Tambang Timah's profits up 91% in first quarter
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)