Affected By Dollar Strengthening, PT Timah Loss IDR 87.4 Billion

PT Timah Tbk (TINS) reported a revenue of IDR 6.4 trillion, resulting in an EBITDA of IDR 708.1 billion with a current year loss of IDR 87.4 billion until the third quarter of 2023.

Director of Finance and Risk Management of PT Timah Tbk Fina Eliani said, until September 2023, world tin metal prices continued to be depressed due to the strengthening of the US currency and the slow recovery of China's economy as well as the weak demand for tin due to the high supply of the London Metal Exchange.

He said this had an impact on the decline in Indonesia's tin exports from the second quarter of 2023 to the third quarter of 2023, especially TINS tin exports to several countries.

"In the midst of the economic slowdown and the weak demand for global tin metals, the Company is consistent in carrying out efficiency in all lines of business. Management is optimistic that its efficiency targets will be achieved and contribute to the Company's performance," said Fina in a statement, Wednesday, November 1.

PT Timah also recorded lead ore production of 11,201 tons or 77 percent of the same period the previous year of 14,502 tons.

The production of lead metal was 11,540 metric tons or 82 percent achieved compared to the same period the previous year of 14,130 metric tons, as well as sales of lead metals of 11,100 metric tons or 72 percent achieved compared to the same period the previous year of 15,325 metric tons.

The average selling price of lead metal is 27,017 US dollars per metric ton or 23 percent lower than the same period the previous year of 35,026 US dollars per metric ton.

As of the third quarter of 2023, TINS recorded lead exports of 92 percent with 6 major export destination countries covering Japan 16 percent; South Korea 13 percent Netherlands 11 percent; India 9 percent; Taiwan 9 percent and the United States 8 percent

Meanwhile, the Company's asset value position in the third quarter of 2023 was IDR 12.7 trillion and the liabilities position was IDR 6.1 trillion, up 0.9 percent compared to the position at the end of 2022 of IDR 6.0 trillion.

In addition, bank loans and bond debt in the third quarter became IDR 2.9 trillion from the previous IDR 2.8 trillion. The equity position was IDR 6.6 trillion, down 5.7 percent compared to the position at the end of 2022 of IDR 7.0 trillion in line with the dividend distribution that had been paid of IDR 312.5 billion.

The Company's financial indicators still show good results, as can be seen from several important financial ratios including Quick Ratio by 25 percent, Current Ratio by 153 percent, Debt to Asset Ratio by 23 percent, and Debt to Equity Ratio by 44 percent.