Timah?s Q1 revenue jumps 57.24%
Wednesday, June 21 2017 - 01:33 PM WIB
Timah said in a statement it booked a net profit of Rp 65.86 billion in the January-March quarter of this year, from a loss in the same three-month period of last year.
?The company takes advantage of the price recovery momentum which stabilized at US$19,000-$22,000 per metric ton by increasing production volume,? said Timah Corporate Secretary Nur Adi Kuncoro.
The company said that tin ore output in the first quarter of 2017 soared by 125.37 percent to 7,675 tons from the corresponding quarter of last year. Tin metal output in the first quarter of 2017 jumped by 65.59 percent to 6,963 tons, while tin metal sales volume increased by 21.52 percent to 6,963 tons, year-on-year.
The company said that sales of downstream tin products including tin solder and tin chemical (through subsidiary PT Timah Industri) also increased, respectively to 114 tons and 890 tons. The company did not provide comparative figures. ?The downstream products have huge potential market as there are not many players in the domestic market,? it said.
Timah said that if it could realize its tin ore output target of 32,000-35,000 tons this year, its revenue for the full-year will increase significantly especially as tin metal price has stabilized at US$20,000 per ton during the first quarter.
Timah said that the higher tin production was attributable to investment made by the company in upgrading and expanding the capacity of its production facilities, opening up of new onshore mine, increasing the number of production vessels as well as the adoption of more effective smelting technology.
Elsewhere, Timah said that it is also focused on increasing its tin resources and reserves to help sustain its business in the future. The company this year allocates capital expenditure worth Rp 140 billion for increasing exploration activities to find new reserves. Timah currently holds 128 IPU mining business licenses covering total concessions of 473,303 hectares with estimated reserves of 335,909 tons and resources of 737,546 tons.
Aside from tin mining operations, Timah also has other businesses run by subsidiaries including shipyard run by PT Dok & Perkapalan Air Kantung (DAK) and property development through PT Timah Karya Persada Properti.
Editing by Reiner Simanjuntak