NMDC Limited Q4 FY 2023-24 Earnings Conference Call Summary
Key Highlights
• Date of Call: May 29, 2024
• Chairman: Amitava Mukherjee
• Record Performance:
• Profits increased by 19% for Q4 and 30% for the year (excluding exceptional items).
• Significant capital expenditure of INR 2,100 crores.
• Projected investment pipeline of INR 50,000 crores to boost production to 100 million tons in 5-6 years.
Production Targets
• FY '25: 50 million tons
• FY '26: 54 million tons
• Challenges: Production losses in May due to workforce issues.
Financial Overview
• Cash and Cash Equivalents:
• Gross: INR 12,000 crores
• Net: INR 9,200 crores
• Wage Hike Provision: 10-11%
• EBITDA Estimates:
• Initial: ~10%
• Higher capacities: ~25%
Capital Expenditure Plans
• Total Capex: INR 50,000 crores over 5 years.
• Current Year Estimate: INR 2,000-2,500 crores, potentially rising to INR 8,000-9,000 crores in future years.
• Projects: New crushing plants, slurry pipelines, and stockyards.
Production Sources and Efficiency
• Increased output from existing and new mines, especially in Karnataka and Bailadila.
• Pellet plant expected to achieve cash breakeven this year.
Environmental and Infrastructure Updates
• Environmental clearances for capacity expansion are in progress.
• Ongoing expansion of pellet and beneficiation plants, with a redesign for efficiency.
Dividend Policy
• Expected payout ratio around 38% due to capex plans.
• Potential for increased dividends aligned with rising profits.
Market Outlook
• Anticipated production increase to 50 million tons in FY '25 and 54 million tons by FY '26.
• Strong demand from customers and favorable market conditions expected.
Export Projections
• Estimated exports of 36 to 37 million tons, primarily low-grade materials.
• Current export realizations are economically unviable.
Conclusion
• Positive outlook for future growth and performance, with strategic plans to enhance production efficiency and ESG rankings.

NMDC Limited Q3 FY24 Earnings Conference Call Summary
Key Highlights
• Date of Call: February 15, 2024
• Submission to BSE and NSE: February 21, 2024
• Chairman: Mr. Amitava Mukherjee
Financial Performance
• Production Increase: 19% year-to-date
• Sales Growth: 24% year-to-date
• Future Production Targets:
• Current Year: 46-47 million tons
• Next Fiscal Year: 50-51 million tons (potentially 53 million tons with additional projects)
• Iron Ore Pricing: Stable with minor fluctuations expected
Project Updates
• Slurry Pipeline: Progressing well; 129 km approvals completed
• Coal Block: Optimism for approvals under the Coal Bearing Act by early FY2026
• International Ventures: Operations in Australia commenced
Steel Plant Production
• January Production: 100,000 tons of HR coil
• Profitability Target: 150,000 to 160,000 tons production
Future Volume Growth
• Long-Term Growth: Significant increases expected post-FY2028 due to project execution times
Capital Expenditure and Debt
• Current Debt Status: No debt
• Planned Expenditure: ₹1,750 to ₹1,800 crores for the current year, similar for next year
• Current CWIP: Approximately ₹2,900 crores
Expansion Plans
• Bacheli Mines Capacity: Current EC for Deposit 5 is 10 million tons; application for increase to 12 million tons
• Future Capacity Goals: 30-35 million tons at Kirandul over the next few years
Market Strategy
• Domestic vs. Export Sales: Higher returns from domestic sales; no immediate export plans
• Lithium and Rare Earths: Ongoing negotiations for lithium projects; not pursuing rare earths
Financial Concerns
• Retrospective Payment: ₹252 crores related to Donimalai mine compliance issues
• Sales Volume Breakdown: Major clients account for 70-72% of sales
Operational Costs and Losses
• Increased Expenditures: Rose to ₹543 crores due to mining operations
• Pellet Production Losses: Decreased significantly; exploring partnerships for improvement
• Panna Diamond Mine: Recent losses of ₹50 crores; future profitability anticipated
Outlook
• Optimism for Future Performance: Continued investment plans and focus on ramping up production
• Dividend Payouts: Consistently around 40% despite capital plans

