SHANGHAI, Apr. 30 -- PT Timah reported a ten-fold increase in its net profit to Rp 141.8 billion (US$15 million) in January-March 2010, with its margin per tonne rising from $176/tonne to $3,262/tonne. However its refined tin production declined by 11% year-on-year to 9,266 tonnes. The drop in smelter output was despite a large increase in purchases and production of tin-in-concentrate, which rose by 40% to 7,397 tonnes.
The growth in mine supply was due to a leap in onshore concentrate availability (up 93% to 5,241 tonnes), while offshore production fell by 16% to 2,156 tonnes. The shift in the onshore/offshore split in ore supply reflects reduced competition from private smelters compared to the same period of last year for ore from small mines, while offshore dredge output was adversely affected by the late end to the monsoon season. Apart from this seasonal effect, Timah's offshore production has been on an upward trend, as dredging capacity has been enhanced by the addition of new cutter suction dredges.
Timah reported average delivered costs per tonne of tin of $13,708/tonne in Q1, up from $12,510/tonne in the final quarter of last year, while the average tin price received was $16,970/tonne.