19 July 2019 EBITDA of INR24.8b (-11% QoQ/-9% YoY) came in line with our estimate of INR24.5b, as the impact from lower metal volumes (-6% QoQ) was offset by higher-than-expected zinc premiums. PAT declined 12% QoQ/8%YoY to INR17.7b. Management expects SKs production to improve with the commissioning of the paste fill plant (Jun19). Reported CoP increased USD80/t QoQ to USD1,067/t due to lower volumes and higher power cost. However, HZ expects CoP to decline amid normalization of power cost, volume-led benefit and lower coal costs. While the zinc market remains in deficit, factors such as (a) demand concerns due to ongoing trade war/weakening global demand and (b) anticipated higher supply have led to a fall in LME zinc prices to ~USD2,480 zinc LME estimate to INR2,600. We expect mine production CAGR of 8% over FY19-21 and CoP to decline as shafts commission at RA and SKM.