Thursday 28 Mar 2024
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KUALA LUMPUR (May 18): Tin miner and metal producer Malaysia Smelting Corp Bhd (MSC)’s net profit for the first quarter ended March 31, 2022 (1QFY22) climbed almost three-fold or 190.86% higher to RM64.34 million, from RM22.12 million in the same period last year.

This was mainly on the back of positive movement in average tin prices, which increased by 80% to RM180,006 per metric tonne (MT), from RM100,115 per MT in 1QFY21.

Revenue for the quarter jumped 30.29% to RM359.48 million from RM275.91 million, its bourse filing showed on Wednesday (May 18). 

The group’s tin smelting segment posted a net profit of RM27.7 million in 1QFY22, representing an almost three-fold increase against RM10.4 million in 1QFY21, with the growth driven by improved margins from the sale of refined tin derived from the processed tin intermediates, as well as higher average tin prices in 1QFY22.

The tin mining operations also benefitted from the high tin prices, as net profit grew more than two-fold to RM43.7 million from RM19.6 million in 1QFY21.

MSC group chief executive officer Datuk Patrick Yong in a statement said tin prices continued to trend upwards in 1QFY22, as a consequence of the Russia-Ukraine invasion.

“However, we are now seeing commodity prices, including tin, softening as fears over supply disruptions eased on the back of rising inventories. We expect tin prices to stabilise in the short- to medium term, albeit at higher prices against pre-pandemic levels,” he said.

MSC also remains optimistic on the future prospects of tin in the long run, as demand is expected to outpace suppl,y in line with increasing consumption of consumer electronics and rising tin application for various usages including solar photovoltaic installations and electric vehicles, among others.

Additionally, MSC looks forward to higher extractive yields and operational efficiencies, alongside lower operational and manpower costs upon full commissioning of its Pulau Indah plant, as the group plans to de-commission its Butterworth plant in the next few years.

MSC’s Pulau Indah smelting facility is running at 75% capacity and is expected to achieve full capacity in 2022. 

“By concurrently operating both smelters at Butterworth and Pulau Indah, we were in a better position to fulfill our tolling obligations which were suspended during the pandemic. We have also commenced processing our inventory of tin intermediates,” said Yong. 

As for MSC’s tin mining division, the group is continuously exploring new methods to raise its overall mining productivity at the Rahman Hydraulic Tin (RHT) mine in Klian Intan, Perak.

“At the same time, we continue to strengthen our sustainability efforts as we plan to upgrade the mini hydro plant at the mine to 5.0 MW, from the current 0.75 MW. This will contribute towards achieving net zero carbon emissions for our RHT mine,” added Yong. 

MSC closed up two sen or 0.53% at RM3.78 on Wednesday, giving it a market capitalisation of RM1.59 billion.

Edited ByEsther Lee
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