RCS - PYX Resources Ltd. - Letter to Shareholders

PYX ResourcesAnnouncement

28/12/2023 07:00

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RNS Number : 9911X  PYX Resources Limited  28 December 2023

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

 

 

28(th) December 2023

 

PYX Resources Limited

("PYX" or "the Company")

 

Letter to Shareholders

 

Dear Shareholders,

As we near the end of 2023, I am extremely proud of everything PYX has
accomplished during the year and the milestones it has achieved, taking the
Company a step closer to its goal of becoming a mineral sands consolidator in
Indonesia, and a leading player in the premium zircon market.

To this end, we were delighted to be awarded the licence for the export of
ilmenite and rutile ores from the Indonesian government in August 2023, which
allows us to extract, produce, and export up to 24kt of zircon, 20kt of rutile
and 50kt of ilmenite per annum, as well as extract and produce other
by-products such as SiO(2).   Another significant milestone during the year
was the successful renewal of a 10-year exploration and mining licence at
Tisma Mineral Sands Project, demonstrating Indonesia's support for the project
and providing us with long-term visibility over this highly prospective
project. PYX started producing rutile in January 2022 and ilmenite in June
2022, and by the end of June 2023 it had stockpiled 8.2kt.

 

Figure 1: The PYX Cares team planting 10,000 Bengkirai trees in our previously
mined areas.

Figure 2: The PYX team inspecting the installation of a new dryer machine at
our mineral separation plant at Mandiri.

 

The Company has continued to build on the strong foundations set in 2022, with
a notable continuation of its growth trajectory both operationally and
financially. In Q3 2023 the Company announced a 61% increase in Premium Zircon
production to 4.0kt, and a 43% increase in YTD'23 production to 9.7kt,
equivalent to a yearly production rate of 16kt and in line with PYX's
five-year plan.

 

Our strategic approach to client diversification has allowed us to, where
possible, mitigate global economic challenges and varying demand for our
premium zircon. This has proven to be prudent as the western economy slowed
down and most of our sales, which increased by 88% in Q3 and 54% YTD'23, to a
sales volume of 4.2kt and 9.4kt, respectively, were generated from China and
India.

Pleasingly, the international price of premium zircon has remained stable at
US$2,200/t, a 64% increase on 2021 prices, defying the volatility of the
market and highlighting the imbalanced supply and demand dynamics.  Price
stability was key to achieving cash neutral status, no debt, and positive
underlying EBITDA of US$131k, a 46% improvement on HY 2023. We believe that
this deficit of zircon supply will continue as the new mines coming into
production are not enough to compensate for the reduction in supply coming
from the large mines reaching the end of their mine lives.

Our unwavering commitment to ESG and to supporting the communities around us
through our initiative, PYX Cares, continued in 2023 and saw the Company
partner with the Indonesian Red Cross Society in its annual Indonesian
National Blood Donor Day.

Figure 3: PYX (https://twitter.com/hashtag/PYX?src=hashtag_click) 's holistic
sustainability (https://twitter.com/hashtag/sustainability?src=hashtag_click)
programme as part of PYX Cares
(https://twitter.com/hashtag/PYXCares?src=hashtag_click) . Empowering local
communities, protecting the environment, promoting diversity, and ensuring our
employees and the people of Kalimantan can fully participate in our long-term
success.

Figure 4: PYX's Child Health Day event, teaching young children the importance
of teeth brushing and hand washing.

Importantly, and, a fundamental part of our licence to operate, is our ability
to keep our team safe. I was delighted that PYX received the Award for
Prevention and Management of COVID-19 in the Workplace in 2023, and the Zero
Accident Award 2023 from the government authorities in Kalimantan and the
Central Government in Jakarta.

In addition, we continued to be transparent about our ESG achievements during
the year with the submission of our Progress Report to the United Nations
Global Compact Organization which focuses on five key pillars: People, Planet,
Prosperity, Peace, and Partnership.

Figure 5: Celebrating Indonesian Independence Day with a flag hoisting
ceremony.

Looking into 2024 and beyond, our focus remains steadfast on continued
sustainable growth, as the company looks to increase exports, sales, and
production, and works concurrently with our local communities and the
Indonesian Government to meet our ambitious growth plans.

I would like to end by thanking all our shareholders and stakeholders for
their continued support and look forward to reporting on our progress in 2024.

 

Warm regards,

Oliver B. Hasler

Chairman and CEO

 

 

***ENDS***

For more information:

 

 PYX Resources Limited                                      T: +852 3519 2860

 Oliver B. Hasler, Chairman and Chief Executive Officer     E: ir@pyxresources.com
 WH Ireland Limited (Broker)                                T: +44 (0)20 7220 1666

 Harry Ansell / Katy Mitchell / Megan Liddell
 St Brides Partners Ltd (Financial PR)                      E: pyx@stbridespartners.co.uk

 Ana Ribeiro/ Isabel de Salis / Isabelle Morris              

 

This announcement is authorised for release by Oliver B. Hasler, Chairman and
Chief Executive Officer.

 

About PYX Resources

PYX Resources Limited (NSX: PYX | LSE: PYX) is a 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 3rd 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 is committed to fully
developing 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.

 

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