Shares of Hindustan Zinc, a Vedanta Group company and the world's largest integrated zinc producer, have continued to trade higher for the third straight session. This comes as silver prices reach new highs, driven by strong industrial demand and declining inventories.
Spot silver prices have touched a new high of $62.89 per ounce, with a year-to-date gain of 113%. February silver futures have also risen to an all-time high of ₹1,93,452 per kilogram on the Multi Commodity Exchange (MCX).
The rise in silver prices is expected to boost Hindustan Zinc's margins, as the company's production costs remain relatively stable. This will result in increased profits per unit sold. In the September quarter, silver remained a key contributor to the company's profitability, driving approximately 40% of overall profitability.
As a specialist in the exploration, mining, and smelting of zinc, lead, and other non-ferrous metals, Hindustan Zinc is well-positioned to benefit from the rising silver prices. With its diverse range of products, including zinc ore, lead-zinc concentrate, zinc metal, lead metal, cadmium metal, silver metal, and sulfuric acid, the company is a key player in the metal and mining industry.
Disclaimer: This story is for educational purposes only. Investors should check with certified experts before making any investment decisions.
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