and the total milled ore that you have seen for the fiscal as well as the feed grade that you have seen for the fiscal. That's the first question. You want the full table of ore production, ore grade, treatment, mill grade? Ore milled and feed grade. I'll tell you. I will tell you the large number. Okay? Yeah. It's year-on-year, about 5.7% increase in the ore production. It's about this year we finished at 15.34 million tons. The break-up mine-wise, it will be too time-consuming, and will take away questions from others. I will request our Shweta Arora to get in touch and give you the mine-wise details. Ore grade was 7.08 in this year. This was slightly lower than our business plan that we had, and it was lower than FY last year also, because we are going deep in the underground. However, this year the areas in the mines we have reached, we see the possibility of a better grade coming in. What was the next? That was the grade and the total ore production. What else? No. The idea was to understand the drop in lead and silver production. You know, is there a No. -drop in, uh- Oh, no, no. That is not the reason for drop in production. Drop in lead production and silver production is because we were producing huge amount of zinc concentrate and our pyro facility can be run in two modes. One, when it runs with both zinc and lead concentrate to produce some PW zinc and SHG zinc as well as some lead. Or it can be run only 100% lead mode. Last year, we operated this facility on 100% lead mode because our mine metal production was low. This time mine metal production has crossed 1,000,000 tons and zinc LME being more than $4,000 per ton, we wanted to take advantage of that, and we operated pyro mostly in or all the time in zinc plus lead mode to produce more and more zinc. To that account, consumption of lead concentrate has been less and lead concentrate is staying with us as a stock. This year we are planning that we will up convert even with more zinc plus lead, but we are trying to create that balancing facility that I was talking about to see that how can I increase with little bit of tweaking in the process or some balancing facility in the process, consume more and more lead and produce the silver which is locked inside lead. That is the reason. There is no reason that the ore production has been less or mills have not operated. Okay, got it. Essentially what we have seen as a total production is the peak production, unless there is some debottlenecking which comes through probably over the course of the next year. Only in the lead sector. Did I understand it? Yeah. Only in the lead sector I need some amount of debottlenecking. Okay. Got it. Generally this debottlenecking will sort of take place through FY 2023 or you see it sort of spilling over to FY 2024 as well? We are already on the job, and this first quarter maybe we'll be still running on zinc and lead mode, and we are suitably evaluating both on the LME, depending upon how it goes, and on the mined metal production-wise, whether we run on zinc plus lead mode or on only zinc or only lead mode. We are also parallel, the debottlenecking work is on. By quarter two, I think we should be able to push up our lead processing facility. Okay. Got it. That's all from my side. Thank you. Thank you. The next question is from the line of Pallav Agarwal from Antique Stock Broking Limited. Please go ahead. Yeah, good evening, sir. I had a question on, you know, on the supply side. We've seen such elevated energy prices, which is probably leading to, you know, some smelter cuts in aluminum, et cetera. Have you started seeing something similar in zinc as well? I think zinc, the gas prices being high and Europe being badly affected because of the gas prices. Supply side, there is still constraint. I mean, the smelter capacities are still not the full capacity that they were earlier. That's what is some supply constraint in the market. We see that prices are there. This input side of the pressure is not easing any sooner. Our prediction is maybe another quarter or so this will remain. That is the opportunity we are looking at. In fact, we are with the current amount of mined metal we have produced last year and the zinc production the way last quarter we finished at 260,000 tons, and we continue like that, we'll have to have more good amount of export of zinc as well. Europe and America are the two continents which provide, you know, lucrative business, but the shipping freight costs are quite high. That is another bottleneck we have to perform to find a solution how to cater to those markets while paying lesser freight costs and get maximum earnings, because those are the continents where there will be high demand, but the supplies are constrained. Sure, sir. Lastly, could just give us, you know, broad percentage of our zinc volumes, how much is domestic and how much are we, you know, exporting, let's say in FY 2022? Roughly about 60% to 62% of our productions are domestic, and that quantity itself is 83% of our domestic market. Sure, sir. Yeah, thank you so much. Thank you. Thank you. The next question is from the line of Rahul Jain from Systematix. Please go ahead. Yeah, hi, sir. Thanks for taking my question. Wanting to again on your committed guidance, sir. We're consistently missing our guidance quite sharply, and especially on silver. How confident are we with the Fumer commissioning and other things that are happening with the RD expansion that, you know, we have been more closer to our guidance for the 2022-2023? This time the guidance that talks about 700 to 725 tons of silver includes quarter three and quarter four production of silver through the Fumer route. The Fumer experts, where we were stuck with the visa not being approved or they were not able to travel because of various COVID restrictions as well as India-China relations. Now most, about 7 or 8 experts have already gone there, got their visa. Rest of the workmen are getting the visa. As I say, our team is working with the project of getting their visas done. Then we are expecting that this quarter end, most of the repair work is already over. It's only their coming and commissioning, which should be anytime between towards this quarter end, the commissioning should be over. Then slowly it will ramp up. Quarter 3, quarter 4, we should see full volume coming from there. That should add another 16-17 tons of silver from there. Rest of the silver will come from our current operations the way we have designed this year. Right. Thanks, sir. Sir, also on the government slowly, you know, probably exiting, say, next 2, 3 quarters. Do we see any kind of a change in our management approach? Since we'll be more willing to take up more projects or, you know, doing more acquisitions, I'm sure there will be a lot of smelters which will be available cheap in today's market. Could that be a possibility in future? Possibility of you are meaning merger and acquisition on smelters? Because it's like, you know, we've had this government hand in our company, and with that getting away, would there