Published On : Thu, May 5th, 2016

MOIL gains after Maharashtra govt grants mining lease for new mine

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Nagpur: MOIL gained 1.25% to Rs 242.60 at 11:20 IST on BSE after the company said that the Government of Maharashtra has granted mining lease over 53.75 hectare land in village Parsoda, Nagpur distrcit in favour of the company.

The announcement was made after market hours yesterday, 4 May 2016.

Meanwhile, the S&P BSE Sensex was up 134.06 points or 0.53% at 25,235.79.

On BSE, so far 16,117 shares were traded in the counter as against average daily volume of 21,512 shares in the past one quarter. The stock hit a high of Rs 247.50 and a low of Rs 241.80 so far during the day. The stock hit a 52-week high of Rs 262.50 on 14 May 2015. The stock hit a record low of Rs 180.10 on 12 February 2016. The stock had underperformed the market over the past one month till 4 May 2016, falling 3.5% compared with Sensex’s 1.17% fall. The scrip had, however, outperformed the market in past one quarter, gaining 19.68% as against Sensex’s 3.14% gains.

The mid-cap company has equity capital of Rs 168 crore. Face value per share is Rs 10.

MOIL said that the lease has been executed and registered by the company.

On 14 August 2015, Moil had said that the Government of India, Ministry of Environment, Forest and Climate Change (MoEF &CC) vide their letter dated 31 July 2015 had granted environmental clearance for purchase of 53.75 hectare land in Parsoda village, Tehsil Ramtek, Dist. Nagpur after the company had applied for mining lease of the land for opening a new mine. The area is about 45 kilometers from Nagpur and is very near to existing Munsar mine of the company.

The company at that time said that as per approved mining plan, total 5.27 lakh tonnes of total reserves & resources is expected in the area. Further, production of about 40,000 tonnes per annum is expected from the area. The anticipated life of the mine based on the available proved and probable resources is 10 years. However, the same will increase after subsequent exploration during the ensuing mining plan period.

MOIL’s net profit fell 87.9% to Rs 13.16 crore on 59.8% decline in net sales to Rs 87.82 crore in Q3 December 2015 over Q3 December 2014.

MOIL operates 10 mines, six located in the Nagpur and Bhandara districts of Maharashtra and four in the Balaghat district of Madhya Pradesh.

GoI holds 71.57% stake in MOIL (as per the shareholding pattern as on 31 March 2016).