Sunday, February 22, 2009

Hindustan Zinc Expected To Ride Out Recession

A report in India's Economic Times reports that Hindustan Zinc is expected to ride out the tough times on the back of its low-cost operations and strong cash position.

A recent research report by Enam Securities said the company's share price makes it undervalued.“

The report added that the situation regarding global concentrated supply is tight as the shutdown of zinc mining continues unabated. This is indicated by the weak treatment charge for zinc. Seven to eight percent of global smelting capacity has been closed as around 50% of total capacity is incurring losses.

Source: Economic Times

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