be a change in approach, you know? Let me put it the other way. Government being in the board, restricting our ability to expand. Perhaps that's not true. Government still remaining in the board. We have expanded from 100,000 tons to about 10, about 1 million tons, which is 1,000,000 tons. Yeah. We have been able to do that. I don't see that as a bottleneck. What is at stake is private participation in management brings in more innovation and creativity. Disinvestment happens, it throws up more opportunities. Very difficult to fathom just now. One thing for sure, the company with its cash reserve can grow both organically, inorganically with a much speedier decision-making perhaps. And also there are certain articles of, you know, shareholder agreement and limitations that puts in. Perhaps those will be the issues to be talked about. I would not put that our current growth in any way impeded by government being on the board. Rather, they have been very supportive. Sir, the last mine we opened was Kayad. After that, we really haven't done much in terms of new mine exploration. Any possibility on that also? New mine, if you say exploration, we had some earlier prospecting licenses on which we are talking to government. At the same time, we are waiting for this sector to be thrown open like what has happened in the bulk mineral category, and expecting more and more blocks to be offered to, you know, companies like ours for participation in both prospecting as well as mining leases. Whenever they are open, we are in touch with state government of Rajasthan. Whenever they are open, Hindustan Zinc will be the first participant at least to all the nearby blocks wherever we can mine. Right. Thank you so much. Thank you. Thank you. The next question is from the line of Mr. Dixit from Edelweiss. Please go ahead. Yeah, hi. Thanks for taking my questions again. I have couple of questions. The first one is on the Kayad mine development in this quarter. If you can give the numbers. 13 km of the Kayad Mine development during this quarter. Okay. The second question is on essentially tax guidance. You mentioned in your opening remarks that the tax rate was 30.7%, due to tax holiday ending. Now, what would be the tax guidance for FY 2023? This continues to remain largely at the same level for FY 2023. That is 32% or thereabout? Yeah. Okay, cool. Thanks, and all the best. Thank you. The next question is from the line of Saket Reddy from Polsani Enterprises. Please go ahead. Yeah. Good evening, sir. The FY 2023, you know, the 15% of projected sales that you sold through Zinc Forward so far have been committed. What is the pricing for that? The hedging price has been above $4,000 per ton. Okay. The second question is, we've been doing a lot on the ESG front. Be it EVs, be it the Kayad power plant. I just wanted to know, over the longer run, say over 5-10 years, post these effects, post commissioning, will these be, you know, cost accretive for us? The power plant or, you know, usage of EVs in, you know, in the mines and surrounding places? You're talking about on the ESG vision, what we do with the power plants in the long run? No. The ESG vision for the power plant is fine, the renewable power plant. But will it be cost accretive for us over a longer term? No. Yes, it will be. Looking at the geographical location of our facilities, where we are not surrounded by huge coal mining blocks or nearest domestic coal suppliers. As you can see our cost pressure also, over the years, our domestic coal supply has not been up to that percentage that we require. We require about 30% in our mix as domestic coal, which keeps our cost down. We have not been getting more than 2% or 3%, some quarters absolutely nothing. When we look at our current purchase price cost with the RE power, as of now, whatever options we have looked at, it is economically lucrative as well. Okay. Last question, sir. What is the guidance on debt? We've reduced it by more than 50%. I think we've taken it in FY 2021. Any plans to be debt free again or do we plan to, you know, raise some more debt? If you see at net debt level, we are already debt free. We have NCD of INR 2,800 crore, which will be paid as per the schedule maturity. Seven hundred crore will be paid in September 2023, and remaining 2,100 in September 2024. There's no plan of taking any new loan. Okay. Thank you. Thank you. Ladies and gentlemen, we will take the last question from the line of Vishal Chandak from Motilal Oswal Financial Services. Please go ahead. My question was with regards to the merger with Zinc International again. You mentioned that, you know, there are a lot of possible synergies in those two when these two entities merge. What I was trying to understand that is there really a talk going on, or is there a possibility in the current year, next year for the merger? Or we're just envisaging that if this happens, then there would be a lot of synergy. As far as what is happening now is we have done our homework and understanding the properties, resources, you know, how to upgrade them, what would be the project plan. Because current status of Zinc International is somewhat like what Hindustan Zinc was at the time of the first disinvestment. How do we bring it up to speed the way Hindustan Zinc is now? That would be one value addition, number one. With our experience, we feel that we can do that bit better. Second is when and how it will happen. Of course, this takes a lot of approvals, which are in progress, and whenever it happens, we could let you know. Also that does not stop us from thinking, growing, our numbers here in India as well. Our entire game plan was once we cross 1 million ton, we should start our project thinking for 1.35 million ton. Once we go past 1.2 million ton, we should start project work for 1.5 million ton in India. In the meantime, work on at least 0.5 to 1 million ton capacity abroad, which may be Zinc International, provided everything goes through. That's quite helpful, sir. My last question was with regard to your guidance. The guidance that you have given for FY 2023, in terms of volumes, how much of that takes into consideration that the Fumer would get commissioned by the end of Q1? And what is the Fumer contribution in that volume? Fumer contribution as far as this number is concerned, important contribution is in terms of silver. If you look at zinc contribution, this is marginal. Silver contribution would be about 30 tons in the year. If I get two quarters, then it will be about 15 tons. Okay. Got you. Thank you very much, sir. Thank you. Thank you. Ladies and gentlemen, that was the last question. I now hand the conference over to Ms. Shweta Arora for closing remarks. Thank you, and over to you, ma'am. Thank you. With this, we close today's earnings call. For any follow-up questions or clarifications on the results, please feel free to reach out to Investor Relations team. Thanks for joining. Thank you. Thank you. Thank you. Ladies and gentlemen, on behalf of Hindustan Zinc, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.