Nittetsu Mining (1515) Q1 2025 earnings summary

Executive summary

• Net sales for the three months ended June 30, 2024, rose 17.5% year-over-year to ¥46,934 million, with operating profit up 65.9% to ¥4,607 million and profit attributable to owners of parent up 81.7% to ¥4,213 million.

• Sales and profits increased year-over-year, driven by higher limestone and copper prices, insurance proceeds, and cross-shareholding sales.

• Comprehensive income increased 86.2% year-over-year to ¥6,517 million for the quarter.

• Operating profit rose due to strong performance in Nonmetallic and Metallic Minerals segments.

• Profit attributable to owners of parent benefited from insurance and cross-shareholding sales despite higher taxes.

Financial highlights

• Net sales rose to ¥46.9B from ¥39.9B year-over-year.

• Operating profit increased to ¥4.6B from ¥2.7B year-over-year.

• Ordinary profit reached ¥4.0B, up from ¥3.3B year-over-year.

• Gross profit increased from ¥8,189 million to ¥10,615 million year-over-year.

• Earnings per share for the quarter were ¥253.25, up from ¥139.39 in the prior year.

Outlook and guidance

• FY24 forecasts remain unchanged: net sales ¥181.4B, operating profit ¥7.4B, ordinary profit ¥8.2B, profit attributable to owners of parent ¥6.7B.

• Operating profit is projected to decline 33.8% year-over-year to ¥7,400 million, with ordinary profit expected to fall 32.0% to ¥8,200 million.

• Profit attributable to owners of parent is forecast at ¥6,700 million, a 1.5% increase year-over-year.

• Copper price assumption raised to 400¢/lb, FX rate revised to ¥145/USD for Q1, ¥140/USD from Q2 onward.

• Sensitivity: every 10¢/lb copper price increase adds ¥1.34B to net sales and ¥0.16B to OP.