Sumitomo Metal Mining (5713) Q2 2027 earnings summary

Executive summary

• H1 net sales rose 34.8% YoY to ¥1,056,026mn; profit before tax increased 91.9% to ¥149,362mn, supported by higher metal prices and yen depreciation.

• Full-year forecast was revised to net sales of ¥2,135,000mn, profit before tax of ¥260,000mn and profit attributable to owners of ¥161,000mn.

• A ¥41.6bn CBNC impairment and ongoing cost pressures contributed to the lower full-year profit forecast.

Financial highlights

• H1 profit was ¥102,620mn, up 77.2% YoY; profit attributable to owners was ¥90,073mn, up 67.0%.

• H1 total comprehensive income was ¥154,345mn, versus a loss of ¥22,355mn a year earlier; basic EPS was ¥335.03.

• Versus the August forecast, full-year net sales increased ¥700 hundred million, while gross profit fell ¥760 hundred million, PBT fell ¥640 hundred million and net income fell ¥550 hundred million.

Outlook and guidance

• Full-year forecast: net sales ¥2,135,000mn, PBT ¥260,000mn, profit ¥183,000mn, attributable profit ¥161,000mn and basic EPS ¥599.25.

• H2 forecast PBT is ¥1,106 hundred million versus H1 actual PBT of ¥1,494 hundred million; H2 forecast net income is ¥709 hundred million.

• Copper and gold prices are expected to remain high, while yen appreciation and Middle East-related energy and operating-material costs weigh on results; the estimated cost increase remains ~¥20.0bn.

• FY2026 forecast assumptions: copper $13,511/t, nickel $7.69/lb, gold $4,296/toz and ¥157.19/$; H2 copper and gold assumptions are $13,300/t and $4,200/toz.