Closure of Illegal Mines Catalyses PT Timah's Performance

The closure of illegal mines and tin smuggling routes in Bangka Belitung is considered a catalyst for the improved performance of PT Timah Tbk (TINS). The enforcement action has gradually brought tin mining activities back into the formal ecosystem, creating space for TINS to secure ore supply from its concession areas and increase the utilisation of its production facilities. The positive impact of the crackdown was reflected in TINS’s performance throughout the first half of 2026. The company posted a net profit attributable to owners of the parent entity of Rp2.71 trillion, soaring more than ninefold compared to Rp300.07 billion in the same period last year. BRI Danareksa analyst Andhika Audrey said the enforcement against illegal mining provides room for TINS to strengthen ore supply while boosting production activity. He noted that this condition could also increase investor confidence in the national tin management industry. “The impact is starting to be seen from the increase in production, sales volume, and improvement in TINS’s margins. If supervision of mines and smuggling routes is carried out consistently, the company’s growth performance has the potential to be more sustainable,” Andhika said in Jakarta on Tuesday (11/8/2026). In the same period, TINS’s revenue grew 146.9 percent to Rp10.42 trillion. Operating profit also increased from Rp380.20 billion to Rp3.46 trillion, with the operating profit margin widening from 9.01 percent to 33.24 percent. The performance improvement was also supported by a 75 percent increase in tin ore production to 12,324 tonnes of Sn. Tin metal production grew 58 percent to 10,865 metric tonnes, while sales volume jumped 85 percent to 10,984 metric tonnes. In terms of price, TINS’s average tin selling price increased 52 percent to US$49,794 per metric tonne. The price increase coincided with strengthened supervision and security of Mining Business Permit Areas, supported by the central government’s task force. The improvement followed President Prabowo Subianto’s order for a large-scale operation to crack down on around 1,000 illegal mines and close tin smuggling routes in Bangka Belitung. The operation, involving the Indonesian National Armed Forces, National Police, and Customs and Excise, began in September 2025. According to Andhika, the impact of the enforcement is not only visible in increased production and sales but also provides more measurable growth prospects for TINS. Consistency in supervising mines and smuggling routes is an important factor for the performance improvement to continue. “The closure of illegal mines could be a re-rating catalyst for TINS. The market will no longer see the company merely as a beneficiary of rising tin prices, but also as a company with more measurable opportunities for production, cash flow, and profit growth,” he said. The positive sentiment is also reflected in TINS’s share price movement. The company’s share price increased by approximately 17.7 percent from Rp3,270 on 30 June 2026 to Rp3,850 on 10 August 2026, with a market capitalisation reaching around Rp28.67 trillion. Based on the simply annualised first-half 2026 profit, TINS shares are trading at around 5.3 times indicative PER. This condition reflects that the prospects for improved production, cash flow, and profit are beginning to be priced in, in line with the strengthening of the formal tin mining ecosystem.