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May 07, 2021 23:17 pm +08
 

KUALA LUMPUR (May 7): Malaysia Smelting Corp Bhd returned to black with a net profit of RM22.12 million in the first quarter ended March 31, 2021 (1QFY21) against a net loss of RM13.19 million a year before, on the back of higher average tin prices.

Quarterly revenue increased by one-third to RM275.91 million from RM205.31 million a year ago, thanks to higher refined tin sales and more favourable average tin prices,   the company&rsquo s filing with Bursa Malaysia showed. 

The group&rsquo s tin mining arm posted a net profit of RM19.6 million in 1QFY21, representing a three-fold jump from RM4.5 million in 1QFY20. The improved performance was primarily driven by higher tin prices and increased tin production during the quarter. Average tin prices for 1QFY21 climbed 49% higher to US$24,737/tonne (RM101,718), compared with US$16,656/tonne (RM68,489) in 1QFY20. Its tin smelting division, meanwhile, reported a net profit of RM10.4 million against a net loss of RM19.3 million in 1QFY20, lifted by the reversal of inventories written down, amounting to RM24 million.

 

Going into 2021, its group chief executive officer Datuk Dr Patrick Yong said the group&rsquo s performance was further boosted by higher tin prices with London Metal Exchange (LME) tin prices rising to 10-year high of USD30,995/tonne in March 2021. The spike in tin prices was fuelled by greater demand for tin solder in consumer electronics, as well as depleting supply of tin worldwide, he said.

&ldquo Moving forward, tin consumption is expected to continue its strong run post pandemic. In the long run, the outlook of tin looks promising with prospects in electronics and energy technologies, as more tin applications are being discovered. With the group&rsquo s ongoing initiatives, we are poised to capture arising opportunities in this growing market,&rdquo he added.

Currently, the group is working on enhancing the cost-effectiveness and extractive yields of its smelting operations with the move to the new Pulau Indah smelting plant.

&ldquo Right now, the Pulau Indah smelter is running at 30% capacity with the more efficient Top Submerged Lance (TSL) furnace and will gradually increase production to 100% by end-2021 or early-2022.  

&ldquo As the TSL furnace follows a single-stage smelting process, we look forward to increased efficiencies with lower carbon discharge,&rdquo he added.  

For our tin mining operations, the group&rsquo s   efforts are directed towards enhancing overall mining productivity, while exploring new tin deposits at the group&rsquo s Rahman Hydraulic Tin mine in Klian Intan. &ldquo At the same time, we are exploring potential joint venture arrangements to further expand mining activities,&rdquo Yong added. 

Malaysia Smelting Corp' s shares closed unchanged at RM2.66 today, giving it a market capitalisation of RM1.06 billion. There were 1.06 billion shares traded. The counter has jumped 90% from RM1.40 on Jan 4.