DNA reported that with the continuing uptrend in copper prices leading to handsome profits, Hindustan Copper the country’s lone vertically integrated copper producer is hoping it can fund its CAPEX plan without much difficulty despite the haze surrounding its follow on public offer.

The company plans to invest close to 4,600 crore over the next 5 years to boost its copper ore output from the present 3.4 million tonne per annum to 12 million tonne per annum.

Mr Shakeel Ahmed CMD of Hindustan Copper said that “There is uncertainty about the timing of the FPO, but due to improved financials of the company, its dependence on FPO for funding expansion plans has significantly reduced.”

Hindustan Copper had floated the request for proposal for the follow on offer from merchant bankers last May. The delay is due to apprehensions over valuation. The government intends to divest 10% of its existing shareholding of 99.59% in Hindustan Copper, while the company plans to issue fresh shares to the extent of 10% of pre issue equity through public offer.

Mr Ahmed said that on the strength of superior physical performance and supporting LME prices, the financial performance has been extremely good, with profit before tax till December standing at INR 252 crore. That’s around 2.5 times the year ago figure of INR 98.22 crore.

Mr Ahmed said that mine expansion plans are on schedule with tendering for opening mines in process. Tenders for mines in Ghatshila, Malanjkhand, Khetri and Kolihan were opened earlier while bids for environmental impact assessment studies for Kendadih and Rakha mines were issued recently.

(Sourced from www.dnaindia.com)