JX Advanced Metals raises FY profit, dividend forecasts on higher copper prices

JX Advanced Metal on Tuesday raised its net profit and dividend forecasts for the year ending March, citing strong demand for materials for artificial intelligence server applications and higher copper prices.

The Japanese company lifted its annual net profit guidance to 93 billion yen ($598 million) from its November estimate of 79 billion yen.

Demand for key products in the information and communications materials segment for AI server applications is expanding faster than expected, while stronger copper prices also provided support, the company said.

Reflecting the robust performance, the company increased its annual dividend forecast to 27 yen per share from 21 yen.

On treatment and refining charges negotiations with global miners for 2026, JX has partially agreed at levels slightly above those Chinese smelters have agreed at $0 per metric ton and 0 cent per pound, Natsuki Saotome, general manager at corporate planning dept, told a press conference.

“We decline to comment on individual cases, but we believe we are securing slightly better levels than those Chinese smelters have reportedly agreed,” Saotome said, adding that some agreements have been reached, while negotiations remain ongoing with others.

Treatment and refining charges, or fees paid by miners to turn concentrate into refined metal, have come under pressure as global smelting capacity – led by China – has expanded faster than mined supply, squeezing smelters’ margins.

($1 = 155.5100 yen)

(By Yuka Obayashi; Editing by Mrigank Dhaniwala)