M’sia Smelting posts best quarterly profit in two years

Malaysia Smelting Corp - tin smelting activities.

KUALA LUMPUR: Malaysia Smelting Corp Bhd (MSC) posted a net profit of RM24.94mil in the first quarter ended March 31, 2016, its best quarterly performance in two years that also marked a return to the black compared with a year earlier.

The tin mining and smelting company told Bursa Malaysia that revenue improved by 7% to RM408.401mil from the corresponding period in 2015.

MSC attributed the better profit to higher sales volume of refined tin, a favourable valuation adjustment on tin inventory arising from higher closing tin price at end of 1Q 2016 and a positive impact from foreign currency translations,” it said.

On the current year prospects, it said tin prices had somewhat improved, but market conditions remained challenging as the global commodity and resource sectors were still unstable amid volatility in commodity and metal prices including tin.

“Despite these challenges, the underlying operations of the group comprising Butterworth International Smelter and the Rahman Hydraulic Tin mine are expected to perform satisfactorily for the current financial year, but the board remains cautious that the group’s financial results will continue to be impacted by tin price and foreign exchange fluctuations,” MSC said.

MSC shares have been on an upward trend since Feb 3, gaining 25.3% to close at RM2.77 on Tuesday. This was up 6 sen from Monday’s close, with 80,300 shares traded for the day.

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