2 May 2019 Hindustan Zinc (HZL)s 4QFY19 EBITDA at INR27.9b (-1% QoQ) came in 8% higher vs. our estimate led by higher silver yield, higher by-product revenue and better zinc premium. Other income stood at INR5.4b (-2% QoQ; +48% vs. PAT decreased 9% QoQ to INR20b (+4% vs. For FY19, EBITDA stood at INR107b (-13% YoY) with PAT at INR80b (-11% YoY). Mine production was 1% lower QoQ (-4% YoY) due to geological challenges in Jan & Feb. Refined metal production declined 6% QoQ. Sales of zinc decreased 5% QoQ to 177kt, while lead declined 4% QoQ to 52kt. Sales of silver though rose 12% QoQ to 199t indicating higher yield. Reported cost of production (CoP) declined USD10/t QoQ to USD987/t on higher coal linkage materialization and lower diesel costs, partly offset by higher mine development expenses. Zinc market is still tight despite muted demand growth.