Refused to commit on fy27 fy28 production outlook.

Are we running the plant on lead mode or zinc-lead mode given pricing economics favor lead mode?

No, no, we are running the plant still on zinc-lead mode because what we are doing is we are slightly tweaking the strategy from the earlier strategy of our silver we run only on lead mode. What we are doing, we are running on zinc plus lead mode, but we are consuming most of the concentrate, which is coming from SK Mine, which is rich in silver. This also has to be seen along with the grade of silver, which the mine is producing. Current grade of silver is not very high. It's around 90 ppm. So we would not be getting that much benefit with lead mode as we were getting earlier. So it is prudent to run in zinc plus lead mode while maximizing use of SK Mine concentrate so that we at least produce all the silver that we can in the current circumstances.

Based on the 680 tons of silver guidance, the asking rate for H2 is high. How are we achieving this number? And do we have visibility of producing 800 tons in a year or two?

Yes, yes. So what we have done in H2, we have diverted resources from other mines to SK Mine and also we have incentivized the contractors and workmen who are working there, to ensure that we attack those stopes with high silver quantity and produce them in H2 so that we get the maximum advantage of silver till the time the prices are high. So that would change you will see in the numbers as we keep on delivering. H2 will produce the numbers so that we can reach the guidance that we are very confident of that we have released today.

On the 250 KTPA smelter project costing INR12,000 crores and the tailings project of INR3,800 crores - how do we see capex shaping up for FY27 and FY28?

So I'll just correct you a little that 250 KTPA smelter per se is not INR12,000 crores. It is a smelter, expansion of mine, new concentrator plant, altogether. That part of the project is INR12,000 crore. As far as -- what was your second question, that 250 KTPA smelter, we have already started work on the ground and we are finalizing the technology that this smelter. The cell houses will be 240 kiloamps cell house compared to the earlier cell houses, which were 200 kiloamps. And we are also looking to begin the inherent ability to debottleneck and increase the capacity further with a marginal capex investment. Once we stabilize that 250 KTPA production, we will be able to debottleneck further.

How will capex be spread across the next 3-4 years?

And Manav, this is Sandeep here. I think you also wanted to know how the capital allocation or capex will be there in the next 3 to 4 years. So this INR16,000 crores will be around 20% will be in this year or around 50% in the next year and then remaining will be next to next year. So normally, the capex es goes in those manner. Initially, you pay them advances in mobilization advances to 20% to 25% this year and 55% to 60% next year and then remaining in FY '28.

For FY '26, we have USD350 million to USD400 million growth capex. What would be the total inclusive of the maintenance capex?

This is the growth capex. Maintenance capex will be around USD400 million.

What sort of refined metal output are we looking at from the 10 million tons tailings project?

From the 10 million tons -- from the tailings project that we're looking at about 100 KT odd zinc metal should be produced. Zinc and some proportionate, but very low quantity of lead also. 25 tons. Yes.

What was the average mining rate for this particular quarter?

7.4%. We should also look at Y-o-Y. Last year quarter was 7.3%.

What is the proportion of renewable energy in this quarter and what can it be at the end of FY '26?

19% was the renewable energy during this quarter, and the exit, we -- as we said earlier, should be 25%.

Should this be one of the factors for our COP staying down?

So as we said earlier, every 2% of the renewable energy increase reduced by power cost by $1 -- the total cost by $1.5 per ton. So that is one of the key factor. Apart from the overall coal cost also softening, that is also helping us in the overall power cost.

Why did depreciation decline sequentially when mine metal production was broadly similar?

So amort -- the depreciation and amortization Pallav contains two para -- items, depreciation and amortization. While depreciation has been increased with the roaster and the debottlenecking capex is getting capitalized, there was a benefit in terms of a reduction in amortization expenditure given that it is a function of the mine development rate per meter. So that was trued up in line with that, the amortization expenditure has been lower.

We are coming back below $1,000 COP - is renewable power and grade improvement in H2 going to contribute to COP coming down further?

Yes. Yes. So we should be expecting COP around $950 to $975 in the Q4 exit.

On hedging policy - given the spike in zinc and silver prices, what is our position? Are we looking at hedging more volumes?

So Sandeep here. Currently, we are hedged or open position of hedging of zinc at 87 KT at an average price of $2,872, that is the hedge position as on date. And silver, we are hedged by 131 tons with an average price of $37 per troy ounce. So the strategy remains that how -- if there is a spike in the prices and we see it better than our internal business plan accordingly, some portion we can hit. So it gives the balancing of the margin on the hedge position, which is 10% to 20%. On the remaining 80%, it remains open exposure. So that is something we are thinking to put the strategy in place.

Our capacity is around 1.128 - when can we achieve these volumes? Can we hit this in FY '27?

We will have the growth up to 1.1 million ton plus next year surely because see the way we had put up the reason for which we had put up the new roaster was to create that availability of calcine and allow other roasters to go on shutdown whenever required, so that there was never a shortage of calcine. But that delay in commissioning of R6 have impacted availability of calcine in H1, and that is showing in the results. However, in H2 from the calcine side were projected. Now we have also debottlenecked our Dariba Cell House by increasing the current capacity from 200 kiloamps to 210 kiloamps. And we'll be doing the same thing in Chanderiya in this month. So, two together will give us additional 25 Kt of production over the base of -- earlier base of 1,040 and 1,080 Kt. So altogether, next year, we are absolutely positioned correctly to achieve more than 1.1 million ton metal. We could have achieved this year also had the Roaster 6 commissioning not got delayed.

Any update on earlier planned strategic actions like Zinc International acquisition or business split into zinc, lead, silver?

No, acquisition of Zinc International is really out of the question because that is separately trying to expand and they will become 1 million ton player by themselves. And we are also trying to grow from 1 million ton to 2 million ton. So right now, we have no more capacity to absorb any further zinc capacity from any other part of the world. So that's number one. And number two, on the demerger, we still believe that's the right process, and we will take it up wherever it is required because as you can understand today, with such rising silver prices, if we were demerged into zinc, lead and silver company, net valuation would have been far better than what it is now.

Clarification on capex breakdown for the two projects (INR12,000 crores and INR3,800 crores) - 20% this year, 50% next year, balance following. Is that correct? And does the FY26 growth capex of 350-400 million include this 20%?

Yes, broadly correct. Yes.

On hedge position - 131 tons of silver and 87 KT of zinc - what are the prices?

So, zinc hedged at $2,872 per ton and silver at $37 per troy ounce.

Renewable proportion this quarter? Same as first quarter? And the 70% target in the presentation - that is for when?

19%. Yes. So it will be increasing with the wind capacities getting added during this quarter. FY '28.

How much domestic coal - what was the proportion of domestic coal in this quarter?

58% was the same quarter and last -- overall H1, it was around 52%.

On the debottlenecking of smelters - is there any increase in the refined metal capacity? Annual basis including zinc and lead?

It's about 25,000 tons of metal production capacity. Annual. It's only zinc only. Debottlenecking is in zinc.