Timah reports record margins, slump in production
Release date: 28 Apr 2008 Indonesia's PT Timah today reported another very strong quarterly financial performance, but a sharp drop in tin production. Net profit in the three months to end-March was up 55% on the same period of 2007 to Rp 487.3 billion (US$52.4 million), while the state-controlled company's margin per tonne rose to a new record level of $7,831, more than double what it was a year ago. The company's tin-in-concentrate production fell by 61% year-on-year to 8,730 tonnes, reflecting the fact that last year's production was greatly inflated by a surge in purchases from small-scale mines while all the independent smelters in Bangka-Belitung province were temporarily shut down. Production/purchases from inland mining operations in the current quarter amounted to 6,178 tonnes, 69% down on last year. The decline was partly offset by higher offshore production, which rose by 22% to 2,552 tonnes, reflecting increased dredge capacity and higher ore grades. A run down in stocks of tin-in-concentrate helped support refined tin production at 11,523 tonnes, although this was still 20% lower than in the first quarter of 2007. Stocks of tin-in-concentrate now amount to 2,707 tonnes, the lowest level since 2005, having reached almost 20,000 tonnes a year ago
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