SMM11, September 9-Sumitomo Metal Mine (Sumitomo Metal Mining) Co., Ltd. on Thursday reported a 52% increase in pre-tax profit for the year to September, but cut its full-year forecast. "the trade conflict between the United States and China does not appear to have been resolved quickly, indicating that there is no sign of a rapid recovery in metal prices," Kunihiko Miyamoto, deputy manager of Sumitomo Metal Mine, said at a news conference. Sumitomo metal mines' pre-tax profit rose to 73.21 billion yen as of September, driven by higher prices of copper, nickel and cobalt a year ago and a one-off gain from the sale of its stake in Pogo, an Alaskan gold mine. But the company cut its previous pre-tax profit forecast to 107 billion yen from a guidance of 121 billion yen in May because it lowered the assumed prices of metals such as copper and nickel. A Refinitiv poll of 11 analysts showed that the revised figure fell short of expectations of 138.1 billion yen.

Boiler and other system failures at the Taganito nickel mine in the Philippines earlier this year reduced its refined nickel production to 28200 tons from 30967 tons a year ago, the company said.

"because of the decline in nickel production, we have not been able to fully benefit from the rise in metal prices in the first six months," Miyamoto said.

The company also cut its annual dividend forecast to 89 yen per share from its May forecast of 103 yen per share.

Sumitomo Metal Mine has made a series of investments over the past four years to increase the capacity of Ni-Co-Al (NCA) cathode materials used in Panasonic's lithium-ion batteries, which power Tesla's Model 3 and Model X.

The company said the expected profit from Sumitomo Metal Mine's materials business this year had not changed from its May forecast.

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