REG - PYX Resources Ltd. - Final Results
08/04/2025 07:00
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RNS Number : 0797E PYX Resources Limited 08 April 2025
This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon
the publication of this announcement via a Regulatory Information Service,
this inside information is now considered to be in the public domain.
PYX Resources Limited / EPIC: PYX / Market: Standard / Sector: Mining
8 April 2025
Pyx Resources Limited
("PYX" or "the Company")
2024 Full Year Results
PYX Resources Ltd (NSX: PYX | LSE: PYX), one of the world's largest publicly
listed zircon producer by zircon resources(( 1 )), is pleased to announce its
full year results for the year ended 31 December 2024 ("FY2024").
FY2024 HIGHLIGHTS
· 46% Year-on-Year ("YoY") increase in total sales volume to 16,560
tonnes
· The Company received the modified export licence for ilmenite and
rutile and has started to export both
· Revenue recorded of US$9.3 million 59% YoY decrease
· EBITDA loss of US$5.5 million, representing a US$4.6 million YoY
improvement
· 36% YoY decrease in Net Cash Position to US$5.0 million
· 97% YoY decrease in Total Inventory to 6 days
· 21% female and 47% indigenous (Dayak) employment respectively
· ZERO total recordable injury frequency rate
· Signed UN Global Compact Annual Communication on Progress in March
2024
FINANCIAL AND OPERATIONS SUMMARY
US$ FY 2024 FY 2023 % change
Sales revenue ** 9,296,231 22,671,641 (59%)
Cash cost of production (8,333,557) (19,601,174) 57%
EBITDA (5,472,767) (10,039,681) 45%
EBIT (5,818,409) (10,400,680) 55%
Net loss before tax ** (5,826,871) (10,456,195) 44%
Net loss after tax (NLAT) ** (5,390,488) (10,456,356) 48%
Cash 5,008,389 7,828,906 (36%)
Total assets ** 87,984,966 93,100,662 (5%)
Total liabilities 9,521,766 8,977,573 6%
Zircon Produced 4.9kt 11.8kt (59%)
Zircon Sales 3.4kt 11.4kt (70%)
Titanium Dioxide Minerals Produced 1.8kt 2.9kt (39%)
Titanium Dioxide Minerals Sold 12.4kt -
Value Per Tonne (USD/t) 561 1,998 (72%)
Total Produced 6.7kt 14.8kt (55%)
Total Sold 16.6kt 11.4kt 46%
** The Company notes that these audited amounts materially differ from the
amounts disclosed in the unaudited Preliminary Final Report released on 14
March 2025.
FY2024 OVERVIEW
After a very strong first half of 2024, with a positive EBITDA and even
stronger Underlying EBITDA just 4 years after the original IPO in Australia,
the second half was rather disappointing. Operationally, heavy rain in May and
June, low mineral sands demand and prices, and the collapse of a bridge
providing access to the mine impacted operations during the period with a 55%
reduction in the production of minerals sands to 6.7kt (FY2023: 14.8kt). The
Company was able to minimise the impact, since it sold the titanium dioxide it
has stockpiled. In March, the Company received the modified ilmenite licence,
while it received the export licence for rutile in September, resulting in the
first exports of ilmenite being shipped in March and rutile in October. Total
sales volume, as a result of the sales of almost the entire inventory,
resulted in an increase of 46%, achieving 16.6kt (FY2023: 11.4kt). Since
ilmenite sells at a lower price than premium zircon, sales revenue in FY2024
ended at US$9.3 million (FY2023: US$22.7 million), 59% down YoY. Average
prices for our mineral sands went down by 72% YoY.
During the year, the Company's premium zircon market was mainly driven by
China and India, while the titanium dioxide market driven by China, which
makes economic sense, since the shipping cost have a much higher impact on
profitability for ilmenite sales.
International premium zircon prices fell during 2023 resulting from the weak
international market conditions. According to Asian Metal, international
premium zircon prices were averaging US$2,300 per tonne during the first half
of 2023, while ending the year 2024 at an average of US$1,950 per tonne CIF
China. The same source states that Indonesian spot prices went from US$1,950
per tonne to US$1,600 per tonne in the same period.
Since PYX's inception in 2020, the Company has managed to sell all of its
premium zircon production. 2024 was no exception, with the Company selling
almost the entirety of its inventories. Finishing with total inventory of 266
tonnes, equivalent of 6 days (FY2023: 17 days).
Nonetheless, despite a soft global economy and slow second half, the Company
ended the year with US$5.0 million of cash on its balance sheet and no debt.
During 2023, the Indonesian authorities have outlined the legislation for
mineral sands companies to export ilmenite and rutile to international
markets, following a change in Indonesian law. The Ministry of Trade of the
Republic of Indonesia, following the recommendation of the Ministry of Energy
and Natural Resources, has changed the category of titanium dioxide, with
ilmenite and rutile receiving the same classification as zircon, as a
Non-Metal Commodity.
The new law, issued by the Ministry of Trade, allows for the export of
ilmenite and rutile as Non-Metal with a minimum grade of TiO(2) ≥ 45% for
ilmenite and TiO(2) ≥ 90% for rutile. On 17 August 2023 the Company
announced the award of the export licence for rutile and ilmenite. PYX started
producing rutile in January 2022 and ilmenite in June 2022, and by the end of
December 2023 it had stockpiled 9.8kt.
In March, the Company announced the first export of ilmenite to a customer in
Zhanjiang, China, following the award of the modified licence to export
ilmenite announced on the 12 March 2024. In October, the Company announced the
first shipment of rutile to a customer in Tianjin, China.
We are deeply committed to maintaining and upholding the highest ESG standards
and were therefore honoured by the Zircon Industry Association ("ZIA") with
the prestigious Gold ESG Excellence Award. As the trade association is
representing approximately 80% of global zircon and zirconia production, the
ZIA's Gold ESG Excellence Award is among the highest honours in the ESG
reporting and rating process. This accolade recognised our ongoing dedication
to exemplary ESG practices and responsible business stewardship.
PYX's existing customer base consists of global blue-chip organisations
operating in various industries, sectors, and geographies. Through the
strategy of market diversification, PYX has been able to mitigate the steep
reduction in demand from the western economies. All sales during the period
continue to be in US dollars, reducing the risk of exchange rate exposure.
The Annual Report and Financial Statements for the year ended 31 December 2024
has been published today and is available for inspection at
https://pyxresources.com/investors-reports
(https://pyxresources.com/investors-reports) .
Annual General Meeting
The Company's Annual General Meeting ("AGM") will be held virtually on or
around Thursday, 29 May 2025. Details of all resolutions to be considered at
the AGM will be contained in a Notice of AGM and Explanatory Notes which will
be dispatched to shareholders prior to the meeting in accordance with the
relevant legal requirements.
