Vedanta Resources is a diversified and integrated metals and mining group with annual sales of $1.9bn. Its principal operations are located in India, where it has a major market share in each of our main metals: aluminium, copper, zinc and lead. There are also substantial copper operations in Zambia and 2 copper mines in Australia.

            Red = 25 day moving average.           Green = 200 day moving average.

                        

Copper - (6 month graph)

SALES PER ACTIVITY (Data as of 31/03/2006)

Copper:      60%
Zinc:         24%
Aluminium:  12%
Others:       4%

Definitely one of the few miners to have rallied, though they are so diversified that they are not really just a miner any more.
From their website:
"Vedanta's consistent efforts over the last 30 years have contributed to the successful establishment of its capabilities across four continents. Through various subsidiaries, its foothold spans across India, Zambia, Namibia, South Africa, Liberia, Ireland and Australia. Vedanta holds primary interests in copper, zinc, silver, aluminium, oil & gas, iron ore and power segments."
The group making up Vedanta "Sesa Sterlite Limited, BALCO, MEL, Konkola Copper Mines, Copper Mines of Tasmania, Hindustan Zinc Ltd., Talwandi Sabo Power, Cairn India, Zinc International."

Cairn India Limited (CIL), one of the leading independent exploration and production companies in the world, is pleased to announce its guidance.

In continuation of our communication at the end of Q3FY15 and in light of the current oil price environment, Cairn is taking a proactive approach to capital allocation and shareholder returns. The Company will be undertaking projects that are economically viable at current oil prices. Additionally management focus is on re-engineering projects and re-negotiating contracts to improve project economics.

With close to USD 1.1 billion of capex invested in FY15, the Company is revising the capex for FY16 from the projected USD 1.2 billion to USD 500 million, while deferring the rest. The Company will remain agile to make investments to enhance volumes. Despite the partial deferment of capex, the volumes will yet see growth in the coming fiscal.

The Company has received Management Committee approval for the Raag Deep Gas Project.

As always, the focus will be on free cash flow after capex and dividend payout.

Mr. Mayank Ashar, Managing Director and CEO of Cairn India commented:
"We would like to give confidence to our shareholders that we are more focused than ever to drive operational efficiencies in the current crude price environment. Our cash rich balance sheet and best-in-class cost profile provide a solid foundation to operate our high margin core fields. This gives us the optionality to be selective about growth projects in these challenging times."

Deutsche Bank note:
"Cairn India announced late last week that the income tax department has slapped a ~USD3.2 billion demand for not withholding tax from Cairn Energy UK. This comprises roughly 50% in tax not withheld and the balance 50% in interest and penalty. Cairn Energy itself was served with a ~USD1.6 billion tax notice few days back. Cairn Energy seems to be seeking refuge under the India-UK tax treaty, while Cairn India will likely have to fight it in the India courts. Recollect that the Cairn Energy issue is not completely new as the case was first opened early last year and just the assessment has been completed now. The demand relates to capital gains made by the UK entity when it transferred the India assets to Cairn India in 2006-07 before the latter's IPO. Cairn Energy had supposedly invested around USD350 million in the India business and the transfer was done at over USD4 billion, leading to capital gains of almost USD4 billion (per Bloomberg).

The above puts India squarely back in the eyes of global investors who have been hoping the new government will be keeping its promise to be more business friendly. Coincidentally, when the notice was served on Cairn Energy, India's finance minister was in UK to drum up interest for investments in India. However, his excuse has been that the case was first brought by the old government and hence beyond the new government's purview. Note that many other MNCs are/have been involved with tax cases in the country - Vodafone, Shell, Microsoft, IBM, etc. More importantly, Vodafone was successful last year when the Mumbai High Court ruled in its favor in one of the cases.

