Mitigating the impact of falling metal prices by optimizing inventory levels
First written in FY2020. 6 of 18 entries say "Advanced", first in FY2021. Latest entry: 2026-08-14.
No other company in this theme has enough history to compare yet.
- 2026-08-14WorsenedEarnings presentation
「Impact of inventory valuation losses (recognized under the lower-of-cost-or-market method): approximately ¥1.4 billion」
Inventory valuation losses associated with fluctuations in silver prices weighed on first-quarter results, creating a negative factor in the theme of mitigating the impact of declining metal prices. - FY2026WorsenedAnnual report
「This was mainly because cash and deposits decreased as borrowings were repaid, while the value of inventories increased due to the sharp rise in silver prices during the fiscal year.」
Due to the increase in inventories associated with the sharp rise in silver prices, cash flow from operating activities decreased from ¥2.9 billion in the previous fiscal year to ¥1.9 billion. Performance in optimizing inventory levels deteriorated from the previous fiscal year. - FY2025AdvancedAnnual report
「Although there was an inflow from a decrease in trade receivables, cash flow from operating activities decreased from the previous fiscal year due to factors including the payment of a guarantee related to Abra's financial debt.」
Cash flow from operating activities remained an inflow of ¥2.896 billion due to factors including a decrease in trade receivables, while working capital management progressed alongside the withdrawal from the resources business and the honoring of the guarantee. - FY2025-H1AdvancedAnnual report
「Cash flow from operating activities was an inflow of ¥1.643 billion, compared with an outflow of ¥1.048 billion in the same period of the previous fiscal year. Although payments for ore procurement were concentrated at the end of the period, increasing the outflow from a decrease in trade payables, operating cash flow improved year on year due to inflows from the recognition of interim net income before income taxes and adjustments, as well as decreases in accounts receivable and inventories.」
Due to decreases in accounts receivable and inventories and the recognition of earnings, cash flow from operating activities turned from an outflow in the same period of the previous fiscal year into an inflow of ¥1.643 billion, indicating progress in working capital management. - FY2024AdvancedAnnual report
「This was due to factors including inventory reductions implemented as a cash-flow improvement measure.」
Inventory reductions continued, and total assets decreased by ¥34.563 billion from the end of the previous fiscal year. Cash flow from operating activities remained positive but declined from ¥11.009 billion in the previous fiscal year to ¥3.749 billion. - FY2024-Q3AdvancedAnnual report
「As of the end of the third quarter of the current consolidated fiscal year, total assets decreased by ¥28.478 billion from the end of the previous consolidated fiscal year to ¥114.521 billion, partly due to a ¥21.1 billion impairment loss at an Australian mine and inventory reductions implemented as a cash-flow improvement measure.」
Inventories were reduced as a cash-flow improvement measure, resulting in a ¥28.478 billion decrease in total assets from the end of the previous fiscal year. Concrete progress was indicated in working capital management. - FY2024-Q2MitigatedAnnual report
「Although the company reported an operating loss, cash flow from operating activities improved substantially year on year, partly due to an improvement in working capital.」
Cash flow from operating activities improved from an outflow of ¥5.454 billion in the same period of the previous fiscal year to an outflow of ¥1.048 billion. However, the burden of advance payments for ore raw materials and working capital financing remains. - FY2024-Q1Increase in advance payments for ore raw materialsAnnual report
「As of the end of the first quarter of the current consolidated fiscal year, total assets increased by ¥6.006 billion from the end of the previous consolidated fiscal year to ¥149.006 billion, partly due to an increase in advance payments for ore raw materials.」
Total assets increased due to higher advance payments for ore raw materials, indicating a working capital burden associated with inventory and raw material procurement. - FY2023AdvancedAnnual report
「As a result of thorough inventory control to improve cash flows and other measures, cash flow from operating activities changed from an outflow in the previous fiscal year to an inflow.」
Total assets decreased by ¥2.796 billion from the end of the previous fiscal year as inventories were reduced, while cash flow from operating activities was an inflow of ¥11.009 billion. Progress was indicated in limiting the impact of falling market conditions and managing working capital. - FY2023-Q3Increase in inventories and advance payments for ore purchasesAnnual report