In accordance with the Company's Constitution, the closing date for receipt of
nominations from persons wishing to be considered for election as a Director
at the AGM is Tuesday, 15 April 2025. Accordingly, any nominations must be
received at the Company's registered office no later than 5.00 pm (AEST) on
Tuesday, 15 April 2025.
CHAIRMAN'S STATEMENT
The past year was a transformative one for us, as we continued to execute on
our strategic vision and started the export of our by-product's rutile and
ilmenite. Throughout 2024, we remained steadfast in our commitment to
operational excellence, sustainable practices and disciplined capital
allocation. Our talented team has worked tirelessly to optimise production and
identify new opportunities for growth - all while upholding the highest
standards of safety and environmental stewardship.
As we look to the year ahead, we are optimistic about the mining industry's
prospects. Demand for our critical minerals: zircon and titanium dioxide, are
expected to remain robust in the long term, driven by the global transition to
clean energy technologies, but with headwinds that continue to impact
infrastructure investment around the world. At the same time, we are closely
monitoring economic and geopolitical developments that are impacting commodity
prices, supply chains and project funding.
Despite any challenges that may lie ahead, I am cautiously confident that PYX
is well-positioned to capitalise on the industry's long-term growth potential.
With diversified revenue streams, an unwavering focus on operational
improvement, we are poised to create sustainable value for our shareholders
over the coming years. We remain committed to delivering excellence in all
that we do and look forward to an exciting and prosperous 2025 and beyond.
Our Full Year 2024 results were rather disappointing, compared to a strong
first half, with a positive EBITDA. The second half of the year was marked by
low minerals sands demand and prices, resulting from the generalised weak
economy in most markets. This had a strong impact on our operations, together
with the impact of the heavy rains impact and the reduced access to the
Mandiri tenement resulting from the collapse of the bridge giving access to
the deposit, ending in a reduction of our total production by 55% compared to
2023. Total sales were up by 46%, with 16.6kt of zircon, rutile and ilmenite,
resulting in a total revenue of US$9.3m, mostly in China and India. The sales
increase was mainly amid the new export licences for ilmenite and rutile.
We are happy to share that Mandiri received its RKAB Work Plan and Budget
permit for 2024 and 2025, while Tisma received its RKAB for a 3-year period,
until 2026. These permits were approved by the Indonesian authorities,
includes mining operations, processing and refining, marketing and shipping,
environment, mining safety, training and community development.
PYX's commitment to sustainability is unwavering, which is why we have
connected our operations to the local electric grid of Central Kalimantan,
Indonesia, enabling savings of over 80% on fuel costs and reduced carbon
emissions. With a 99% uptime guarantee, grid connection also reduces carbon
footprint and makes operations more sustainable, fulfilling on our strategy to
increase production, reduce costs and boost operational margins. Of course, we
continue to push our long-standing initiatives too. We have invested in
traditional dance teaching to promote the beautiful Indonesian culture and are
fostering our back-to-school initiative. We are also happy to continue with
our zero lost time accident report, which motivates us to continue our focus
on training.
In May 2024, we obtained the Gold level award for ESG excellence at the Zircon
Industry Association Annual Conference. This award is a testament to our
emphasis on ESG principles to drive positive environmental and social change
while also delivering strong financial performance. We are grateful for this
recognition and look forward to upholding these principles.
In closing, I want to express my sincere gratitude to the entire PYX team for
their dedication and hard work over the past year. It is thanks to their
efforts that we have been able to navigate the challenges of 2024 and position
the company for long-term success. I would also like to thank our shareholders
for their continued trust and support. Your investment in PYX is truly valued,
and we remain steadfast in our commitment to driving sustainable growth and
delivering strong returns. As we look ahead to 2025 and beyond, I am confident
that PYX is well-equipped to capitalise on opportunities that lie ahead. With
our robust production framework and relentless focus on pursuing opportunity,
we aim to create significant value for all our stakeholders consistently.
Oliver B. Hasler
Chairman and Chief Executive
*** ENDS ***
For more information:
PYX Resources Limited T: +61 2 8823 3132
E: ir@pyxresources.com (mailto:ir@pyxresources.com)
Zeus (Broker) T: +44 (0)20 3 829 5000
Harry Ansell / Katy Mitchell / Darshan Patel
This announcement is authorised for release by Oliver B. Hasler, Chairman and
Chief Executive Officer.
Consolidated Statement of Profit or Loss
For the year ended 31 December 2024
Note 2024 2023
US$ US$
Revenue 3 9,296,231 22,671,641
Cost of sales 4 (8,622,590) (19,894,961)
Gross Profit 673,641 2,776,680
Other income - 28,900
Selling and distribution expenses (1,494,995) (1,222,886)
Corporate and administrative expenses (2,305,217) (2,587,605)
Share based payment 5 (8,062) (7,616,663)
Loss on fair value change (878,098) (1,685,242)
Loss on inventory write off (1,566,061) -
Foreign exchange loss (239,617) (93,864)
Interest expense (8,462) (55,515)
Loss before income tax (5,826,871) (10,456,195)
Income tax (expense)/benefit 6 436,383 (161)
Net loss for the year (5,390,488) (10,456,356)
Net loss attributable to:
Owners of the Parent Entity (1,246,029) (10,588,047)
Non-controlling interests (4,144,459) 131,691
Net loss for the year (5,390,488) (10,456,356)
Other comprehensive income
Items that will be reclassified subsequently to profit or loss
when specific conditions are met:
Exchange differences on translating foreign operations, net of tax (369,025) 43,142
Total comprehensive (loss)/ income for the year (5,759,513) (10,413,214)
Total comprehensive (loss)/income attributable to:
Owners of the Parent Entity (1,224,120) (10,580,534)
Non-controlling interests (4,535,393) 167,320
(5,759,513) (10,413,214)
Loss per share
Basic loss per share (cents) 9 (1.17) (2.32)
Diluted loss per share (cents) 9 (1.17) (2.32)
The accompanying notes form part of these financial statements.