We are clearly no tax experts, but it seems a little odd that the same USD1.6 billion is being claimed from both the entities - Cairn India and Cairn Energy. We assume that if Cairn Energy manages to get reprieve under the tax treaty, it should automatically free Cairn India from its obligations. Also, the liability is ultimately Cairn Energy's, if any. We understand that Cairn India was perhaps responsible for withholding the tax and should be liable for a penalty in the worst case scenario, though to make it liable for the tax might be a bit of a stretch in our view. In any case, we don't expect a resolution any time soon and this might be an overhang on Vedanta for years to come. Unfortunately, this comes right after allegations on Cairn India for stealing official documents (still ongoing) and in the middle of weak oil prices. Moreover, till the tax dispute is resolved, Cairn Energy won't be allowed to sell its remaining 10% stake in Cairn India. The silver lining has been Cairn India cutting its FY'16 capex from USD1.2 billion to USD500 million and deferring the rest.

We are downgrading Vedanta 2018s (100.5/101, 9.2% mid ytm) from Buy to Hold. Our end belief on the company's ability to successfully refinance its debt maturities hasn't changed. But since our upgrade in mid-Feb, other than the negative headlines discussed above, oil has dropped almost USD10 per barrel, and bond technicals could get challenging again. Our long term view on oil has always been cautious (even after the rally from 40s to 60s), however we were not expecting it to start dropping again so soon and so quickly. We have also last week changed our broader tactical call on Asia HY from constructive to neutral. Having said this, we think the 2018s and 2019s look cheapest on the curve, with 2016s being quite tight at ~7% ytm, and the long end being very flat with 2021s and 2023s at just over 10%. Relative to straight bonds, the CBs continue to offer better value. Key downside risks include an escalation of any/all the issues above and oil price going back to the lows. Key upside risks include further simplification of the group structure. Otherwise, we continue to like Greenko and Rolta in the belly of India HY with 9-10% yields."

StockMarketWire.com
Vedanta reported Q4 oil and gas production at a normalised level, but noted FY output was lower due to the planned maintenance shutdown in Q2.

Average daily gross operated production for Q4 2015 was 215,553 boepd, down 4% on the 224,429 boepd a year earlier. Average daily gross operated production for FY 2015 was 211,671 boepd, down 3% from 218,651 boepd.

"This was largely on account of planned maintenance activity at Mangala Processing Terminal at Rajasthan, higher than expected water cut at Bhagyam in Rajasthan and suspension of gas sales at Ravva for around three months," the company said.

"Some of the losses were partially offset by higher production at Cambay and better performance of the Mangala field in Rajasthan. In the Rajasthan block, the Aishwariya field crossed a production of 30,000 boepd in the third quarter."

CEO Tom Albanese said:
"We continue to focus on the execution of our defined strategy and, despite volatile commodity markets, we remain confident in our diversified business model.

"In particular, record levels of production in Zinc and Aluminium over the year underpin our confidence in achieving greater operational performance and enhancing production across our well-invested and low-cost asset base, and from the start-up of new capacities."

Highlights:
· Record quarterly and full year production of mined metal at Zinc India

· Q4 and full year production at Zinc International impacted by unplanned interruptions

· Commenced iron ore production at Karnataka, final approvals awaited at Goa; record annual production of Pig Iron

· Continued strong production in Q4 at Copper India leading to record annual copper cathode production

· Higher quarterly production at Copper Zambia but full year production lower due to shaft interruptions; Shaft # 1 of Konkola Deep mine back on line in Q4

· Record quarterly and full year Aluminium production, new Jharsuguda-II and Korba-II smelters ramping up well

· Record quarterly and full year production at Lanjigarh Alumina refinery

Vedanta Resources Plc.
Vedanta Limited announces Results for the Fourth Quarter and Year Ended 31 March 2015.

http://www.moneyam.com/action/news/showArticle?id=5026218

Deutsche Bank reiterates buy on Vedanta Resources, target raised from 740p to 800p.

Credit Suisse reiterates neutral on Vedanta Resources, target raised from 500p to 690p.

