Malaysia Smelting Corp Bhd's (MSC) closed unchanged today on Bursa Malaysia today despite reports its unit, PT Koba Tin, may not get the extension of contract of works (COW) from the Indonesian government.
As at 5 pm, MSC share price was flat at RM3.78.
OSK Research Sdn Bhd said the news has raised investor concern on its bottomline despite the company's announcement it has not received any notification from Indonesia's Ministry of Energy and Mineral Resources on the status of its application.
In a note today, OSK said MSC has taken the necessary measure, including entering into a strategic alliance agreement with a local company, Optimus Synergy Resources Ltd, to assist in the application.
"Therefore, we are still hopeful that MSC stands a fair chance in securing the COW extension," it said.
Moving forward, OSK said, MSC would continue to search for other tin-rich deposits in Malaysia as well as overseas.
It has maintained a 'buy' call on MSC with fair value at RM5.50 based on the company's sound and solid fundamentals with the right strategies taken to strengthen its position and relatively cheap valuation compared to its closest peers. -- Bernama
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