The diversified global mining company today (09 Oct 2015) announced a second quarter/first half production update. The group pointed to record production for its tier-1 zinc mines and lower costs for its Zambia copper operations. Oil and Gas second quarter production rose by 6% year-over-year.
In relation to the company's financial position, the second quarter saw several initiatives and programmes to generate cash savings, including a reduction of working capital implemented across its businesses. These initiatives had resulted in an improved cost performance and lower net debt. Net debt at the end of the quarter is expected to be below US $8bn and management is confident of meeting its covenants at Vedanta Resources plc as at 30 September 2015.
Chief Executive comment:
Tom Albanese, Chief Executive Officer, Vedanta Resources plc, said: "Our diversified asset portfolio has delivered a strong operating performance during the quarter. We are continuing to drive efficiency improvements and optimise opex and capex across the business. While the near-term market outlook is challenging, we believe we have the right mix of commodities to benefit from future demand in India and globally."
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