By Yuka Obayashi
TOKYO, Feb 8 (Reuters) - Japan's Sumitomo Metal Mining
on Wednesday increased its forecasts for full-year net profit
and dividend thanks to stronger-than-expected prices of nickel,
copper and gold.
Net profit is now predicted at 158 billion yen ($1.2
billion) for the year to March 31, up 15% from its November
guidance of 137 billion yen, while an annual dividend forecast
was raised to 202 yen a share from 175 yen.
"Higher profit contributions from overseas copper mines
boosted earnings estimate of resource segment, and firmer nickel
prices helped bolster profit outlook in smelting segment,"
Executive Officer Kunihiko Miyamoto told a news conference.
But its net profit for the April-December period fell 10.2%
from a year earlier to 152.8 billion yen due to smaller gains
from mining following the sale of its stake in the Sierra Gorda
copper mine in Chile last year.
"The electronic materials segment is struggling as the
market is going through an adjustment of accumulated
inventories," Miyamoto said.
Asked about the impact of protests in Peru against the
political leadership, Miyamoto said there had been no impact on
production at the Cerro Verde copper mine, in which Sumitomo
Metal owns a stake.
"It's unclear what will happen to the political unrest and
the operation on the mine may be affected depending on the
situation," he said.
Meanwhile, the Philippines is looking at taxing nickel ore
exports to encourage miners in the world's second-biggest
supplier of the material - which is used in making stainless
steel and batteries for electric vehicles - to invest in
domestic processing instead of just selling raw ore.
Sumitomo Metal has two nickel processing plants, which are
both partly owned by the Philippines' biggest ore producer
Nickel Asia Corp .
Asked whether Sumitomo Metal would expand its nickel
business in Philippines, Miyamoto said securing nickel resources
remained a top priority for the Japanese company and building a
third plant there could be an option.
($1 = 130.9800 yen)
(Reporting by Yuka Obayashi; Editing by Robert Birsel)
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.