Vedanta Resources plc : Sesa Goa announces Q3 FY2013 results

24 January 2013

Vedanta Resources plc

Sesa Goa Limited announces Results for the Third Quarter
and Nine Months ended 31 December 2012

The following release was issued by Vedanta Resources Plc's subsidiary Sesa Goa Limited today.

Unaudited Consolidated Results for the

Third Quarter and Nine Months Ended 31 December 2012

Goa, 24 January 2013: Sesa Goa Limited ("SGL" or the "Company") hereby announces its unaudited consolidated results for the third quarter ("Q3") and nine months ("nine months period") ended 31 December 2012.

Unaudited Consolidated Financial Summary(in `crores, except as stated)

Particulars	Quarter ended 31 December		Nine months ended 31 December
	2012	2011	2012	2011
Net Sales / Income from operations	237	2,617	2,264	5,516
Net Profit (PAT)  Incl. Associate Income	497	692	1,983	1,533
Earnings Per Share (`)*
Basic	5.71	7.96	22.81	17.64
Diluted	5.71	7.96	22.81	17.64

-    *Non annualised

Unaudited Consolidated Production & Sales Summary(in million dry metric tonnes, or as stated)

Particulars	Quarter ended 31 December		Nine months ended 31 December
	2012	2011	2012	2011
Production of Saleable Ore	-	3.3	3.7	8.8
Goa	-	3.3	3.7	7.8
Karnataka	-	-	-	1.0
Sales	0.0	5.0	3.1	10.8
Goa	-	4.4	3.0	8.4
	0.0	0.6	0.1	2.4
VALUE ADDITION BUSINESS
Production ('000 tonnes)
Pig Iron	83	64	204	190
Met Coke	91	65	237	193
Sales ('000 tonnes)
Pig Iron	62	68	180	191
	80	69	212	181
	42	-	116	-

Operating Performance

Iron ore mining operations in both Karnataka and Goa remain suspended due to regulatory restrictions. During Q3, approximately 0.03 million tonnes of iron ore was sold from Karnataka through court monitored e-auctions. There was no production or sale of iron ore during the quarter at the Goa operations.

Government Authorities have ordered suspension of mining operations of all mining leases in the State of Goa, stoppage of mining transport across the State of Goa and suspension of environmental clearances in September, 2012. In October, 2012 the Supreme Court has ordered suspension of all mining operations and transportation of iron ore of the mines in the State. In view of the foregoing, operations at the Company's mines in Goa remain suspended. The Company has filed an application before the Supreme Court seeking modification or vacation of the aforesaid order. The hearing in the Court is yet to commence effectively.

In Karnataka, the Supreme Court allowed A Category mines to resume mining operations, in line with recommendations of the Central Empowered Committee (CEC), and is in the process of resuming B Category mines including our mine in Karnataka. The CEC has approved our Reclamation and Rehabilitation plan at a provisional production capacity of 2.29 mtpa and we expect to commence mining in Karnataka, subject to receiving the court's and other necessary approvals.

Value Addition Business

Production of pig iron and met coke increased by 29% and 40% in Q3 to 82,869 tonnesand 90,664 tonnes respectively as compared to 64,163 tonnes and 64,671 tonnes in the corresponding quarter of the previous year. The increase is primarily on account of the commissioning of new pig iron capacity during Q2 FY2013 (increase of 375 ktpa taking total capacity to 625 ktpa) and the associated metallurgical coke capacity. The new blast furnace operated partially during the current quarter on account of reduced availability of iron ore.

Sales of pig iron were lower by 8% in Q3 to 62,258 tonnes as compared to 68,020 tonnes during the corresponding quarter of the previous year due to unfavorable market conditions while the sales of met coke increased by 15% in Q3 to 79,542 tonnes as compared to 68,931 tonnes in the corresponding quarter of the previous year.

During Q3 and the nine months period, power sales were 42 million units and 116 million units respectively. Power sales are not comparable with the previous periods in view of GEPL acquisition in March 2012, and the recent commissioning of new 30 MW power plant.

Western Cluster Limited, Liberia

During the quarter, SGL acquired the remaining 49% of the outstanding common shares of Western Cluster Limited (thereby taking the equity interest in the project to 100%) for a cash consideration of US$ 33.5 million. Over 48,000 meters of drilling has been completed till December31, 2012 in the three deposits. We remain on track to deliver the first shipment in FY2014.

Financial Performance

During Q3 and the nine months period, net profit including associate income was at `497 crores and `1,983 crores, including share of profit from Cairn India at `669 crores and ` 1,899 crores respectively.

The Company recorded a Net Loss before share in profit of associate for Q3 at `172 crores compared to a Net Profit of `570 crores in the corresponding quarter of the previous year. Net Profit for the nine months period before associate income was `84 crores, a decline of 94% as compared to the corresponding period in the previous year. During Q3, dividend of `192 crores was received from associate, which has not been considered while computing net loss /net profit before associate income for Q3 and the nine months period. The profits declined due to lower sales volume on account of suspension of mining operations in Goa and Karnataka.

Scheme of Amalgamation and Arrangement (Sesa-Sterlite Merger)

The transaction has received approvals of respective companies' equity shareholders, the Stock Exchanges in India and the Competition Commission of India. Approvals of Foreign Investment Promotion Board and the Supreme Court of Mauritius have been received for the merger of Ekaterina Limited with Sesa Goa Limited. Hearings at the High Court of Madras have been completed and the order is awaited. Hearings at the High Court of Bombay at Goa are in progress.

For further information, please contact:

Investors Ashwin Bajaj Senior Vice President - Investor Relations Vedanta Resources plc	[e-mail] Tel:  [phone]
Media Gordon Simpson Finsbury	Tel:  [phone]

About Vedanta Resources plc

Vedanta Resources plc ("Vedanta") is a London listed FTSE 100 diversified global natural resources major. The group produces aluminium, copper, zinc, lead, silver, iron ore, oil & gas and commercial energy. Vedanta has operations in India, Zambia, Namibia, South Africa, Ireland, Liberia, Australia and Sri Lanka. With an empowered talent pool globally, Vedanta places strong emphasis on partnering with all its stakeholders based on the core values of entrepreneurship, excellence, trust, inclusiveness and growth. For more information, please visitwww.vedantaresources.com.

Disclaimer

This press release contains "forward-looking statements" - that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "should" or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, uncertainties arise from the behaviour of financial and metals markets including the London Metal Exchange, fluctuations in interest and or exchange rates and metal prices; from future integration of acquired businesses; and from numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive or regulatory nature. These uncertainties may cause our actual future results to be materially different that those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.

Iron ore sales include internal sales.  Internal sales were 0.2 and nil million tonnes in the nine months period and Q3 of FY2013 respectively, while they were 0.2 and 0.1 million tonnes in corresponding periods of FY2012

Sales of iron ore from Karnataka were 0.03 million tonnes in Q3 FY2013 and 0.1 million tonnes in nine months period of FY2013 through e-auctions of inventory

Met coke sales include internal sales of 140,518 tonnes and 53,494 tonnes in the nine months period and Q3 of FY2013 respectively, as against 115,306 tonnes and 35,548in corresponding periods of FY2012

Sales of energy includes internal usage of 25 million units (MU) in Q3 FY2013 and 58 MU in the nine months period

This information is provided by RNS

The company news service from the London Stock Exchange

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