JAKARTA. State-owned tin mining company PT Timah (Persero) Tbk (TINS) has failed to benefit from higher global tin prices.
Mandiri Sekuritas analysts Ariyanto Kurniawan and Wesley Louis Alianto said this was affected by the high prices spent by the company on tin production and third-party services. "This caused the company's cost of goods sold to rise," they wrote in a research.
In the third quarter this year, TINS posted a Rp 381 billion loss. If consolidated from January to September (9M), the company's losses have amounted to Rp 176 billion. Meanwhile, the cash flow from the company's operations is at minus Rp 3 trillion until September.
Until the end of the year, TINS is predicted to face difficulties scoring a net profit, especially if tin price increase is not well-predicted and production costs not lowered. "We predict that TINS will still suffer a loss in Q4-2019," said Mr Kurniawan and Mr Alianto. (KR/MS)