「As of the end of the third quarter of the current consolidated fiscal year, total assets increased by ¥21.227 billion from the end of the previous consolidated fiscal year to ¥167.023 billion, partly due to increases in inventories, advance payments for ore purchases and overseas subsidiaries' fixed assets resulting from the stronger Australian dollar.」
Total assets increased by ¥21.227 billion from the end of the previous fiscal year due to increases in inventories and advance payments for ore purchases, and inventory and working capital funding needs continued to rise. - FY2023-Q2Continued increase in inventoriesAnnual report
「As of the end of the second quarter of the current consolidated fiscal year, total assets increased by ¥13.399 billion from the end of the previous consolidated fiscal year to ¥159.195 billion. This was partly due to increases in trade receivables from the resale of ore, inventories resulting from the weaker yen, and other current assets corresponding to hedge valuation gains associated with falling market prices, as well as an increase in mining rights from the translation effect of the Australian dollar's appreciation against the yen.」
Inventories and trade receivables increased due to the weaker yen and ore resales, and working capital requirements and asset balances continued to rise. - FY2023-Q1Continued increase in inventoriesAnnual report
「As of the end of the first quarter of the current consolidated fiscal year, total assets increased by ¥16.628 billion from the end of the previous consolidated fiscal year to ¥162.425 billion, partly due to an increase in inventories resulting from higher market prices.」
The increase in inventories associated with higher metal prices continued, indicating greater balances and working capital funding needs in the opposite direction from the inventory reductions carried out in the previous fiscal year. - FY2022Continued increase in inventoriesAnnual report
「This was mainly due to an increase in inventories resulting from higher metal prices.」
During the fiscal year, inventories increased because of higher metal prices and working capital requirements, resulting in movements in balances and funding needs that differed from the inventory reductions pursued in the previous fiscal year. - FY2022-Q3Continued increase in inventoriesAnnual report
「As of the end of the third quarter of the current consolidated fiscal year, total assets increased by ¥26.288 billion from the end of the previous consolidated fiscal year to ¥139.924 billion, partly due to increases in trade receivables and inventories resulting from higher metal prices.」
Increases in trade receivables and inventories associated with higher metal prices continued, further indicating greater funding needs than in the previous fiscal year, when inventory reductions were pursued. - FY2022-Q2Continued increase in inventoriesAnnual report
「Cash flow from operating activities was an outflow of ¥7.672 billion, an increase in the outflow of ¥7.620 billion year on year. Although earnings generated cash inflows, operating cash flow increased as an outflow because of working capital requirements arising from increases in trade receivables and inventories due to higher metal prices.」
Increases in inventories and trade receivables associated with higher metal prices expanded working capital requirements, resulting in higher balances and funding needs, unlike the improvement achieved through inventory reductions in the previous fiscal year. - FY2022-Q1Increase in inventoriesAnnual report
「As of the end of the first quarter of the current consolidated fiscal year, total assets increased by ¥18.753 billion from the end of the previous consolidated fiscal year to ¥132.388 billion, partly due to increases in trade receivables and inventories resulting from higher market prices.」
Inventory increased in response to higher metal prices and ore demand, indicating a balance-sheet movement in the opposite direction from the inventory reductions pursued in the previous fiscal year. - FY2021AdvancedAnnual report
「This was due to factors including inventory reductions and impairment losses from asset restructuring aimed at restoring financial soundness.」
The company reduced inventory, which declined from ¥35.004 billion at the end of the previous fiscal year to ¥33.099 billion. Inventory valuation gains and losses also improved in the smelting business, indicating concrete progress in limiting the impact of market conditions through inventory management. - FY2020First statedAnnual report
「To minimize the impact of falling metal prices, we will work to optimize inventory levels and flexibly use commodity forward contracts, foreign exchange forwards and other instruments to hedge market volatility risk.」
As measures to improve profitability in the smelting business, the company newly presented a combination of inventory optimization and the flexible use of commodity forward contracts and foreign exchange forwards.