Jakarta, 1 April 2011 (ANTARA) - PT Timah (Persero) Tbk reported today its Consolidated Financial Statement of the year ended 31 December 2010 Rp. 947.9 Billion or Rp. 183.3,- per share which was 203% higher than that of 2009 net profit of Rp.313,8 Billion or Rp.62,3 per share. The higher on net profit was basically due to global tin price especially in the second half 2010.

The global tin price started to increase in the middle of the third quarter moving up slowly with ranging of US$ 22,000 per metric tonne from US$ 16,000 per metric tonne on the first and second quarter. This circumstances is consequently impacted to company margin on the fourth quarter of 2010.

Operational Highlight

The highest global refined tin price during 2010 was US$ 27,600 /Mton and the lowest was US$ 14,950/Mton with the average of US$ 20,447/Mton, 50% increased from 2009 global average tin price which was US$ 13,608/Mton. Meanwhile, the exchange rate was relatively stronger. The US Dollar rate on 2010 and 2009 was Rp9,169/US$ and Rp 10,302/US$ respectively.

Refined tin production on 2010 was 40,413 Mton, 10% lower than 2009 production which was 45,086 Mton. Production of tin in concentrate on 2010 was 37,615 ton Sn, relatively similar to 2009 production was 37,701ton Sn. Contribution of ore was earned from onshore mining which was 17,172 tonnes of Sn on 2010 which also means 12% lower compared to the same period in 2009 which was 19,493 tonnes of Sn. Moreover, tin ore production from offshore increased from 48% to 56% from total production attributable to improvement of cutter suction dredges (KIP).

Financial Performance

The company's gross profit in 2010 was Rp1,924.1 Billion or 67% higher than that of same period in 2009 which was Rp 1,153.0 Billion and cost of sales was 2% decreased compare to that of previous year. The company's income from operation increased by 90% from 688.5 Billion in 2009 to Rp 1,310.8 Billion and profit before tax was 105% higher than that of 2009 of Rp549.2 Billion to Rp1,127.3 Billion in 2010.

The company's total asset increased by 21% from Rp 4,855.7 billion to Rp 5,881.1 Billion. The increased was mainly due to the increased in current aset by 29% from Rp 3,173.2 billion on 2009 to Rp 4,108.9 Billion on 2010. The largest contributor come from 84% increased of amount of trade account receivables from Rp. 470.4 billion on 2009 to Rp 865.8 billion on 2010.

Trade account payable decreased by 37% over the previous year amounted to Rp 351.1 billion to Rp 220.8 billion. Total equity increased 23% to Rp 4,202.8 billion in 2010 compared to Rp 3,430.1 billion in 2009.

Current Situation and Future Outlook

PT Timah (Persero) Tbk estimated global tin consumption on 2011 will experience an increase of 10% from 2010 consumption which was around 330.000 Mton. It is seen from the start of consumer purchasing power recovery especially to the electronic and consumer goods products. Hence, it is also predicted that 2011 refined tin production will be increased significantly to 345,000 ton but still much lower than the total demand in 2011 which is around 370,000mton. While the average price of refined tin in 2011, the company estimating to earned about US$ 23,000/mton.

Company's plan to generate income from higher value added product is well underway. Tin premium product development that has higher sn contain than LME standard with brand of "Banka" are still being developed. Currently, contribution of premium product sales with sn contain higher than 99.90% has reached 60% from the total sales.

Moreover, Timah is currently developing downstream products that have more significant margin. Among other thing is the development of tin chemical factory located in Cilegon Banten. The factory has a production capacity of 10,000 tons per year then this will continue to be developed again so that production capacity can be increased year by year.

*) Consolidated Financial Statement of PT Timah (Persero) Tbk and subsidiaries for the period ended 31 December 2010 and 2009, is also available at Capital Market References Center (PRPM), Indonesia Stock Exchange Building.

For more information, contact:

Abrun Abubakar, Corporate Secretary
Telephone : +62 (21) 2352 8000
Fax : +62 (21) 344 4012
e-mail : corsec@pttimah.co.id
Website : www.timah.com



Reporter: Adityawarman
Editor: PR Wire
Copyright © ANTARA 2011