It is looking forward to a better 2014 financial year ending Dec 31 (FY2014) as it seeks to complete its divestment of unprofitable tin mining operations in Indonesia by end of 2013.
Once the divestment is completed, the company expects to have more positive profit prospects and a cleaner balance sheet. PT Koba Tin, MSC’s 75% owned subsidiary, did not receive the Indonesian government’s approval to renew the Contract Of Work which expired in March 2013.
MSC had written off its assets in PT Koba Tin. It is looking to complete the clean up by end 2013 and this impairment will not have an impact on earnings for FY2014.
The company’s strategy for fy2013 besides the divestment of non profitable operations, will include continued improvements in the performance of two profitable assets: Its intl tin smelting operations in Penang and the tin mine in Perak.
It is looking at M&As as for its long term growth.
On its gearing of 2.3 times as the end of second quarter 2013 against 2.21 times as at end 2012, most of its borrowings are to finance its working capital. Hence they are short term and revolving in