Lloyds Metals Share Price Jumps After Environmental Clearance for Iron Ore Expansion

Market Performance

Lloyds Metals' share price witnessed notable movement on Thursday, June 26. The stock surged as much as 2.35%, touching an intraday high of ₹1,558 per share.

At 11:30 AM, the shares were trading at ₹ 1,533.50, up 0.74%.

Recent Performance Snapshot:

• 1-Month Gain: +13.6%
• 6-Month Gain: +31%
• Year-to-Date (YTD) Growth: +21.2%

This positive momentum was triggered by a significant corporate development related to its mining operations.

Main News

Lloyds Metals & Energy Ltd. announced on Thursday that it has been granted environmental clearance to scale up its iron ore mining capacity to 55 million tonnes per annum.

This move positions Lloyds Metals as India's largest iron ore operator, a significant milestone for the company and the domestic mining sector.

The clearance is expected to bolster raw material security for steel producers in the country. According to the company, this development plays a strategic role in supporting the growing steel industry in Gadchiroli, enabling further expansion of downstream steel-making units.

Company Details

Lloyds Metals is actively building a robust infrastructure around its mining operations to ensure long-term cost efficiencies and sustainability. The latest capacity expansion is part of its broader vision to support integrated steel production.

Key Developments:

• Environmental Clearance Received: For expansion to 55 MTPA.
• Support for the Steel Industry, particularly in the Gadchiroli region.
• Enhanced Raw Material Security: For both in-house and external steelmakers.
• Cost-Efficient Operations: Expected to impact EBITDA margins positively.

Mining Roadmap & Beneficiation Plans

The company laid out a clear mining and beneficiation strategy following the clearance:

Mining Strategy:

• Initial focus on mining 26 MTPA of hematite.
• Gradual ramp-up to 55 MTPA, including 45 MT of banded hematite quartzite.

Beneficiation Expansion:

• A world-scale beneficiation facility is under development at Hedri.
• A pilot plant with 5 tonnes per hour (TPH) capacity is already operational.
• Pilot tests are yielding 66%+ iron content with 35%+ yield.
• Engineering for the whole beneficiation complex is in progress.

Quality Advantage:

• Post-beneficiation ore to produce high-grade pellets and sinter feed.
• Lower gangue content promises more sustainable steel production.

Financial Highlights (EBITDA & Impact)

Although no specific figures have been disclosed, Lloyds Metals stated that the availability of in-house iron ore will:

• Improve cost structures.
• Support sustainable steel production.
• Positively influence EBITDA margins.

The company has also submitted an application to the Maharashtra Pollution Control Board seeking final consent to begin operations. Once approved, a commencement date for the enhanced mining operations will be finalized.

Summary of the Article

• Lloyds Metals' share price rose by 2.35% after receiving environmental clearance for expanding iron ore mining capacity to 55 MTPA.
• This move positions it as India's largest iron ore producer, with a significant role in supporting the Gadchiroli steel industry.
• The company is investing in one of the world's largest beneficiation plants, with promising pilot results already achieved.
• The expansion will ensure cost-efficient and sustainable steel production, enhancing overall EBITDA performance.
• The stock has delivered 13.6% gains in a month, reflecting strong investor confidence in its long-term roadmap.