NMDC shares hit 14-year-high as iron ore producer reports growth in April sales

Shares of National Mineral Development Corporation (NMDC) touched a 14-year-high during the trading session on Monday after the company reported growth in iron ore sales in April.

In the intraday trade, the shares hit as high as ₹273.2 on the National Stock Exchange (NSE). The stock had last crossed the ₹270 level in 2011. The scrip had hit a lifetime high of ₹439 per equity share in January 2010.

At 2:18 pm, the stock was trading at ₹267.8, down 0.4%.

NMDC April business update

In its April business update released on May 2, the public sector undertaking (PSU) reported that its iron ore sales increased to 3.53 megatonne (MT) compared to the year-ago period. However, the total iron ore production dropped to 3.48MT in April 2024 from 3.51MT in the same period last year.

In Chhattisgarh, the company's production declined by 6% year-on-year (YoY) to 2.35 MT from 2.5 MT in the previous year. However, a 3% growth in sales was recorded on a YoY basis, with a sales figure of 2.74MT in April 2024 compared to 2.66 in the same month last year.

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In Karnataka, the company's iron ore production for April was 1.13 MT, compared to 1.01 MT in April 202. Total iron ore sales slightly improved to 0.79 MT from 0.77 MT in the previous year.

The mining major has also increased prices of iron ore by ₹400 per ton for lump ore to ₹6,200 per ton and by ₹200 for fines to ₹5,260 per ton.

NMDC, a Navratna PSU, is India's single largest iron ore producer. It owns and operates highly mechanised iron ore mines in Karnataka and Chhattisgarh.

NMDC is one of the world's leading low-cost producers of iron ore. It also operates India's only mechanised diamond mine in Panna, Madhya Pradesh.