Hindustan Zinc reported an EBITDA of INR 23.3bn, in-line with JMFe. EBITDA declined 23% YoY, driven by lower zinc volumes (17% YoY) and higher CoP. Zinc volumes declined, driven by transition to underground mining leading to lower grades and higher strip ratio. CoP increased YoY, driven by lower zinc volumes, higher thermal coal costs and INR depreciation. Near term zinc price outlook remains steady, driven by a) ILZSG deficit forecast of 322kt in CY18 and b) multi-year low warehouse inventory (224kt of LME+SHFE inventory). The company has declared a strong interim dividend of INR 20/sh (div. yield of 7.1%). We remain positive on HZL given its presence in the lower end of the global cost curve facilitated by high...