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NMDC Ltd
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Ladies and gentlemen, good day, and welcome to NMDC Limited Q3 FY '21 Results Conference Call hosted by ICICI Securities. [Operator Instructions]. Please note that this conference is being recorded. I now hand the conference over to Mr. Amit Dixit from ICICI Securities. Thank you, and over to you, sir.
Good morning. Good afternoon, everyone. On behalf of CITA Securities, I welcome all of you for NMDC's Q3 FY '23 Earnings Call. At the outset, I would like to thank the management for giving us an opportunity to host this call. From management side, today, we have Mr. Sumit Deb CMD; and Mr. Amitava Mukherjee, Director of Finance. We will begin with brief opening remarks from the management, post which we will open the call for an interactive Q&A. And over to you sir.
Yes. Good afternoon, Amit. You are able to hear me?
Yes, sir. Please proceed.
Okay. So thank you, ICICI security for having us on the con call and thank all the participants as good afternoon, a very good afternoon to all of you. If you look at our performance in the quarter, so we have done -- we did around 10.6 million tonnes, which was supposed to be -- which is the best ever quarter for NMDC.The sales were around 10 million tonnes. The turnover INR 3,700 crores. Obviously, there has been a dip in the turnover EBITDA, the PAT, there are substantial impact -- but if you look at the whole year as the 9 months also, there has been such of volatility in this whole year. If you look at the quarter 2 performance in quarter 2, there was a different prices, demand. The steel industry also was not doing very great.So to that extent, if you factor in all that, then the results of -- I mean, the way we have proceeded going forward. I mean, if you look at the international prices now from quarter 3 and quarter what we have seen in quarter 3 and in Jan Feb, we are seeing a pickup in prices -- in national prices.The Chinese had resumed by of Australian lower, and we see the prices -- and that is reflected in the prices. As far as an NMDC is concerned, we have been making substantial investments in our infrastructure, our equipment and going forward and also in our process digitization process and…So these are things which we have invested in. And going forward, we look at -- we definitely see a lot of positives in this and then they go to be an expansion in our minds. And to that extent, our volumes also are -- will be reflected in our volumes also. So we are very positive in quarter 3 and quarter 4 specifically. And I believe things will be turned out to be good. Yes, Amit...
Sir, should we open up for questions?
Yes, please. Thank you.
Thank you. Ladies and gentlemen, we will now begin for the question-and-answer session. [Operator Instructions]. Ladies and gentlemen, we will wait for a moment for questions sent -- the first question is from the line from Sumangal Nevatia from Kotak Securities.
First is on the volumes growth outlook. Just want to understand what all projects are we working on for using the logistic bottlenecks and what sort of volume uptick can we see from the projects in terms of INR sales in the coming, say, medium term in the next 1 to 2 years?
So if you look at our basically our logistics and we would intend to increase volumes, our intention to increase volumes in the next couple of years. First is we are -- the railway line Kitline has been doubled almost. I mean there are just 2 25% is the balance work, which is less. So that Dublin work is more or less over. And they're up to that subtitle. And then the railways are themselves doing the work from Viator.So that also is proceeding in a good pace. And things are a little -- so that will almost double the capacity of the city line. So that is one thing. The other is the pipeline also, which is what is pursuing, and we have already started up to ever 135 kilometers of pipeline, which we are slurry pipeline, which we are in.So both these put together, I think we should be able to increase it. They should take care of to enhance the capacity to almost 70 million tonnes, 30 million, 35 million tonnes, we should be able to go from the current levels.So I think there is no -- not much of -- in that sense going forward, I think we should be able to do all these -- complete these projects and ensure that the pipeline work gets completed as possible.
Okay. Sir, any particular steel project or anything which will cater to because, I mean, at least all the large steel companies, their captive production is increasing for dependence on secondary sector is likely to increase, and that particular section of the industry is not growing.So I mean, today also our capacity is around 45 million, 50 million tonnes, but we are struggling to cross 40 million tonnes as far as sales volumes are concerned. So I mean, in the next 2, 3 years, I mean, do you see our addressable market shrinking?
