Timah cancels dividend payment, expects lower profit
Wednesday, October 3 2001 - 10:58 PM WIB
State tin miner PT Timah said Wednesday it won't pay a second dividend for 2000 because illegal mining activities and weak global tin prices have eaten into its earnings.
Timah said weaker profit due to illegal mining on its sites and falling tin prices have forced the company to withdraw the second dividend.
The withdrawal of the dividend payout, which was due Dec. 13, will need shareholders' approval at a meeting Oct. 31.
Earlier this month, Timah warned it expects a sharp decline in 2001 earnings, and that big losses in 2002 are likely, due to illegal mining and weak tin prices.
Timah's president, Erry Riyana Hardjapamekas, said its 2001 net profit could drop to Rp. 64 billion (US$= 10,000) from Rp.332 billion last year. He also said Timah could suffer losses of more than Rp.500 billion in 2002. (*)