PT Timah Q1 net up 86 percent

World's largest tin miner PT Timah Tbk announced Thursday its operational and financial performance result for the first quarter of 2004 and posted a net profit of Rp 39.8 billion, an increase of 86% compared to the net profit of the same period last year of Rp 21.4 billion.

The net profit was realized despite of lower production and sales volume amidst strong demand and improved tin prices.

Average tin price received by the company in the first quarter of 2004 increased by 45% compared to the same period last year of US$ 4,594 per metric ton to US$ 6,651 per metric ton. Meanwhile average foreign exchange of US Dollar to Rupiah received by the company decreased slightly by 5% compared to the same period last year, from Rp 8,911 to Rp 8,541 to the Dollar.

Sales volume for the first quarter of 2004 was 8,253 metric tonnes which is 23% lower compared to that of the same period last year of 10,717 metric tones. Therefore total sales revenue during the first quarter of 2004 increased by only 5% compared to the first quarter of 2003 from Rp 449.5 billion to Rp 471.3 billion.

Lower sales volume during the first quarter of 2004 was closely related to 47% lower refined tin production as well as 55% lower production of tin-in-concentrate compared to the same period last year. Total refined tin production decreased from 11,780 metric ton in the first quarter of 2003 to 6,246 metric ton in the first quarter of 2004, while production of tin-in-concentrate decreased from 13,259 ton Sn in the first quarter of 2003 to become 6,010 ton Sn in the first quarter of 2004.

Lower production was attributable to limited tin-in-concentrate inventory in the beginning of 2004, while most

of the dredges have not been in operation due to weather ondition which fored them to remain located at the protected location. In addition, the tin-in-concentrate availability from inland sources which remained dominated by unconventional miners has become more limited and highly competitive.

Although total production expenses was 19% lower, on per unit basis the delivered cost has increased from US$ 4,167 per ton to US$ 5,565 per ton. This was due to higher

competition in obtaining inland tin-in-concentrate as well as higher fixed cost associated with dredges which have not resume operation.(alex)