Malaysia Smelting Corporation reported a pre-tax profit of RM28.8 million (US$6.6 million) in the quarter to September, up from RM9.3 million in Q3 2014, mainly due to an upward revaluation of inventories as the tin price rose from its end-June low. However the gains were partly offset by foreign currency movements and lower operating profits from its Rahman Hydraulic Tin mining operations.
Following first half losses, group pre-tax profit in the first nine months of this year was RM7.6 million (US$1.7 million), down from RM39.3 million in the same period of last year. Both Rahman Hydraulic and the Butterworth smelter generated operating profits of over RM7 million, although RHT’s margins have been adversely affected by both lower tin prices and reduced sales volumes this year.
There have been no significant acquisitions or disposals of assets by the company this year, although in September it increased its stake in Canadian-listed Alphamin Resources from 1.9% to 5.0% via a private share placement. This is in line with its recent focus of activities and investments on Malaysia and Central Africa.
In a statement summarising current year prospects MSC said that both divisions “are still expected to perform satisfactorily for the current financial year but the Board remains cautious that the Group’s financial results will continue to be impacted by tin price and foreign exchange fluctuations”.
