JAKARTA. PT Timah (Persero) Tbk (TINS) lost Rp 26 billion in the second quarter (Q2) of 2019, since its cost of good sold (COGS) rose to Rp 5.3 trillion.
Ariyanto Kurniawan and Wesley Louis Alianto, analysts of the mining sector in Mandiri Sekuritas, said that TINS' COGS ??is 174% higher than the figure recorded in the same quarter last year (YoY) and 53% from Q1 2019. "The high COGS was mainly caused by the high cost of raw materials, third-party services operating expenses," said the two analysts on Monday (30/9), to idnfinancials.com.
In addition, Mandiri Sekuritas assessed that the large inventory of TINS ??made the cash flow from operating activities became negative in June 2019. "The company needs to reduce its inventory to increase its CFO (Cash Flow from Operations), which in our opinion will also reduce its capital requirements," said Kurniawan and Alianto .
So far, Mandiri Sekuritas assesses that TINS' ??revenue has the potential to decrease in the 2019 fiscal year. Even though a number of illegal mines have been closed down, TINS has to face the fact that tin price fell from US$ 21,000/ton to US$ 16,000/ton (KR/AR)