OREANDA-NEWS. Sesa Goa Limited (“SGL” or the “Company”) announced its unaudited consolidated results for the first quarter (“Q1”) ended 30 June 2013.

Operating Performance

During Q1, iron ore operations in both the States of Goa and Karnataka continued to remain suspended. Our Karnataka mine has received clearance from the Supreme Court, and is now awaiting final statutory clearances in order to restart mining. We expect to resume mining at Karnataka in Q2.

Regarding the suspension of mining in Goa, the date for hearing is yet to be fixed by the Supreme Court. Earlier, the State Government and major miners, including Sesa, had filed their responses to the report submitted by the Central Empowered Committee. Separately, Sesa has filed an application to the Supreme Court for a modification or vacation of the Court’s existing order on the suspension of mining and restrictions on ore transportation.

During the quarter, production of pig iron and metallurgical coke were 179% and 32% higher at 109,536 tonnes and 84,610 tonnes, respectively as compared to Q1 FY2013. Sales volume of pig iron and metallurgical coke were 180% and 57% higher at 126,579 tonnes and 83,316 tonnes as compared to Q1 FY2013. Increase in the production and sales volume is due to the commissioning of new capacity of pig iron and metallurgical coke plant in Q2 FY2013.

Power sales (including internal consumption) were 45 MU in Q1 FY2014 as compared to 30 MU in Q1 FY2013, an increase of 50% due to the commissioning of new 30 MW power plant.

Financial Performance

The Company posted a loss before depreciation and taxes for Q1 at Rs 284 crores as against profit before depreciation and taxes of Rs 321 crores in corresponding prior period. Decline in cash profit is mainly on account of suspension of iron ore operations in Goa & Karnataka.

During the quarter, net profit including associate income was at ‘ 414 crores, decline of 57% as compared to the corresponding prior quarter.

Liberia

At our Liberia iron ore project, exploration activities are progressing well with 91,500 meters of drilling completed till 30 June 2013 across the three deposits - Bomi, Bea and Mano River. We are working to complete the first phase of 2 mtpa by December 2014, and remain on track to deliver the first shipment by March 2014.

Sesa Sterlite Merger - Update

The proposed Merger of Sterlite Industries (India) Limited and Sesa Goa Limited and Vedanta Group Consolidation has received the approval of the High Court of Madras on July 25, 2013 and the approval of the High Court of Bombay at Goa on April 03, 2013.

One of the shareholders of Sesa Goa has filed an appeal against the order passed by the High Court of Bombay at Goa before the Division Bench of the same court. The hearings before the Division Bench have been completed and the order is awaited.