Ailing PT Timah asked to audit financial performance

The ailing tin mining company PT Timah needs to undergo a special audit in order to find out the actual condition of its financial performance which has been severely shaken up by the sharp drop in the tin metal prices recently.

Securities analyst David Ferdinandus said in Jakarta on Monday that reports of the worsening of the tin mining company?s financial performance had surprised many capital market investors because the ailing condition was unveiled only after the company reported a brisk sales during the first semester.

"Why only within three months, there is a plan to liquidate the company,? he said in his comment on PT Timah?s recent announcement that the company could be liquidated if its financial performance worsened.

According to David, PT Timah management should unveil to the public more transparently about the real condition of its financial performance, which was recently reported to have fallen to the negative territory due to sharp falls in tin prices.

PT Timah?s management has outlined a number of scenarios to cope with the drastic drop in tin prices in the past several months. The worst scenario is to liquidate the company. (*)