Sumitomo Metal Mining, a major player in the mining and metals industry, has revised its financial outlook for the fiscal year ending March 31, 2024, expecting a decrease in consolidated pre-tax income. The Tokyo-based company now forecasts its income before income taxes to be 77 billion yen (USD 516 million), a reduction of 9 billion yen (USD 60.3 million) from its earlier projection. This adjustment is attributed to anticipated losses in the fourth quarter due to declining copper and nickel prices and escalating costs across its operations.
For the fiscal year, Sumitomo Metal Mining has detailed its segment-wise financial expectations. The Mineral Resources segment is predicted to incur a 56 billion yen (USD 375.2 million) loss, which is an improvement of 3 billion yen (USD 20.1 million) from previous forecasts. However, the Smelting & Refining segment’s losses are projected to widen by 1 billion yen (USD 6.7 million) to 39 billion yen (USD 261.3 million), and the Materials segment is expected to see a 5 billion yen (USD 33.5 million) loss, worsening by 1 billion yen (USD 6.7 million) compared to earlier estimates.
Additionally, the company reported its financial performance for the April to December 2011 period, revealing a pre-tax profit of 87.4 billion yen (USD 585.58 million), which marks a 60% decline from the same period in the previous year. The downturn has been particularly notable in the Smelting & Refining segment, with a 63% decrease to 43.2 billion yen (USD 289.44 million), largely due to the fall in nickel prices and reduced foreign exchange gains compared to the previous year’s rapid yen depreciation.
In the Mineral Resources segment, a 21% decrease to 45.0 billion yen (USD 301.5 million) was recorded, influenced by lower copper prices and increased production costs. Production adjustments were made at Morenci in the U.S. and Cerro Verde in Peru due to these challenges.
The Materials segment saw a significant 93% drop to 1.4 billion yen (USD 9.38 million), despite increased sales of cathode materials for automotive batteries. The decline in nickel prices, a key raw material, exerted downward pressure on the segment’s profitability. 