No, not at all. Absolutely not. So if you look at -- we have the Nagarnar Steel Plant, which will be totally dependent though it has been high so but then the sourcing is entirely from NMDC. So that is one -- number two is, if you look at the AMNS pellet plant at with, they are also doubling the capacity of the pellet plant. So they will also be coming up, we'll have that additional requirement.We also understand obviously there is a pellet plant, which is going to -- which will also come up NMDC collect plant, which is also there at 2 million tonnes.The capacity of the arsenal. So all these players, they are also increasing the capacity right we don't see too much increase in the secondary sector. That's a Lumpur segment, basically the Lumpur segment. We don't see too much of an enhancement in capacity there. But then that is not a matter of concern for us. The very important thing is with exports opening up also, there is an opportunity for us to export from the Ishak Putnam or from Krishnapatnam. So these are obviously which we will explore less than 58 grade is something which we would like to going forward, we would like to also export.So we don't see any too much of an issue there.
Got it. Sir, just a follow-up. So Nagamar the time the dedicated iron ore doesn't -- in our mind doesn't come until that time, we'll be supplying from our existing Bailadila sector.
So Nagamar still plan doesn't have a dedicated iron ore mine. So it is entirely -- it will be entirely on entirely from... point of view.
Okay. I think there's a mine under JV, which we are developing with checker government...
So that's a... That's the merchant line, that's a separate which is under NCBC limited 149 joint venture and which is a deposit 3 deposit for and deposits 3 months. So we should see deposit for also coming up very deeply. But then these are all merchant line, and they are not -- they don't have any linkages. Obviously, linkages are there, but they are not dedicated...
Understood. Sir, that's helpful. Sir, second question on the Noranda steam plant as per the article...
Mr. Sumangal, -- can we quest that you return to the question queue.
Okay. Thank you.
Thank you. The next question is from the line of Ashish Kejriwal from Nugraha Institutional Equities.
Good morning, everyone. So 2 questions from my side. One is why we are lacking in volume growth because in 9 months also or even in 10 months, we are still down on a Y-o-Y basis. So what is the particular reason for that? And are we able to see the growth in the next 2 months? That's one. And second is a steel plant when we are going to commission it and as well as what government has earlier said that NMDC can have 10% stake in that steel plant. So what's the status on that?
So first question first is the one is about the growth in sales on a Y-on-Y basis. If you look at the previous financial year, I mean, it was an exceptional year for or for the industry steel industry and for the mining sector as a whole. So that's a one-off could be followed in one-off.So -- but then we are looking at volumes and Q2, there are no drop in volumes. I mean the entire even the industry didn't do well. These industry also. So there was some drop there. And then the monsoons are little exceptional. And we should be able to care quarter last year's that's our target. I mean, definitely, we would like to ensure that at least the last year's volumes are intact. So that is one thing. And then the other thing is about the Nagarnar steel plant, we -- our target is to ensure that it gets commissioned by 31st of March, our Coco batteries are already done -- I mean they are already producing ore. The center plant is about to start. And the blast furnace is very -- so more or less, I think we are prepared to start commissioning activities in the next financial year, beginning of the next financial year.
Sir, what about that 10%, which government has asked an NMDC take part in?
Yes, yes. So that's what has been measured. So we are a stake in that.
And sir, when is the listing coming in at?
Lessee end of this month or we should be having the listing process.
Thank you, sir.
The next question is from the line of Pallav Agarwal from Antique Stockbroking Ltd., please go ahead.
Good afternoon, sir. So I had a question on the royalty expenses. So this quarter, you've seen almost more than doubling in Q3 compared to Q2. So whereas a production of iron ore really hasn't gone up and realization also has sequentially more or less flat. So is there -- can you just explain why this has gone up so on.
Amitava, please take that.
Sure. I'll explain that. You see the royalty is -- there are 2 features one that is based on an ever rate. And the second is that it is based on production, whether you sell it or not. So if you see the production in Q2 was 71 lakh tonnes and Q3, it is 106 lakh tonnes. So that's an increase of around 50%. -- as compared to the Q2.So that is the primary reason and also because the rates were coming down at this quarter because we value royalty at 3 months early late the rates are published. So the rates that were published were on slightly higher debt rates at which we sold.So this will get itemized in Q4. But the main reason is the additional production of 50% from 71 lakh tonnes to around 16 lakh tonnes.
