Jakarta, August 31, 2023 – PT TIMAH Tbk (“the Company”; IDX: TINS) today announced Consolidated Financial Statements of Limited Review for the period ended June 30, 2023.
The decline in some metal prices at the end of semester 1 2023 amidst weak global demand and increased tin inventories at LME warehouses resulted in fluctuating tin prices tending to decline.
In the midst of price fluctuations, TINS continues to record positive profits with a sales volume of 8,307 metric tons until semester 1-2023.
"The condition of the average selling price of tin and the unfavorable weather until semester 1 of 2023 caused of the decline in tin production which has eroded the Company's net profit. Currently, creditors' or financial institutions' trust in the Company is still strong," said Fina Eliani, Director of Finance and Risk Management.
Operation Performance
In the second quarter of 2023, TINS recorded tin ore production of 7,755 tons or 78% compared to the same period the previous year of 9,901 tons. The production of tin metal was 8,100 metric tons or 92% compared to the same period last year of 8,805 metric tons, and sales of tin metal amounted to 8,307 metric tons or 84% compared to the same period the previous year of 9,942 metric tons.
The average selling price of tin metal was USD26,828 per metric ton or 35% lower compared to the same period the previous year of USD41,110 per metric ton. As of the second quarter of 2023, TINS recorded tin exports of 92% with the top 6 export destination countries including Japan 17%; South Korea 14%; Netherlands 11%; United States 9%; Taiwan 9%; and India 8%.
Financial Performance
From the production and sales of tin metal generated in the second quarter of 2023, the Company managed to record revenue of IDR 4.57 trillion, resulting in EBITDA of IDR 533.6 billion and profit for the year of IDR 16.2 billion.
The Company's asset value position in the second quarter of 2023 was IDR 12.80 trillion, while its liabilities position was IDR 6.12 trillion, an increase of 2% compared to the position at the end of 2022 of IDR 6.02 trillion. In addition, bank loans and bonds payable in the second quarter fell to IDR 2.72 trillion from the previous IDR 2.77 trillion.
The equity position was IDR 6.68 trillion, down 5% compared to the position at the end of 2022 of IDR 7.04 trillion in line with the distribution of reserved dividends.
The Company's financial indicators show promising results as seen from several important financial ratios including the Quick Ratio of 48%, Current Ratio of 206%, Debt to debt-to-asset ratio of 21%, and Debt to Equity Ratio of 41%.
Current conditions and prospects for the future
The momentum of new management changes in the Company's Board of Directors at the AGMS on June 15 2023 is expected to continue and improve the Company's performance. Several members of the Board of Directors currently serving are the best talents who have been involved in the Company for a long time and have competence in their fields which is expected to bring improvements to the Company's performance in the future.
The new management has made strategic efforts to improve the Company's performance, including adding Production Suction Vessel units, implementing efficiency in all business processes, increasing primary mine production capacity, opening new land mines, and increasing recovery by optimizing processing units. On the other hand, securing the Company's assets and enforcing regulations as well as community mining cooperation to reduce illegal mining in the Company's mining concession areas are also being encouraged.
Management remains optimistic that there will be an increase in the next quarter according to the targets set by the Company.
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A brief description of PT TIMAH Tbk:
PT TIMAH Tbk is the leading tin producer as well as the largest tin exporter in the world with mining and smelting operations in Bangka Belitung, Riau Islands, and Riau.
Being a Limited Liability Company since 1976 and listed on the Indonesian Stock Exchange since 1995, PT TIMAH carries out vertically integrated tin business from exploration, mining, smelting, and refining, to marketing for overseas and domestic customers. Refined tin products with the brands "Banka Tin", "Kundur Tin" and "Mentok Tin" officially registered in the London Metal Exchange (LME) are considered to be the most preferred brand.
Currently PT TIMAH which is a member of the International Tin Association (ITA) has 4 (four) main business lines namely tin mining, downstream products (tin chemical and tin solder), non-tin mining (coal and nickel), as well as competency-based businesses such as hospitals, property, shipyards, agribusiness.
For further information, please contact:
Abdullah Umar, Corporate Secretary
Telepon : +62 (21) 23528000 dan +62 (717) 4258000
Email : corsec@pttimah.co.id
Website : www.timah.com
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