Consolidated Statement of Financial Position
As at 31 December 2024
Note 2024 2023
US$ US$
ASSETS
CURRENT ASSETS
Cash and cash equivalents 10 5,008,389 7,828,906
Trade and other receivables 11 353,070 1,557,570
Prepayments and deposits 149,349 490,843
Inventories 12 54,308 2,308,586
TOTAL CURRENT ASSETS 5,565,116 12,185,905
NON-CURRENT ASSETS
Property, plant and equipment 14 6,938,680 6,042,116
Intangible assets 15 73,655,729 73,496,367
Right of use assets 8,662 2,163
Prepaid tax 18 886,004 847,485
Deferred tax assets 16 930,775 526,626
TOTAL NON-CURRENT ASSETS 82,419,850 80,914,757
TOTAL ASSETS 87,984,966 93,100,662
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 1,205,107 1,370,005
Other liabilities 17 2,934,666 2,331,568
Short term borrowings 19,434 -
Amount due to shareholder 19 5,362,559 5,276,000
TOTAL CURRENT LIABILITIES 9,521,766 8,977,573
TOTAL LIABILITIES 9,521,766 8,977,573
NET ASSETS 78,463,200 84,123,089
EQUITY
Issued capital 20 105,787,285 105,592,118
Reserves 24 598,747 672,381
Accumulated losses (22,004,069) (20,758,040)
Equity attributable to owners of the Parent Entity 84,381,963 85,506,459
Non-controlling interest (5,918,763) (1,383,370)
TOTAL EQUITY 78,463,200 84,123,089
The accompanying notes form part of these financial statements.
Consolidated Statement of Changes in Equity
For the year ended 31 December 2024
Share Foreign Non- controlling Interests
Based Exchange Translation
Ordinary Payment Reserve Reserve Options Reserve Accumulated
Shares losses Subtotal Total
US$ US$ US$ US$ US$ US$ US$ US$
Balance at 1 January 2023 102,226,925 8,350,453 942 553,939 (26,027,122) 85,105,137 (1,550,690) 83,554,447
Comprehensive income
Loss for the year - - - - (10,588,047) (10,588,047) 131,691 (10,456,356)
Other comprehensive income for the year - - 7,513 - - 7,513 35,629 43,142
Total comprehensive income for the year
- - 7,513 - (10,588,047) (10,580,534) 167,320 (10,413,214)
Transactions with owners,
in their capacity as owners, and other transfers
Shares issued during the year 3,365,193 - - - - 3,365,193 - 3,365,193
Share based payments - 7,616,663 - - - 7,616,663 - 7,616,663
Share based payments cancelled - (15,857,129) - - 15,857,129 - - -
Total transactions with owners and other transfers
3,365,193 (8,240,466) - - 15,857,129 10,981,856 - 10,981,856
Balance at 31 December 2023 105,592,118 109,987 8,455 553,939 (20,758,040) 85,506,459 (1,383,370) 84,123,089
Share Foreign Non- controlling Interests
Based Exchange Translation
Ordinary Payment Reserve Reserve Options Reserve Accumulated
Shares losses Subtotal Total
US$ US$ US$ US$ US$ US$ US$ US$
Balance at 1 January 2024 105,592,118 109,987 8,455 553,939 (20,758,040) 85,506,459 (1,383,370) 84,123,089
Comprehensive income
Loss for the year - - - - (1,246,029) (1,246,029) (4,144,459) (5,390,488)
Other comprehensive income for the year - - 21,909 - - 21,909 (390,934) (369,025)
Total comprehensive income for the year
- - 21,909 - (1,246,029) (1,224,120) (4,535,393) (5,759,513)
Transactions with owners,
in their capacity as owners, and other transfers
Shares issued during the year 275,000 - - - - 275,000 - 275,000
Share based payments 103,605 (95,543) - - - 8,062 - 8,062
Share issue costs (183,438) - - - - (183,438) - (183,438)
Total transactions with owners and other transfers
195,167 (95,543) - - - 99,624 - 99,624
Balance at 31 December 2024 105,787,285 14,444 30,364 553,939 (22,004,069) 84,381,963 (5,918,763)) 78,463,200
The accompanying notes form part of these financial statements.
Consolidated Statement of Cash Flow
For the year ended 31 December 2024
Note 2024 2023
US$ US$
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 10,774,979 22,465,734
Payments to suppliers and employees (11,848,582) (24,164,605)
Other income - 28,900
Interest received 1,010 2,080
Finance costs (9,472) (57,595)
Income tax reimbursements/(payments) 17,907 (195,015)
Net cash used in operating activities 21 (1,064,158) (1,920,501)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment (1,394,952) (2,523,961)
Net cash used in investing activities (1,394,952) (2,523,961)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash (payments)/receipts of shareholder (100,000) 5,100,000
Repayments of lease liabilities (13,115) (917)
(Payments)/Receipts of employee loans 248 (107)
Net cash (used in)provided by financing activities (112,867) 5,098,976
Net (decrease)/increase in cash and cash equivalents (2,571,977) 654,514
Cash and cash equivalents at the beginning of financial year 7,828,906 7,221,085
Effect of foreign exchange rate changes (248,540) (46,693)
Cash and cash equivalents at the end of financial year 10 5,008,389 7,828,906
The accompanying notes form part of these financial statements
Notes to the Consolidated Financial Statements
For the year ended 31 December 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PREPARATION
Reporting Entity
PYX Resources Limited (Company or parent entity) is a leading producer of premium zircon, ilmenite and rutile, listed on the National Stock Exchange of Australia and on the Main Market of the London Stock Exchange.
The consolidated financial statements of the Company comprise the Company and its controlled entities ('Group').
Basis of Preparation
These general-purpose consolidated financial statements have been prepared in
accordance with the Corporations Act 2001, Australian Accounting Standards and
Interpretations of the Australian Accounting Standards Board and in compliance
with International Financial Reporting Standards as issued by the
International Accounting Standards Board. The Group is a for profit entity for
financial reporting purposes under Australian Accounting Standards. Material
accounting policies adopted in the preparation of these financial statements
are presented below and have been consistently applied unless stated
otherwise.
Except for cash flow information, the financial statements have been prepared
on an accrual basis and are based on historical costs, modified, where
applicable, by the measurement at fair value of selected non-current assets,
financial assets and financial liabilities.
The financial statements are presented in United States dollars (US$).
Rounding of amounts
The Group is of a kind referred to in Rounding Instrument 2016/191, issued by the Australian Securities and Investments Commission, relating to the rounding of amounts in the financial statements. In accordance with that Rounding Instrument, amounts in the financial statements have been rounded to dollars, unless otherwise indicated.
Going Concern
The financial report has been prepared on the going concern basis, which
assumes continuity of normal business activities and the realisation of assets
and settlement of liabilities in the ordinary course of business.
The Group has incurred a net loss after tax of US$5,390,488 (31 December 2023:
US$10,456,356) and has an operating cash outflows of US$1,064,158 for the
period ended 31 December 2024 (31 December 2023: US$1,920,501). The Group has
net liabilities of US$3,956,650 as at 31 December 2024.
Based on the Group cash flow forecasts through to 30 April 2026, the Group has
noted that it is performing in line with the budget forecasts as at the date
of this financial report. The forecasts includes a number of assumptions
including expected revenue and costs. Based on the Group cash flow forecasts,
the Group will be required to raise additional working capital through loans
with their most significant shareholder or capital raises during this period
to enable it to meet its committed administration and operational expenditure
over this period. In addition, the shareholder has verbally indicated that
they will not recall the loan amount as at balance date until there is
sufficient cash for the Group to pay back its debt. The shareholder has also
indicated that they will continue to support the Group through short-term cash
borrowings whenever required for the period of 12 months from the date of this
financial report.