Sure, sir. And also, if you can just give us what are the CapEx -- what CapEx do you expect to spend this year and next year given that now the steel plant CapEx will not be there on our books...
Okay. This year, with the steel state we will do around INR 3,500 crores. Excluding the feedback, it will be around INR 2,000 crores or around anything between INR 1,800 crores to -- next year, we're planning around INR 1,500 crores to INR 1,600 crores of CapEx, excluding the steel plant and of course, the so.
Sure, sir. Sir, just finally on our interest cost, why do we have still about INR 30 crores of interest...
Let and the third tilling plant in Kirandul, -- these are the 2 big ones that we have each of the each about INR 3,000 crores and 4,000 crores. These are where contracts have been awarded mostly. These are work in progress on major expedition is going to come in those 2 packages.
Sure, sir. So just on the cost...
May we request that you return to the question queue in waiting for the -- we'll move on to the next question that is from the line of Mohamad Paruk from Paul Capital.
Good morning, Thank you for the opportunity. My question is, 70% of patent revenue comes from 3 major clients. Not if these clients get their own minds. And does not export now. There was an export brand last year and tents impacted top line and bottom given the export. Current prices now around USD 120. -- still analog is not exported. -- what we think it is good to start exporting a deal.
So yes, more or less, yes, your question is, for example, RINL that the share steel plant, JSW. So they have been our major clients. And coming to your question of -- with regarding to these people having their own minds, yes, they have their own mats and they are having them for the last 1 year or so. So it didn't make a difference to us. So to that extent, we do not see any -- we do not have any impact.I mean there, the uptake of iron ore has remained the same. Having mentioned that, you also said about loadout exports. Export is some is an option, which we have we have not been looking at. Yes, yes, largely obvious because the domestic industry was having a requirement.But we are currently looking at exports, we will definitely -- I mean, $120 or anything about that is definitely viable for us and will take this opportunity to export we are already making arrangements and export from either from Stater Krishnapatnam. So that is something which is on our target.
So we will do that. So we will see some exports in the fourth quarter...
Absolutely. In fourth quarter, yes, end of the fourth quarter, we could see some exports happening in the…
Okay. One minority shareholders, mainly invest in PSO due to the dividends. This time, we have only got 3.75. We see there's more than INR 30 per share in the books in cash available a bit disappointed. Why do you think that there is INR 8,000 crores still in the hand cash? What is the main reason for that? And please justify that INR 8,000 crores still left after the dividend?
So we have declared a interim dividend. Going forward, we'll have a look at that. I mean that is an option which is always open. Amit, you'd like to add something on that?
My main question why the INR 8,000 crores, keeping the books. That's the question.
what a... Amit, you like to add on to this. Yes. We have declared an interim dividend and…
Yes, I understand that. But... This is year ago.
We are aware. The Board has taken a decision to -- on the dividend part, looking we are yet to come to an end this year. We could see something...
My question is there a major reason to hold INR 8,000 crores in cash land. That's the question. Is there any major -- like is there a plan for buybacks or something like that or any...
You can't answer your question... I can't answer this at this point of time.
Okay. One more question, last...
May request you return to the question queue -- so participants waiting for the to …
Thank you.
The next question is from the line of Prashant Kumar Kota from MK Global.[Technical Difficulty]
Two questions. So first question... In the past.
Your audio sounds clear, Mr. Kumar?
Is it better now?
Sounds likely.[Technical Difficulty]
Good afternoon and congrats with the increase number and dividends also slightly on the higher side versus what we would have been expecting. So that's on the result and in. Sir, in the past, if you remember in our conversations, we were like we did not -- we're not big fans of your steel asset and being extensively on that also.I said now, the changing times in the change in circumstances. So now caught, I just wanted to know your thoughts on this. Is it not a good idea to set up some smaller modular value-added plants like let's your pellet. -- and this has a very good export market compared to the regular steel and realizations as well. Just wanted to know your thoughts on this one.
