Business Overview
On the Third Quarter 2011, average tin price in LME was dropped dramatically. This situation occurs due to economic crisis that happening in Europe resulting in weakening the purchasing power of consumers, especially those with a base in Europe. Moreover, overflow of illegal tin ore especially those from Indonesia resulting supply exceed demand so the basic principle of economic is applied that lead to falling tin price.
Until the third quarter of 2011 global refined tin price average is US$ 27,754 per ton, while the lowest price was US$ 19,100 per ton and the highest was US$ 33,255 per ton.
The volume of tin metal in LME inventories have significant risen for the first nine month, from 16,555 mton on the beginning of year climb to 20,920 mton by the end of September 2011. The average refined tin price received by company by the end of third quarter 2011 was US$ 28,440 per mton or 57% higher than the average price received on last year same period of US$ 18,133 per mton.
Company Strategy
An increasingly competitive business situation, keep up the company to implementing strategic plan and anticipatory action regarding to challenge fluctuations of tin prices. Furthermore, company now more focusing to higher added value product sales or known as premium product (refined tin which has Sn contain higher than 99.90%). Thus the company's revenue has continued growth on an ongoing basis.
Production and Sales
Tin-in-concentrate production is slightly increased to 28,165 ton over the same period of last year which was only 27,123 ton. Tin-in-concentrate coming from offshore operation is 14% dropped to 13,564 ton compared to last year production of 15,745 ton. However, the onshore production recorded an increase in production to 14,602 ton or 28% increased compared with last year same period of 11,378 ton.
Refined tin sales volume on the first nine month 2011 is 25,266 mton, which is 3,986 mton decreased or fell by 14% from the same period of 2010 which was 29,252 mton.
Meanwhile, refined tin production is 28,532 mton or 4% lower than same period on last year which was 29,631 mton.
Financial
Total sales received by the company until the end of September 2011 is Rp 6,816 billion, rose by 21 percent of revenue from income realization in last year same period of Rp 5,615 billion. Profit for the 9 months period ended in September is Rp 860 billion or 81% increased compared with last year same period profit of Rp 475 billion. Margin achieve is US$ 4,895 per mton or 114% higher than last year same period margin of US$ 2,288 per mton.
Company balance sheet for period ended on September 30, 2011 recorded total asset of Rp 6,648 billion or 13% higher than 31 December 2010 total asset which was Rp 5,881 billion. Increased in asset values are also balanced by the decreased in total liabilities to Rp 2,090 billion from Rp 1,679 billion.
For Further Information Please Contact:
Abrun Abubakar, Corporate Secretary
tel : +62 21 2352 8000
fax : + 62 21 344 4012
email: corsec@pttimah.co.id
www.timah.com
Reporter: Adityawarman
Editor: PR Wire
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