Investor Presentaiton

4 furtisments HVH-LYEL GMDC Ltd. HDFC securities 20 Click. Invest. Grow. YEARS diversified businesses and explore the rare earth business. While some of the endeavors are still in the bud, we believe that structured and earnest approach is likely to result in creation of long term shareholder value. Embarked on major transformative exercise GMDC posted a shocking loss in FY21- its first ever in 59-year history. The main reason for this loss was the company's Akrimota Thermal Power Station in Kutch, for which the company recorded impairment loss as it had incurred cash losses during the year. Since then the company has embarked on a major transformative exercise to change its fortunes and has roped in four top global management consulting firms- BCG, McKinsey, AT Kearney and Deloitte to achieve its targeted objectives, production diversity and increased profitability. Each of the four consulting firms have been allotted a specific role. BCG has been asked to look into the company's strategic transformation, from being known as a coal miner to its aspiration of becoming a diverse mineral resources player having interests in niche as well as volume segments. McKinsey & Co has been given the task to help the company build a portfolio of Rare Earth Elements (REE). AT Kearney will help the company to transform its thermal power projects. Deloitte's task is to speed-up its six new lignite mining projects. Plans to increase share of Rare Earth Elements (REM) and non-lignite minerals in its product portfolio The management intends to build-on its capabilities in other minerals and metals including REMs. In the associated minerals, GMDC has resources in silica sand, fluorspar, multi-metal, limestone which finds application across various industries like electronics, defence, laser and radar systems, etc. The company aims to increase the share to ~50% from these non-lignite segments. Currently, lignite business has ~90% share in its operations and will continue to be the major source of revenue for the company's operations. Top global management consulting firm-McKinsey & Co has been roped in to help the company to develop its product portfolio in REM space. There are plenty of non-lignite prospects as Gujarat's northern district of Banaskantha has base metal deposits and GMDC holds a mining lease on about 184 hectares in the area. GMDC is in a process of starting a geological study of this area followed by geophysical mapping and drilling, having the base metal deposit of around ~10% out of which ~1.5% is copper, ~3.5% lead and rest is zinc. This in the management's view, will drive the company's objective to venture into high-value products. In a reply to a question in the Lok Sabha on February 02, 2022, the Central Government said that as on Jan'22 end, rare earth oxide reserves in Ambadongar area of Chota Udepur district in Gujarat is pegged at 737,283 tons. This is more than twice the initial estimate of 346,000 tonw, mentioned by the Atomic Minerals Directorate in a report dated Nov/20. In the same reply, the government has mentioned about greater self-reliance in rare earth production and is targeting increasing rare earth oxide mining capability by 3x by CY32. The biggest advantage here is that rare earth deposits are contiguous to fluorspar deposits that GMDC is currently mining. Hence, we believe that GMDC will have a major role to play in any such Government's endeavor. Management expressed confidence that the initial indications are positive and concentration of rare earths in the contiguous areas is higher than the global average of 2%. FRETAILRES RETAILRESEARCH

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