Recognition of impairment losses
Coral Bay Nickel Corporation (Coral Bay Nickel Corporation, Philippines)
Nickel smelting business in the Philippines
The increase in the carrying amount of property, plant and equipment resulting from a change in the estimate for asset retirement obligations based on the current business plan, persistently weak nickel and cobalt prices, higher production costs, and declining ore quality.
An impairment loss of ¥42,553 million was recognized in cost of sales. The carrying amount of property, plant and equipment of ¥41,984 million was reduced to its recoverable amount.
The interim consolidated accounting period of the fiscal year ending March 2027 (1 April 2026 to 30 September 2026)
Production is also expected to end during the period covered by the next medium-term management plan, Medium-Term Management Plan 2030 (fiscal 2028 to fiscal 2030).
| Item | Details |
|---|---|
| Event name | Recognition of impairment losses |
| Date of occurrence | 1 April 2026 to 30 September 2026 (interim consolidated accounting period of the fiscal year ending March 2027). No specific date is stated. |
| Subject Entity | Coral Bay Nickel Corporation (Coral Bay Nickel Corporation, Philippines) |
| Target Locations / Products | Nickel smelting business in the Philippines |
| Cause | The increase in the carrying amount of property, plant and equipment resulting from a change in the estimate for asset retirement obligations based on the current business plan, persistently weak nickel and cobalt prices, higher production costs, and declining ore quality. |
| Amount of Impact on Business Performance | An impairment loss of ¥42,553 million was recognized in cost of sales. The carrying amount of property, plant and equipment of ¥41,984 million was reduced to its recoverable amount. |
| Accounting period in which recognized | The interim consolidated accounting period of the fiscal year ending March 2027 (1 April 2026 to 30 September 2026) |
| Outlook | Production is also expected to end during the period covered by the next medium-term management plan, Medium-Term Management Plan 2030 (fiscal 2028 to fiscal 2030). |
Items this document does not state (17)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.In addition to the increase in the carrying amount of property, plant and equipment resulting from a change in the estimate for asset retirement obligations, the recoverable amount fell below the carrying amount after evaluating the economics in light of persistently weak nickel and cobalt prices, higher production costs and declining ore quality.