Accordingly, the Directors considers it appropriate to prepare the financial
report on a going concern basis. Should the initiatives outlined above be
unsuccessful, there exists a material uncertainty which may cast significant
doubt as to whether the Group will continue as a going concern and therefore
whether it will realise its assets and extinguish its liabilities in the
normal course of business and at the amounts stated in the financial
statements.
Should the Group be unable to continue as a going concern it may be required
to realise its assets and discharge its liabilities other than in the ordinary
course of business, and at amounts that differ from those stated in the
financial statements.
The financial report does not include any adjustments relating to the
recoverability or classification of recorded asset amounts, nor the amounts or
classification of liabilities that might be necessary should the Group not be
able to continue as a going concern.
a. Principles of Consolidation
Subsidiaries are entities the Parent controls. The Parent controls an entity
when it is exposed to, or has rights to, variable returns from its involvement
with the entity and has the ability to affect those returns through its power
over the entity. A list of the subsidiaries is provided in Note 13.
The assets, liabilities and results of all subsidiaries are fully consolidated
into the financial statements of the Group from the date on which control is
obtained by the Group. The consolidation of a subsidiary is discontinued from
the date that control ceases. Intercompany transactions, balances and
unrealised gains or losses on transactions between Group entities are fully
eliminated on consolidation. Accounting policies of subsidiaries have been
changed and adjustments made where necessary to ensure uniformity of the
accounting policies adopted by the Group.
Equity interests in a subsidiary not attributable, directly or indirectly, to
the Group are presented as "non-controlling interests". The Group initially
recognises non-controlling interests that are present ownership interests in
subsidiaries and are entitled to a proportionate share of the subsidiary's net
assets on liquidation at either fair value or at the
non-controlling interests' proportionate share of the subsidiary's net assets.
Subsequent to initial recognition,
non-controlling interests are attributed their share of profit or loss and
each component of other comprehensive income.
Non-controlling interests are shown separately within the equity section of
the statement of financial position and statement of comprehensive income.
b. Inventories
Inventories are measured at the lower of cost and net realisable value. The
cost of manufactured products includes direct materials, direct labour and an
appropriate proportion of variable and fixed overheads. Overheads are applied
on the basis of normal operating capacity. Costs are assigned on the first-in,
first-out basis.
c. Property, Plant and Equipment
Each class of property, plant and equipment is carried at cost or fair value
as indicated less, where applicable, any accumulated depreciation and
impairment losses.
Property, plant and equipment are measured on the cost basis and therefore
carried at cost less accumulated depreciation and any accumulated impairment.
In the event the carrying amount of plant and equipment is greater than the
estimated recoverable amount, the carrying amount is written down immediately
to the estimated recoverable amount and impairment losses are recognised. A
formal assessment of recoverable amount is made when impairment indicators are
present (refer to Note 1(g) for details of impairment).
The carrying amount of plant and equipment is reviewed annually by directors
to ensure it is not in excess of the recoverable amount from these assets. The
recoverable amount is assessed on the basis of the expected net cash flows
that will be received from the asset's employment and subsequent disposal. The
expected net cash flows have been discounted to their present values in
determining recoverable amounts.
The cost of fixed assets constructed within the Group includes the cost of
materials, direct labour, borrowing costs and an appropriate proportion of
fixed and variable overheads.
Subsequent costs are included in the asset's carrying amount or recognised as
a separate asset, as appropriate, only when it is probable that future
economic benefits associated with the item will flow to the Group and the cost
of the item can be measured reliably. All other repairs and maintenance are
recognised as expenses in profit or loss during the financial period in which
they are incurred.
Depreciation
The depreciable amount of all fixed assets including buildings and capitalised
leased assets, but excluding freehold land, is depreciated on a straight-line
basis over the asset's useful life to the Group commencing from the time the
asset is held ready for use. Leasehold improvements are depreciated over the
shorter of either the unexpired period of the lease or the estimated useful
lives of the improvements.
The depreciation rates used for each class of depreciable assets are:
Class of Fixed Asset Depreciation Rate
Buildings 5%
Plant and Equipment 20%
Furniture and Fittings 25%
Motor Vehicle 25%
The assets' residual values and useful lives are reviewed, and adjusted if
appropriate, at the end of each reporting period.
An asset's carrying amount is written down immediately to its recoverable
amount if the asset's carrying amount is greater than its estimated
recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with the
carrying amount. These gains and losses are recognised in profit or loss in
the period in which they arise. Gains shall not be classified as revenue. When
revalued assets are sold, amounts included in the revaluation surplus relating
to that asset are transferred to retained earnings.
d. Financial Instruments
Initial recognition and measurement
Financial assets and financial liabilities are recognised when the Group
becomes a party to the contractual provisions to the instrument. For financial
assets, this is the date that the Group commits itself to either the purchase
or sale of the asset (i.e. trade date accounting is adopted).
Financial instruments (except for trade receivables) are initially measured at
fair value plus transaction costs, except where the instrument is classified
"at fair value through profit or loss", in which case transaction costs are
expensed to profit or loss immediately. Where available, quoted prices in an
active market are used to determine fair value. In other circumstances,
valuation techniques are adopted.
Trade receivables are initially measured at the transaction price if the trade
receivables do not contain a significant financing component or if the
practical expedient was applied as specified in AASB 15.63.
Classification and subsequent measurement financial liabilities
Financial instruments are subsequently measured at fair value through profit
or loss.
A financial liability is measured at fair value through profit and loss if the
financial liability is initially designated as at fair value through profit or
loss.
Financial assets
Financial assets are subsequently measured at fair value through profit or
loss.
e. Impairment of Assets
At the end of each reporting period, the Group assesses whether there is any
indication that an asset may be impaired. The assessment will include the
consideration of external and internal sources of information including
dividends received from subsidiaries, associates or joint ventures deemed to
be out of pre-acquisition profits. If such an indication exists, an impairment
test is carried out on the asset by comparing the recoverable amount of the
asset, being the higher of the asset's fair value less costs of disposal and
value in use, to the asset's carrying amount. Any excess of the asset's
carrying amount over its recoverable amount is recognised immediately in
profit or loss, unless the asset is carried at a revalued amount in accordance
with another Standard (e.g. in accordance with the revaluation model in AASB
116: Property, Plant and Equipment). Any impairment loss of a revalued asset
is treated as a revaluation decrease in accordance with that other Standard.
Where it is not possible to estimate the recoverable amount of an individual
asset, the Group estimates the recoverable amount of the cash-generating unit
to which the asset belongs.
