Hindustan Copper jumped 6.79% to Rs 95.20 at 11:45 IST on BSE after the company said that its Kendadih copper mine located at Ghatsila, Jharkhand has been reopened on 11 December 2017.
The announcement was made after market hours yesterday, 12 December 2017.Meanwhile, the S&P BSE Sensex was up 129.22 points or 0.39% to 33,357.21. The S&P BSE Mid-Cap index was up 23.72 points or 0.14% to 16,957.01, underperforming the Sensex.
Higher than usual volumes were witnessed on the counter. On the BSE, 13.5 lakh shares were traded in the counter so far, compared with average daily volumes of 11.62 lakh shares in the past one quarter. The stock had hit a high of Rs 96.60 and a low of Rs 89.70 so far during the day. The stock hit a 52-week high of Rs 110.55 on 7 November 2017. The stock hit a 52-week low of Rs 55.45 on 4 October 2017.
The stock had underperformed the market over the past one month till 12 December 2017, falling 10.27% compared with the Sensex's 0.26% fall. The scrip had, however, outperformed the market over the past one quarter, gaining 37.58% as against the Sensex's 3.33% rise. The scrip had also outperformed the market over the past one year, gaining 41.06% as against the Sensex's 25.32% rise.
The mid-cap company has equity capital of Rs 462.61 crore. Face value per share is Rs 5.
Kendadih Copper Mine of Hindustan Copper (HCL) located at Ghatsila, Jharkhand, was closed in February 2000 due to economic reasons. Since then, considering the favourable market conditions, the company has reworked the mine business plan. After obtaining all the statutory clearances like environment and forest clearances including execution of mining lease deed from central and state governments it has re-opened the mine on 11 December 2017.
The company after completing de-watering activity and installation and commissioning of the entire mining infrastructure has started mining activities. On 11 November 2017 at Kendadih a formal inauguration of the reopening of the mine was held.
The mine (after completion of mine development activities) is expected to produce 2.25 lakhs metric tonnes of copper ore annually.
Hindustan Copper's net profit jumped 321.7% to Rs 28.55 crore on 182.5% jump in net sales to Rs 459.49 crore in Q2 September 2017 over Q2 September 2016.
Hindustan Copper is a vertically integrated copper producing company encompassing mining, beneficiation, smelting, refining and casting of refined copper metal. The Government of India (GoI) held 76.05% stake in Hindustan Copper as per the shareholding pattern as on 30 September 2017.
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