The Bull Case For Mitsui (TSE:8031) Could Change Following Major Australian Iron Ore Investment Announcement

Rio Tinto Group recently announced that it, along with partners Mitsui & Co. and Nippon Steel, will jointly invest US$733 million to develop new iron ore mines at the West Angelas hub in Western Australia, with the aim of sustaining annual production at approximately 35 million tons and starting first output in 2027. This collaborative investment highlights Mitsui’s continuing role in large-scale resource development and reflects broader efforts to secure long-term supply despite ongoing challenges with ore grades and reserve levels in the region. We’ll examine how Mitsui’s participation in this major Australian iron ore project could reshape its investment outlook and earnings mix.

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Mitsui Investment Narrative Recap

To own Mitsui, you need to believe in the company's ability to balance traditional resource investments with growth in new business areas as global demand for iron ore and cleaner energy shifts. The West Angelas mine deal signals an ongoing commitment to resource projects, but given Mitsui's recent earnings pressure from commodity prices and production volumes, this new investment is unlikely to materially shift short-term catalysts or the biggest risk of declining profits in core segments.

Among recent news, Mitsui's investment in the Blue Point low-carbon ammonia project aligns closely with the current catalyst of expanding into cleaner energy, which supports efforts to diversify earnings and reduce exposure to commodity cycles. This move stands out as the most relevant example of the company's continued transition toward energy transition assets, complementing its resource base and closer alignment with global decarbonization trends.

Yet, in contrast, there are persistent risks for shareholders to watch as Mitsui’s reliance on traditional resource segments continues to face...

Read the full narrative on Mitsui (it's free!)

Mitsui's narrative projects ¥15,578.0 billion revenue and ¥878.2 billion earnings by 2028. This requires 3.3% yearly revenue growth and a ¥62.3 billion earnings increase from ¥815.9 billion today.

Uncover how Mitsui's forecasts yield a ¥3882 fair value, a 3% upside to its current price.

Exploring Other PerspectivesTSE:8031 Community Fair Values as at Oct 2025

Simply Wall St Community members value Mitsui from ¥3,283 to ¥4,700, spanning four unique estimates. While some see growth from new resource projects, recurring profit challenges could reshape expectations for future returns, explore more views to inform your own stance.

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Explore 4 other fair value estimates on Mitsui - why the stock might be worth 13% less than the current price!

Build Your Own Mitsui Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

A great starting point for your Mitsui research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision. Our free Mitsui research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Mitsui's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include 8031.

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