Impairment testing is performed annually for goodwill, intangible assets with
indefinite lives and intangible assets not yet available for use.
When an impairment loss subsequently reverses, the carrying amount of the
asset (or cash-generating unit) is increased to the revised estimate of its
recoverable amount, but so that the increased carrying amount does not exceed
the carrying amount that would have been determined had no impairment loss
been recognised for the asset (or
cash-generating unit) in prior years. A reversal of an impairment loss is
recognised immediately in profit or loss, unless the relevant asset is carried
at a revalued amount, in which case the reversal of the impairment loss is
treated as a revaluation increase.
f. Foreign Currency Transactions and Balances
Functional and presentation currency
The functional currency of each of the Group's entities is the currency of the
primary economic environment in which that entity operates. The consolidated
financial statements are presented in United States dollars, which is the
Parent Entity's functional currency.
Transactions and balances
Foreign currency transactions are translated into the functional currency
using the exchange rates prevailing at the date of the transaction. Foreign
currency monetary items are translated at the year-end exchange rate.
Non-monetary items measured at historical cost continue to be carried at the
exchange rate at the date of the transaction. Non-monetary items measured at
fair value are reported at the exchange rate at the date when fair values were
determined.
Exchange differences arising on the translation of monetary items are
recognised in profit or loss, except exchange differences that arise from net
investment hedges.
Exchange differences arising on the translation of non-monetary items are
recognised directly in other comprehensive income to the extent that the
underlying gain or loss is recognised in other comprehensive income; otherwise
the exchange difference is recognised in profit or loss.
Group companies
The financial results and position of foreign operations, whose functional
currency is different from the Group's presentation currency, are translated
as follows:
- assets and liabilities are translated at exchange rates
prevailing at the end of the reporting period;
- income and expenses are translated at exchange rates on
the date of transaction; and
- all resulting exchange differences are recognised in
other comprehensive income.
Exchange differences arising on translation of foreign operations with
functional currencies other than US dollars are recognised in other
comprehensive income and included in the foreign exchange translation reserve
in the statement of change in equity and allocated to non-controlling interest
where relevant. The cumulative amount of these differences is reclassified
into profit or loss in the period in which the operation is disposed of.
g. Fair Value Measurement
For financial reporting purposes, 'fair value' is the price that would be
received to sell an asset, or paid to transfer a liability, in an orderly
transaction between market participants (under current market conditions) at
the measurement date, regardless of whether that price is directly observable
or estimated using another valuation technique.
When estimating the fair value of an asset or liability, the entity uses
valuation techniques that are appropriate in the circumstances and for which
sufficient data are available to measure fair value, maximising the use of
relevant observable inputs and minimising the use of unobservable inputs.
Inputs to valuation techniques used to measure fair value are categorised into
three levels according to the extent to which the inputs are observable:
• Level 1 inputs are quoted prices (unadjusted) in active markets for
identical assets or liabilities that the entity can access at the measurement
date.
• Level 2 inputs are inputs other than quoted prices included within Level
1 that are observable for the asset or liability, either directly or
indirectly.
• Level 3 inputs are unobservable inputs for the asset or liability.
h. Exploration and Evaluation Assets
Exploration and evaluation expenditure in relation to separate areas of
interest for which rights of tenure are current is carried forward as an asset
in the statement of financial position where it is expected that the
expenditure will be recovered through the successful development and
exploitation of an area of interest, or by its sale; or exploration activities
are continuing in an area and activities have not reached a stage which
permits a reasonable estimate of the existence or otherwise of economically
recoverable reserves. Where a project or an area of interest has been
abandoned, the expenditure incurred thereon is written off in the year in
which the decision is made.
i. Employee Benefits
Short-term employee benefits
Provision is made for the Group's obligation for short-term employee benefits.
Short-term employee benefits are benefits (other than termination benefits)
that are expected to be settled wholly before 12 months after the end of the
annual reporting period in which the employees render the related service,
including wages, salaries and sick leave. Short-term employee benefits are
measured at the (undiscounted) amounts expected to be paid when the obligation
is settled.
The Group's obligations for short-term employee benefits such as wages,
salaries and sick leave are recognised as part of current trade and other
payables in the statement of financial position. The Group's obligations for
employees' annual leave and long service leave entitlements are recognised as
provisions in the statement of financial position.
Other long-term employee benefits
Provision is made for employees' long service leave and annual leave
entitlements not expected to be settled wholly within 12 months after the end
of the annual reporting period in which the employees render the related
service. Other long-term employee benefits are measured at the present value
of the expected future payments to be made to employees. Expected future
payments incorporate anticipated future wage and salary levels, durations of
service and employee departures and are discounted at rates determined by
reference to market yields at the end of the reporting period on government
bonds that have maturity dates that approximate the terms of the obligations.
Any remeasurements for changes in assumptions of obligations for other
long-term employee benefits are recognised in profit or loss in the periods in
which the changes occur.
The Group's obligations for long-term employee benefits are presented as
non-current provisions in its statement of financial position, except where
the Group does not have an unconditional right to defer settlement for at
least 12 months after the end of the reporting period, in which case the
obligations are presented as current provisions.
Equity-settled compensation
The Group operates an employee performance rights plan. Share-based payments
to employees are measured at the fair value of the instruments at grant date
and amortised over the vesting periods. The corresponding amounts are
recognised in the share-based payment reserve and statement of profit and loss
respectively. The fair value of rights is determined by reference to the share
price of the Company. The number of rights expected to vest is reviewed and
adjusted at the end of each reporting period such that the amount recognised
for services received as consideration for the equity instruments granted is
based on the number of equity instruments that eventually vest.
j. Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, deposits available on demand
with banks, other short-term highly liquid investments with original
maturities of 3 months or less, and bank overdrafts.
k. Borrowing Costs
All other borrowing costs are recognised in profit or loss in the period in
which they are incurred.
l. Critical Accounting Estimates, Judgements and Assumptions
The directors evaluate estimates and judgements incorporated into the
financial statements based on historical knowledge and best available current
information. Estimates assume a reasonable expectation of future events and
are based on current trends and economic data, obtained both externally and
within the Group.
Key estimates
(i) Impairment
The Group assesses impairment on inventories, property, plant and equipment
and intangible assets at the end of each reporting period by evaluating the
conditions and events specific to the Group that but no indicative of
impairment triggers. Recoverable amounts of relevant assets are reassessed
using value-in-use calculations which incorporate various key assumptions.
Key judgements
(i) Share-based payments
The fair value of performance rights is measured at grant date, taking into
account the terms and conditions upon which those shares were granted. The
cumulative expense recognised between grant date and vesting date is adjusted
to reflect the Directors' best estimate of the number of rights that will
ultimately vest because of internal and market conditions, such as the
employees having to remain with the Group until vesting date or such that
employees are required to meet internal KPI.
