KUALA LUMPUR & SINGAPORE: Malaysia Smelting Corporation Berhad (“MSC” or “the Group”), a prominent tin miner and metal producer, has released its financial results for the second quarter (“2QFY24”) and first half ended June 30, 2024 (“1HFY24”).
In 2QFY24, MSC reported a 25.6% year-on-year increase in revenue to RM410.8 million, up from RM327.0 million in 2QFY23, driven by higher average tin prices. However, net profit attributable to owners declined to RM16.7 million from RM28.4 million in the same period last year. The tin smelting segment’s profit after tax fell to RM4.7 million compared to RM16.3 million in 2QFY23 due to scheduled maintenance of the Top Submerged Lance (“TSL”) furnace from mid-May to mid-July 2024, impacting production and revenue.
Conversely, the tin mining business saw a 45.2% increase in profit after tax to RM24.9 million in 2QFY24, buoyed by favourable tin prices of RM153,400 per metric tonne compared to RM116,500/MT in 2QFY23.
For the first half of FY24, MSC’s revenue grew 15.9% year-on-year to RM773.3 million, supported by higher average tin prices of RM139,100/MT compared to RM116,300/MT in 1HFY23. Net profit for 1HFY24 amounted to RM35.0 million, down from RM63.9 million in the prior year.
Dato’ Dr. Patrick Yong, Group Chief Executive Officer of MSC, commented, “In the first half of 2024, we benefited from favourable tin prices driving top-line growth. However, our profitability was impacted by planned maintenance of the TSL furnace, reducing tin output and smelting income.”
Looking ahead, Yong emphasized MSC’s commitment to enhancing operational efficiencies, including the phased closure of the Butterworth smelting facility by 2025 and consolidation at the Pulau Indah smelter in Port Klang. The Pulau Indah facility features a 1.26 megawatt-peak (“MWp”) solar photovoltaic system to lower carbon footprint and energy costs.
“In tin mining, we aim to increase daily output and productivity through technology upgrades, expanded mining operations, and strategic partnerships,” Yong added. “These initiatives are integral to securing MSC’s sustainable growth, positioning us to tackle future challenges and seize opportunities in the tin industry.”
