The recently announced PATMI of RM22.1 Million actually includes one of net gain of RM16 million coming mainly from reversal of inventories which were written down previously. If not for that net gain then the PATMI was only RM6.2 million despite so much increase in the tin price in Q1 21.
This company needs everything working 'perfectly' to make the real big bucks. New Pulau Indah TSL Furnace plant needs higher output volumes, better efficiency along with high tin prices to really see great earnings in the following quarters.
Sei Loh, you mean karma hit your family because you have no shares and keep selling call? Better be carefoo oh. When tin hit 3 ringgit, see tin will karma which one of your member Cham Loh
@james70 Any comments to share regarding that less that 10% of MSC smelters input is from their own mines (from Annual Report 2019)? Majority of their tin needs to be imported from other non-operated mines. This should severely limit their profit levels despite much higher Tin prices yes/no?
Get out when Citigroup is pumping commodities. Insiders and institutional owners already scaling out their positions. Sulfuric acid squeeze will affect smelters
@Lawman, MSC via their wholly owned subsidiary Rahman Hydraulic produces around 2,600t of tin concentrates per annum. Their production cost is really competitive at an all in sustainable cost (AISC) around US$10.1k despite their low grade ore. Market leader Alphamin with their 3.8% tin ore reserve are producing at US$12.2k AISC for their 10-12,000t/year.
FYI, when tin prices shoot up, the mining business will be the cash cow. I envisage with the green energy mandate, Paris agreement, demand for tin will continue to be high year on year.
On your question regarding the tin concentrate processed by MSC Butterworth, the percentage is less than 10% as their refining capacity is quite sizeable around 40,000t/annum. Pulau Indah's capacity is much larger at 60,000t/annum.
The refining business is more of a tolling charge. Margins are not as handsome as mining of the tin ore. So I hope this answers your question.
Not sure if anyone noticed that MSC traded in Singapore has formed the cup and now the bottom of the handle. When the handle completes, the target is $1.12 or around RM3.50 in the immediate term.
Straits Trading is holding MSC a slightly above 50%, it is better to buy MSC directly which is 100% in Tin, while Straits Trading got a significant segment in Hotel which seriously impacted by Covid-19.
@ james70 Thanks for sharing. You guys know your stuff!
As many shareholders and potential shareholders are hoping that the high Tin prices will significantly boost earnings. Earnings from tin mining seems to be rather limited due to mining of the tin ore for MSC accounts for <10% of total company output. So the real earnings needs to also come from cost efficiencies from the new plant along with higher volumes than the 30% capacity seen in Q1 2021 for the new plant.
For our tin mining operations, our efforts are directed towards enhancing overall mining productivity, while exploring new tin deposits at the Group’s Rahman Hydraulic Tin mine in Klian Intan. At the same time, we are exploring potential joint venture arrangements to further expand mining activities.”
Moving forward, tin consumption is expected to continue its strong run postpandemic. In the long run, the outlook of tin looks promising with prospects in the electronics and energy technologies as more tin applications are being discovered. With the Group’s ongoing initiatives, we are poised to capture arising opportunities in this growing market.
ABOUT MALAYSIA SMELTING CORPORATION BERHAD The MSC Group is currently one of the world's leading integrated producers of tin metal and tin based products and a global leader in custom tin smelting since 1887. MSC which is a subsidiary of The Straits Trading Company Limited of Singapore is listed both on the Main Market of Bursa Malaysia and the Main Board of Singapore Exchange.
1289t draw on Shanghai Futures Exchange tin warehouse stocks today. General market feeling is that this was for local consumption and not for export to the West. If so, and Chinese market is now short, then next leg higher on prices is imminent.
oh please, spare me this again.. every time when the tin price corrects a little bit, someone will come out of the woods and repeat the same old stuff.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
brian3381
1,888 posts
Posted by brian3381 > 2021-05-10 09:31 | Report Abuse
where is ur rm3 rm5 rm10? hv u cut loss?