PT Timah reported Rp296 billion profit

PT Timah Tbk reported the net profit for the nine months period of 2000, which ended on 30 September 2000, of Rp296 billion, or 5.45% higher compared to Rp280.7 billion for the same period last year. In the other hand, the operating profit was 23% lower from Rp444.7 billion in the nine months period of 1999 to Rp342.6 billion this year. The increase of the net profit for the nine period of 2000 was mostly effected by foreign exchange gain and gain from the disposals of fixed assets in the second quarter in 2000.

Average tin prices in international market for the nine months period of 2000 was 3% higher compared to the same period last year. Hence, the average tin price received by the company was 4% higher from US$5,343 per tonne in the nine months period of 1999 to US$5,562 per tonne. Meanwhile, the average exchange rate of Rupiah against US Dollar in the nine months period of 2000 was Rp8,144 or 4.6% higher from the same period last year which was Rp7,789.

The sales volume was 14.5% lower from 31,130 tonnes in the nine months period of 1999 to 26,606 tonnes, in line with the refined tin production which was 11.4% lower from 28,799 tonnes in the nine months period of 1999 to 25,522 tonnes. However, the total production of tin-in-concentrates in the nine months period of 2000 was able to increase at 28,637 tonnes, or 3.5% higher from 27,664 tonnes for the same period in 1999.

The problem in the inland mining sector which happen during the first and second quarter of 2000, such as the conflict of land-uses also happen in the third quarter of 2000. Because of that, the earth moved volume was lower 31%. However, as we increased the tin-in-concentrates compensation paid to the contractors in the range of 20-35%, by the second quarter of 2000, the tin-in-concentrates production could 0.5% higher from 15,421 tonnes in the nine months period of 1999 to 15,492 tonnes.

The earth moved performance of the dredge fleet in the nine months period of 2000 was 5% lower compared to the same period last year. Bad weather conditions in the beginning of the year, which was worst than years before, some delay on recondition and reconstruction of the dredges, were main causes of lower dredges performance. In addition to the lower performance, insecurity of the mining area in Toboali, had forced us to relocate the Toboali dredge from Toboali Sea to Cupat Sea. Despite of the troubles, the tin-in-concentrates production was able to reach 13,144 tonnes, 7.4% higher than the nine months period of 1999, which was 12,243 tonnes.

Some increase in the cost production components, i.e. tin-in-concentrates compensation and royalty also the decrease of refined tin production have caused the delivered cost per tonne for the nine months period of 2000 was 12.8% higher than that of the same period last year of US$ 3,219 per tonne to US$ 3,631 per tonne. In line with that, the cash cost per tonne was higher 9.8% from US$ 2,958 in the nine months period of 1999 to US$ 3,246 per tonne this year. (*)