Hindustan Zinc has guided conservatively to factor in uncertainty due to COVID-19, Arun Mishra, CEO at Hindustan Zinc said in an interview to CNBC-TV18. However, the company was confident of achieving the guidance of hitting the exit production run-rate of 1.2 million tonnes per annum by March quarter.

Mishra said the cost of production could rise in this half of the year as the mines had to be prepared for higher volumes in the first quarter of next year.

He said COVID-19 had affected mines globally and supply was limited as new zinc projects were not getting commissioned.

He expected current zinc prices to sustain and said more dividends were possible as long as the company continued to generate solid cash flows.

He said the current cost of borrowing was much lower than the yields received on investments.

First Published:Oct 21, 2020 10:19 AM IST