By Romel S. Gurky
IDX-listed tin mining company PT Timah Tbk (IDX: TINS) returned to profitability in 2024, driven by higher sales, increased selling prices, and reduced interest expenses.
The company reported a net profit of Rp 1.19 trillion in 2024, reversing a net loss of Rp 449.67 billion in 2023. This strong performance was supported by a 29.37% increase in revenue, which rose to Rp 10.86 trillion in 2024 from Rp 8.39 trillion in 2023. This growth was primarily due to higher tin metal sales volumes and an increase in the average selling price of tin metal.
Timah's cost of revenue increased by 1.26%, from Rp 7.93 trillion in 2023 to Rp 8.03 trillion in 2024. The company posted an operating profit of Rp 1.76 trillion and an EBITDA of Rp 2.71 trillion, reflecting a remarkable 396% increase compared to 2023.
At the end of 2024, the company’s assets slightly decreased by 0.42%, totaling Rp 12.80 trillion compared to Rp 12.85 trillion at the end of 2023. However, its liability position improved, decreasing by 19.08% to Rp 5.35 trillion, down from Rp 6.61 trillion in 2023, due to the repayment of short-term bank loans, bonds, and the buyback of medium-term notes (MTN).
Equity grew by 19.35% to Rp 7.45 trillion, up from Rp 6.24 trillion at the end of 2023, reflecting the company’s return to profitability.
"In the face of macroeconomic challenges and a tight global tin supply, we delivered exceptional results in 2024 by achieving a net profit of Rp 1.19 trillion, a 364% improvement from the previous year’s loss. This success was driven by our efforts to optimize production, enhance marketing, and improve financial performance through reduced interest-bearing debt and cost-efficiency measures," said Fina Eliani, Director of Finance and Risk Management of Timah, in a statement obtained on Wednesday.
Throughout 2024, global tin metal prices fluctuated due to macroeconomic uncertainty and supply developments. The average price of tin at the London Metal Exchange (LME) Cash Settlement Price in 2024 stood at US$ 30,177.45 per ton, marking a 16.3% increase compared to US$ 25,959.04 per ton in 2023. Tin inventories at LME warehouses declined by 35.6% by the end of December 2024, falling to 4,800 tons from 7,450 tons at the start of the year.
According to the CRU Tin Monitor (February 2025), global tin metal production is expected to grow by 1.4% in 2024, reaching 371,880 tons, while global consumption is projected to decrease by 2.6%, totaling 372,720 tons.
Read also : Timah targets higher revenue in 2025
Timah’s financial performance in 2024 was bolstered by strong financial ratios, including a Quick Ratio of 73.2%, a Current Ratio of 222.0%, a Debt to Asset Ratio of 41.8%, and a Debt to Equity Ratio of 71.8%.
The company continued its efforts to improve efficiency by reducing fixed costs through selective investments and managing depreciation expenses. Additionally, it focused on reducing interest-bearing debt to lower interest costs, including repurchasing MTN. To ensure the sustainability of its tin mining operations, Timah is carrying out exploration activities both on land and at sea to identify new tin resources and reserves. As of 2024, the company reported tin resources of 807,234 tons and reserves of 312,506 tons.
Operational performance
Timah recorded a 31% increase in tin ore production, reaching 19,437 tons of Sn by the end of 2024, up from 14,855 tons in 2023. This growth was driven by an increase in onshore mining units, higher productivity in marine mining, and optimized excavation techniques.
Tin metal production also grew by 23%, reaching 18,915 metric tons in 2024 compared to 15,340 metric tons in the previous year. Meanwhile, tin metal sales increased by 22%, reaching 17,507 tons in 2024, up from 14,385 tons in 2023. The average selling price of tin metal was USD 31,181 per metric ton, reflecting a 17% increase from USD 26,583 per metric ton in 2023.
Editing by Reiner Simanjuntak