When shareholders' approval is required for the issuance of performance
rights, the expenses are recognised based on the grant date fair value
according to the management estimation.
(ii) Recovery of deferred tax assets
Deferred tax assets are recognised for deductible temporary differences only
if the Group considers it is probable that future taxable amounts will be
available to utilise those temporary differences and losses.
(iii) Exploration and evaluation cost
Exploration and evaluation costs have been capitalised on the basis that the
Group will commence commercial production in the future, from which time the
costs will be amortised in proportion to the depletion of the mineral
resources. Key judgements are applied in considering costs to be capitalised
which includes determining expenditures directly related to these activities
and allocating overheads between those that are expensed and capitalised. In
addition, costs are only capitalised that are expected to be recovered either
through successful development or sale of the relevant mining interest.
Factors that could impact the future commercial production at the mine include
the level of reserves and resources, future technology changes, which could
impact the cost of mining, future legal changes and changes in commodity
prices. To the extent that capitalised costs are determined not to be
recoverable in the future, they will be written off in the period in which
this determination is made.
NOTE 2: PARENT INFORMATION
The following information has been extracted from the books and records of the
financial information of the Parent Entity set out below and has been prepared
in accordance with Australian Accounting Standards.
2024 2023
US$ US$
Statement of Financial Position
ASSETS
Current assets 20,947,953 21,370,158
Non-current assets 78,058,861 78,058,861
TOTAL ASSETS 99,006,814 99,429,019
LIABILITIES
Current liabilities 8,614,910 8,107,660
TOTAL LIABILITIES 8,614,910 8,107,660
EQUITY
Issued capital 113,057,771 112,862,604
Accumulated losses (23,573,314) (22,544,235)
Reserves 907,447 1,002,990
TOTAL EQUITY 90,391,904 91,321,359
Statement of Profit or Loss and Other Comprehensive Income
Net loss (1,029,079) (10,303,438)
Total comprehensive income (1,029,079) (10,303,438)
NOTE 3: REVENUE
The Group has recognised the following amounts relating to revenue in the
statement of profit or loss.
Note 2024 2023
US$ US$
Revenue from sales of premium zircon and concentrate 6,168,234 22,671,641
Revenue from sales of titanium dioxide 3,127,997 -
3a 9,296,231 22,671,641
a. Sales of mineral sands
The Group earns revenue by mining, processing, and subsequently selling
mineral sands (including zircon and concentrates and titanium dioxide) to
customers based in the Americas, Asia, China and Europe. Revenue from the sale
of product is recognised at the point in time when control has been
transferred to the customer, generally being when the product has been
dispatched and is no longer under the physical control of the Group. In cases
where control of product is transferred to the customer before dispatch takes
place, revenue is recognised when the customer has formally acknowledged their
legal ownership of the product, which includes all inherent risks associated
with control of the product. In these cases, product is clearly identified and
immediately available to the customer.
Sales to customers are generally denominated in US Dollars. The effect of
variable consideration arising from rebates, discounts and other similar
arrangements with customers is included in revenue to the extent that it is
highly probable that there will be no significant reversal of the cumulative
amount of revenue recognised when any pricing uncertainty is resolved.
NOTE 4: LOSS FOR THE YEAR
2024 2023
US$ US$
Loss before income tax from continuing operations includes the following
specific expenses:
a. Expenses
Cost of 8,622,590 19,894,961
sales
Employee benefits expense:
- Staff salaries and benefits 329,483 322,207
- Share based payments 8,062 7,616,663
Rental expense on operating leases - short-term lease expense
2,671 1,970
Depreciation and amortisation 345,642 360,999
NOTE 5: SHARE BASED PAYMENT
2024 2023
US$ US$
Share based payment 8,062 7,616,663
8,062 7,616,663
NOTE 6: TAX EXPENSE
2024 2023
US$ US$
a. The components of tax benefit income comprise: 436,383 (161)
Deferred tax (expense)/benefit 436,383 (161)
2024 2023
US$ US$
b. The prima facie tax on (loss) from ordinary activities before
income tax is reconciled to income tax as follows:
(Loss) before income tax expense (5,826,871) (10,456,195)
Prima facie tax on (loss) from ordinary activities before income tax at
25% (2023: 25%) 1,456,718 2,614,049
Tax effect of:
- non-deductible items (259,999) (422,218)
- Tax losses and temporary differences not recognised as (436,031) (2,180,050)
deferred tax assets
- Write down of deferred tax assets (196,292) -
- Impact of overseas tax differential (128,013) (11,942)
Income tax (expense)/benefit 436,383 (161)
NOTE 7: KEY MANAGEMENT PERSONNEL COMPENSATION
Refer to the remuneration report contained in the directors' report for
details of the remuneration paid or payable to each member of the Group's key
management personnel (KMP) for the year ended 31 December 2024. The total
remuneration paid to KMP of the Company and the Group during the year are as
follows:
2024 2023
US$ US$
Short-term employee benefits 756,657 762,141
Total KMP compensation 756,657 762,141
NOTE 8: AUDITOR'S REMUNERATION
2024 2023
US$ US$
Remuneration of the auditor for:
Audit or review of financial statement
Pitcher Partners 55,492 34,522
Hall Chadwick (NSW) - 17,925
T.K. Lo (HK) 3,800 4,000
KAP Syarief Basir & Rekan 5,047 5,092
SingAssure 2,945 2,651
Other services
Hall Chadwick (NSW) - 2,656
SingAssure 442 -
67,726 66,845
NOTE 9: LOSS PER SHARE
2024 2023
US$ US$
a. Reconciliation of losses to profit or loss:
Loss attributable to non-controlling equity interest (4,144,459) (10,456,356)
Loss used to calculate basic and dilutive EPS (4,144,459) (10,456,356)
2024 2023
No. No.
Weighted average number of ordinary shares on issue used in the calculating of
basic loss per share 460,497,688 451,589,470
Weighted average number of dilutive options outstanding - -
Weighted average number of dilutive warrants outstanding - -
Weighted average number of ordinary shares outstanding during the year used in
calculating dilutive loss per share 460,497,688 451,589,470
Weighted average number of anti-dilutive performance rights outstanding - -
- -
Loss per share
Basic loss per share (cents) (0.90) (2.32)
Diluted loss per share (cents) (0.90) (2.32)
NOTE 10: CASH AND CASH EQUIVALENTS
2024 2023
US$ US$
Cash at bank and on hand 5,008,389 7,828,906
5,008,389 7,828,906
Reconciliation of cash
Cash and cash equivalents at the end of the financial year as shown in the
statement of
cash flows is reconciled to items in the statement of financial position as
follows:
Cash and cash equivalents 5,008,389 7,828,906
5,008,389 7,828,906
NOTE 11: TRADE AND OTHER RECEIVABLES
2024 2023
US$ US$
CURRENT
Trade receivables 105,879 1,537,916
Provision for expected credit losses - -
105,879 1,537,916
Other receivables 1,937 1,871
GST/VAT receivable 245,254 17,783
247,191 19,654
Total current trade and other receivables 353,070 1,557,570
a. Credit Risk
The Group has no significant concentration of credit risk with respect to any
single counterparty or group of counterparties other than those receivables
specifically provided for and mentioned within Note 11. The class of assets
described as "trade and other receivables" is considered to be the main source
of credit risk related to the Group.
