Sumitomo Metal Mining (5713): FY2025 Results Summary — Profit Before Tax Hits Second-Highest on Record on Higher Copper and Gold Prices

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Sumitomo Metal Mining Co., Ltd. reported FY2025 (fiscal year ended March 31, 2026) consolidated net sales of JPY 17,416 (100M), up 9.3% year on year, and profit before tax of JPY 2,557 (100M) — stated in the presentation as ¥255.7 billion, the second-highest on record — up 714.3% year on year. Net income attributable to owners of parent was JPY 1,763 (100M), up 968.5% year on year. The Company attributed the results to stable operations at its major sites and the start-up of new mines, which allowed it to benefit from higher copper and gold prices and the yen’s depreciation, as well as solid demand for Materials Business products used in electronic components for data-center applications. In February 2026, the Company also revised the Basic Policy of its Financial Strategy and Shareholder Return Policy to optimize its capital structure, improve capital efficiency, and strengthen shareholder returns.

Consolidated Results (Full-Year Actual)

Compared with FY2024, results benefited from the elimination of the ¥112.7 billion impairment loss recorded in FY2024, continued stable operations at major sites, the start-up of new mines, higher copper and gold prices, and an improvement in the impact of inventory valuation. Demand also remained solid for Materials Business products used in electronic components for data-center-related applications.

Item	FY2025 Results	FY2024 Results	Change
Net Sales (JPY100M)	17,416	15,933	+1,483 (+9.3%)
Gross Profit (JPY100M)	2,745	585	+2,160 (+369.2%)
Profit before Tax (JPY100M)	2,557	314	+2,243 (+714.3%)
Net Income *2 (JPY100M)	1,763	165	+1,598 (+968.5%)
Profit excl. temporary factor *1 (JPY100M)	1,700–1,600	1,200–1,100	+500

*1 Calculated by excluding the impact of temporary gains/losses arising from metal price or foreign-exchange fluctuations, as well as the impact of special factors for the concerned period, from profit before tax. *2 Profit attributable to owners of parent.

Segment Results

Profit before tax increased year on year in all three reporting segments. Mineral Resources segment profit rose 64.8% to JPY 1,678 (100M); Smelting & Refining swung to a profit of JPY 916 (100M) from a loss of JPY -71 (100M) in FY2024; and Materials segment profit rose to JPY 153 (100M) from a loss of JPY -542 (100M) in FY2024, as the prior-year figures for both segments had included impairment losses.

Segment (Profit before Tax, JPY100M)	FY2025 Results	FY2024 Results	Change
Mineral Resources	1,678	1,018	+660 (+64.8%)
Smelting & Refining	916	-71	+987
Materials	153	-542	+695
Others/Diff. Adjustment	-190	-91	-99
Total	2,557	314	+2,243 (+714.3%)

In Mineral Resources, gross profit was JPY 1,415 (100M) (FY2024: JPY 732 (100M)) and equity in earnings of affiliated companies was JPY 283 (100M) (FY2024: JPY 25 (100M)), lifting segment profit to JPY 1,678 (100M). Within the segment, Copper Mine Business profit was JPY 1,151 (100M) (FY2024: JPY 591 (100M)), reflecting higher copper prices and efforts to stabilize operations at the Quebrada Blanca copper mine, while other copper mines operated almost according to plan. Gold Mine Business etc. profit was JPY 527 (100M) (FY2024: JPY 427 (100M)) on higher gold prices, with the Hishikari Mine operating almost according to plan and the Cote Gold Mine ramp-up progressing as planned.

In Smelting & Refining, segment profit was JPY 916 (100M) versus a loss of JPY -71 (100M) in FY2024, which included an impairment loss of ¥55.4 billion. Inventory evaluation P&L was a gain of JPY 543 (100M) (FY2024: JPY 215 (100M)), comprising Copper JPY 500 (100M) and Nickel JPY 43 (100M). Profit before tax excluding inventory evaluation P&L improved to JPY 373 (100M) from JPY -286 (100M) in FY2024. Although purchasing terms for copper concentrate (TC/RC) deteriorated, profit increased due to higher gold prices and other factors; a scheduled shutdown was carried out in FY2025 Q3.

In Materials, segment profit was JPY 153 (100M) versus a loss of JPY -542 (100M) in FY2024, which included an impairment loss of ¥57.3 billion. Sales were JPY 2,845 (100M) (FY2024: JPY 2,965 (100M)), with Battery Materials sales of JPY 1,607 (100M) (FY2024: JPY 1,803 (100M)) and Advanced Materials sales of JPY 1,238 (100M) (FY2024: JPY 1,162 (100M)). Battery Materials segment profit was JPY 100 (100M) (FY2024: JPY -585 (100M)), while Advanced Materials segment profit was JPY 53 (100M) (FY2024: JPY 43 (100M)), supported by solid demand for advanced materials used in electronic components for data-center-related applications, including powder materials and communications devices, as well as catalysts and other products.

