Monday, 2 December 2013

MINING COMPANIES IN ALL OUT STRUGGLE TO INCREASE SALES AND JACK UP PROFIT



State Owned Companies [BUMN] of the mining sector were urged to increase sales volume toward end of 2013 to jack up profit. In the event that by quarter III-2013 sales volume was not showing any progress, most likely profit would still be measly. “Therefore mining operators must increase their sales volume so profit would increase by quarter IV” Head of Trust Securities Reza Priyambada made statement last week in Jakarta.

Record had it that BUMN performance in the mining sector was down by quarter III-2013 due to unfavorable global macro economic condition. Besides unprospective price of gold, nickel, steel and tin had downsized their performance.

It was reported that PT Bukit Asam Tbk [PTBA] by September 2013 had their profit drop to Rp1.24 trillion, followed by decreased net profit of PT Aneka Tambang Tbk [ANTAM] by 44,56% to become Rp347.99 billion, lower than the same period of previous year at Rp627.78 billion.

Meanwhile PT Timah Tbk [TINS] was noted to have reduced net profit by 62% to become Rp141 billion against Rp369.9 billion over the same period last year. Financial performance and shares value of Antam would be weakening although the management had been struggling all out to build a nickel factory in Sulawesi. “We have anticipated downturn in financial performance and price share of Antam, but when Antam plan to build a news factory it was expected to serve as positive sentiment” Reza underscored.

Meanwhile shares of PT Timah and PTBA were said to always be the subject to negative sentiment. This was because fundamentally TINS and PTBA shares were unprospective as product’s price was determined by global market price. 

Business News - November 8, 2013

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