PT Timah, the world’s largest tin producer, has predicted a 19 percent slump in its revenue this year compared to last year due to oversupply and lower tin prices in international market.
Timah finance director Krishna Syarif said Thursday the company expected to gain Rp 7.6 trillion (US$ 798 million) in revenue this year, down from Rp 9.05 trillion last year.
“The revenue will be smaller compared to last year because the price for tin is forecast to stay low until year-end,” Krishna said.
He added that the company’s net profit would drop to Rp 350 billion from Rp 1.34 trillion in 2008.
The price for tin at the London Metal Exchange (LME) averaged $13,061 per ton this year, down from $21,900 per ton last year.
Timah has reportedly sold its production this year at $12,000 per ton.
Despite the falling price, the company's production increased to 36,453 tons as of September compared to 34,045 tons in the same period last year.
“We are committed to maintaining consistent supply for our consumers. We just face external problems such as low prices,” Khrisna said.
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