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TINS Performance Gradually Recovers

The financial performance of PT Timah Tbk (IDX; TINS) continues to show better performance in the third quarter of 2020. This can be seen from the company's operating cash flow of IDR 4.84 trillion, up compared to the second quarter of 2020 of IDR 3.17 trillion. Another indicator that shows PT Timah's improved financial performance is in terms of Ebitda, in the third quarter of 2020 it was recorded that Ebitda was Rp.850.36 billion, an increase compared to the second quarter of Rp.338.72 billion.

In terms of short-term debt, PT Timah also continued to experience improvement, in the third quarter the position of short-term bank debt of Rp.4.74 trillion decreased by 46.10 percent when compared to 2019 amounting to Rp.8.79 trillion. Meanwhile, for long-term loans that have been repaid amounting to Rp. 600 billion. "The improvement in operating cash flow and Ebitda is an indicator of the issuer's financial health, so that TINS ??is able to pay part of its short-term obligations and bond payables," said Finance Director of PT Timah Tbk, Wibisono, Thursday (5/11/2020).

In terms of profit, PT Timah still posted a loss in the third quarter of Rp255.16 billion. However, when compared to the second quarter of 2020 amounting to Rp390.07 billion, it means that there is a decrease in losses. "We are trying to improve the company's financial performance through improving cash flow and ebitda, with smooth cash flow and ebitda showing that the company's financial condition is getting healthier," he explained.

The perspective of the second quarter of 2020 shows improvement compared to the second quarter, including the Gross Profit Margin (GPM) which rose to 6.40 percent from 3.13 percent previously. In addition, Net Profit Margin increased from -4.89% to -2.15% previously. Wibisono explained, in terms of operating performance in the third quarter, production was recorded at 34,592 tons or a decrease of 47.44 percent from 2019 amounting to IDR 65,819 tons. This also affects the company's financial income. Financial performance as of September 30, 2020 recorded revenues of Rp. 11.8 trillion, 18.42 percent lower than in 2019 of Rp. 14.56 trillion. "The decline in tin ore production was due to the dynamics of the tin business in Bangka Belitung in Semester two, so it had an impact on income," he explained.

With this condition, he believes the company's financial condition in the fourth quarter will show improvement. This is in line with the company's strategy by shifting mining production tools and techniques from alluvial to primary mining. "With this mining shifting pattern, the potential for tin reserves to be obtained will automatically increase. Where only PT Timah applies a primary tin mining system both in Babel and in the Riau Islands, this new reserve will also ensure the continuity of the tin business in the future, "he continued.

Not only that, PT Timah will also carry out several strategies to improve the company's condition, including by optimizing production from its own concession, maintaining no leakage of tin ore due to the company's mining business license. make law enforcement efforts to manage tin business, and continue to make efficiency. "We are optimistic that the better in the fourth quarter, the better, because the opportunity is always there, even though it is hard, the company is trying hard for now we are getting better," he concluded. *