Malaysia Smelting mine suspension seen temporary, no outlook hit
KUALA LUMPUR: Malaysia Smelting Corp Bhd’s (MSC) temporary suspension of mining operations is unlikely to derail its overall outlook, according to Public Investment Bank Bhd (PublicInvest).
Malaysia Smelting Corp Bhd (MSC) has suspended mining operations temporarily, but analysts believe this will not harm its overall outlook, according to PublicInvest Bank Bhd. Analyst Denny Oh stated that the suspension at Rahman Hydraulic Tin Sdn Bhd, owned by MSC, is a temporary operational setback. The earnings impact would largely depend on the duration of the suspension.
Assuming a three-week stoppage and a 25% drop in Rahman Hydraulic Tin's quarterly output, the mining segment could face a pre-tax profit loss of RM15 million to RM20 million. This could reduce PublicInvest's earnings forecast for the 2026 financial year by 11% to 15%. However, the tin smelting operations remain unaffected, as MSC can source ore from other mines, partially compensating for the lost volume from Rahman Hydraulic Tin.
The mining operations were suspended on August 12 following heavy rainfall that overwhelmed the mine's drainage and retention pond infrastructure. Rahman Hydraulic Tin is now repairing and upgrading its facilities while working on a remedial action plan with Perak Minerals and the Geoscience Department. The suspension will continue until further notice from authorities.
Despite the disruption, Oh remains optimistic about MSC, citing his confidence in the tin market and the company's prospects. PublicInvest has kept its earnings forecasts unchanged for now and maintained its 'Outperform' rating and RM3.10 target price for MSC, based on an 18 times FY27 forecast earnings per share.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