You're absolutely right. And we are also in the process. So we have, of course, in the past, we have put a smaller plant, the one at Donimalai and then -- which was basically for trying to utilize the clients and the low-grade ore getting. So that was just an experimental basis. But then the one in power plant, which is summing up is 2 million tonnes, if you look at the industry channel, that is also a very small plant. But we are in the process and discussion, and we will pick up a pellet plant, either somewhere at the shape or near about. I mean, going forward. So that is something which is there on our -- in our mind. And since we will be expanding our capacity. So it makes sense for us to get into this value addition area...
Yes. Understood. Sir, my second question is, sir, in the previous quarter, was there any higher cost beginning inventory, higher royalty pay beginning inventory because of which our profitability was lower. So Q-o-Q the jump is handsome. It is good other than in the previous quarter, was it something…
I wouldn't believe that there would be some higher it. So that won't be there. But then the prices, if you were in Q2 and Q3, the prices were really it was only at the end of Q3 when you are seeing an uplift in prices, whether it is steel or iron or other international cycle.So things are improving now and we should see better days.
Thank you, sir.
The next question is from the line of Kirtan Mehta from BOB Capital Markets. Please go ahead.
Could you run through the actual CapEx spend on the major projects, those are undertaken and what spending? Also, if you can give us sort of the color on the physical progress of project as well. I'm referring to the Bacheli mine, flaring slurry pipeline as well as the screening plant at Kirandul and also the coal blocks.
So the major -- currently, the major project is a slurry pipeline and the screening plant at Kirandul. So these are the 2 major projects which we are adding and the pellet plant, which is summing -- so all this put together, these were Phase 1 plant -- All the work of the law has been awarded and in one line to -- for -- I mean, most of it is -- and L&T is doing this work with the sale the pellet plant or the slurry pipeline. Things are progressing satisfactory. So now we should look at going forward in the Phase 2 of the pipeline [indiscernible]. And we are also putting up a training plant at FC2 at Donimalai. So which is also -- now we obtained clearance for that. So that also will be there.
So the second question is about the... What would be the FY '24 target for production and sales? Would you be able to give us some color on this based on the growth that is coming through?
So this year, there -- we should -- I think that the growth should be more or less flat. But going forward, our target is to do at least 50 million tonnes in the next financial year. This is something which is in our mind. And the necessary infrastructure also doubling getting completed. I believe that things should drop out for us. So 50 million tonnes is something which will keep in mind for the next year, financial year.
So that means around 10 million tonne growth is what we are looking at year-on-year in the next financial year? And what would be the key projects, which will contribute to this...
So Donimalai, if you look at mason, we are moving from 7 to 10 there. So that additional 3 million tonnes will be there in -- from the Kamaraswamy sector. And the balance, 67 million tonnes will come from Balldilla sectors. So our kiln in, we have an additional line, which is coming up in the Chile screening plant, so that will add on volume. So to that extent, I think 50 million tonnes is definitely achievable, and we will work on that on a valuation.
The next question is from the line of Rikard Singh from Felix Capital.
Good afternoon, sir.
Yes.
Sir, I just want to understand our 10% stake purchase in NMDC steel. So is it there a cash purchase or how we are trying doing it? And what's the cash balance at the end of 9?
So the cash balance is around INR 8,000 crores. And the other part of it is the 10%. Yes, it will need to pursue it.
So it's a cash... It would be a cash pursue. So any pricing has been determined or how it is going to be discovered.
Would you say market return in pricing?
So only after the stock will be get listed and the price discovery happens, then you have to pay 10% equivalent to that.
Yes, yes, because that plant is under the divestment also...
Understood. And sir, my second question pertains to our target of 50 million tonnes or more for next year. I understand that our slurry pipeline would still come after 1, 1.5 year and railway would may take another 6 to 8 months. So an additional 6 million to 7 million tonnes from Bacheli, which you are talking about, how we would be planning this is evacuation because this would -- if anything, would come, it would come at the end of FY '24.
