Some important points from the Q2FY23 con-call –
- Outstanding payment by ZESCO has been reduced from 397 to 332 million $. ZESCO is on schedule with the payments and the company is confident that they would receive 152 million $ by Dec 23.
- The company will expand into the Phase 2 plant of MCL. They want to put up a 300 MW plant which will cost the company about 450 million $ and expand in Ivory Coast with an expenditure of 80 million $. 450 million $ equates to 12.3 crores a MW which is expensive as per Indian standards. In India, the cost of setting a Greenfield project is 9 cr a MW which would include land acquisition and everything else. In an existing setup this cost should be reduced drastically. I think that in Africa it is more expensive as everything has to be sourced from exports. This is at a very nascent stage. More clarity is required.
- There is a lot of demand of power in South Africa. There are power cuts 4/5 times a day in the region. Zambia exports 400 MW of power.
- Plant availability of MCL is at an impressive 95.2%.
- The coal division has increased the merchant sales due to effective marketing campaigns in the region.
- The manganese prices are at historically low levels. The prices have reduced by 15% QoQ. Expecting the construction market and the ferro alloy prices to revive post monsoon.
- The plantation of avocado is completed. Fruits expected in FY26.
- Operations in Orissa / Telangana has improved. This led to increase in 31.6% revenues QoQ.
- Out of 474 crores of income boosting transaction, the company has reversed 92 cr. Balance remaining is 382 cr. There is no schedule for this. As the company ‘feels’, they can reverse the payment.
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