PT Timah Tbk (TINS) remains focused on maintaining performance this year. Previously, TINS' performance in the first quarter of 2023 was recorded to have decreased as a result of sub-optimal operational performance and fluctuations in commodity selling prices. Timah Corporate Secretary Abdullah Umar revealed that his party would not change the target for this year.
"The company remains focused on carrying out the plans set out in the 2023 RKAP, including optimizing land and sea mining," Abdullah told Kontan, Monday (8/5). Abdullah added, his party would also increase conservation of the remaining processing results by securing assets and opening new mines. Kontan noted, TINS is targeting to increase tin ore production to 35% this year. As an illustration, tin ore production throughout 2022 will reach around 20,000 tons.
In addition, for this year TINS projects an average selling price (ASP) in the range of US$ 25,000 to US$ 30,000 per metric ton. TINS Director of Finance and Risk Management Fina Eliani revealed that fluctuations in commodity prices occurred throughout the first quarter of 2023. In fact, commodity prices tend to show a decline.
"The global economic recovery at the end of the first quarter of 2023 still faces a number of challenges. From the demand side, tin metal is expected to recover and continue in the second quarter of 2023 in line with strengthening fundamentals," said Fina in a press release, Tuesday (2/5). Fina continued, in the first quarter of 2023, TINS recorded tin ore production of 4,139 tons. This number decreased by 8% year on year (YoY) where in the first quarter of 2022, production reached 4,508 tons.
Meanwhile, TINS metal production fell 18% YoY from 4,820 tons to 3,970 tons in the first quarter of 2023. As production declined, sales of refined tin also decreased by 26% YoY from 5,703 tons in the first quarter of 2022 to 4,246 tons in the first quarter of 2023. Meanwhile, TINS tin exports in the first quarter of 2023 reached 93% of total sales with 6 export destination countries namely South Korea with 17%, Netherlands 14%, Japan 13%, Taiwan 9%, United States 8% and Italy 7%.
In addition to the decline in selling prices, the decline in cost of revenues also had an impact on the company's financial performance in the first quarter of 2023. "The decline in the average selling price of refined tin by 39% from US$ 43,667 per metric ton in the first quarter of 2022 to US$ 26,573 per metric ton in the first quarter of 2023," explained Fina.
