Jakarta: State-owned tin mining company PT Timah Tbk announced that its net profit skyrocketed 483 percent to Rp1.3 trillion in 2021 after suffering Rp341 billion in losses a year earlier.
"PT Timah Tbk's net profit surged as costs of revenues declined 21 percent to Rp11.17 trillion in 2021 as compared to Rp14.09 trillion in the previous year," PT Timah Tbk Corporate Secretary Abdullah Umar stated here on Tuesday.
Meanwhile, Earning Before Interest, Taxes, Depreciation, and Amortization (EBITDA) in 2021 jumped 150 percent to Rp2.90 trillion as compared to Rp1.16 trillion due to a decline in financial costs after the company adopted a deleveraging strategy and managed to choose low-cost funding sources as one of the supporting factors, he stated.
"The other financial indicator serving as a parameter of PT Timah Tbk's improving performance is profitability in which the net profit margin (NPM) rose to nine percent as compared to minus two percent in 2020. Meanwhile, the gross profit margin (GPM) increased to 24 percent as compared to seven percent in 2020," he stated.
The debt to equity ratio stood at 82 percent as compared to 142 percent in 2020. Cash and cash equivalent also rose significantly to Rp1.78 trillion as compared to Rp807 billion the year before.
"Looking ahead, the challenge to operational performance will become our concern to respond to it with optimism. The company will make maximum efforts to arrange the mining sites more accurately as well as to improve several aspects in the context of mining strategy and operation facility," he remarked.
He said PT Timah Tbk is in the process of building a smelter with the Ausmelt technology that is believed to increase production.
"The utilization of Ausmelt technology, which will become operational in the second semester of this year, would hopefully be able to keep down the production costs of tin metal, so the profitability will increasingly be promising amidst the competitive business climate," he stated.