MSC targets higher mining output and feedstock integration

KUALA LUMPUR, June 7 — Malaysia Smelting Corporation Berhad (MSC) remains on track to boost operational integration, with its tailings scavenging plant and mini‑smelter project scheduled for commissioning in 3QFY26. The tailings facility, currently in final optimisation, is expected to lift mining output by 40–50%, raising daily production from 10 tonnes to 14–15 tonnes. Management projects ore feed intake of about 21,000 tonnes in FY26, supported by stronger artisanal miner engagement and renewed trading commitments, despite tight market competition from Chinese buyers and supply disruptions in Myanmar.

Meanwhile, the RM10 million mini‑smelter at Rahman Hydraulic Tin mine will allow ore concentrate conversion on‑site, freeing up around 10 tonnes per day of smelting capacity at Pulau Indah.

MSC mining output

This enhances logistics efficiency and strengthens vertical integration. Tin intermediates inventory has fallen to 1,291 tonnes, reflecting improved processing efficiency rather than weaker earnings quality.

MSC maintains FY26F–FY28F earnings forecasts, with a BUY call and target price of RM3.06 based on 13x FY27F EPS of 23.5 sen. Risks include tin price volatility, feedstock disruptions, and commissioning delays. MSC’s positioning as the world’s largest independent tin smelter, coupled with rising self‑generated feedstock, underpins resilience and earnings quality.

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