JAKARTA — PT TIMAH Tbk (“the Company”; IDX: TINS) today announced its Consolidated Financial Statements for the period ended June 30, 2024.
The London Metal Exchange (LME) tin metal price surged in the first half of 2024 and closed at USD33,000 per metric ton at the end of June 2024. Meanwhile, world tin production declined due to constrained supply of tin metal from Indonesia, Myanmar, and the Democratic Republic of the Congo, amid continued uncertainty in global economic and political conditions that pushed tin metal prices higher.
Based on the CRU Tin Monitor, world tin metal production in the first half of 2024 is estimated to have fallen 6.7% (YoY) to 169,800 tons. Meanwhile, tin inventories in LME warehouses at the end of June 2024 stood at 4,770 tons, down 36% from 7,450 tons at the beginning of 2024.
These conditions benefited the Company, which succeeded in increasing net profit by 2,570% to Rp434.48 billion compared to the same period last year.
“In line with the ongoing improvement of Indonesia’s tin mining and trade governance, the increase in tin ore production, the improvement in the average selling price of tin metal, and the efficiencies carried out by the Company in the first half of 2024 compared to the previous year, all had a positive impact on the Company’s financial performance, so that the Company recorded a fairly significant increase in net profit in the first half of 2024. The Company gradually improved production operation performance by adding onshore mining units, opening new locations, and the number of production suction vessels in operation, while remaining focused on sustainable efficiency programs across all of the Company’s business lines,” said Fina Eliani, Director of Finance and Risk Management of PT TIMAH Tbk.
Operating Performance
Through the first half of 2024, TINS recorded tin ore production of 10,250 tons, up 32% compared to 7,755 tons in the same period the previous year. Metal production rose 19% to 9,675 tons compared to 8,100 tons in the same period the previous year, while tin metal sales fell 0.1% to 8,299 tons compared to 8,307 tons in the same period the previous year.
The average selling price of tin metal was USD30,397 per metric ton, up 13% compared to USD26,828 per metric ton in the same period the previous year. During this period, TINS recorded tin exports of 90%, with the top 6 export destination countries comprising Singapore 18%; South Korea 16%; India 13%; the United States 10%; Japan 8%; and the Netherlands 6%.
Financial Performance
In the first half of 2024, the Company succeeded in recording a positive profit of Rp434.48 billion, or 151% of the target set by the Company.
The Company booked revenue of Rp5.21 trillion, up 14% from Rp4.57 trillion in the first half of 2023, amid a 13% increase in the average selling price of tin metal from USD26,828 per metric ton in the first half of 2023 to USD30,597 per metric ton in the first half of 2024.
On the other hand, the Company’s cost of revenue fell 4% from Rp4.16 trillion in the first half of 2023 to Rp3.99 trillion in the first half of 2024. As a result, the Company booked an operating profit of Rp688 billion, with EBITDA of Rp1.21 trillion, or 227% of the first half of 2023.
The Company’s asset value in the first half of 2024 rose 3% to Rp13.25 trillion from Rp12.85 trillion at the year-end 2023 asset position. Meanwhile, the Company’s liabilities fell 2% to Rp6.48 trillion, compared to Rp6.61 trillion at year-end 2023, due to the reduction of interest bearing debt.
The equity position stood at Rp6.77 trillion, up 8% compared to Rp6.24 trillion at year-end 2023.
The Company’s financial performance showed good results, as seen from several important financial ratios, including a Quick Ratio of 47.4%, a Current Ratio of 162.9%, a Debt to Asset Ratio of 48.9%, and a Debt to Equity Ratio of 95.6%.
Current conditions and future prospects
The average LME Cash Settlement Price for tin metal in the first half of 2024 rose 11% to USD29,299 per metric ton compared to USD26,301 per metric ton in the same period the previous year, while Bloomberg’s tin price projection is in the range of USD28,000 to 30,000 per metric ton.
The Company undertook various efforts to improve production operation performance, one of which was adding onshore and offshore production units and opening new locations.
In line with these efforts, the Company also carried out several strategic initiatives, such as increasing resources and reserves organically and inorganically, adding mining equipment, digitizing business processes to support operational effectiveness, optimizing primary tin mining and processing, increasing productivity and the number of onshore and offshore production units through accelerating the opening of new locations, and pursuing sustainable efficiency across all business lines to achieve the Company’s production targets in 2024.
About PT TIMAH Tbk
PT TIMAH Tbk, a subsidiary of the Indonesian mining holding company MIND ID, is a leading tin producer and the world’s largest tin exporter, with tin mining and smelting operations in the provinces of Bangka Belitung, the Riau Islands, and Riau.
A Limited Liability Company since 1976 and listed on the Indonesia Stock Exchange since 1995, PT TIMAH Tbk runs a vertically integrated tin business, from exploration, mining, smelting and refining of tin metal, to marketing that serves both international and domestic customers. Its tin metal products under the brands “Banka Tin”, “Kundur Tin”, and “Mentok Tin” have an international reputation and are registered on the London Metal Exchange (LME).
Today PT TIMAH Tbk, a member of the International Tin Association (ITA), has four main business lines: tin mining, tin downstreaming (tin chemical and tin solder), non-tin mining (coal and nickel), and competency-based businesses including property, shipyards, and agribusiness.