Ex-divi 9th July 2015 (25.8p)

Response to press speculation 9 June 2015
Vedanta Resources Plc ("Vedanta", together with its subsidiaries, the "Group") and Vedanta Limited note the recent press speculation regarding the potential merger of Cairn India Limited ("CIL") and Vedanta Limited.

Vedanta is committed to maintaining its premium listing on the London Stock Exchange. Vedanta will make appropriate disclosures as and when required.

Regulatory Considerations
Should a transaction with CIL proceed, it could potentially be considered a reverse takeover, under Listing Rule L.R. 5.6.4 (1). In addition, in line with the Group's stated strategy to continue to simplify the Group structure, the Group continues to evaluate a transaction with the Government of India ("GoI") in relation to their minority stakes in Hindustan Zinc Limited ("HZL") and Bharat Aluminium Company ("BALCO").

If any of these transactions were to occur, they will in aggregate, as well as potentially the individual transactions between Vedanta Limited and each of HZL and Cairn India on a standalone basis, be considered reverse takeovers, under Listing Rule L.R. 5.6.4 (1).

Since Vedanta currently discloses detailed financial as well as operational information on each of Cairn India and HZL, as well as certain financial and operational information on BALCO, in its Annual Reports and periodic reporting (see references below), the directors of Vedanta consider that the publicly available information, specifically the publicly available information referenced in this announcement, contains sufficient information about the businesses to be potentially acquired, to provide a properly informed basis for assessing its financial position.

Credit Suisse note:
"This would be a major positive for VED by improving cash fungibility and reducing the debt burden at the Holdcos. Note: only minority shareholders can vote on any proposed deal and Cairn Energy and LIC are the major shareholders of Cairn India.
■ Restructuring goals: We think management's ultimate goal is to collapse all of the existing listings (Cairn India, Zinc India and Vedanta Ltd) in the Indian subsidiaries into one single listing under Vedanta Ltd and to also retain the Vedanta Resources Plc listing in London which provides financing and access to international markets and houses the international mining assets (KCM).
■ Balance sheet navigation through FY16: We expect the company to remain within its key debt covenants; however, the company has greater than $5bn of refinancing requirements in FY16/17 and without a simplification in the group structure, the high levels of debt at the holdcos will remain an ongoing issue.
■ Valuation: Our TP of £6.90 is based on a divisional SOTP methodology using an average 6x FY17E EV/EBITDA multiple.

StockMarketWire.com
Vedanta Ltd and Cairn India Ltd plan to merge. Minority shareholders in Cairn India will receive one Vedanta share and one redeemable preference share in Vedanta for each Cairn India share they hold.

Vedanta chairman Anil Agarwal said:
"The merger of Cairn India and Vedanta Limited consolidates our position as India's leading diversified natural resources champion, uniquely positioned to support India's economic growth.

"The independent Directors, at both Vedanta Limited and Cairn India, unanimously recommend the proposed combination. This marks a significant step towards achieving our stated long term vision of a simplified group structure with alignment of interests between all shareholders for the creation of long term sustainable value."

Cairn India Mayank Ashar commented:
"The merger with Vedanta Limited will generate additional value for our shareholders and de-risks Cairn India by providing access to a portfolio of diversified Tier-I, low cost, long-life assets, to deliver significant near term growth.

"Our Rajasthan fields continue to remain our core asset. The financial strength of the enlarged group will ensure greater access to capital to further Indian oil & gas development."

KEY HIGHLIGHTS OF THE MERGER:
· Implied premium of 7.3% to the previous close.

· Strategy remains unchanged, with continued focus on delivering attractive growth, sustainable development and long-term value for all shareholders.

· Commitment to growth and to sustain strong dividend distribution.

· Completion expected in first quarter CY 2016

STRATEGIC RATIONALE
· Diversified Tier-I portfolio de-risks earnings volatility and drives stable cash flows through the cycle.

· Improved ability to allocate capital to the highest return projects across the portfolio.

· Greater financial flexibility to sustain strong dividend distribution.

