Tambang Timah's profits up 91% in first quarter

JAKARTA (JP): Publicly-listed state-owned tin mining firm PT Tambang Timah recorded a 91 percent increase in net profits to Rp 39.4 billion (US$16.8 million) in the first quarter of this year from Rp 20.6 billion in the same period of last year.

The company said in a statement issued yesterday that the jump in profit was a result of increased tin prices on the international market, increased sales volume and decreasing production costs.

Tin prices on the London Metal Exchange and the Kuala Lumpur Tin Market averaged at US$6,299 per metric ton during the first quarter of this year, compared with $5,825.40 in the same period of last year.

Tambang Timah's tin ore output increased by 11 percent to 8,938 tons during the first quarter of this year from 8,079 tons in the same period of last year. During production from January to March, 5,054 tons came from onshore mines and the other 3,884 tons from offshore mines.

"The increase in the tin ore production level was made possible by the introduction of a more efficient mining method and a better mining equipment maintenance system," the statement said.

Production

During the first quarter of this year, Tambang Timah produced 8,880 metric tons of tin metal, up from 8,106 metric tons recorded in the same period of last year.

Tambang Timah's total sales of tin during the first quarter of this year increased by 11 percent to 9,330 metric tons from 8,400 metric tons in the same period of last year.

As of the end of last March, Tambang Timah's tin stock level stood at 4,041 metric tons, up from 2,532 metric tons as of March 31, 1994. Meanwhile, its tin ore stock level reached 5,097 tons, up from 4,821 as of March 31, 1994.

Tambang Timah's unaudited financial report revealed that its production costs decreased to US$4,145 per metric ton during the first quarter of this year from 4,349 per metric ton during the same period last year.

As a result, Tambang Timah's profit margin increased drastically to $2,154 per metric ton for the first quarter of this year from $1,477 in the same period of last year.

The company recorded total assets of Rp 723.4 billion as of the end of March, compared to Rp 445.3 billion as of March 31, 1994.

Tambang Timah, the largest tin producer in the world -- accounting for 25 percent of production in the western world and 17 percent of total world production -- is the world's lowest cost producer of tin.

According to MacKay and Schnellman, Tambang Timah's proven and probable reserves of tin stand at 490,000 tons -- 215,000 inland and 275,000 offshore -- which can be mined for 13.4 years for the inland mines and 15.1 years for the offshore mines.

Tambang Timah shares are listed on the London, Jakarta and Surabaya stock exchanges. (rid)