SUMITOMO METAL MINING CO., LTD. Consolidated Financial Results for the Second Quarter Ended September 30, 2022 [IFRS]
November 8, 2022 | ||
[Full version of English translation released on November 25, 2022] | ||
Listed Company Name: Sumitomo Metal Mining Co., Ltd. | ||
Code: | 5713 | |
Listings: | Tokyo Stock Exchange | |
URL: | https://www.smm.co.jp/ | |
Representative: | Akira Nozaki, President and Representative Director | |
Contact: | Atsuyuki Inoue, Manager, PR & IR Dept. | TEL: +81-3-3436-7705 |
Scheduled Date to Submit Quarterly Report: November 11, 2022
Scheduled Date to Start Dividend Payment: December 7, 2022
Preparation of Supplementary Explanation Materials for Quarterly Financial Results: Yes
Briefing on Quarterly Account Settlement: Yes (for institutional investors)
(Amounts less than one million yen are rounded off)
1. Consolidated Financial Results (From April 1, 2022, to September 30, 2022)
- Consolidated Operating Results
(% figures show year-on-year change)
Net sales | Profit before tax | Profit | Profit attributable to | Total comprehensive | ||||||||||||||||||||||
owners of parent | income | |||||||||||||||||||||||||
Millions of | % | Millions of | % | Millions of | % | Millions of | % | Millions of | % | |||||||||||||||||
yen | yen | yen | yen | yen | ||||||||||||||||||||||
Six months | ||||||||||||||||||||||||||
ended | 710,627 | 18.8 | 169,106 | 39.0 | 125,484 | 4.4 | 119,059 | 4.6 | 269,309 | 60.1 | ||||||||||||||||
September 30, | ||||||||||||||||||||||||||
2022 | ||||||||||||||||||||||||||
Six months | ||||||||||||||||||||||||||
ended | 597,930 | 47.0 | 121,666 | 370.0 | 120,226 | 595.1 | 113,828 | 551.6 | 168,172 | 951.6 | ||||||||||||||||
September 30, | ||||||||||||||||||||||||||
2021 | ||||||||||||||||||||||||||
Basic earnings per share | Diluted earnings per share | |||||||||||||||||||||||||
Yen | Yen | |||||||||||||||||||||||||
Six months ended | 433.31 | 433.31 | ||||||||||||||||||||||||
September 30, 2022 | ||||||||||||||||||||||||||
Six months ended | 414.26 | 414.26 | ||||||||||||||||||||||||
September 30, 2021 | ||||||||||||||||||||||||||
(2) Consolidated Financial Position | ||||||||||||||||||||||||||
Total assets | Total equity | Equity attributable to | Equity attributable to | |||||||||||||||||||||||
owners of parent | owners of parent ratio | |||||||||||||||||||||||||
Millions of yen | Millions of yen | Millions of yen | % | |||||||||||||||||||||||
As of September 30, | 2,524,895 | 1,781,474 | 1,635,692 | 64.8 | ||||||||||||||||||||||
2022 | ||||||||||||||||||||||||||
As of March 31, 2022 | 2,268,756 | 1,557,418 | 1,445,329 | 63.7 | ||||||||||||||||||||||
2. Dividends | ||||||||||||||||||||||||||
Dividend per share | ||||||||||||||||||||||||||
First quarter-end | Second quarter-end | Third quarter-end | Year-end | Total | ||||||||||||||||||||||
Yen | Yen | Yen | Yen | Yen | ||||||||||||||||||||||
Year ended | - | 113.00 | - | 188.00 | 301.00 | |||||||||||||||||||||
March 31, 2022 | ||||||||||||||||||||||||||
Year ending | - | 90.00 | ||||||||||||||||||||||||
March 31, 2023 | ||||||||||||||||||||||||||
Year ending March 31, | - | 85.00 | 175.00 | |||||||||||||||||||||||
2023 (Forecast) | ||||||||||||||||||||||||||
(Note) Revision of dividend forecast that has been disclosed lastly: Yes
3. Forecast of Consolidated Operating Results for the Year Ending March 31, 2023 (From April 1, 2022, to March 31, 2023)
(% figures show year-on-year change)
Net sales | Profit before tax | Profit | Profit attributable to | Basic earnings | ||||||
owners of parent | per share | |||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | ||
Full year | 1,377,000 | 9.4 | 201,000 | -43.8 | 146,000 | -51.1 | 137,000 | -51.3 | 498.60 | |
(Note) Revision of operating results forecast that has been disclosed lastly: Yes
For further details, please refer to "1. Qualitative Information on Quarterly Financial Results, (3) Forward- Looking Information Including Forecast of Consolidated Operating Results and Other" on page 5.