The Group always measures the loss allowance for trade receivables at an
amount equal to lifetime expected credit loss. The expected credit losses on
trade receivables are estimated using a provision matrix by reference to past
default experience of the debtor and an analysis of the debtor's current
financial position, adjusted for factors that are specific to the debtor,
general economic conditions of the industry in which the debtor operates and
an assessment of both the current and the forecast direction of conditions at
the reporting date.
There has been no change in the estimation techniques used or significant
assumptions made during the current reporting period.
The Group writes off a trade receivable when there is information indicating
that the debtor is in severe financial difficulty and there is no realistic
prospect of recovery; for example, when the debtor has been placed under
liquidation or has entered into bankruptcy proceedings, or when the trade
receivables are over two years past due, whichever occurs earlier. None of the
trade receivables that have been written off are subject to enforcement
activities.
b. Collateral Held as Security
The Group does not hold any collateral over the trade and other receivables.
NOTE 12: INVENTORIES
2024 2023
US$ US$
CURRENT
At net realizable value:
Finished goods 54,308 2,308,586
54,308 2,308,586
NOTE 13: INTERESTS IN SUBSIDIARIES
a. Information about Principal Subsidiaries
The subsidiaries listed below have share capital consisting solely of ordinary
shares, which are held directly or indirectly by the Group. The proportion of
ownership interests held equals the voting rights held by the Group. Each
subsidiary's principal place of business is also its country of incorporation.
Name of Subsidiary Principal Place of Business Ownership Interest Held by the Group Proportion of Non-Controlling Interests
2024 2023 2024 2023
% % % %
Takmur Pte Limited Singapore 100 100 - -
PT Andary Usaha Makmur Indonesia 99.5 99.5 0.5 0.5
PT Investasi Mandiri* Indonesia - - 100 100
Tisma Development (HK) Ltd. Hong Kong 100 100 - -
PT Tisma Investasi Abadi Indonesia 99 99 1 1
PT Tisma Global Nusantara** Indonesia - - 100 100
* This entity is accounted for as a controlled entity on
the basis that control was obtained through the execution of an exclusive
operations and management agreement between PT Andary Usaha Makmur and PT
Investasi Mandiri and was for nil purchase consideration.
** This entity is accounted for as a controlled entity on the
basis that control was obtained through the execution of an exclusive
operations and management agreement between PT Tisma Investasi Abadi and PT
Tisma Global Nusantara and was for nil purchase consideration.
The non-controlling interests in PT Andary Usaha Makmur and PT Tisma Investasi
Abadi are not material to the Group.
Subsidiary financial statements used in the preparation of these consolidated
financial statements have also been prepared as at the same reporting date as
the Group's financial statements.
b. Summarised Financial Information of Subsidiaries with Material Non-controlling Interests
Set out below is the summarised financial information for each subsidiary that
has non-controlling interests that are material to the Group, before any
intragroup eliminations.
PT Investasi Mandiri
2024 2023
US$ US$
Summarised Financial Position
Current assets 3,470,553 6,666,649
Non-current assets 5,425,909 4,522,663
Current liabilities (14,682,592) (12,449,443)
Non-current liabilities - -
NET LIABILITIES (5,786,130) (1,260,131)
Carrying amount of non-controlling interests (5,786,130) (1,260,131)
Summarised Financial Performance
Revenue 11,042,103 22,671,641
Profit/(Loss) after income tax (3,929,315) 182,476
Other comprehensive income after tax (400,392) 36,410
Total comprehensive (loss)/income (4,329,707) 218,886
Loss attributable to non-controlling interests (4,329,704) 218,886
Distributions paid to non-controlling interests - -
Summarised Cash Flow Information
Net cash used in operating activities (190,278) (1,676,010)
Net cash used in investing activities (2,158,357) (1,964,246)
Net cash from financing activities 2,122,857 3,583,390
Net (decrease)/increase in cash and cash equivalents (225,778) (56,866)
PT Tisma Global Nusantura
2024 2023
US$ US$
Summarised Financial Position
Current assets 73,881 39,235
Non-current assets 130,787 155,058
Current liabilities (398,971) (380,417)
Non-current liabilities - -
NET LIABILITIES (194,303) (186,124)
Carrying amount of non-controlling interests (194,303) (186,124)
Summarised Financial Performance
Revenue - -
Loss after income tax (17,562) (49,590)
Other comprehensive income after tax 9,383 (833)
Total comprehensive (loss)/income (8,179) (50,423)
Loss attributable to non-controlling interests (8,179) (50,423)
Distributions paid to non-controlling interests - -
Summarised Cash Flow Information
Net cash used in operating activities (21,093) 130,467
Net cash used in investing activities - (173,808)
Net cash from financing activities 19,445 45,017
Net decrease in cash and cash equivalents (1,648) 1,676
NOTE 14: PROPERTY, PLANT AND EQUIPMENT
2024 2023
US$ US$
Land and Buildings 211,603 211,603
Freehold land at cost (16,628) (7,194)
Translation 194,975 204,409
Buildings at cost 1,915,340 1,208,238
Accumulated depreciation (358,488) (285,312)
Translation (89,185) (31,572)
Total buildings 1,467,667 891,354
Total land and buildings 1,662,642 1,095,763
Construction in Progress
Construction in Progress at cost 5,096,603 4,409,048
Translation (287,925) (112,341)
Total Construction in Progress 4,808,678 4,296,707
Plant and Equipment
Plant and equipment at cost 1,048,146 1,048,146
Accumulated depreciation (577,698) (442,341)
Translation (45,916) (32,301)
Total plant and equipment 424,532 573,504
Motor Vehicles
Motor vehicles at cost 138,707 138,707
Accumulated depreciation (108,208) (77,322)
Translation (2,549) (2,774)
Total motor vehicles 27,950 58,611
Furniture and Fittings
Furniture and fittings at cost 36,192 36,192
Accumulated depreciation (21,094) (18,557)
Translation (220) (104)
Total furniture and fittings 14,878 17,531
Total property, plant and equipment 6,938,680 6,042,116
a. Movements in Carrying Amounts
Movements in the carrying amounts for each class of property, plant and
equipment between the beginning and the end of the current financial year:
Freehold Buildings Construction Plant and Motor Furniture Total
Land in Progress Equipment Vehicles and Fittings
US$ US$ US$ US$ US$ US$ US$
