Dual-listed tin miner and metal producer Malaysia Smelting Corporation (MSC) has posted profit after tax of RM4.7 million ($1.37 million) for 2QFY2024 ended June, 71.2% lower y-o-y.
The Bursa- and Singapore-listed company attributed the softer performance to MSC’s annual re-bricking and scheduled maintenance of the Top Submerged Lance (TSL) furnace, which took place from mid-May to mid-July.
This impacted the group's overall refined tin production and smelting revenue in 2QFY2024. In the previous year, the annual re-bricking and maintenance occurred from mid-June to mid-August 2023, causing the impact to be felt in different financial quarters.
Meanwhile, the tin mining business saw a 45.2% y-o-y increase in profit after tax to RM24.9 million in 2QFY2024, driven by favourable tin prices of RM153,400 per metric tonne (MT) in 2QFY2024 vs. RM116,500/MT in 2QFY2023.
During the quarter, MSC’s revenue grew 25.6% y-o-y to RM410.8 million, while net profit attributable to shareholders fell 41.2% y-o-y to RM16.7 million.
Taken together with 1QFY2024, MSC’s 1HFY2024 revenue climbed 15.9% y-o-y to RM773.3 million, while net profit fell 45.2% y-o-y to RM35.0 million.
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Patric Yong, group CEO of MSC, says the company remains committed to improving operational efficiencies. “For our tin smelting arm, the phased decommissioning of the smelting facility at Butterworth, Penang is on track for full closure by 2025.”
He adds: “As we shift the group’s smelting operations to the Pulau Indah smelter in Port Klang, we expect to enhance efficiency through reduced operational and manpower costs. Additionally, the Pulau Indah plant utilises a 1.26 megawatt-peak (MWp) solar photovoltaic system, which will further reduce our overall carbon footprint and energy costs.”
In the tin mining segment, Yong says MSC continues to focus on enhancing daily output and overall productivity by implementing new cost-effective technology, expanding our mining activities and resources, and pursuing strategic partnerships.
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MSC is 52% held by the separately-listed Straits Trading Company. MSC posted net profit of RM85.1 million for FY2023, down 13.5% y-o-y. This nearly mirrored the 13.6% y-o-y fall in tin prices.
Shares in MSC closed flat at 76 cents on Aug 2.
