Malaysia Smelting Corporation has reported a big jump in profits in 2007, helped by a very strong fourth quarter performance. Group pre-tax profit increased by 87 % to M$ 121.0 million (US$37.6 million at current exchange rates) in 2007, despite disruptions in the group’s Indonesian operations in the first half of 2007. MSC’s main interest in Indonesia is its 75% shareholding in PT Koba Tin. In a statement to the Malaysian stock exchange the company said that “The improvement was attributable mainly to strong tin prices, better overall performance by Malaysian operations and the results of the rationalization programme of PT Koba Tin.”
The group’s Malaysian and Indonesia operations made roughly equal contributions to pre-tax profits. Net profit rose by 76% to M$77.8 million (US$24.3 million). In 2007 MSC produced 25,471 tonnes of refined tin in Malaysia and 7,724 tonnes at Koba. Prior to police action against the company in January/February 2007 Koba had been producing at over 20,000 tpy. Although the company’s directors were acquitted of all charges against them last year, operations have again been disrupted recently as a result of allegations of illegal mining by sub-contractors.
Commenting on the outlook for 2008, the company said: “Subject to early resolution to the current investigation being carried out by the local police in Bangka, Indonesia on PT Koba Tin’s appointed sub-contractors, … and in the light of the current high tin prices and barring any further unforeseen circumstances, the Board expects the Group’s overall performance for the current year to continue to be positive.”
