Mineral ResourcesThin moat

Sumitomo Corporation (8053) — moat facet

Sumitomo's mining segment went from a loss to ¥82 billion, and without nickel it should earn more.

Mineral Resources lost ¥9.5 billion in the year to March 2024, then earned ¥91.1 billion in 2025 and ¥82.3 billion in 202612. Its revenue of ¥324.4 billion is small against its profit because most of the business is equity-accounted: equity-method profit was ¥60.8 billion of the ¥82.3 billion3. Its assets were ¥2,463.7 billion, up sharply on the mark-to-market valuation of its precious metals leasing business4.

Mineral Resources contributors, yr to Mar 2026 (¥ bn)19.2South Africaniron ore (49%)15.7Copper companies13.4Malaysianaluminium (20%)5.5Australian coal4.7Brazilian ironore (30%)Sumitomo results presentation, May 2026
Iron ore, copper and aluminium.

The largest contributors are the South African iron ore stake of 49%, ¥19.2 billion; the copper companies, ¥15.7 billion; the Malaysian aluminium smelter of 20%, ¥13.4 billion; and Australian coal, ¥5.5 billion5. The Madagascan nickel business, sold in 2026, contributed nothing in the latest year after a ¥18.9 billion loss the year before6.

The forecast for the current year is ¥95.0 billion7. Its sensitivities are ¥460 million per $100 a tonne of copper and ¥440 million per dollar of iron ore8. The first quarter earned ¥25.4 billion against ¥10.6 billion9.

The segment's assets rose from ¥1,493.9 billion to ¥2,463.7 billion in the latest year10, mostly on the mark-to-market valuation of the precious metals leasing business11. Equity iron ore production is forecast at 5.3 million tonnes12.

The measure is the segment without nickel. Reaching ¥95.0 billion would be its best year in the period.

Moat trajectory: Widening

The nickel loss is gone and copper is rising.

The number that tests this moat
Reported
Mineral Resources forecast, year to March 2027
¥95.0bn against ¥82.3bn

The first year without Ambatovy; copper and aluminium lead it.

Source: Sumitomo Corporation results presentation, May 2026 ↗
References
  1. ReportedMineral Resources lost ¥9.5 billion in the year to March 2024, then earned ¥91.1 billion in 2025 and ¥82.3 billion in 2026.
    Sumitomo Corporation, Consolidated Financial Results for the year ended March 31, 2025 (IFRS) - including restated segment information for the year to March 2024. — FY to March 2025 · publ. May 2025 · source ↗
  2. ReportedMineral Resources lost ¥9.5 billion in the year to March 2024, then earned ¥91.1 billion in 2025 and ¥82.3 billion in 2026.
    Sumitomo Corporation, Consolidated Financial Results for the year ended March 31, 2026 (IFRS) - results, segment profit, the financial position, dividends, the share split and the forecast for the year to March 2027. — FY to March 2026 · publ. May 2026 · source ↗
  3. ReportedIts revenue of ¥324.4 billion is small against its profit because most of the business is equity-accounted: equity-method profit was ¥60.8 billion of the ¥82.3 billion.
    Sumitomo Corporation, Annual Financial Report for the year to March 2026 - consolidated financial statements and notes, including the SCSK acquisition accounting. — FY to March 2026 · publ. June 2026 · source ↗
  4. ReportedIts assets were ¥2,463.7 billion, up sharply on the mark-to-market valuation of its precious metals leasing business.
    Sumitomo Corporation, Annual Financial Report for the year to March 2026 - consolidated financial statements and notes, including the SCSK acquisition accounting. — FY to March 2026 · publ. June 2026 · source ↗
  5. ReportedThe largest contributors are the South African iron ore stake of 49%, ¥19.2 billion; the copper companies, ¥15.7 billion; the Malaysian aluminium smelter of 20%, ¥13.4 billion; and Australian coal, ¥5.5 billion.
    Sumitomo Corporation, results presentation for the year to March 2026 - mineral resources: copper, iron ore, aluminium, coal and the Madagascar nickel exit. — FY to March 2026 · publ. May 2026 · source ↗
  6. ReportedThe Madagascan nickel business, sold in 2026, contributed nothing in the latest year after a ¥18.9 billion loss the year before.
    Sumitomo Corporation, results presentation for the year to March 2026 - mineral resources: copper, iron ore, aluminium, coal and the Madagascar nickel exit. — FY to March 2026 · publ. May 2026 · source ↗
  7. ReportedThe forecast for the current year is ¥95.0 billion.
    Sumitomo Corporation, results presentation for the year to March 2026 - consolidated results, underlying profit, forecasts, sensitivities and the loss buffer. — FY to March 2026 · publ. May 2026 · source ↗
  8. ReportedIts sensitivities are ¥460 million per $100 a tonne of copper and ¥440 million per dollar of iron ore.
    Sumitomo Corporation, results presentation for the year to March 2026 - mineral resources: copper, iron ore, aluminium, coal and the Madagascar nickel exit. — FY to March 2026 · publ. May 2026 · source ↗
  9. ReportedThe first quarter earned ¥25.4 billion against ¥10.6 billion.
    Sumitomo Corporation, results presentation for April-June 2026 - progress against the forecast, one-time items, the Madagascar sale, investment and the balance sheet. — April-June 2026 · publ. 31 July 2026 · source ↗
  10. ReportedThe segment's assets rose from ¥1,493.9 billion to ¥2,463.7 billion in the latest year, mostly on the mark-to-market valuation of the precious metals leasing business.
    Sumitomo Corporation, Annual Financial Report for the year to March 2026 - segment information and revenue by geography and type. — FY to March 2026 · publ. June 2026 · source ↗
  11. ReportedThe segment's assets rose from ¥1,493.9 billion to ¥2,463.7 billion in the latest year, mostly on the mark-to-market valuation of the precious metals leasing business.
    Sumitomo Corporation, Annual Financial Report for the year to March 2026 - segment information and revenue by geography and type. — FY to March 2026 · publ. June 2026 · source ↗
  12. ReportedEquity iron ore production is forecast at 5.3 million tonnes.
    Sumitomo Corporation, results presentation for the year to March 2026 - mineral resources: copper, iron ore, aluminium, coal and the Madagascar nickel exit. — FY to March 2026 · publ. May 2026 · source ↗
Sources
Generated September 24, 2026