Timah's net profit down by 80 percent in Q1
Saturday, April 29 2006 - 12:43 AM WIB
Tin miner PT Timah said first-quarter net profit fell 80% on year to Rp 11.5 billion from Rp 57.4 billion a year earlier due to a drop in commodity prices and an increase in the cost of sales.
Sales at the tin mining producer rose 5.7% to Rp 809.8 billion from Rp 766.0 billion, thanks to an increase in sales volume.
Timah sold 9,614 metric tons of tin, compared with 9,206 tons at end-march 2005.
The price of tin at end-March 2006 was at $7,629 per ton, or a 8.7% drop from $8,356 per ton at end-March 2005.
It said cost of sales rose by 16% to Rp 703.3 billion from Rp 607.8 billion a year earlier due to higher fuel prices.
The government owns 65% of Timah, while the public hold the remainder.
Tin is used in electronics, plating and the chemical sector and as a lead-free substitute in solder.
Timah's Bangka operations have a capacity to produce 47,000 tonnes of tin a year. (*)