Metal Stock Jumps 4% After Commencing Commercial Copper Cathode Production

SYNOPSIS: This company started copper cathode production at its 12,000-tonne DRC plant, marking entry into the global copper market and targeting expansion to 30,000 tonnes amid rising demand from electrification and energy transition.

During Monday’s trading session, shares of a company manufacturing sponge iron, power generation and mining activities, surged nearly 4 percent on BSE, after commencing commercial production of Copper Cathodes from a 12,000 TPA Plant in the Democratic Republic of Congo, marking its entry into the global copper value chain.

With a market cap of Rs. 62,275 crores, shares of Lloyds Metals & Energy Limited were trading in the green at Rs. 1,144 on BSE, compared to its previous closing price of Rs. 1,141.9. The stock has delivered negative returns of over 4 percent in one year, and has fallen by around 4 percent in the last one month.

What’s the News

As per its latest regulatory disclosures with the stock exchanges, Lloyds Metals & Energy Limited (LMEL), through its subsidiary, has commenced commercial production of copper cathodes from its 12,000 tonnes per annum (TPA) copper processing plant located in the Katanga Copper Belt in the Democratic Republic of Congo (DRC).

The development marks LMEL’s strategic entry into the global copper value chain, positioning the company to tap the rapidly expanding demand for copper driven by electrification, renewable energy infrastructure and electric mobility.

The company confirmed that the first batch of copper cathodes has already been successfully produced at the facility, indicating that the plant is fully operational and that commercial operations have officially commenced.

LMEL currently holds a 50 percent stake in an operating copper mining and processing platform in the DRC. The project includes 16 mining licences covering around 100 square kilometres in the Katanga Copper Belt, along with a 12,000 tonnes per annum SX-EW copper cathode plant that has now become operational. The platform also benefits from high-grade oxide copper ore deposits, which enable efficient processing using the SX-EW method. With established infrastructure, strong resource quality, and operational expertise, the project offers a solid foundation for scaling up production in a disciplined manner.

Looking ahead, the company expects production to gradually increase as mining activities and ore supply stabilise. For the calendar year 2026, production is estimated to be in the range of 10,000 to 12,000 tonnes of copper cathodes, while output is projected to rise to around 15,000 tonnes in 2027.

Over the medium term, the platform also offers a clear expansion pathway to increase capacity to around 30,000 TPA. This expansion is expected to be supported by growing captive ore supply from the company’s mining licences, potentially positioning Lloyds Metals among the few Indian companies with integrated copper operations globally.

Overall, the start of copper cathode production represents an important step in LMEL’s strategy to diversify its metals portfolio and build a scalable presence in critical minerals. With secured mining rights, ready processing infrastructure, and a defined expansion roadmap, the DRC project places the company in a strong position to benefit from the long-term growth in global copper demand.

Financials & More

LMEL reported a significant growth in revenue from operations, experiencing a year-on-year increase of around 202 percent, from Rs. 1,675 crores in Q3 FY25 to Rs. 5,058 crores in Q3 FY26. Likewise, its net profit increased during the same period from Rs. 389 crores to Rs. 1,090 crores, representing an impressive rise of more than 180 percent YoY.

Lloyds Metals and Energy Limited engaged in the business of iron ore mining, producing coal-based Direct Reduced Iron (DRI) or Sponge Iron and generating power. It is one of the largest coal-based DRI producers in Maharashtra, with a production capacity of 3.4 lakh tonnes per annum (TPA) across two districts.

The company operates a DRI plant in Ghugus, Chandrapur district, with a capacity of 2.7 lakh TPA, alongside a 30 MW captive power plant. It also has a Greenfield plant in Konsari, Gadchiroli, with a production capacity of 70,000 tonnes per annum and a 4 MW captive power plant.

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