NMDC Limited Q2 FY24 Analyst/Investors Conference Call Summary
Key Highlights
• Best Performance: Q2 and H1 results marked the best ever for NMDC, with:
• Production up 25%
• Sales up 14%
• Production Target: Aiming for 50 million tonnes, with projects at Bacheli and Kumaraswamy enhancing capacity.
• Capital Expenditure: Projected to exceed Rs. 1,600 crores, potentially reaching Rs. 1,800 to Rs. 2,000 crores.
Production and Projects
• Current Production: Approximately 24 million tonnes achieved in H1.
• Upcoming Projects:
• Fifth screening line at Bacheli ready for commissioning (adds 2 million tonnes).
• Rapid wagon loading system to enhance loading capacity.
• Slurry pipeline and beneficiation plant expected by late 2024 or early 2025.
• Rail Infrastructure: Over 100 km of doubling project completed; current rail capacity sufficient.
Financial Overview
• Dividend Policy: Maintains a payout of at least 30% of net profits, historically around 40-45%.
• Return on Investment: Expected ROIs between 20-25% from allied capacities.
Market and Pricing Insights
• Pricing Concerns: Domestic sales remain more profitable than exports despite pricing discrepancies.
• Product Mix: Current recovery rate of 30% lumps and 70% fines, with a shift towards increased demand for fines anticipated.
Future Plans and Diversification
• Customized Iron Ore Projects: Anticipated 15% to 20% increase in realizations from customized products.
• Diversification Efforts:
• Gold mine in Australia and exploration for magnetite and lithium.
• Aim to generate 10% to 15% of revenue from non-iron ore sources within five years.
Challenges and Outlook
• Production Stagnation: FY2025 production expected to reach only 51-52 million tonnes due to environmental clearance limitations.
• Investor Confidence: Modern steel plant ramping up production; discussions on privatization noted.
Conclusion
• Commitment to Sustainability: NMDC is reorienting sales strategies and enhancing stakeholder impact through a dedicated sustainability department.
• Future Engagement: Management expressed optimism about maintaining momentum and achieving strong results in the second half of the fiscal year.

NMDC Limited Q1 FY2024 Conference Call Summary
Key Highlights
• Best Quarter Performance
• Q1 FY2024 marked the best quarter in NMDC's history.
• Record production and sales figures achieved.
• Optimistic EBITDA margin of 41% despite price adjustments.
• Production Goals
• Plans to increase production to 100 million tonnes by 2030.
• Projected production guidance of 47 to 50 million tonnes for the year.
Operational Updates
• Coal Blocks Progress
• Tokisud in land acquisition phase, expected mining start by early next financial year.
• Rohne projected to be over a year away from production.
• Mining Capacity in Karnataka
• Environmental clearance for an additional 10 million tonnes received.
• Target operationalization by October 1, 2023.
Capital Expenditure
• Planned Spending
• ₹2,000 crores planned for the current year, increasing to ₹2,500 crores next year.
• ₹606 crores spent in capex by mid-August.
Volume Growth Initiatives
• Production Increase
• Additional production from Karnataka and Chhattisgarh aimed at 10 million tonnes this year.
• All additional capacity supported by existing screening plants.
Gold Mining Initiatives
• Australia Operations
• Expected to start mining by the end of September, pending approvals.
• Partnership with Atlas for magnetite exploration showing promising results.
Financial Insights
• Profitability Concerns
• Initial profits from gold mining expected to be modest ($15 to $20 million).
• Focus on gaining experience rather than immediate profits.
• Iron Ore Realizations
• Marginal increase in realizations attributed to mix change despite pricing pressures.
Infrastructure and Production Targets
• Railway Upgrades
• Over 100 kilometers completed; ongoing construction on the final stretch.
• Main issue is wagon availability.
• Steel Production Targets
• Projected around one million tonnes for the second half of the year.
Legacy Operations and Challenges
• Lithium Mining Stake
• Reduced stake in lithium mining; challenges acknowledged without specific timelines.
• Exploration Focus
• Legacy primarily an exploration-focused company with low success rates.
Future Outlook
• Production Forecasts
• Projected to reach 47-49 million tonnes this year, with plans to exceed 50 million tonnes next year.
• Ongoing projects to increase production capacity and improve dispatch capabilities.
• Investor Confidence
• Concerns about market response attributed to classification as a dividend yield stock.
• Plans to diversify customer base and keep export options open for future needs.
Closing Remarks
• Commitment to Growth
• Aim to achieve significant growth over the next few years, transforming NMDC's potential.
• Production and Sales Targets for Q2
• Expected production around 8 million tonnes, dispatches slightly exceeding last year's figures.

