MSC positive on FY15 financial results

GEORGE TOWN: Malaysia Smelting Corp Bhd (MSC) is positive on its financial results ending December 2015 mostly driven by the smelting business.

Chief Executive Officer Chua Cheong Yong said the smelting segment would continue to be profitable this year while the mining business would be price-related.

"The mining business is more sensitive to the tin price. The production levels of smelter and mining would be maintained, but the mining division's profitability will depend much on the tin price," he said after the company's annual general meeting here today.

Chua said with the current tin price at US$15,800 per tonne, MSC's mining division is likely to struggle, although the smelter business would continue to be profitable.

Chua said MSC's Butterworth smelter has expanded to six furnaces, its first smelting capacity expansion in nearly 50 years of operations.

"The new furnace started operations last December and we expect it to contribute an additional 15 per cent to the smelter's overall capacity this year," he said.

The expansion would also give the smelter a more effective flow-sheet, providing opportunities for smelting additional feedstock, reduction of intermediate stocks as well as enhancing its by-product stream, he added.

On the mining segment, Chua said Rahman Hydraulic Tin Sdn Bhd (RHT) acquired an 80 per cent interest in SL Tin Sdn Bhd in March last year with a 15-year mining lease over an area of 267.3 hectares in Sungai Lembing, Pahang.

SL Tin is carrying out exploration works, targeting to proceed to resource determination this year.
Chua said MSC, the world's second largest tin producer producing about 34,000 tonnes annually, is able to ride through the current depressed tin price level.

He said MSC focuses on long-term objectives, and the group has been in the industry long enough to understand price cycles, adding that the market is fund-driven while the fundamentals are still good.

On outlook, Chua said the tin demand is expected to be driven by solder in the electronics industry which remains robust and vibrant, adding that MSC believes tin will retain its market share in the sector.-Bernama