· Cost savings and potential re-rating to benefit all shareholders. The Transaction will contribute to further the streamlining of internal processes and improved productivity, beyond the previously announced $1.3 billion.

· Stronger balance sheet will allow for the overall cost of capital to be reduced.

· Consistent with stated corporate strategy to simplify the Group structure.

· Offers long term sustainable value enhancement for all shareholders.

StockMarketWire.com
Vedanta has announced that for its first quarter ended 30 June 2015 revenues were 4% lower than in the same period last year.

A 44% decline in crude oil prices was largely offset by higher revenues from Copper India.

EBITDA was lower by 29% due to the steep fall in crude oil prices and aluminium premia. It was also impacted by one-time expense related to a provision for Renewable Purchase Obligations (RPO).

Tom Albanese, Vedanta's chief executive officer, said: "In Q1 we saw continued volatility in commodity prices, but zinc has held up quite well in view of its strong fundamentals and is now the largest contributor to our EBITDA.

"We continue to focus on improving efficiency, costs, and enhancing production across our well-invested asset base. We have broken ground at the Gamsberg zinc project in South Africa and remain on track to re-start iron ore production at Goa following the monsoons.

"Our diversified business model supported by strong operating strengths and structurally low cost assets will enable robust long term returns to stakeholders."

StockMarketWire.com
Vedanta Resources has released to the market its latest production update.

Tom Albanese, its chief executive officer, Vedanta Resources, said: "In Q1 we saw continued volatility in commodity prices, but zinc has held up quite well in view of its strong fundamentals and is now the largest contributor to our EBITDA.

"We continue to focus on improving efficiency, costs, and enhancing production across our well-invested asset base. We have broken ground at the Gamsberg Zinc project in South Africa, improved production at Konkola mines in Zambia and remain on track to re-start iron ore production at Goa following the monsoons.

"Our diversified business model supported by strong operating strengths and structurally low cost assets will enable robust long term returns to stakeholders."

Were you in for the div harry, I bottled out for fear of it dropping and not being able to get out at a profit.

Yes I am, in a smallish way. Happy to hold here and will add when funds become available. This is really a long term investment for me, so not looking for fast profits (which is just as well!!). At some point the miners will turn around and start the slow cycle of higher commodity prices and lower overheads, so as long as they continue to pay a good div, I am happy to hold. Of course if they can't maintain the divi........then.......hmmmmmmmmmm

StockMarketWire.com
Vedanta Ltd has received the relevant consent, license and approvals to commence the iron-ore mining operations in the State of Goa for some of its leases.

The Company is likely to recommence operations from August 10, 2015 at its biggest mine at Codli in Sanguem taluka in Goa. Further the company has been granted approval for total extraction of 5.5 million metric tons of which Codli is 3.1 million metric tons.

Till date, five mining plans and schemes for Company's mines have been cleared by Indian Bureau of Mines and we are awaiting clearance of further 15 plans. Over the balance monsoon period we anticipate receiving these approvals and expect a full scale resumption post monsoon.

Even as India and in particular miners from Goa look to regain lost markets, Iron ore markets/prices are weak and the international trade environment remains challenging. We continue to work with central and state government to improve competitiveness of Indian exports.

Prior to the suspension of mining in 2012, India was the third largest exporter of Iron Ore and Vedanta Ltd was the largest Indian exporter of low grade Ores.

Mining operations in Karnataka resumed in February 2015.

Has done terrifically well from the 400p base and now through the 200DMA.

agreed harry, hope you are in? no funds available for me.,.

Yes I am still in, though with a small stake. Can't keep my eye on it all day now as out and about for the next month or so. Having to move money into mostly income stocks. One day the miners will be back in fashion, though not yet it seems.

Vedanta down about 12.4% today !
WOW I understand they are diversified with aluminium, iron ore, oil and probably
coal and many other things.

Glencore, is one of the largest companies in the world maybe about tenth largest
or thereabouts, also diversified miner / trader is down to multi year lows, probably
partly because they bought Extrata ( copper mining ).