PT Timah Tbk (TINS) this year will focus on allocating capex to increase mining production. This state-owned issuer has prepared capex funds worth approximately IDR 950 billion. TINS Corporate Secretary Abdullah Umar Baswedan said the funds came from internal sources as well as bank loans. "This year's capital expenditure, it is clear that the allocation is focused on the maintenance of production vessels. One of them is also to increase industrial tin production and support downstreaming. Our concern is increasing production for downstreaming," Abdullah told media crew in Jakarta, Wednesday (10/5) .
Abdullah continued, this capex value is also part of the strict efficiency carried out by the Company. This year's capex budget is really channeled into activities to increase production, both for increasing metal production, tin ore and its derivatives. Meanwhile, TINS targets to increase tin ore production by 30% to 35% this year. As an illustration, tin ore production throughout 2022 will reach around 20,000 tons.
Meanwhile, in the first quarter of 2023 TINS recorded a decrease in tin ore production of 4,139 tons, down 8% compared to the same period the previous year of 4,508 tons. Even metal production fell 18% to 3,970 tons in the first quarter of 2023 from 4,820 in 2022. Also sales of tin metal fell 26% to 4,246 tons from 2022: 5,703 tons. Responding to this, TINS explained that the decline in production occurred because world metal prices were still high and the ecosystem was considered not good. "We hope that by increasing production, prices can also improve," added Abdullah.
Abdullah also said that this decline was caused by illegal mining activities. According to him, this causes environmental damage and an unhealthy economic climate. "With this, we hope that in the future, the tin ecosystem in Indonesia can be better so that healthy mining can be created and production can increase again," he said. Furthermore, in the first quarter of 2023 TINS recorded a decrease in revenue and net profit. TINS pocketed a profit of IDR 50.278 billion or a 91.6% drop in the first quarter of 2023 compared to the same period in 2022 which was IDR 601.46 billion.
Income items fell 50.5% to Rp 2.171 trillion. In detail, tin metal sales fell 51.7%, remaining Rp 1.732 trillion. Not much different, tin chemical sales fell 62.7%, remaining Rp 176.43 billion. Coal sales increased 46.9% to Rp 78.955 billion. Then, sales of tin solder shrank 29.4% to Rp 79.596 billion. The company's assets as of March 2023 shrank to IDR 12.85 trillion from IDR 13.06 trillion in December 2022. Liabilities fell to IDR 5.80 trillion in the first quarter of 2023 from IDR 6.02 trillion the previous year. Meanwhile, equity until March 2023 rose to Rp 7.05 trillion compared to December 2022's position of Rp 7.04 trillion.
