Toho Zinc announced on Thursday the firm targets 12.7 billion yen of consolidated recurring profit for fiscal 2014 ending March 2015 under new 3-year plan compared with 2.9 billion yen in fiscal 2011. The firm improves the profitability in mineral resource unit and smelting unit while the firm creates new business and products in electronic components and materials unit and environment and recycling unit.
The wholly owned subsidiary, CBH Resources of Australia plans 166,000 tonnes of zinc concentrate production in fiscal 2014 from 123,000 tonnes in fiscal 2012. The new Rasp mine increases the output from 35,000 tonnes to 78,000 tonnes while the Endeavor mine keeps 88,000 tonnes. The lead concentrate production increases from 70,000 tonnes to 91,000 tonnes when Rasp mine increases the output from 22,000 tonnes to 44,000 tonnes while Endeavor mine keeps 48,000 tonnes. Toho Zinc plans 99,000 tonnes of cathode zinc production in fiscal 2012 when the firm idles operation of Annaka smelter for 2 months to avoid high cost power in summer. The firm plans normal 123,000 tonnes of production in fiscal 2013 and 2014. The firm keeps 90,000 tonnes of annual lead production through the period while the firm increases the output of silver products from 360 tonnes in fiscal 2012 to 400 tonnes in fiscal 2014. The firm targets 12.7 billion yen of operating profit and 9.5 billion yen of net profit in fiscal 2014 based on US$ 2,800 per tonne of zinc and lead price. The firm plans 22 billion yen of investment in 3-year allocating 60% into CHB Resources. The firm posted 67% lower recurring profit at 2.9 billion yen for fiscal 2011 from fiscal 2010 due to lower production and selling price and higher yen rate.
