Hindustan Zinc: Expansion plan will better valuation

The Economic Times.com reports that Hindustan Zinc is not likely to be affected by inventory issues, and will likely retain its margins.

The story is quoted as saying:

Another growth driver is the buoyancy in silver market. Hindustan Zinc produces silver and sulphuric acid as by-products. The zinc ore from its mines is rich with silver traces. Silver contributes just over 7% to operating profit before depreciation. This would jump to 16% once the company expands its silver production capacity by nearly three times to 500 tonnes in the next six quarters. The timing is perfect given that silver prices have increased by 58% in the past six months.

To access the full story, click here.