Timah reports slower profit growth

IDX-listed tin giant PT Timah Tbk booked a 9.82 percent increase in net profit last year on higher production and sales volume as well as efficiency measures. But the profit growth slowed from 19 percent in 2013, Bisnis Indonesia reported on Thursday.

Timah said that net profit last year increased to Rp 670 billion from Rp 580 billion in 2013.

The paper quoted Corporate Secretary Agung Nugroho as saying that the drop in tin price particularly during the fourth quarter of last year slowed down the company?s profit performance.

Due to the weak price, Timah increased sales volume to 26,907 tons last year from 23,237 tons in the previous year as tin ore production was ramped up by 23.34 percent to 32,319 tons. Tin metal output increased by 16.16 percent to 27,550 tons in 2014 year-on-year.

Meanwhile, Kontan quoted Agung as saying that the commercial operation of its rare earth smelter in Bangka Belitung will be delayed to August of this year from the initial plan of March due to difficulties in bringing in machinery and equipment, and a change in the design to make a better facility.

Agung said that the construction progress of the project has reached 70-80 percent. Timah is building a smelter with a capacity to produce 50 Kg per day of rare earth metal in Tanjung Ular industrial zone, in Bangka Belitung. (*)