Notes
- Change in Important Subsidiaries during the Period under Review (Change in specific subsidiaries that will accompany a change in scope of consolidation): None
- Changes in Accounting Policies or Estimates
1) | Changes in accounting policies required by IFRS: | None |
2) | Changes in accounting policies other than item 1) above: | None |
3) | Change in accounting estimates: | None |
- Number of Outstanding Shares (Common stock)
-
Number of shares issued as of end of period (including treasury stock) 290,814,015 shares at September 30, 2022
290,814,015 shares at March 31, 2022 - Number of shares of treasury stock as of end of period
-
Number of shares issued as of end of period (including treasury stock) 290,814,015 shares at September 30, 2022
16,046,977 shares at September 30, 2022
16,044,559 shares at March 31, 2022
3) Average number of shares during the period
274,768,215 shares for six months ended September 30, 2022
274,773,757 shares for six months ended September 30, 2021
The consolidated financial results presented herein are not subject to the quarterly review by certified public accountants or audit corporations.
Explanation regarding appropriate use of operating results forecast and other special notes(Caution Regarding Forward-Looking Statements)
The forecast of consolidated operating results for the year ending March 31, 2023, disclosed on August 8, 2022, has been revised in this report. The forward-looking statements, including business results forecast, contained in this report are based on information available to the Company and on certain assumptions deemed to be reasonable as of the date of release of this report and they are not meant to be a commitment by the Company. Also, actual business results may differ substantially due to a number of factors.
(Supplementary Explanation Materials for Quarterly Financial Results)
The Supplementary Explanation Materials will be posted on the Company's website on Tuesday, November 8, 2022.
Contents of the Attachment | ||
1. Qualitative Information on Quarterly Financial Results .................................................................................... | 2 | |
(1) | Business Performance....................................................................................................................................... | 2 |
(2) | Financial Position ............................................................................................................................................. | 4 |
(3) | Forward-Looking Information Including Forecast of Consolidated Operating Results and Other ................... | 5 |
2. Condensed Quarterly Consolidated Financial Statements and Primary Notes................................................. | 6 | |
(1) | Condensed Quarterly Consolidated Statement of Financial Position ............................................................... | 6 |
(2) | Condensed Quarterly Consolidated Statement of Profit or Loss and Consolidated Statement of | |
Comprehensive Income .................................................................................................................................... | 8 | |
(Condensed Quarterly Consolidated Statement of Profit or Loss) .................................................................... | 8 | |
(Condensed Quarterly Consolidated Statement of Comprehensive Income) .................................................... | 9 | |
(3) | Condensed Quarterly Consolidated Statement of Changes in Equity ............................................................. | 10 |
(4) | Condensed Quarterly Consolidated Statement of Cash Flows ....................................................................... | 12 |
(5) | Notes Relating to the Condensed Quarterly Consolidated Financial Statements............................................ | 14 |
(Note Relating to the Going Concern Assumption)......................................................................................... | 14 | |
(Changes in Accounting Policies) ................................................................................................................... | 14 | |
(Operating Segments)...................................................................................................................................... | 14 | |
3. Supplementary Information................................................................................................................................. | 16 |
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1. Qualitative Information on Quarterly Financial Results
(1) Business Performance
(Millions of yen) | |||
Net sales | Profit before tax | Profit attributable to | |
owners of parent | |||
Six months ended September 30, 2022 | 710,627 | 169,106 | 119,059 |
Six months ended September 30, 2021 | 597,930 | 121,666 | 113,828 |
Increase/decrease | 112,697 | 47,440 | 5,231 |
[Rate of change: %] | [18.8] | [39.0] | [4.6] |
(Overseas market prices and foreign exchange rates)
Unit | Six months ended | Six months ended | Increase/decrease | |
September 30, 2021 | September 30, 2022 | |||
Copper | $/t | 9,541 | 8,634 | -907 |
Gold | $/TOZ | 1,802.6 | 1,801.1 | -1.5 |
Nickel | $/lb | 8.27 | 11.59 | 3.32 |
Exchange rate (TTM) | ¥/$ | 109.81 | 133.98 | 24.17 |
The global economy during the first six months of fiscal 2022, the year ending March 31, 2023, saw a slowdown in growth. This was mainly due to dramatic increases in the prices of energy and food as a result of Russia's invasion of Ukraine, the raising of policy interest rates in Europe, the United States, and other countries in response, and strict COVID-19 prevention measures in China.
As for exchange rates, disparities in interest rates between Japan and the United States due to differences in their financial policies, along with the growing Japanese trade deficit, led to an increase in the selling of yen and the buying of dollars. This produced a rapid depreciation of the yen, and the average exchange rate declined significantly in comparison to the same period of the previous fiscal year.
