Metals and mining

Business model

The textbook commodity sector. Companies dig ore (iron, coal, copper, aluminium, zinc), process it, and sell at global commodity prices. Earnings = (selling price − cost per tonne) × volumes. Selling price they don't control; cost per tonne they can. Volume depends on capacity + demand.

Indian listed metals: steel (JSW, Tata Steel, JSPL, SAIL), aluminium (Hindalco, Vedanta), zinc-lead (HZL), copper (Hindustan Copper). Mining companies usually focus on one commodity (Coal India, NMDC).

Key metrics

• Volume / production growth - tonnes shipped vs same quarter last year
• Realisation per tonne - global price minus discount/premium for India
• EBITDA per tonne - same logic as cement; the cleanest profitability snapshot
• Conversion cost - cost from raw ore to finished metal
• Captive ore / coal mix - companies with their own mines have a structural cost advantage
• Net debt - capex-heavy sector; leverage is a major risk in down-cycles
• Cycle position - global commodity price vs historical median