@Surender: NMDC’s relations with people in the Bastar-Dantewada region have been relatively stable. For example, our trucks or onsite engineers haven’t complained of any troubles from the local community. However, the possibility of any future political flare ups cannot be completely ignored. It will always remain as one of the risk factors in such areas.
@Rakesh_Aggarwal : Donimalai Pellet Plant has been struggling due to issues with the plant operator KIOCL, which is another PSU. Please read Annual Report 2022 page 140-142, where the CAG Report has been very critical of the way NMDC and KIOCL have handled the Pellet Plant. The pellet plant has shown a 100% jump in production from 82k tonnes to 182k tonnes in the last 1 year. Still, this is barely 10% capacity utilisation. The Donimalai mines were not producing much iron ore due to the dispute regarding Levies and Royalties with the State Government. So the pellet plant has been starved of raw material and slimes which are used for making pellets. Now that the Royalties issue has mostly been addressed and production from Donimalai mines is increasing, the Pellet Plant will hopefully see better days. In general, NMDC’s Karnataka operations haven’t done as well as their Chhattisgarh operations.
@newbie_007: Please read the Annual Report of 2022: “NMDC has a strong history of rewarding investors with an average dividend payment of around 752.19% in the last 5 years, which is the testimony to consistently creating value for its stakeholders”.
NMDC’s current dividend pay-out ratio is 46%. Whereas the 5 year average is 40% and 10 year average is 57%. So the current dividend pay-out ratio isn’t extraordinary. However, I do agree that there is no guarantee that NMDC will continue to be generous with dividends.
@Gothamcapital: I didn’t understand your question
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