Vedanta reports records in fourth quarter production update

FTSE 250 metals and mining company Vedanta Resources reported record annual production of aluminium, electricity, silver and Copper India cathodes in its fourth quarter production release on Monday morning, ahead of its full-year results to 31 March.

In aluminium, the record full-year production was also complemented by the ramp-up of the first line of the 1.25 million tonne Jharsuguda-II smelter from 1 April.

The third 660 MW unit at Talwandi Sabo power plant was synchronised in the fourth quarter, which - along with the commissioning of two 300 MW units at the BALCO 1,200 MW plant - saw Vedanta achieve the record power output.

Zinc India’s mined metal production remained in line with guidance for the year, with the division producing a record annual integrated level of silver at 13.6 million ounces.

In other divisions, Zinc International saw strong production volumes at Skorpion in the fourth quarter, following a number of shutdowns, and Copper Zambia also reported ‘strong’ production.

Vedanta’s iron ore operations at Goa also ramped up, with the firm achieving an exit run rate production of 0.8 million tonnes per month following the resolution of earlier transport issues.

"We made substantial operational progress during the quarter by reaching important milestones in the Aluminium, Power and Iron Ore businesses,” said chief executive officer Tom Albanese.

“We are continuing to optimise production across our portfolio to generate maximum value in a low commodity price environment and remaining focussed on reducing costs to protect margins”

Albanese said the strong operational results reinforced the quality of Vedanta’s assets, its operational capability and resilience to weak markets.

“We also remain committed to proactively manage our balance sheet in these weak markets."