Timah enjoys profit on higher sales

Rendi A. Witular, The Jakarta Post, Jakarta

After booking a loss in the first semester of last year, state-owned PT Timah, the world's largest integrated tin miner, returned to profit this semester on higher tin prices and sales volumes.

Timah said in a statement on Thursday that its first half net profit jumped to Rp 47.7 billion (US$5.6 million) from a net loss of Rp 53.8 billion in the same period last year.

The company's sales rose by 53 percent to Rp 858 billion.

Sales volume increased by 57 percent to 21,861 tons from 13,933 tons previously.

During the period, Timah sold tin at an average price of $4,678 a ton, a 13.6 percent increase from $4,116 in the same period last year.

The company also said that during the first half its output of refined tin rose by 39 percent to 23,562 tons and its tin-in- concentrate by 35 percent to 27,502 tons.

The better-than-expected financial report, however, failed to lift the price of Timah shares on the local bourse as they ended lower by Rp 25 at Rp 925 on profit taking.

Timah operates tin mines on several islands in the country such as Bangka and Karimun, and in the coastal areas of Sumatra. The company produces three types of tin under the brand of Bangka, Mentok and Banka Low Lead.

The company needed at least $20 million this year to help finance its prospecting activities.

Currently the company is also evaluating six subsidiaries that have not been performing well.

An independent consultant has been hired to assess the performance of these subsidiaries and the results will be announced in November or December this year.

Timah has not denied the possibility that the subsidiaries may be liquidated, merged or sold to strategic investors.