In a statement issued today, MSC pointed out that the average prices of tin fell by 26% to RM104,700 from RM141,900 per metric tonne during the quarter.

The tin miner and metal producer also cited a longer-than-expected furnace outage caused by delays in securing specialised fire-rated bricks as well as increased operating costs during the quarter for its poorer financial performance.

As a result, the group’s smelting arm posted a net loss of RM46 million for the quarter, down from a RM4.9 million net profit in the same quarter of the previous financial year (Q3 2021).

The net profit for the mining operations fell 72.6% to RM8 million on the back of lower tin prices and a one-off provision for a legal settlement of RM4.7 million, the statement said.

MSC recorded a revenue of RM344.1 million during the quarter.

On the other hand revenue for the nine months to Sept 30 rose 35.4% to RM1.1 billion from RM821.5 million from the corresponding period in the previous financial year.

The net profit also rose 34.2% year-on-year, to RM72.5 million from RM54 million previously.

MSC attributed the improved performance to the higher average prices of tin and higher production of refined tin.

During the nine-month period, tin prices climbed 22% to RM148,800 from RM121,500 per metric tonne in the corresponding period of 2021.

MSC group CEO Patrick Yong said operational costs also rose partly because of the prolonged Russia-Ukraine war.

Moving foward, he said, the smelting facility in Pulau Indah would see higher production from a more efficient top submerged lance furnace technology.

“We also expect to cut costs by about 30% with lower manpower and reduced carbon emissions,” he said.

He added that steps were also under way to enhance operations at its tin mining arm at the Rahman Hydraulic Tin mine in Klian Intan, Perak.