So what happens is that we are still not getting the benefit of the double, which is -- so next year, year, things should be much better. So to that extent, the logistics should improve. Also, we are in discussions with railways to increase the capacity and the number of rates there is current currently, we just have 15 to 16 rigs, which you are loading.So we intend to almost double this loading because we have the capacity to load on things that railways availability of the rates from railway given we are constrict in terms of coal-loading. So that we are in the person. I would think that, that is loading from our side is not at all a problem on the things that -- and the rail line capacity is there.It is that once the number of rates improve, which we hopefully, from the next financial year, it would happen. -- think achieving that those volumes is not at all an issue.
Understood, sir. That's all from my side.
The next question is from the line of Satyadeep Jain from Ambit Capital.
A couple of questions. Just a lot of questions around pellet. The first question is on the different possibilities, we continue to explore. -- let is one, there are other producers also looking at having their own [indiscernible] plant. Is that something you could possibly look at? Or would you say we've already divested team and we are not looking at anything outside of these lenders that we already have. That's the first question.
So the pellet is something is definitely on our table, and we are looking at select production and manufacturing, whether it is at Visakhapatnam or somewhere near about, we will definitely look at this opportunity. And we would like to put up a bigger capacity of the pellet plant. So it gives us an option to either export it or sell it in domestic in something which is there on our path.
[indiscernible]
No, no. We don't intend to go there -- the tenets something there because what happens is this tele, you get to utilize the low grade ore also. So that helps us in utilizing the low grade ore and the slides from the mine to utilize that and manmade. So that is something which we are looking at.
Okay. Second question is on the other projects. So one is coal. Can you talk about your strategy, so goal, what kind of CapEx you're looking at? And what kind of footprint would you look at in coal customers? And secondly, you -- I believe I heard it -- I'm not sure if I correct, correct, but you mentioned we will also possibly look at lower grade IFO in the future. In that context, a few minor global miners are talking about value over volume and looking at higher grade products in future, given decarbonization trend.In that context, would you -- how do you look at the increased production of low pay less than 58% content iron ore in the future. So just a couple of questions tied up on coal in that lower grade are go.
So coal is -- there are 2 mines which have been allocated to us. One was a keto Block and others are only one. It has some amount of cooking coal also. So then there is an investment of a water we are pursuing clearances which are very difficult to get by, especially in the state of [indiscernible] acquisition part of it -- so that is we are pursuing that -- so once we get the entire land in our position, then we go ahead and go into gold production. So that is a low-grade iron ore -- the various opportunities, other we upgrade them. And then we need to -- because we have the year putting up with this netification, drive benefication circuit in Bailadila and Bacheli, both dry and that contribution process.So this will help us to upgrade over and then transport it on the to the pipeline. So currently, we have it up to -- we are awarded contracts -- I mean the whole process as has been cleared up to divested then going forward from [indiscernible] intend to go into that in the Phase II. So that low grade over will be utilized and the balance will be exported. We'll have to look at exports as such.
Okay. Thank you.
The next question is from the line of Dhaval from ICF Securities.
Most of my questions have been answered. Just one question left. So I just wanted to know any tentative date for NMC steel listing at what currently you [indiscernible] spending on that side?
So what I have mentioned is under this month. So it would happen very quickly.
Right, sir.
The next question is from the line of Rahul Jain from Systematix.
Yes... So firstly on the slurry pipeline, we said 15 million 50 million tonnes lying from these to Nagarnar, -- and we are setting up a pellet plant also over there. So the pellet plant is under NMDC or is under MCC -- and by when do we expect this pipeline to get ready?
So also the pellet plant is under NMDC, it is the cans. So it is not a part of the disinvestment process. It is under NMDC. And the slurry pipeline should be there somewhere later next year. 1.5.
And what is the size of this pellet plant?
Pellet plant is 2 million tonnes and slurry pipeline is a 15 million tonne pipeline.
So what will we do the balance of the capacity we will have this for customer acquisition? What is the -- why do we have put us at a large pipeline?
