Timah?s profit tumbles by 61.78 percent
Friday, November 1 2013 - 07:14 AM WIB
IDX-listed tin mining company PT Timah Tbk?s profit tumbled by 61.78 percent to Rp 141 billion in the first nine months of 2013 compared to Rp 369.9 billion in the same period last year. The same thing goes with total sales revenue received by the company until the end of September 2013, which was Rp3.89 trillion or a drop by 35 percent compared to last year same period of Rp6 trillion, Timah reported Thursday.
However, the company estimates global refined tin price will increase up to US$25,000 a metric ton and tin sales will be recovered in the fourth quarter of 2013 along with increasing number of customers, sufficient stock due to improving production and the new trading system of the commodity exchange.
As of August 30th, 2013 the company has implemented Ministry of Trade Regulation No. 32/2013 on tin export that need to go through commodity exchange market ? Indonesia Commodity and Derivatives Exchange (ICDX).
In the third quarter, Timah did some contract adjustments with buyers by issuing force majeure to be in accordance with regulation. During the adjustment process, sales volumes in July, August and September weakened because of small number of exchange members at the time.
Editing by Reiner Simanjuntak