NMDC Limited Q4 FY2023 Conference Call Summary
Performance Highlights
• Best quarter ever for production and sales.
• Net profit of Rs. 550 Crores.
• Sale of NINL and Supreme Court interim relief contributed to profit.
FY2024 Goals
• Production target: 46 to 50 million tonnes.
• Net profit target: Exceed Rs. 5500 Crores.
• Capital expenditure projections:
• Rs. 2000 Crores for FY2024.
• Rs. 3000 Crores annually in subsequent years.
Ongoing Projects
• Total ongoing projects valued at approximately Rs. 3,000 Crores annually.
• Rs. 1,200 Crore pellet plant.
• Rs. 1,100 Crore slurry pipeline.
• Update on KK9 evacuation project: Completion expected by end of 2024.
Production and Sales Strategy
• Domestic sales prioritized due to higher profitability.
• Exports considered a fallback option.
• Production in May expected to surpass previous years.
Steel Plant and Slurry Pipeline Updates
• Steel plant operational by end of June 2023.
• Slurry pipeline operational by end of 2025, with 24 kilometers already laid.
Financial Outlook
• Expected recovery of Rs. 2,500 Crores in outstanding receivables for FY2024.
• Production guidance contingent on operational efficiency and weather.
Market Dynamics
• Production increase target from 40 million tonnes to 100 million tonnes over 6-7 years.
• Sales must align with production due to limited storage capacity.
Coal Block Developments
• Tokisud: Progressing with land acquisition.
• Rohne: Mining expected to start around 2025.
Export Viability
• Export decisions depend on domestic prices; current prices require international prices to exceed $130 for viability.
Pricing Pressures and Operational Updates
• 30% discount on East Coast compared to international prices.
• Ongoing losses in the pellet business due to regulatory issues.
• Mining at Panna diamond mine expected to resume by October.
Future Growth and Financial Strategies
• Focus on reaching 100 million tons of production.
• Historical profit distribution to shareholders around 45%.
• Optimism for future growth post-demerger of the steel plant.

NMDC Limited Q3 and 9M FY-23 Results Conference Call Summary
Conference Call Overview
• Date: February 15, 2023
• Moderated by: Amit Dixit (ICICI Securities)
• Key Management:
• Sumit Deb (Chairman and Managing Director)
• Amitava Mukherjee (Director of Finance)
Key Highlights
• Production and Sales
• Record production: 10.6 million tons
• Sales: 10 million tons
• Turnover: INR 3,700 crores
• Financial Performance
• Decline in EBITDA and PAT due to market volatility
• Optimism for future performance with recovery in international prices
Logistics and Infrastructure
• Improvements in logistics:
• Doubling of KK railway line
• Development of a slurry pipeline
• Capacity enhancement target: 70-75 million tons
Steel Sector Insights
• Stable market with opportunities for exports
• Nagarnar steel plant to source iron ore from NMDC
• Joint venture mine development with Chhattisgarh government
Sales and Volume Recovery
• Year-on-year sales volume decline attributed to previous exceptional year and adverse weather
• Anticipated recovery in volumes in the upcoming quarter
Capital Expenditure and Financial Strategy
• Estimated capital expenditure:
• Current year: INR 3,500 crores
• Next year: INR 1,500-1,600 crores (excluding steel plant)
• High cash reserves: INR 8,000 crores
• Low interim dividend of INR 3.75 per share under evaluation
Future Projects and Production Goals
• Ongoing projects:
• Slurry pipeline and screening plant at Kirandul
• Pellet plant in Jagdalpur
• Production target for FY '24: 50 million tons (10 million tons increase)
Stake Acquisition and Market Strategy
• NMDC's 10% stake in NMDC Steel to be a cash transaction
• Focus on logistics improvements for enhanced loading capacity
• Exploration of pellet production and low-grade ore utilization
Coal Mining and Beneficiation Plans
• Pursuing clearances for two coal blocks in Jharkhand
• Plans for upgrading low-grade ore through beneficiation processes
Financial Outlook and Market Conditions
• Net cash position: INR 6,300 crores after short-term borrowings
• Anticipated EPS for the year: INR 15
• Positive outlook for exports, especially with renewed demand from China
Conclusion
• Management expressed confidence in future growth and production targets despite current challenges.