So you see we also have a joint venture with MPC CNBC Limited, which has got a deposit for. So we -- that was a deliberate event larger capacity of pipeline and see that we could be utilized at a later date.
Right, right. Sir, also on the steel plant, we said to get commission say April is year. So have you said volume targets over there? Or how should we look at the ramp up over this?
So technically, we are just in a commissioning the plant at this point of time, I mean, because the plant is now -- I mean, if you look at our capabilities on the ground there in terms of the farm insulant are helping us commission the plant. So we are not using a currently trying to safely commission the plant. That's our target. And then we'll see slow, we will see ramping up of the production.
And sir, lastly, also, is it possible to scale up this plant to $6 million, I think there's a confusion over the...
Yes... Yes, there is a possibility of scaling out the plant. There is the scope of -- definitely scope of increasing capacity there.
Thank you so much.
Today's question is from the line of Saket Kapoor from Kapoor Company.
Sir, firstly, if you could give us some color on the losses we are looking on the sell at other minerals and services line items. And for the 9 months, this has gone up from last year, INR 49 crores to INR 105 crores. If you could give some color on the same? And what steps are we taking for lowering been?
Amita, you are there, you can answer that.
Yes. Yes. If you pellet plants actually has made a loss of around INR 58 crores in the 9 months. But once the capacity actually increases to around 55%, 60% is why loss will be wiped off. As you know, that the pellet plant is designed for clients and not for pile. So it will take a little time for us to get this on track. And, we have made a loss of around INR 49 crores in the first 9 months.And as you know that -- as you are aware, that we have got the wire life clearance from partner and hopefully, the production will start in a few months' time.So then some taken care of FIU, that is obviously not concern now. We are -- we have made a loss of around INR 14 crores there in the 9 months. So we are trying for alternative use of that area. And we have sort of other ideas for that, hopefully, then we'll be able to place. So all these 3 in more years' time. I think we should be able to fix months or about a year's time, we should be able to correct these anomalies that are currently there.
Sir, and also on the other income line item, I found there is a Q-on-Q reduction, if you could explain the nature of the same? And I think the one stage sale from NIL profits have also been booked over what is how was that line item feature? And also, sir, our investment in the JV -- in other geographies of the world, how are these, are performing, if you could throw some light on the on...
We had booked actually INR 280 crores for I&L, onetime gain from stake sale of AML. It was diluted at INR 100 crores, you got INR 380 crores. So the INR 280 crores was a net, which was booked in Q2. So if you leave that around to the -- our income would have been INR 41 crores.And like-to-like this is INR 63 crores. So there has been an increase overall if you leave the NIL parts separately. So -- and what was the question?
Well, our investment in the international JV and also, on integration right now function that is legacy.
The investment will get in legacy is around INR 240 crores still based -- and the good thing about legacy is that its market cap has increased from around $4.5 million about 3 years back, it is around $140 $140 million 10 it depends on what the share price moves, but is average to be around $120 million to $140 million.So it's -- this investment has actually paid off and it is -- we are nearing the sale of mining that subsidiary. We have ICE, but we have a minority stake there of 26%, and the investments like this value -- it is around a source of investment in ICL.If the booking was producing unit, but we have only 26% in sale and I have the rest of the state. And so that last year we had profits, but traditionally, it does get losses depends on the sort of price movement on that. These are the 2 international vectors we have investments in...
Sir, one small solution... Yes. I'll come in with you on -- but if I make the execution, sir, commission?
The next question is from the line of Otsuka an Individual Investor.
Sir, my question is that regarding the CapEx that you just outlined, sir. You didn't give us a time line, by when can we expect the completion of most of it.
So we are talking about the slurry pipeline and the screening plant. So both of them end of next year is what we are targeting.
The end of next calendar year?
Yes, yes, absolutely.
That 2024 and...
Yes, yes.
Okay, sir. And sir, the pellet plants and everything that we are talking about, so how long does it take to like set it up after we decide on it?
The select plant is... 1.5, 2 years.
1.5 to 2 years to set it up. And so the current one that we are setting up, sir, that will be online by [indiscernible]?
