24 Aug Commodities price rally revives Vedanta Resources in Q1 results
Vedanta Resources (LSE:VED) has seen its core earnings rise by 48% during the first quarter, on the back of higher demand for zinc and a broad-sweeping lift in global commodities prices.
The diversified miner, which primarily produces zinc in India, South Africa and Namibia, revealed its year-on-year earnings to the end of June increased to US$778.8 million from $527.1 million.
This augmented Q1 earnings figure was shaped by higher zinc production at Vedanta’s Indian unit, in order to meet increased Chinese demand for the metal used to galvanise steel.
Mined metal content in India rocketed by 84% to 233,000 tonnes, compared the same period of 2016, although it did fall from the 312,000 tonnes produced in the previous quarter.
Consequently, revenue from the firm’s Indian business jumped by around 90% to $695 million year-on-year.
The price of zinc has recently climbed to its highest point in a decade, which has provided the backbone to Vedanta’s encouraging quarterly performance, a timely boost for the firm after a difficult year in 2016.