FY2026 Forecast

For FY2026 (year ending March 31, 2027), the Company forecasts consolidated net sales of JPY 18,830 (100M), profit before tax of JPY 2,290 (100M), and net income of JPY 1,390 (100M). On a basis excluding temporary factors, it forecasts profit of ¥240.0–230.0 billion, up ¥70.0 billion year on year. Increase-profit factors include improved market conditions (metal prices and foreign exchange rates) and increased production at the Quebrada Blanca copper mine, among others. Decrease-profit factors include an expected reversal of the inventory valuation profits that boosted FY2025 earnings (-¥51.3 billion year on year), higher costs driven by factors such as the situation in the Middle East, increased expenses related to overseas projects for future growth, and costs associated with replacements of product types of battery materials. By segment, FY2026 profit before tax is forecast at JPY 1,960 (100M) for Mineral Resources (+16.8% YoY), JPY 240 (100M) for Smelting & Refining (-73.8% YoY), and JPY 40 (100M) for Materials (-73.9% YoY).

Item	FY2026 Forecast (in May)	FY2025 Results	Change
Net Sales (JPY100M)	18,830	17,416	+1,414 (+8.1%)
Gross Profit (JPY100M)	2,370	2,745	-375 (-13.7%)
Profit before Tax (JPY100M)	2,290	2,557	-267 (-10.4%)
Net Income (JPY100M)	1,390	1,763	-373 (-21.2%)
Profit excl. temporary factor (JPY100M)	2,400–2,300	1,700–1,600	+700

Shareholder Returns

From the perspective of financial soundness, the Company sets a consolidated equity ratio of 50% or more. To promote management conscious of cost of capital, it positions 55% as the appropriate level of the consolidated equity ratio and aims to adjust it to 58% by FY2027 through enhanced shareholder returns and other initiatives. Under the dividend policy, dividends from surplus are, in principle, to be paid out with a consolidated payout ratio of 35% or more; while the consolidated equity ratio exceeds the Company-defined appropriate level of 55%, the minimum indicator is set at a DOE of 3.5%. Shareholder returns will consist primarily of dividends from surplus, with the Company flexibly implementing measures including repurchase of own shares based on business results and financial status after comprehensively considering investment opportunities and equity standards.

FY2025 dividends per share were ¥228/share (interim ¥65/share, year-end ¥163/share). The FY2026 forecast is ¥207/share (interim ¥103/share, year-end ¥104/share), a decrease of ¥21/share year on year. The Company conducted a share repurchase of ¥15.0 billion from May 13, 2025 to August 26, 2025 (result), and plans a repurchase of ¥20.0 billion from May 12, 2026 to July 31, 2026, with a plan to cancel the repurchased shares afterward. The number of shares issued as of the end of March 2026 (excluding treasury stock) was 270,549,733 shares.

Item	FY2025 (Actual)	FY2026 (Forecast)	Change
Dividends per Share	¥228/share	¥207/share	-¥21/share
Interim Dividend	¥65/share	¥103/share	+¥38/share
Year-end Dividend	¥163/share	¥104/share	-¥59/share
Repurchase of Own Shares	¥15.0bn (May 13, 2025 – Aug 26, 2025, Result)	¥20.0bn (May 12, 2026 – Jul 31, 2026, Plan)	—

Medium-Term Plan / Topics

The Company stated it will steadily promote the strategies set out in its 3-Year Business Plan 27, including: achieving early stabilization of operations at the Quebrada Blanca copper mine; securing mineral resources, including the Winu project (Cu/Au) and a secondary battery recycling plant (Cu/Ni/Li), among others; replacing product types in the battery materials business and developing next-generation technologies; and capturing data-center-related demand with certainty while developing products that help solve social issues and expanding market penetration. It also stated it will closely monitor global economic trends amid growing uncertainty, including the Middle East situation and rare-earth supply restrictions, and will work to optimize its capital structure and improve capital efficiency to enhance corporate value over the medium to long term.

On the Middle East situation and rare-earth procurement, the Company said there was no significant impact in FY2025, and that for FY2026 it is closely monitoring market trends and taking proactive measures amid rising uncertainty. Regarding a reported global shortage of sulfuric acid, the Company said most of the sulfuric acid used at its operating sites is produced from sulfur contained in the copper concentrate processed at the Toyo Smelter & Refinery, and that while a portion is procured externally, it does not expect any impact for the time being; it is in discussions with business partners to ensure a stable supply of raw materials and operating supplies, and is negotiating with customers to pass through cost increases.

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