Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

MarketScreener Homepage  >  Equities  >  Tokyo  >  JXTG Holdings Inc    5020   JP3386450005


News SummaryMost relevantAll newsOfficial PublicationsSector newsAnalyst Recommendations

Copper-Mine Deal Weighed in Chile As Prices Increase -- WSJ

share with twitter share with LinkedIn share with facebook
share via e-mail
04/20/2019 | 02:48am EDT

By Ben Dummett

JXTG Holdings Inc., a Japan-based mining and energy conglomerate, is exploring the sale of its majority-owned Caserones copper project in Chile, in a deal that could fetch about $1 billion, according to people familiar with the matter, in the latest sign that rising prices for the industrial metal are driving deal making in the mining sector.

The sale effort comes amid expectations of sustained strength in copper prices. This is being driven in part by a lack of investment in new mines and burgeoning demand for electric and hybrid vehicles, in which the metal is used more heavily than in ordinary cars.

Copper is up more than 9% in 2019 at about $6,465 a metric ton and some analysts forecast that the metal could reach $7,165 a ton by 2023.

That outlook has helped spur recent deals. In April, Canada's Lundin Mining Corp. struck an $800 million pact to acquire the Chapada copper mine in Brazil from Yamana Gold Inc. That came after Lundin lost out in September to China's Zijin Mining Group Co. Ltd. for the $1.41 billion acquisition of Nevsun Resources Ltd., a producer of copper and other metals.

A global operator, JXTG's metal business is focused on activities like mining, refining and smelting. The company is the biggest operator of gasoline stations in Japan. It is also involved in oil-exploration businesses and the development of petrochemicals and lubricants, among other products.

JXTG, along with Mitsui Mining & Smelting Co. Ltd. and Mitsui & Co. Ltd. -- one of Japan's largest trading houses -- acquired the Caserones mine project in 2006 for $137 million. Backed by loans from the Japan Bank for International Cooperation and other lenders, the Japanese companies, which own the project through SCM Minera Lumina Copper Chile, developed the project into an operating mine over the next eight years.

As a producing mine, Caserones could prove attractive to companies that want copper without spending the money and time required to develop an operation. The project highlights the financial risks of developing a project from the ground up, as its capital costs ballooned to $4.2 billion from original estimates of about $2 billion.

The project could also appeal to potential bidders because Chile is viewed as a favorable mining jurisdiction. Located in the Andes mountains in central Chile, the Caserones project has a mine life of 28 years, and for the first three quarters ended Dec. 31 produced 103,000 metric tons of copper concentrate -- a raw material used in smelting -- and copper cathode, which manufacturers use in the manufacture of wires and pipes.

That said, the mine's problems could deter buyer interest. JXTG took a Yen65 billion ($580 million) impairment loss in connection with the mine for the year ended March 31, 2018 because of higher-than-expected operating costs and production shortfalls. The owners also face a possible fine of more than $35.9 million over charges filed against SCM Lumina Copper Chile by Chile's Superintendency of the Environment for extracting too much water from wells for the project.

Kosaku Narioka and David Hodari contributed to this article.

Write to Ben Dummett at ben.dummett@wsj.com

Stocks mentioned in the article
ChangeLast1st jan.
EURO / BRAZILIAN REAL (EUR/BRL) -0.06% 4.4615 Delayed Quote.1.36%
GOLD -0.20% 1499.32 Delayed Quote.17.47%
JXTG HOLDINGS INC -1.58% 436.7 End-of-day quote.-23.65%
LME COPPER CASH -0.03% 5696.5 End-of-day quote.-2.44%
LUNDIN MINING CORPORATION 0.33% 6.02 Delayed Quote.6.38%
SILVER -0.60% 17.03 Delayed Quote.10.82%
WTI -0.11% 55.84 Delayed Quote.23.24%
YAMANA GOLD INC. -2.42% 4.44 Delayed Quote.41.74%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on JXTG HOLDINGS INC
08/15JXTG : First Oil from Mariner Oil Field in UK North Sea (203KB)
08/15JXTG : First Oil from Mariner Oil Field in UK North Sea
08/07JXTG : Consolidated Financial Results for the First Quarter of Fiscal Year 2019 ..
08/05Malaysia's Petronas says has no intention of buying stake in India's Bina oil..
07/29EXCLUSIVE : Petronas, Japan's JXTG may buy stake in India's Bina oil refinery - ..
07/03Japan's JX Nippon Mining seeks pot of gold in high-tech chips, batteries
07/03JXTG : Nippon Oil & Energy Becomes Tokyo 2020 Olympic Torch Relay Supporting Par..
07/01JXTG : Notice of Interim Progress on the Acquisition of Treasury Shares
06/28Jera, JXTG sign EPC contract with Toshiba units for Goi power plant
06/28JXTG : Conclusion of Contract for Construction of Power Generation Facilities in..
More news
Financials (JPY)
Sales 2020 10 690 B
EBIT 2020 492 B
Net income 2020 290 B
Debt 2020 1 516 B
Yield 2020 5,19%
P/E ratio 2020 5,22x
P/E ratio 2021 5,00x
EV / Sales2020 0,27x
EV / Sales2021 0,26x
Capitalization 1 409 B
Duration : Period :
JXTG Holdings Inc Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends JXTG HOLDINGS INC
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus BUY
Number of Analysts 9
Average target price 715,56  JPY
Last Close Price 436,70  JPY
Spread / Highest target 94,6%
Spread / Average Target 63,9%
Spread / Lowest Target 14,5%
EPS Revisions
Tsutomu Sugimori President & Representative Director
Yukio Uchida Chairman
Yoshiaki Ouchi Managing Executive Officer, Manager-Finance & IR
Junichi Kawada Director, Executive Vice President & Head-Audit
Hiroko Ota Independent Outside Director
Sector and Competitors
1st jan.Capitalization (M$)
JXTG HOLDINGS INC-23.65%13 230
BP PLC0.58%122 452
PHILLIPS 6615.26%44 540