Dai-ichi Securities: Mitsui Mining Raise Profit Forecast on Zinc Prices

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) November 9, 2009 -- Dai-ichi Securities - TOKYO --Mitsui Mining & Smelting Co. said Friday it will likely post a group net profit of 2.4 billion yen for the year through March, an upgrade from the previously forecast 5.1 billion yen loss.

Earnings are being buoyed by rising zinc prices and significant recoveries in such intermediate material operations as electronics materials and copper and brass products.

Sales are now seen falling 15% year on year to 365 billion yen, 45 billion yen better than the previous prediction.

Dai-ichi Securities expects the firm to log an operating profit of 16.2 billion yen, 9.2 billion yen better than its earlier forecast.

Mitsui Mining & Smelting's outlook is based on a zinc price of 1,608 dollars per ton and a lead price of 1,656 dollars per ton, up from the previous assumptions of 1,400 dollars and 1,200 dollars, respectively.

Analysts at Dai-ichi Securities also suggest that zinc demand will see further increases in 2010 in line with the global economy and come close to metal supply. Importantly, they say “growth supplies in Australia are expected to be relatively weak because of mine closures, project delays and project abandonment’s.” That’s why they also believe the 2010 zinc price could rise considerably higher.

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