Tin firm expects to exceed targets
Tin firm expects to exceed targets
JAKARTA (JP): The state tin mining company PT Tambang Timah expects to exceed last year's sales and net profit targets by five percent, thereby improving its share performance on the capital markets, an executive said here yesterday.
"We hope the exact figure can be announced later this month," Tambang Timah's president, Erry Riyana Hardjapamekas, told a discussion meeting held by The Jakarta Post.
Tambang Timah recorded a 9.1 percent increase in sales to Rp 473.4 billion (US$205.4 million) last year from Rp 433.9 billion in 1994.
The company's net profit was expected to increase by 3.06 percent from Rp 120.2 billion in 1994 to Rp 123.9 billion last year.
Erry said the achievement will counter the notion that the decline of Tambang Timah's share price on the stock market had been caused by his company's performance.
The decline in Tambang Timah's share price had been caused mainly by market sentiment, which is difficult to predict, he added.
Tambang Timah floated 25 percent of its shares on the London Stock Exchange and another 10 percent on the Jakarta and Surabaya stock exchanges on Oct. 19, last year.
Tambang Timah's share prices declined to below the initially offered price of Rp 2,900 per share or $12.73 per Global Depository receipt (which is equivalent to 10 shares) both on the London and Jakarta stock exchanges. The shares were quoted at Rp 2.850 on the Jakarta Stock Exchange on Monday.
Erry said Tambang Timah, which has 490,000 tons of proven tin reserves in its 786,657-hectare mining concessions in South Sumatra, planned to increase its tin production from 37,000 tons last year to 41,780 tons this year. Ninty five percent of its production is exported, he added.
Besides Tambang Timah, Indonesia has another tin company, PT Koba Tin, which has a production capacity of 15,000 tons per year.
Koba Tin is 25 percent owned by Tambang Timah and 75 percent by Radisson Gold Fields Corp. of Australia.
Erry said his company is allowed to diversify its business to other minerals such as gold and coal.
Tambang Timah plans to open a gold mine in Natal, North Sumatra, he said.
He added his company is also prepared to set up joint ventures with domestic and foreign companies.(04)