JX Advanced Metals to buy back up to $1.6 billion in shares

JX Advanced Metals

11/05/2026 09:59

TOKYO, May 11 (Reuters) - JX Advanced Metals 5016.T said on Monday it will launch a public tender offer for as many as 57.3 million of its own shares, equivalent to 6.17% of shares outstanding, with a total value of up to 250 billion yen ($1.59 billion).

The company will issue 250 billion yen in euro-yen convertible bonds to finance the buyback.

JX will purchase shares from its largest shareholder, Eneos Holdings 5020.T, which holds a 42.38% stake, at a 10% discount to the lower of the one-month average share price through May 8 and the closing price on May 20.

The tender offer will run from May 21 to June 17.

President Yoichi Hayashi said the buyback would reduce the number of outstanding shares, structurally improving earnings per share and return on equity while enhancing shareholder returns.

The company forecast net profit will rise 8.9% to 114 billion yen in the year ending March 2027, as stronger semiconductor materials sales offset a 7 billion yen cost increase due to the Middle East crisis and weaker treatment and refining charges at its copper smelting business.

TC/RCs, fees paid by miners to turn concentrate into refined metal, have come under pressure as global smelting capacity, led by China, expands faster than mined supply, squeezing smelters' margins.

Japanese smelters secured TC/RCs of $25 a metric ton and 2.5 cents per pound for 2025, higher than the $21.25 a ton and 2.125 cents per pound agreed between a Chilean miner and a Chinese smelter.

For 2026, JX unit Pan Pacific Copper has largely secured TC/RCs of between $10 to $25 a ton and 1.0 to 2.5 cents per pound from miners, a spokesperson said.

 ($1 = 157.0500 yen)

 (Reporting by Yuka Obayashi; Editing by Joe Bavier)

 ((Yuka.Obayashi@thomsonreuters.com; +813-4520-1265;))