PT Timah Secures $251M Export Bridge Loan From Bank Mandiri as Soaring Tin Prices Drive Profit Surge

JAKARTA, Investortrust.id — Indonesia’s state-controlled mining bellwether PT Timah (Persero) Tbk (TINS) has secured a Rp 4 trillion ($251.3 million) revolving credit facility from state-owned lender PT Bank Mandiri (Persero) Tbk (BMRI) to bridge export proceed requirements and bolster corporate liquidity.

The 12-month financing arrangement, structured as a Bridge Loan for Natural Resources Export Proceeds (DHE-SDA), is designed to grant the company liquidity flexibility while it complies with statutory foreign exchange deposit rules.

The facility agreement was formally executed by PT Timah Director of Finance and Risk Management Fina Eliani and Bank Mandiri Senior Vice President of Corporate Banking 7 Group Glasnosta Ramadhan.

Under Indonesian monetary regulations, natural resource exporters must retain a significant portion of their foreign exchange receipts in domestic onshore accounts for mandatory holding periods. For major commodity exporters like PT Timah, these statutory retention windows can tie up operating liquidity just as capital requirements accelerate. By securing a structured bridge credit line against those committed proceeds, Southeast Asia’s largest tin producer preserves working capital to ramp up production and capture historic cyclical peaks in international metal prices without running afoul of central bank reserves rules.

Structure of the Mandiri Bridge Loan

Fina Eliani stated that the strategic funding forms part of proactive balance-sheet liquidity management to support sustained commercial growth.

"Bank Mandiri’s backing provides extra flexibility in optimizing the company's working capital management," Eliani said in an official statement released on Thursday, Oct. 22, 2026. "Amid our accelerating performance momentum, this instrument ensures operational activities and export momentum continue uninterrupted while upholding monetary compliance principles."

Under the loan covenants, the credit operates as a revolving line at the total facility limit, though individual loan drawdowns are classified as non-revolving. The tenor for each drawdown will match the remaining placement period of the underlying DHE-SDA deposit, with terms spanning between three and 12 months in accordance with regulatory parameters.

The agreement requires no specific asset collateral from PT Timah, relying on customized transaction governance backed by competitive institutional funding costs. Management affirmed that the facility incurs no disruptive balance-sheet strain or operational risks for the company.

"PT Timah remains committed to applying good corporate governance, including prudential standards, regulatory compliance, transparency, and accountability in financial management to deliver maximum shareholder value," Eliani added.

Tin Supercycle Fuels Explosive Earnings Projections

The liquidity backing arrives as PT Timah enters a lucrative operating window characterized by surging global tin prices, rebounding domestic extraction quotas, and accelerating operational recoveries.

The converging catalysts prompted domestic brokerage KB Valbury Sekuritas to initiate coverage on TINS equity with a "Buy" recommendation and a target price of Rp 4,800 ($0.30) per share, representing a 27% upside from its prevailing level of Rp 3,780 ($0.24). The target price values the stock at 6.5 times forward enterprise value to EBITDA (EV/EBITDA), compared to its current forward multiple of 5.1 times.

KB Valbury Sekuritas equity analyst Ashalia Fitri Yuliana noted that global tin demand is experiencing a structural lift, driven by conventional consumer electronics alongside high-density artificial intelligence (AI) data centers, solar photovoltaic (PV) modules, and electric vehicle (EV) electronics.

The heightened demand has pushed average tin cash prices on the London Metal Exchange (LME) toward projected full-year averages of $50,000 per metric ton ($22.68 per pound) in 2026, marking a 46.7% year-on-year climb. The metal touched an all-time record high of $57,960 per metric ton ($26.29 per pound) on June 3, 2026.

Between January and Oct. 20, 2026, average LME tin prices stood at $51,719 per metric ton ($23.46 per pound), jumping 56.6% compared to $33,027 per ton ($14.98 per pound) during the corresponding period last year.

Supply Tightness Offsets Global Surplus Forecasts

While the International Tin Association (ITA) projects the global tin balance will transition from a 5,300-metric-ton deficit in 2025 to a modest surplus of 3,600 metric tons in 2026 and 400 metric tons in 2027, structural supply snags continue to protect prices from sharp corrections.

Prolonged extraction delays across artisanal mining hubs in Myanmar and falling head grades across Yunnan Province in China continue to bottleneck refined metal supply, insulating global benchmark prices against sharp drops.

On the consumption ledger, conventional electronics soldering represents approximately 53% of worldwide tin usage, with incremental demand flowing from AI server assembly lines and clean-energy infrastructure.

Operational Rebound Across Bangka Belitung

Alongside soaring price realizations, PT Timah’s operational turnaround is gaining traction following tighter illegal-mining enforcement and formalized state mining partnerships.

The state enterprise holds 127 mining business licenses (WIUP) spanning 473,558 hectares (1.17 million acres), complemented by an integrated domestic smelting and refining network.

During the first half of 2026, PT Timah’s tin ore extraction jumped 74.8% year-on-year to 12,232 metric tons of tin (Sn), fulfilling 40.8% of its full-year ore target of 30,000 metric tons. Finished refined tin output climbed 58.2% to 10,865 metric tons, meeting 37.3% of its annual 29,100-ton target. Commercial sales of refined tin surged 85.1% year-on-year to 10,984 metric tons.

KB Valbury Sekuritas models full-year 2026 refined tin production to touch 23,000 metric tons, expanding 29.1% year-on-year. Although this conservative forecast sits roughly 21% below management’s internal 29,100-ton target due to gradual regulatory approvals (RKAB), improving mine oversight and licensing efficiency are expected to support higher extraction rates through year-end.

Top-Line and Bottom-Line Growth Trajectory

Underpinned by higher realized prices and volume growth, PT Timah’s financial performance is modeled to post historic gains across 2026.

KB Valbury Sekuritas projects the miner's full-year gross revenue to reach Rp 21 trillion ($1.32 billion), surging 81.8% from 2025. Consolidated EBITDA is forecast at Rp 4.8 trillion ($301.5 million), with EBITDA margins holding steady around 22.8%.

Consolidated net profit is projected to jump 117.8% year-on-year to Rp 2.9 trillion ($182.2 million), outpacing top-line revenue expansion on widening operational margins.

The brokerage emphasized the miner’s high operational leverage to international price swings: every 1% increase in LME tin spot prices is estimated to lift PT Timah's consolidated revenue by roughly 1% and its operating profit (EBIT) by 2.8%, keeping earnings prospects tightly leveraged to the global metal rally.