Indonesia’s state-controlled tin producer PT Timah today released audited financial results which showed that its net earnings fell by 25% in 2008 to Rp 1,342 billion (US$141 million). The company made a small net loss of Rp 149 billion ($13 million) in the final quarter of the year following the slump in global tin prices. In a statement the company said that the fall in tin prices had forced it to postpone a new tin exploration programme and review its plan to diversify into non-tin businesses.
The company’s revenue in 2008 reached Rp 9,053 billion, 6% higher than in 2007. Refined tin accounted for 91.5% of consolidated revenue, while the sales of coal contributed 8.2%, the minor balance coming from dockyard, exploration and workshop services. As previously reported, refined tin sales fell by 21% in volume terms last year to 46,434 tonnes, while refined tin production dropped by 16% to 49,029 tonnes. Mine production (including purchased ore) fell by 19% to 47,074 tonnes of tin-in-concentrate, although offshore production rose by 15% to 13,840 tonnes, accounting for 29% of total output.
Production costs fell in the final quarter of the year as ore buying prices and fuel costs declined and the rupiah depreciated. Average costs in the period were reported at $13,364/tonne, while the average for the year was $13,390/tonne.
Timah continued to reduce its inventories of concentrate, slag and refined tin in the fourth quarter, but these still amounted to a combined total of some 26,000 tonnes tin content at the end of the year (of which 7,160 tonnes was in the form of refined metal).
