Indonesia’s state-controlled tin company PT Timah reported a sharp fall in its mine and refined tin production in the first quarter of 2016, although a drawdown in stocks allowed a small increase in its sales.
Production of tin-in-concentrates in Q1 fell by 49% compared to the same period of 2015 to an exceptionally low level of 3,405 tonnes, while refined tin production fell by 40% to 4,205 tonnes. However refined tin sales rose by 8% to 5,730 tonnes, as stocks of metal, concentrates and slags were all run down.
Despite the increase in sales volume, operating revenue fell by 5% to 1,302 billion rupiah (US$98 million) and Timah reported a net loss of Rp 138.8 billion (US$10.5 million). However the company’s share price on the Jakarta stock exchange rose by 47% over the quarter, buoyed by the strong revival in tin prices from January lows and tighter government controls on the tin industry.
In a release announcing the results, Timah said that higher prices and efficiency gains should allow it to meet its financial targets for the year. The company elected a new board of directors at its annual general meeting in early April, appointing M. Riza Pahlevi Tabrani as President Director.
ITRI View: Operations were seriously disrupted by extreme monsoon weather conditions in the first quarter, necessitating the relocation of dredges and other equipment, while sales were restricted by delays in obtaining a new six-month export permit. Production should be significantly higher for the rest of the year, with an original production target of some 30,000 tonnes still potentially achievable.
