Timah reports higher sales, lower production in Q1
Release date: 30 Apr 2009
itri.co.uk
Indonesia’s state-controlled tin producer PT Timah reported an 8% year-on-year increase in refined tin sales in the first quarter of 2009, although production and profitability declined. The positive features of its first quarter results, released today, were that its tin inventories were reduced to the lowest level since June 2002 and that lower operating costs allowed it to maintain a slim positive operating margin. Offshore production also accounted for 49% of its tin-in-concentrate output, although this was mainly due to a fall in inland production.
Refined tin sales in the March were 11,014 tonnes, while metal production was 10,462 tonnes, down 9% on the same period of 2008. Production of tin-in-concentrates fell by 39% to 5,288 tonnes. The big drop in mine production allowed Timah to run down its stocks of tin concentrates and slag, which have been at consistently high levels since Indonesia banned the export of concentrates in mid-2002. With some run down in refined tin stocks too (to a current level of 6,571 tonnes), the total stock of tin in all forms was reduced to 18,704 tonnes.
Timah’s net profit in Q1 fell 97% year-on year to Rp 14.4 billion (US$1.24 million). Average production costs were reported at US$10,565/tonne, helped by lower fuel and ore buying prices. Margin per tonne was reported at US$176/tonne, compared to $7,831/tonne in the first quarter of 2008. |
