Half year results published by Indonesia’s PT Timah over the weekend showed that the state-controlled company boosted its tin sales volume by 15% year-on-year to 24,110 tonnes in January-June, despite a 51% decline in its tin ore production and purchases to only 11,693 tonnes in the period. The sales rise was made possible by a substantial rundown in stocks of refined tin, slags and concentrates. Timah’s refined metal stocks – 2,341 tonnes at end-June – are now at their lowest level in more than five years, while its total inventory has fallen from 26,003 tonnes tin content at the start of the year to 12,532 tonnes at end-June.
The company reported that tin sales to Asia in January-June amounted to 15,058 tonnes (62% of total sales), while those to Europe, America and the domestic market were 6,530 tonnes (27%), 1,945 tonnes (8%) and 577 tonnes (2%) respectively. No comparative figures by region for last year were given.
On production the main positive news is that offshore output of tin-in-concentrate rose by 11% year-on-year to 7,075 tonnes in the first half. There are now 36 cutter suction dredges operating on Timah’s mining leases (32 of which are operated by contractors), as well as the company’s 12 large bucket ladder vessels. Meanwhile onshore production and purchases of 4,618 tonnes slumped by 73%. Onshore feed comes from 15 larger scale scale units operated by the company or contractors and 1,635 small scale mines.
Timah’s cash flow (EBITDA) in the period fell by 83% to Rp 278.7 billion (US$25.3 million), while net income fell by 96% to Rp 42.9 billion ($3.9 million).
