Refined tin producer Malaysia Smelting Corporation (MSC) announced its profit increased 46% in Q3 following a disrupted second quarter.
The group, which includes MSC’s mining and smelting operations, recorded revenue of RM529.5 million (approximately US$125.7 million), up 39.7% from the previous quarter and up 15.1% from Q3 2024. Refined tin production rose, complemented by a 2.6% increase in the average quarterly tin price.
This translated to a group pre-tax profit of RM35.3 million (approximately US$8.4 million), up 47.7% from the previous quarter which saw disruption due to lower ore intake and the gas pipeline fire incident.
The company highlighted stronger performance of the smelting business due to higher sales of tin intermediate products as well as the higher tin price. The mining segment also saw an improvement in profits due to greater output.
The company last week announced that mining had been paused at its subsidiary Rahman Hydraulic Tin (RHT). RHT—Malaysia’s largest tin mine, producing 2,500 tonnes of tin-in-concentrate in 2024—was suspended on 13 November for three weeks to allow for environmental investigations. Regulators have halted several local mining operations as they investigate recent discolouration of the Sungai Perak river.
MSC said the financial impact is expected to be manageable and not material within the context of the company’s full-year performance. If approval is given to resume within the stipulated time, the company expects operations to resume on 04 December.
In its quarterly results, the company said it remains focused on improving and increasing daily mining output at RHT through new mining methods, improved recovery from lower grade ores, and participating in potential new mining joint ventures.
Providing an update on the decommissioning of the historic Butterworth smelter, MSC said it expected cost savings as a result of the closure while improved efficiencies at the new Pulau Indah smelter will see positive financial and environmental results.
Our view: Intense competition for feedstock as the Wa mining resumption remains sluggish is a key challenge for tin concentrate importers including MSC. Until there is a material improvement in Wa’s output, the international concentrate market is expected to remain extremely tight. Nevertheless, MSC has maintained strong revenue performance through the sale of intermediates and tin-bearing slag.
Malaysia Smelting Corporation is a Member of the International Tin Association.
