NMDC gains 4%

NMDC gained today after 2 days of consecutive fall. It hit an intraday high at Rs.109.35, up 4%. Its 52-week high is at Rs.124.30.

This Navratna PSU, the largest domestic iron ore miner and also the lowest cost iron ore miner in the world,  announced higher production and sales for month of May.

Its production from Chhattisgarh mine rose 47% (YoY)2.23 mt and sales showing a 24% jump at 2.61mt.

Its production from Karnataka mine rose 33% at 0.81mt and sales was up a huge 261% at 0.76mt.

Many analysts are bullish on the stock. They feel with global iron prices jumping over 50% since Jan’19 when supply was disrupted in Brazil, prices are currently close to a 5-year high. Domestic iron ore prices did not rise as much as the global but the trend visible is northwards in coming months.

Also on 13th June, the company announced resumption of mining operations at Bailadila in Chhattisgarh a week after they were affected by tribal unrest.