Monday, July 13, 2009

Timah measured resources increased

Giant tin producer PT Timah (TINS) Tbk has raised its measured tin resources by 9327 tons from its exploration activities in the first half 2009. 
Timah has spent about US$1 million in various exploration activities in the first half. The additional measured resources are mainly sourced from Kundur and Belitung operations.
Timah has suspended some of its expansion projects this year, including its plan to acquire coal mine and construction of new asphalt plant in Buton, South East Sulawesi. Timah initially planned to build an asphalt extraction plant with US$25 million investment in Buton. The company has also studying coal mine targets for acquisition in East Kalimantan, South Kalimantan, and South Sumatra.
Timah is currently focusing on the construction of tin chemical plant with US$25 million investment in Cilegon, West Java, the purchase of three dredges of US$9 million, and other US$2 million investment in shipyard.
Timah reported net profit of US$1.25 million in Q1 2009, crashed from US$52.9 million in the same period last year due to the fall of tin prices and higher production costs. Its share price dropped from Rp3600 in July 2008 to as low as Rp910 in late October 2008, but then quickly recovered to Rp2425 last month. As metal prices retreated in the world market, Timah stock price also fell back to Rp1870 last week.

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