Regarding the prices of major non-ferrous metals, copper prices fell year over year, showing a downward trend throughout the first six months of fiscal 2022 due to factors such as the slowdown of global economic growth. Nickel prices rose rapidly toward the end of the previous fiscal year, but then began trending downwards due to factors such as the global economic slowdown. They were then bolstered by strong demand, and ultimately rose year over year. Gold prices showed a downward trend due in part to the raising of policy interest rates in the United States, but overall were roughly equivalent to those of the same period of the previous fiscal year.
In industries related to the Materials business, the transition from gasoline-powered vehicles to electric vehicles continued, driven by the tremendous tide of seeking to achieve carbon neutrality by the year 2050. Demand for automobile battery components grew as a result. However, shipments of smartphones fell due to a decline in demand in China and throughout the world, and demand for components for electronic parts began contracting.
Under these circumstances, consolidated net sales in the first six months of fiscal 2022 increased by ¥112,697 million year over year to ¥710,627 million, due mainly to the extremely weakened yen, rising average nickel prices, and increased sales of automobile battery components.
Consolidated profit before tax increased by ¥47,440 million year over year to ¥169,106 million, due mainly to an increase in sales as well as an upturn in finance income resulting from the depreciation of the yen.
Profit attributable to owners of parent increased by ¥5,231 million year over year to ¥119,059 million, due to the increase in consolidated profit before tax, despite income tax expense increasing in comparison to the same period of the previous fiscal year, when deferred tax assets were recorded in relation to the Sierra Gorda Copper Mine.
2
Operating results by reportable segment are as follows.
(Mineral Resources segment) | (Millions of yen) | ||||
Six months ended | Six months ended | Increase/decrease | Rate of change (%) | ||
September 30, 2021 | September 30, 2022 | ||||
Net sales | 76,138 | 84,671 | 8,533 | 11.2 | |
Segment income | 67,354 | 47,307 | -20,047 | -29.8 | |
Segment income decreased year over year, despite the significant depreciation of the yen, due mainly to the lack of a recording of share of profit of investments accounted for using equity method related to the Sierra Gorda Copper Mine during the first six months of fiscal 2022, as the transfer of the entirety of our interest in the mine was completed in February 2022, the decline in the volume of gold shipped from the Hishikari Mine in conjunction with its transition to a sustainable production, and a decline in the clearing balance owing to falling copper prices.
The statuses of the main mines are as follows.
Mining operations at the Hishikari Mine remained steady in line with the planned annual sales volume of 4.4 tonnes, and the sales volume of gold was 2.4 tonnes.
Production levels at the Morenci Copper Mine (United States) (of which the Company holds a 25.0% interest, excluding non-controlling interest) rose from the same period of the previous fiscal year to 204,000 tonnes, due mainly to the cessation of measures to decrease the operating rates of some mills as a COVID-
19 countermeasure.
Production levels at the Cerro Verde Copper Mine (Peru) (of which the Company holds a 16.8% interest,
excluding non-controlling interest) rose from the same period of the previous fiscal year to 217,000 tonnes, due mainly to an increase in ore grade and a rise in mill plant operation rates.
(Smelting & Refining segment) | (Millions of yen) | ||||||||
Six months ended | Six months ended | Increase/decrease | Rate of change (%) | ||||||
September 30, 2021 | September 30, 2022 | ||||||||
Net sales | 450,113 | 535,142 | 85,029 | 18.9 | |||||
Segment income | 50,155 | 89,449 | 39,294 | 78.3 | |||||
(Output by the Company's major product) | |||||||||
Product | Unit | Six months ended | Six months ended | Increase/decrease | |||||
September 30, 2021 | September 30, 2022 | ||||||||
Copper | t | 207,181 | 223,240 | 16,059 | |||||
Gold | kg | 8,233 | 8,554 | 321 | |||||
Electrolytic nickel | t | 26,565 | 25,383 | -1,182 | |||||
Ferronickel | t | 5,966 | 3,968 | -1,998 |
(Note) Output includes the portions of commissioning and/or commissioned production.
Segment income increased year over year, due mainly to the significant depreciation of the yen and the rising average price of nickel, despite the prices of non-ferrous metals such as copper and gold shifting to a downward trend from the end of the previous fiscal year.
The production level and sales volume of electrolytic copper increased from the same period of the previous fiscal year, while the production level and sales volume of electrolytic nickel declined year over year due mainly to raw material shortages.
The production level at Coral Bay Nickel Corporation (Philippines) was unchanged from the same period of the previous fiscal year, due to reductions to the number of regularly scheduled maintenance days, despite the reductions in production resulting from bad weather. The production level at Taganito HPAL Nickel Corporation (Philippines) rose slightly from the same period of the previous fiscal year when there were reductions in production caused by equipment problems.
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Sumitomo Metal Mining Co. Ltd. published this content on 24 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 November 2022 08:43:07 UTC.
