KUALA LUMPUR (May 24): Tin smelting and mining outfit Malaysia Smelting Corp Bhd’s (KL:MSC) net profit for the first quarter ended March 31, 2024 (1QFY2024) fell 48.5% to RM18.24 million from RM35.41 million a year earlier, mainly due to the absence of sale of refined tin from processed tin intermediates, sales of by-products, coupled with lower tin production.

Quarterly revenue rose 6.6% to RM362.48 million versus RM340.06 million a year ago on the back of higher tin prices, according to the group’s bourse filing on Friday. Average tin price stood at RM124,900 per metric tonne (MT) versus RM116,100 per MT previously.

No dividend was declared for 1QFY2024.  

Looking ahead, MSC expects lower operational and manpower costs with the full commission of its Pulau Indah smelting plant and the planned closure of the old Butterworth plant.

“The plan to de-commission the smelting facility at Butterworth in stages is on track and the group anticipates cost savings of up to 30%,” the group said.

The planned shutdown is expected to be completed by 2025, according to the group’s Annual Report 2023.

On its tin mining segment, MSC said it continues to focus on improving daily mining output and productivity in the form of expanding mining activities, mine resources and participating in new mining joint ventures.

Shares in MSC ended 10 sen or 3.03% lower at RM3.20, valuing the tin producer and miner at RM1.34 billion.