Timah net profit plunged 96.14%

Net profit of PT Timah Tbk in semester I/2009 plunged 96.14 percent into IDR42.82 billion as from IDR1.11 trillion last year due to the tin commodity price drop.
The revenue plummet decreased the net profit per share unit into IDR9 as from 221 per share.
In the public expose to the Indonesia Stock Exchange (IDX) last week, the management reported corporate net profit in January-June declined 15.79 percent as from IDR4.20 trillion into IDr3.54 trillion.
The revenue cost rose from IDR2.27 trillion into IDR3.16 trillion. But the business cost could be minimized into IDR196.40 billion as from IDR261.34 billion. The business profit declined 89.32 percent into IDr178.60 billion as from IDR1.67 trillion.
Quarterly, the sales of Timah in quarter II/2009 declined 18.37 percent into IDR1.95 trillion as from IDR2.39 trillion last year. The net profit crashed 95.45 percent as from 624.5 billion into IDr28.4 billion.
The business profit to sales ratio was slashed from 40 percent into 5 percent and in quarter II/2009 dropped from 38 percent into 8 percent.
The management said the crashing net profit happened due to the tin price slump by 38.30 percent as from US$19,591 per ton into US$12,087. The cost of tin delivery per ton rose from US$11,291 into US$11,442 per ton. Besides, the cash delivery cost rose from US$10,776 into US$10,920 per ton.
Fortunately, the refinery cost per ton declined from US$11.655 into US$10.199. The margin per ton dropped 92.23 percent as from US$8,299 into US$645. The top tin price in London Metal Exchange in semester I/2009 hit US$15,850 per ton and the lowest at US$10,055 per ton, with average US$12,267 per ton. Compared to the average sales price of the same period 2008 of US$20,212 per ton, the average realization this year is lower by 39 percent.
The tin production declined 15.72 percent as from 22,992 tons into 19,378 tons. However, the refined tin rose 15 percent as from 20,954 tons into 21,110 tons.
In general, global tin production this year stood at 206,000 tons or 6 percent lower than 325,500 tons. The consumption projection dropped 12 percent as from 330,600 tons into 294,000 tons. The Indonesia tin export sales rose 9.2 percent into 50,575 tons as from 46,322 tons last year.
The exploration increasing the tin reserves in semester I/2009 jumped sharply 68 percent as from 5,540 tons into 9,327 tons. The total exploration cost stood at IDR16,63 trillion.
At the same time, Timah reported the asset per June 30, 2009 declined 15 percent as from December 31, 2008 into IDR4.89 trillion as from IDR5.78 trillion.
The asset plummet is due particularly to the tin inventory depreciation by 62 percent as from IDR2.77 trillion into IDr1.05 trillion.
Despite the falling performance, Timah stock price, TINS, was closed at stagnant level of IDR2,100 yesterday with market capitalization of IDR10,57 trillion.