Is this a parent plant should be online by -- that's what next year, end of next year is what...
Thank you, sir.
The next question is from the line of Stan Baring from on Infotech Investments.
So I've got 2 questions, one around the production and the other on with demand. So you've indicated that it's the lever of the management to close this year at par with last year production. Now that will require us to prove out 11 million tonnes in these 2 months. That's about 5.5 million tonnes average monthly against the 3.8% that we've done in January. So we are talking about 50% ramp-up. So how do we reconcile this? So was January production lower because of demand issues because aero prices did pick up from the 1st of January. So can you just kind reconcile how is that we can produce investor number of days, February is the shorter month, 5.5 is done.
So what happens is that there is -- the demand is very strong. So there is no -- nothing with regard to the demand part of it. The demand is very, very strong. We have substantial orders. We just need to build the rates and ensure that logistics is in place. So that is the most point here is availability of rates from -- by railways, which is a matter of concern. We have been talking to them almost on a daily basis, early basis to ensure that the rates are available for win.So that is something which we will need to tie up. Otherwise, the production is there and we only need to evacuate the material. So we are working on it, and it will be our endeavor to ensure that we take that figure for the 2.
Not of rates also about... 4.1…
Yes, obviously, because what happens is that unless these are -- the mines the most difficult part in our places, we don't have place for storing the material. So we act if we need to ramp up production. So that is something very crucial for us. We need to -- so that is something we have to look at.
Understood, sir. The second question is on the on the international opportunity. So what is the breakeven international price at which it starts less you will be stated that by the end of this quarter, the export opportunity should open up? So for example, at our current prices that we have is we are selling, which is about 3,900 for fines, the INR. What is the corresponding break international breakeven price at which it starts making sense for us let's say, Dalian commodity exchange price over there?
Sorry. So currently, at these prices, it may actually -- I will not mention the exact figures. But I tell you at these prices, it makes absolute sense for us to export material. So $120, there is no doubt that it makes sense for us to export with the current domestic prices in mind. So there is a delta there. And definitely, if we export usually, the realization should be better. So that...
At 120, so what is the debt available to us... 120 were to hold hypothetically?
So I will not get into the numbers I told you. But definitely, there is a good -- it looks good for us to export at those prices also.
Okay. Thank you very much.
The next question is from the line of Sumangal Narita from Kotak Securities.
I just want to clarify, I mean you said net cash is around INR 8,000 crores. Is there any borrowing also on the books?
I'll answer that the storm borrowing of INR 2,000 crores, INR 2,385 crores. So INR 8,713 is the cash and short-term borrowing is INR 2,395. So we have a net cash of around INR 6,300 crores.
Got it. The second question is on the situation of 10% stake in the steel plant. What -- at what price will it be done? Will it be a book value? Will it be a divestment price of the government or the district price of the storm?
You can answer that.
That price has not yet been determined. So it would be it would be value, it could be transfer value. It could be at the discovered price. It could be a concessional rate on that, but the prices, we cannot speculate that because these shares are currently deal by the government of India. And when the transaction comes to place of transforming those government of industries to NMDC, we'll have to look at the price then. It's difficult to speculate on the prices of that 10% right now.
Okay. No, I mean, we don't want to know the absolute price, but the method or the delay that can be used or not -- is there any...
That cannot be finalized.
Okay. Thank you.[indiscernible]
We'll move on to the next question. That is from the line of Falguni Dutta from Jet Securities Private...
I just had one question, the listing of NMDC Steel. Will it happen by -- it should happen in March or it should be beyond that?
So I already have answered that. We are expecting the listing to happen at the end of this year. This month.
The next question is from the line of Mohamad Paruk from Paul Capital.
Okay. Thank you again. NMDC is not just an iron ore development company. Please let us not the amount of profit from other resources. Secondly, on the Camus, we recently heard about the lithium discovery. What is the role of NMDC there? Did they mitigate any new block iron ore block in the last 3 years other than don't normalize?
