Malaysia Smelting Corporation reported a first half 2015 net loss of RM21.2 million (US$5.2 million), due mainly to a write-down of the value of inventories at its Butterworth smelter. In a statement the company said that “notwithstanding the worsening tin prices and despite challenging market conditions in Q2 2015, the Group’s underlying operations continued to generate positive cash flows.” The downward adjustment in the first half of the year to the value of inventories – mainly recirculating stocks within the smelter –was RM34.2 million, in line with lower prices at the end of June.
In the first half the smelting business recorded a net loss (including the inventory adjustment) of RM22.2 million, while the Rahman Hydraulic Tin mining division made a small profit of RM4.1 million. MSC noted that tin prices have already recovered from their end-June low and said that both parts of the business “are still expected to perform satisfactorily for the current financial year but the Board remains cautious that the Group’s financial results will be impacted by tin price and foreign exchange fluctuations”. The company will continue to focus its efforts on cost management and capital discipline.
