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 crackdown has gradually brought tin mining activities back into the formal ecosystem, opening room for TINS to secure ore supply from its concession areas and increase utilisation of its production facilities.

The positive impact of the crackdown is 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 with Rp300.07 billion in the same period last year.

BRI Danareksa analyst Andhika Audrey said the crackdown on illegal mining provides room for TINS to strengthen ore supply while increasing production activity. According to him, the condition can also boost investor confidence in the national tin processing industry.

“The impact is starting to be seen from the increase in production, sales volume, and improvement in TINS margins. If supervision of mines and smuggling routes is carried out consistently, the company’s performance growth has the potential to be more sustainable,” Andhika said in Jakarta on Tuesday (11/8/2026).

In the same period, TINS 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 12,232 tonnes Sn. Tin metal production grew 58 percent to 10,865 metric tonnes, while sales volume soared 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 as well as support from the Central Government Task Force.

The improvement took place after President Prabowo Subianto ordered 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, has been running since September 2025.

According to Andhika, the impact of the crackdown is not only visible from the increase in 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 can be a re-rating catalyst for TINS. The market no longer sees 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 the movement of TINS shares. The company’s share price increased by around 17.7 percent from Rp3,270 on 30 June 2026 to Rp3,850 on 10 August 2026, with a market capitalisation of around Rp28.67 trillion.

Based on first-half 2026 earnings annualised on a simple basis, TINS shares are traded at around 5.3 times indicative PER. This condition reflects that the market has begun to price in the prospects for improved production, cash flow, and earnings of the company along with the strengthening of the formal tin mining ecosystem.