🔍 Hindustan Zinc’s Future Vision
Hindustan Zinc Ltd. is charting an ambitious course into the future. CEO Arun Misra revealed that the company expects 30% of its revenue to come from rare earth mineral mining within the next five years.
“Our strength lies in extracting minerals that exist in low concentrations in nature. Processing these is tough, but that’s exactly where we specialize,” said Misra in an exclusive interview with NDTV Profit.
To support this plan, Hindustan Zinc has already established a dedicated exploration company, with operations likely to begin within five years. This move aims to reduce India’s dependence on China, which currently processes 90% of the world’s rare earth ores.
📈 Silver Surge: New High Since 2012
For the first time since October 2012, spot silver prices crossed $35 per ounce, driving a 14-15% gain for Hindustan Zinc on the weekly charts.
Misra forecasts that by January 20–27 next year, silver prices may reach $41–42 per ounce, up from their current levels.
“We based our business plan on $33 per ounce. Any price above that is a direct gain,” he noted.
⚡ Demand Boom in Silver-Intensive Sectors
The rising demand for solar panels, electric vehicles, and electronics is expected to drive silver consumption higher. Misra highlighted a current shortage of 2,000 tonnes globally, with expectations for the gap to widen.
“This silver price hike is just the beginning. We could see a much sharper rise over the next four to five years.”
🛠️ Silver Mining Strategy: Shifting Focus
With zinc prices remaining stagnant, Hindustan Zinc may shift its focus toward silver mining to maximize profitability.
Currently, silver contributes about 33% to the company’s EBITDA. If prices remain strong, that could increase to 45%, especially if the company prioritizes silver-rich mining zones.
“If silver stays above $33 and zinc lingers at $26–27, it’s smarter to prioritize silver zones,” Misra stated.
The company is actively re-evaluating mine plans, assessing metal grades, and preparing a full-fledged strategy to scale up silver output before the next quarter.
🚀 Final Word
With bold ambitions in rare earth minerals and strong momentum in silver, Hindustan Zinc is positioning itself for long-term growth. If the current rally continues, expect the company to pivot aggressively toward silver, possibly at the cost of zinc production—but with much higher margins.
📊 Quick Highlights
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30% revenue target from rare earth minerals in 5 years
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$35+ silver price for first time since 2012
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Target $41–42 per ounce silver price by Jan 2026
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14–15% stock upside in weekly charts
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2000-tonne silver shortage due to rising EV and solar demand
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EBITDA share of silver could grow from 38% to 45%
