AC Choksi Share Brokers Private Limited

A C ChoksiShare Brokers Private LimitedA C Choksi Institutional Research |Initiation Report|MINING MOILApril 26, 2011Segmental AnalysisContribution of Manganese ore is ~ 93%in Tonnes1,600,000Exhibit 79 -Volumes & Realisations: Manganese Orein `14,0001,400,0001,200,0001,000,000800,000600,000400,000200,0000FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 E FY 2012 EProduction (MT) Sales Volume (MT) Realization ( `/Tonne)`12,00010,0008,0006,0004,0002,0000Source: RHP, A C Choksi Institutional ResearchAlmost 93% of net sales come from sale of manganese ore.Mn ore average realisations have improved from `3988 in2005-06 to `11600 in 2008-09. However it fell to `7744 in FY10 due to the effect of lower Mn Ore prices. The realisationshave grown at a CAGR of 18% and sales at 32% from FY 06.We expect the average Mn ore sales realisations to be at`10450 (growth of 35%YoY) and `10800 (growth of 3%YoY) for FY 11 E & FY 12 E respectively.The physical production of Mn Ore has grown at a 10 yrCAGR of 6.0% till FY 10. We expect it to grow at 4.8% forthe next two years.Sales volume has grown at 11.5% from FY06 till FY10. Weexpect the sales volume to grow at 3.2% for FY 12 E.Sales Value has grown at a CAGR of 31.7% over the past 4years. We expect it to grow at 31.2% for FY 11 E & 6.7% forFY 12 E.Exhibit 80 -Manganese Ore accounts for 93% of net salesSource: RHP, A C Choksi Institutional Research_____________________________________________________________________________________A C Choksi Institutional Researchresearch@acchoksi.com 51100%90%80%70%60%50%40%30%20%10%0%FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 E FY 2012 EPower to MPEDCLFerro manganeseManganese oreFerro manganese slagElectrolytic manganese di -oxide