Toho Zinc Co (5707) investor relations material

Executive summary

• FY2025 Q1 revenue was 26.9 billion yen, down 23% year-over-year, with an operating loss of 853 million yen and net loss of 1.1 billion yen, reflecting business reorganization, withdrawal from major businesses, lower lead prices, a stronger yen, and harsh TC/RC conditions.

• Adjusted EBITDA, excluding metal price, exchange rate fluctuations, and one-off costs, was 1.1 billion yen.

• The company completed withdrawal from the mineral resources business and is reorganizing the zinc smelting business into metal recycling.

• A Business Revitalization Plan was launched, targeting revenue growth from Q2 onward, with a focus on rare metal production.

• Comprehensive loss for the quarter was 1.18 billion yen, compared to a comprehensive income of 658 million yen a year earlier.

Financial highlights

• Revenue declined from 34.9 billion yen in FY2024 Q1 to 26.9 billion yen in FY2025 Q1, a 23% decrease.

• EBITDA dropped from 4.2 billion yen to -0.5 billion yen, and net income fell from 2.6 billion yen to -1.1 billion yen year-over-year.

• Gross profit dropped to 648 million yen from 5.8 billion yen year-over-year.

• Basic earnings per share was negative at (37.64), compared to 192.61 in the previous year.

• Lead production volume decreased 17% and silver production volume decreased 16% compared to the same quarter last year.

Outlook and guidance

• FY2025 earnings outlook remains unchanged from the May 2025 announcement, with full-year net sales forecast at 115.7 billion yen, down 8.4% year-over-year.

• Operating profit forecast is 4.9 billion yen, ordinary profit 4.1 billion yen, and net profit attributable to owners of parent 3.0 billion yen.

• Revenue growth is targeted from Q2 onward through the Business Revitalization Plan, especially by increasing rare metal production.

• Basic earnings per share for the year is projected at 101.57 yen.

• Sensitivities: every $100/ton increase in lead price adds 160 million yen to ordinary income; every $1/oz increase in silver price adds 50 million yen; every 1 yen depreciation adds 80 million yen.