So as is the lithium deposit, this is a discovery. It is just import reposes at this point of time. And this has been by the geological society, geological surge of India, and they will take -- the government will take necessary action of exploiting those resources. So currently, the NMDC has got nothing to do with that discovery. Number two is with regard to your question of -- apart from [indiscernible]. Yes, we have got deposit deposits deposit for deposit one, which are in joint venture with a BCCDC Limited. You are aware of the current methodology of government -- the government works on it is on an option which is all reprices are now to some options, and nothing is on allocation basis. Then we have also got -- however, because of our goodwill or whatever -- we have also got 2 blocks of pool also, which has been allocated to us. We are doing a lot of exploration activities in [indiscernible], where we believe that once we get some sort of discover some sort of deposits, then we will talk to the same comment for allocation of those resources.
What's the projected EPS for this year, full year?
Amita?
The current EPS is -- I think I'll just go to the numbers, the current EPS and talking -- just give me a second case, please.
Yes.
The current EPS was around INR 11 for the mine on the annual business...
The next question is from the line of Kirtan Mehta from BOB Capital Markets.
I just wanted to confirm the land for this premium plant as well as the slurry pipeline. Are you saying that it will come a bit commissioned by last '24? Or are you saying that it will be commissioned by December 24?
Calendar year -- end of calendar year.
So December 2 -- thank you.
The next question is from the line of Rahul Jain from Systematix.
Sir, also on this monitoring committee approval. So we had around INR 28, INR 2,000 crores as end of March and another INR 900 crores, it was not due as of 31st March. So around total around INR 2,800 crores roughly. What is the status of this? What do we expect to get this money back...
So this matters because supreme court, we have taken it up with the state government, [indiscernible]. But then the matter was now -- has been now referred to the supreme court. We understand that this is under -- I should come up very quickly.
So this money you will get? Or do you think that you would have to port this money?
No, we'll get on...
So there's no dispute on that part, right?
Absolutely no decoder central Empower committee has also recommended the case and our money and very...
Okay. So basically, in the next 1 year, we should expect something, right?
Yes, yes.
The next question is from the line of Saket Kapoor from Kapoor Company.
You mentioned API likely in the recipe, voice... After?
Yes, that would be speculating on the profit of the Q4, which is difficult...
But taking into account what the constant number of today will be production and sales which you are admitting that should be the likely...
Yes. So that would be at least, if not more...
It's not more... Okay. Sir, then coming to this export opportunity. Sir, hearing now, we find that the shipping rates have also plunged from even recoverage levels. So other than that, sir, where is the demand pillar, big geographies, you are getting -- you must have done some work on the basis of which you were commenting on export as an opportunity from this quarter itself.So if you could throw some light, what is -- how have you concluded barring the price part, what else has -- was the reaction being -- because earlier, so I think it was only be treated with Japan that we were exporting. And we have not done the activity other than -- it's not explored the export market, not at all, your thought on the...
So there is definitely a strong demand in export and most of it is coming from China as you are aware. So -- and China has resumed buying of iron ore. So we don't believe -- we believe that there is a demand, and we have already explored the opportunity. And once we finalize our methodology or terms, we will go ahead and export. So there is no doubt that there is a demand in next quarter.
Thank you, -- ladies and gentlemen, due to time constraint, that was the last question. I now hand the conference over to Mr. Amit Dixit for his closing comments.
On behalf of CIC Securities, I would like to thank everyone for attending this call. I would like to turn this over to the management now for any closing comments. Over to you, sir.
So thank you, everyone. I security is on the participants. It's been wonderful speaking on our results, and we believe that things are looking after a period of the -- in Q1, Q2, things were not looking very great, but then things are looking up whether -- and then the opportunity in exports also, I mean, in the past, you have seen some sort of duty imposed and now that has been withdrawn.So we see opportunity there in exports also. And with our production targets, which we believe we should be able to achieve. I think things are looking very positive, and we will be able to and with the listing of the steam plant and ultimately separating the company being separated from and I think things are very positive on that.Thank you.
Thank you, members of the management team. Ladies and gentlemen, on behalf of ICCI Securities, that concludes this conference call.We thank you for joining us, and you may now disconnect your lines. Thank you.