The issuer of base metal producer PT Kapuas Prima Coal Tbk (ZINC) experienced a decline in sales during the first semester of 2022 by 18% year on year (yoy) to Rp 411.35 billion, from Rp 499.94 billion in the same period the previous year. The decline in sales caused ZINC’s net profit to drop by 68% to only Rp 28.27 billion compared to the same period the previous year which could reach Rp 89.52 billion.
As an effort to recover performance in the second semester, Director of ZINC Evelyne Kioe said, ZINC will boost production with a target of high galena levels in semester II-2022.
Meanwhile, the beginning of 2022 will be quite a challenging year, due to the shrinking global economy related to the ongoing Russia-Ukraine war. Although commodity prices for lead (Pb) and zinc (Zn) briefly increased in the first quarter of 2022, corrections to commodity prices occurred again in the second quarter of 2022.
Along with the increase in commodity prices in the first quarter of 2022, the majority of prices for raw materials for oil, transportation and others also increased many times due to high inflation and scarcity of supplies. “This of course has a negative impact on the company’s performance on both sides,” said Evelyne in her official statement, quoted Monday (15/8/2022).
In general, he continued, Pb and Zn commodities were still relatively stable, as seen from the consolidated Pb and Zn prices at US$ 2,160 per tonne and US$ 3,600 per ton, respectively. This is due to the high global demand for these two commodities. The second factor was also caused by the number of smelters in Europe which were temporarily closed due to the energy crisis.
“We will, of course, flexibly use strategies in development, both in terms of capacity, level, efficiency in order to keep the company’s performance positive,” said Evelyn.