JAKARTA — PT TIMAH Tbk (“the Company”; IDX: TINS) today announced its Consolidated Financial Statements for the period ended September 30, 2024.
Amid fluctuations in tin metal prices over the past three months as the metal market reacted to shifts in global sentiment — with US interest rate cuts, China’s stimulus measures, and the constrained supply of world tin metal — the London Metal Exchange (LME) tin metal price still held at around USD33,000 per metric ton at the end of September 2024.
Based on the CRU Tin Monitor, through September 2024 global tin metal consumption growth is estimated to have risen 2.6% (YoY) to 270,603 tons, while global tin metal production is estimated to have fallen 7.7% (YoY) to 253,598 tons.
Tin metal inventories in LME warehouses at the end of September 2024 stood at 4,660 tons, down 37.4% from 7,450 tons at the beginning of 2024.
“Along with efforts to improve production operation performance, financial performance, and tin mining governance, TINS succeeded in booking a 9M 2024 net profit of Rp908.81 billion, which has a positive impact on TINS’ increasingly strong financial fundamentals,” said Fina Eliani, Director of Finance and Risk Management of PT TIMAH Tbk.
Operating Performance
Through the third quarter of 2024, TINS recorded tin ore production of 15,189 tons, up 36% compared to 11,201 tons in the same period the previous year. Meanwhile, tin metal production rose 25% to 14,440 metric tons compared to 11,540 metric tons in the same period the previous year, while tin metal sales rose 21% to 13,441 metric tons compared to 11,100 metric tons in the same period the previous year.
The factor behind the increase in production in the third quarter of 2024 compared to the previous year was the addition of onshore mining units, the opening of new locations, and the number of production suction vessels and production suction pontoons in operation, thereby gradually improving the Company’s production operation performance.
The average selling price of tin metal was USD31,183 per metric ton, up 15% compared to USD27,017 per metric ton in the same period the previous year. During the 9M 2024 period, TINS recorded tin exports of 91%, with the top 6 export destination countries comprising Singapore 16%; South Korea 15%; India 11%; Japan 10%; the United States 9%; and the Netherlands 8%.
Financial Performance
As of September 2024, the Company succeeded in recording a positive profit of Rp908.81 billion, or 169% of the target set by the Company.
The Company booked revenue of Rp8.25 trillion, an increase of 29% from Rp6.38 trillion in 9M 2023, amid a 15% increase in the average selling price of tin metal from USD27,017 per metric ton in 9M 2023 to USD31,183 per metric ton in 9M 2024.
On the other hand, the Company’s cost of revenue rose 4.5% from Rp5.79 trillion in 9M 2023 to Rp6.05 trillion in 9M 2024. As a result, the Company booked an operating profit of Rp1.42 trillion, with EBITDA of Rp2.08 trillion, or 194% of 9M 2023.
The Company’s asset value in 9M 2024 fell 0.3% to Rp12.82 trillion from Rp12.85 trillion at the end of 2023. Meanwhile, the Company’s liabilities fell 14.8% to Rp5.63 trillion, compared to Rp6.61 trillion at year-end 2023, due to the reduction of interest bearing debt (IBD).
The equity position stood at Rp7.18 trillion, up 15.1% 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 76.0%, a Current Ratio of 249.0%, a Debt to Asset Ratio of 44.0%, and a Debt to Equity Ratio of 78.4%.
In improving its financial performance, the Company carried out loan reprofiling and refinancing of long-term loans at more competitive interest rates, and has reduced Interest Bearing Debt by Rp1.4 trillion, from Rp3.5 trillion at the end of 2023 to Rp2.1 trillion in September 2024. This had the effect of improving the health of the Company’s financial ratios.
Current conditions and future prospects
The average LME Cash Settlement Price for tin metal through September 2024 was USD30,130 per ton, up 13.9% compared to USD26,456 in the same period the previous year, while Bloomberg’s tin price projection is in the range of USD28,000 to 31,000 per metric ton.
The Company has made efforts to improve marketing performance, including by selling tin metal according to the specifications required by consumers and pricing at optimal levels.
The Company will take strategic steps to achieve its marketing targets by prioritizing domestic needs in order to support downstreaming, optimizing export sales to meet global market demand, and maintaining product and service quality through distribution, speed and accuracy of documentation, after-sales service, timeliness of product delivery, and consistent services — a strategy closely tied to market development — as well as adjusting sales volumes so as to avoid an oversupply of tin metal in the market that could depress the selling price.
Through the third quarter of 2024, the Company also undertook various efforts to improve production operation performance, including optimizing offshore and onshore mining production, optimizing mining equipment, and optimizing production from processing residues.
Furthermore, the Company continues to strive to reach its production targets by carrying out several strategic initiatives, including increasing resources and reserves organically and inorganically, optimizing primary tin mining and processing at the Batu Besi and Paku sites through increased recovery, improving the governance of mining partnerships, and optimizing production through accelerating the opening of new locations.
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.
