PT Timah Tbk (IDX: TINS) targeting to sell 31,000 tones of tins and process 30,000 tones of tin ore to becomes 34,000 tones of metal - Photo: AP3I Office

JAKARTA (TheInsiderStories) – State miner, PT Timah Tbk (IDX: TINS) targeting to sell 31,000 tones of tins and process 30,000 tones of tin ore to becomes 34,000 tones of metal, said the management on Tuesday (04/06). The company also plans to produces 750,000 tones of coal from South Kalimantan mines.

In 2021, he said, the growth of world refined tin consumption to increase by 3.6 percent or around 353,900 tones compared to consumption of 341,600 tones in 2020. He is optimistic that the metal industry, especially tin, will improve inline with global trend prices.

Finance director, Wibisono, said virtually, to support the plans, the tin producer allocated a capital expenditure of Rp1.9 trillion (US$131.03 million) in this year. Most of the funds used to maintain the company’ debt equity ratio. Timah is also exploring a loan facility amounting to $100 million from its parent, PT Indonesia Asahan Aluminium (MIND ID) to refinances the debt and for working capital.

“We are trying to replace some of our US Dollar debts into shareholder loan. This is a natural hedge strategy to avoid a high fluctuation in the exchange rate so the impact will not hit our profit and loss,” he told reporters on Nov. 10, 2020.

As early November, the miner has bank loans Rp6.6 trillion. Of that amount, the company’ dollar debt reached $126 million. Now, the issuer has withdrawn a loan of around $30 million for the expansion of the Ausmelt furnace smelter in Muntok, Bangka Belitung. The completion of the smelter is targeted on January 2022 with total costs $80 million.

The miner also optimistic to construct a new smelter in Bangka Belitong Island, South Sumatera, would be completed at the end of 2021. The Rp1.2 trillion’ project construct by PT Wijaya Karya Tbk (IDX: WIKA) and Sydney-based Outotec Pty. Ltd. The CEO Riza Pahlevi explained, the new smelter will have capacity production 40,000 tones of crude tin or 35,000 tones of ingot per year.

In the shareholders meeting held today, Timah announced not to distribute dividends for the 2020 financial year because still experienced loss. In order to generate net profit, Timah is still trying to pay off its debts this year, said Wibisono.

Last year, the company posted a net loss Rp340.59 billion in, shrank by 44.28 percent compared to a previous year Rp611.28 billion. The revenues also dropped 21.33 percent from Rp19.34 trillion to Rp15.21 trillion in 2020.

US$1: Rp14,500

Written by Editorial Staff, Email: theinsiderstories@gmail.com