Timah nine months net profit jumps 81%

Tin miner PT Timah Tbk said that its nine months to September net profit rose 81 percent to Rp860 billion from the same period last year of Rp475 Billion thanks to the increase of average tin price on the London Metal Exchange (LME) for the period.

Total sales realized by the company until the end of September 2011 was Rp6.82 trillion, rose by 21 percent compared to Rp5.62 trillion in same period last year.

Up to the third quarter of 2011 global refined tin price average is US$27,754 per ton, while the lowest price was US$19,100 per ton and the highest was US$33,255 per ton.

The volume of tin metal in LME inventories have significantly risen for the first ninth month, from 16,555 MT at the beginning of the year to 20,920 MT by the end of September 2011.

The average refined tin price received by company by the end of third quarter 2011 was US$28,440 per MT or 57 percent higher than the average price received on same period of last year at US$18,133 per mton.

However in the third quarter 2011, average tin price at LME dropped significantly. This occured due to economic crisis that happened in Europe resulting in the weakening of the consumers purchasing power, especially those with a base in Europe. Overflow of illegal tin ore especially those from Indonesia had worsened this situation.

Production and sales

The company said its tin-in-concentrate production is slightly increased to 28,165 ton over the same period of last year which was only 27,123 ton. Tin-in-concentrate coming from offshore operation dropped 14 percent to 13,564 ton compared to last year production of 15,745 ton.

However, the onshore production recorded an increase in production to 14,602 ton or 28 percent compared to last year same period of 11,378 ton.

Refined tin sales volume on the first nine month 2011 was 25,266 MT, fell by 14 percent from the same period of 2010 which was 29,252 MT. Meanwhile, refined tin production was 28,532 mton or 4 percent lower than same period of last year which was 29,631 MT.

For the period ended September 30, 2011, the company?s total assets reached Rp6.65 trillion or 13 percent higher than Rp5.88 trillion recorded on 31 December 2010. The increase in asset values are also augmented by the decrease in total liabilities to Rp2.09 trillion from Rp1.68 trillion. (giok/godang)