RCS - PYX Resources Ltd. - 2021 Investor Newsletter

PYX ResourcesAnnouncement

21/12/2021 07:00

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RNS Number : 2528W  PYX Resources Limited  21 December 2021

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PYX Resources Limited / EPIC: PYX / Market: Standard Listing / Sector: Mining

               21 December

PYX Resources Limited

 

                  2021 Investor Newsletter

 

PYX Resources Ltd (PYX or the Company) (NSX: PYX | LSE: PYX), is delighted to
present our first investor newsletter for what has been a truly
transformational year for our company. We started 2021 with ambitious plans to
expand and meet increasing customer demand by boosting our capacity at our
strategically located projects in Indonesia - pleasingly all these milestones
have been met, and more.

 

At the beginning of the year, we completed the acquisition of a second deposit
in Indonesia, the Tisma tenement. Following the acquisition, PYX became the
world's 2(nd) largest publicly traded producing mineral sands company by
zircon resources with a JORC compliant mineral resource of 263.5 MM tonnes.

 

In June, we completed a successful placement raising of AU$11.2m/£6.1m (gross
of expenses), which will enable us to accelerate development at the Tisma
project, as well as for general working capital purposes.

 

The second half was equally as momentous. PYX was successful in our ambitions
to dual list on the Main Market of the London Stock Exchange, which took place
in November.

 

We also increased the production capacity at our Mandiri Minerals Separation
Plant to 24,000 tpa, which we announced in December. The new capacity will
enable us to start the production of rutile, leucoxene and ilmenite and is
part of our five-year plan focused on ramping up production capacity at
Mandiri.

 

Alongside this, we have continued to diversify our blue-chip customer base and
there is scope to increase volume as well as reduce costs. This was all set
against a backdrop of strong demand but limited supply, resulting in four
zircon price increases during the year. Notably, as well as the more
traditional markets, we are also experiencing increased demand from the
high-tech sector, as high-grade zircon is used in electronics, semiconductors,
solar and fuel cells, ceramics, fibre optics and energy power generation.
Zircon is a critical mineral for the major economies, so with increasing
applications in energy efficient markets, it will be key in the global
transition towards clean energy.

 

We also continued to demonstrate commercial successes in 2021, including the
securing of new business with Fujian Sanxiang Advanced Materials Co., Ltd
(Fujian Sanxiang), a leading producer of fused zirconia based in China. Fused
zirconia is a crucial raw material in the production of zirconium metal, which
has important applications in nuclear power and aerospace.  We also signed
our third offtake agreement - a 3,600t two-year offtake agreement with
India-incorporated Microtech Zircon, a member of Delta Tiles, a group of
companies which fall under the brand name Geo Gres.

 

 

            HIGHLIGHTS OF 2021

 

·  Strengthened our portfolio through the acquisition of a 2(nd) tenement
(Tisma) in Central Kalimantan, Indonesia boosting PYX's contained zircon
resources by 75%

·    Dual listed on the Main Market of the London Stock Exchange which
raised the Company's profile and is expected to broaden PYX's shareholder base
plus increase its liquidity

·    Completed a fundraise of AU$11.2m (£6.1m) in June 2021

·   Achieved a 33% increase in production capacity at Mandiri's Minerals
Separation Plant (MSP) to 24,000 tpa, allowing for future production of
rutile, leucoxene and ilmenite

·   Delivered four zircon price rises, increasing prices by US$905 per
tonne, with the latest pricing exceeding US$2,300 per tonne

·   Signed third offtake agreement: a two-year offtake agreement with
Microtech Zircon for 3,600t per annum

·    Started supplying fused zirconia industry for high tech applications

·   Launched PYX Cares and completed projects in a local elementary school
and national blood donation

·     Vaccinated 100% of its personnel against Covid-19

 

PYX CARES

 

As a company we are determined to mine responsibly and, with that in mind, we
have established the 'PYX Cares' initiative, to be a force for good in the
wider communities in which we operate. This initiative was inspired by the
Sustainable Development Goals set out by the United Nations Development
Program. This year, we completed PYX Cares initiative projects including
installing a new drainage system at the 1 State Elementary School (SDN) in
Tumbang Lampahung located in the Kuala Kurun District near our flagship
Mandiri mine. We also participated in the commemoration of Indonesian National
Blood Donor Day by contributing to the blood donation social activities under
the theme "Give Blood, Save Life" at our factory in the Tumbang Empas village.

 

 

YEAR AHEAD

 

Strong progress has been made this year, but there is plenty more to do as the
Board continues to develop PYX for the benefit of all shareholders. Set
against the ongoing challenges of a global pandemic, everyone in the Company
has worked tirelessly, and our Chairman and Chief Executive, Oliver Hasler,
would like to sincerely thank the team for all their efforts and our
shareholders for their continuous support.

 

Additional acquisitions will be considered in the year ahead, and production
expansion is set to accelerate at Mandiri and Tisma as part of the Company's
five-year plan, also allowing titanium dioxide minerals sales in the near
future.

 

We would like to wish you a happy and prosperous New Year and we look forward
to updating you on the Company's progress.

 

*** ENDS ***

 

 

For more information:

 PYX Resources Limited                                    T: + +852 3519 2860

 Oliver B. Hasler, Chairman and Chief Executive Officer   E: ir@pyxresources.com
 VSA Capital Limited (Financial Adviser and Broker)       T: +44 (0)20 3005 5000

 Andrew Raca (Corporate Finance)

 Andrew Monk (Corporate Broking)
 St Brides Partners Ltd (Financial PR)                    E: pyx@stbridespartners.co.uk

 Isabel de Salis / Oonagh Reidy / Isabelle Morris

 

About PYX Resources

 

PYX Resources Limited (NSX: PYX | LSE: PYX) is a major global producer of
premium zircon dual listed on the National Stock Exchange of Australia and on
the Main Market of the London Stock Exchange. PYX's key deposits, Mandiri and
Tisma, are large-scale, near-surface open pit deposits both located in the
alluvium-rich region of Central Kalimantan, Indonesia. PYX, whose Mandiri
deposit has been in production since 2015, is the 2nd largest publicly traded
producing mineral sands company by zircon resources globally. Determined to
mine responsibly and invest in the wider communities where we operate, PYX
Resources is committed to fully develop its Mandiri and Tisma deposits, with
the vision to consolidate the mineral sands resources in Kalimantan and
explore and acquire mineral sands assets in Asia and beyond.

 

Compliance Statement

 

The Mandiri mineral sands deposit hosts a 126.3Mt inferred mineral resource.
The Company originally announced this resource in its Prospectus released on
20 February 2020 (Prospectus). The Tisma mineral sands deposit hosts a 137.2Mt
inferred mineral resource. The Company originally announced this resource in
its Announcement "PYX Resources Limited Agrees to Acquire Tisma Development
(HK) Limited, a World-Class, Fully Licensed Mineral Sands Deposit" on NSX on
13 January 2021 (Announcement).  The Company confirms that it is not aware of
any new information or data that materially affects the information included
in the Prospectus and Announcement in respect of the mineral resource. All
material assumptions and technical parameters disclosed in the Prospectus and
Announcement that underpin the estimates continue to apply and have not
materially changed.

 

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