Indonesia’s state-controlled tin producer PT Timah reported an 81% year-on-year rise in net profit to Rp 860 billion (US$99 million) in the nine months to September 2011, but its operating margin has slipped recently as a result of the fall in LME prices in the third quarter. Average margin per tonne in the year to date was US$4,895, but the figure for Q3 fell to $3,166/tonne. The average price received in the latest three months was $25,970/tonne versus delivered costs of $21,826/tonne. Costs tend to fall in response to lower prices, as Timah buys in part of its feed from small scale miners operating within its mining leases at market-related prices.
Refined tin production and sales in January-September are a little lower than in the same period of 2010, while mine production is slightly higher. The differences are due to the fact that the company ran down its stocks of tin metal, concentrates and slag last year. Cumulative figures and y-o-y changes are: mine production 28,165 tonnes (+3.8%); refined tin production 28,532 tonnes (-3.7%); refined tin sales 25,266 tonnes (-13.6%).