Balance at 1 Jan 2023 200,317 930,055 2,126,051 686,863 89,835 18,075 4,051,196
Additions - - 2,150,918 2,099 - 4,386 2,157,403
Depreciation expense - (60,504) - (136,835) (34,704) (5,412) (237,455)
Translation 4,092 21,803 19,738 21,377 3,480 482 70,972
Balance at 31 Dec 2023 204,409 891,354 4,296,707 573,504 58,611 17,531 6,042,116
Balance at 1 Jan 2024 204,409 891,354 4,296,707 573,504 58,611 17,531 6,042,116
Additions - 707,102 687,555 - - - 1,394,657
Depreciation expense - (73,176) - (135,357) (30,886) (2,537) (241,956)
Translation (9,434) (57,613) (175,584) (13,615) 225 (116) (256,137)
Balance at 31 Dec 2024 194,975 1,467,667 4,808,678 424,532 27,950 14,878 6,938,680
NOTE 15: INTANGIBLE ASSETS
2024 2023
US$ US$
Goodwill:
Cost 7,774 7,774
Accumulated impairment losses - -
Net carrying amount 7,774 7,774
Mining License Renewal:
Cost 633,337 360,937
Accumulated amortization (250,569) (153,499)
Translation 5,134 21,102
Net carrying amount 387,902 228,540
Exploration asset:
Carrying value on acquisition 73,260,053 73,260,053
Net carrying amount 73,260,053 73,260,053
Total intangible assets 73,655,729 73,496,367
Mining Exploration*
Goodwill Licenses assets Total
US$ US$ US$ US$
Year ended 31 December 2023
Balance at the beginning of the year 7,774 46,412 73,260,053 73,314,239
Additions - 271,953 - 271,953
Amortisation - (113,458) - (113,458)
Translation - 23,633 - 23,633
Closing value at 31 December 2023 7,774 228,540 73,260,053 73,496,367
Year ended 31 December 2024
Balance at the beginning of the year 7,774 228,540 73,260,053 73,496,367
Additions - 272,400 - 272,400
Amortisation - (97,070) - (97,070)
Translation - (15,968) - (15,968)
Closing value at 31 December 2024 7,774 387,902 73,260,053 73,655,729
*Exploration - The capitalized exploration and evaluation expenditures relate
to a world-class mineral sands asset consisting of a concession area of 1,500
hectares located in Central Kalimantan Province, Indonesia. The ultimate
recoupment of these expenditures is contingent upon the successful development
and commercial exploitation of the respective areas of interest.
NOTE 16: DEFERRED TAX ASSETS (NON-CURRENT)
Non-current assets - deferred tax
2024 2023
US$ US$
Deferred tax asset comprises temporary differences attributable to:
Amounts recognised in profit or loss:
Tax losses 444,537 11,661
Property, plant and equipment (6,874) (13,570)
Employee benefits (1,280) 1,748
Deferred tax asset 436,383 (161)
Amount expected to be recovered with 12 months
Amount expected to be recovered after more than 12 months - -
Amount expected to be settled within 12 months 436,383 (161)
Amount expected to be settled after more than 12 months - -
436,383 (161)
Movements:
Opening balance 526,626 523,421
Transferred to profit or loss (Note 6) 436,383 (161)
Foreign exchange (32,234) 3,366
Closing balance 930,775 526,626
Deferred income tax is provided on all temporary differences at the balance
sheet date between accounting carrying amounts and the tax bases of assets and
liabilities.
Deferred income tax liabilities are recognised for all taxable temporary
differences, other than for the exemptions permitted under accounting
standards.
Deferred income tax assets are recognised for all deductible temporary
differences, carry-forward of unused tax assets and unused tax losses, to the
extent it is probable that taxable profit will be available to utilise these
deductible temporary differences, other than for the exemptions permitted
under accounting standards. The carrying amount of deferred income tax assets
is reviewed at each balance sheet date and reduced to the extent that it is no
longer probable that sufficient taxable profit will be available to allow all
or part of the deferred income tax asset to be utilised.
NOTE 17: OTHER LIABILITIES
2024 2023
US$ US$
Prepayments from investor* 2,331,568 4,064,122
Less: fair value of subscribed shares (275,000) (3,400,000)
Loss on fair value change 878,098 1,667,446
Balance at the end of reporting period 2,934,666 2,331,568
Fair value is measured using the assumptions that market participants would
use when pricing the liability, assuming they act in their economic best
interests. liabilities measured at fair value are classified into three
levels, using a fair value hierarchy that reflects the significance of the
inputs used in making the measurements. Classifications are reviewed at each
reporting date and transfers between levels are determined based on a
reassessment of the lowest level of input that is significant to the fair
value measurement.
* On 11 March 2022 the Company entered into Share
Subscription Agreement ("Subscription Agreement") with L1 Capital Global
Opportunities Master Fund ("L1" or "Investor") and received an advance payment
amount of US$4,383,822 (net of costs) from L1 as a prepayment for US$5 million
worth of PYX shares ("Initial Investment Subscription Amount") via a share
placement. The Company has issued initial 3,000,000 shares at zero value and
2,083,431 unlisted options to L1.
The key terms and conditions of the Subscription Agreement are:
• The Investor will immediately prepay a lump sum of
US$4,500,000 for Placement Shares worth US$5,000,000 and on mutual consent, up
to an additional US$9,000,000.
• The Investor will specify the time(s) of issuance(s)
of shares (the "Placement Shares") no later than 24 months following the date
of the applicable funding date to offset the Subscription Amount.
• The subscription price for the Placement Shares was
initially 130% of the average of the 5 daily VWAPs on the applicable exchange
(NSX or LSE) preceding the applicable funding date. Commencing 30 days after
the funding date, the Investor may elect to subscribe for the Placement Shares
at 95% of the average of 3 daily VWAPs over the 15 trading days (on the
applicable exchange) prior to the Share Issuance Date.
• The Investor will not sell more than 20% of the
monthly trading volume in any month.
• On each of the applicable funding dates, the Company
will issue to the Investor a number of Options equal to 40% of the prepayment
amount divided by the average of the 5 daily VWAPs preceding the applicable
funding date. Each option will have a strike price equal to 130% of the
average of the 5 daily VWAPs preceding the applicable funding date and expire
3 years from the applicable funding date.
On 29 May 2024, 2,706,693 shares valued at US$275,000 were issued to L1
Capital Global Opportunities Master Fund ("L1").
These shares were issued in connection with the funds of US$4,383,822 received
from L1 as a prepayment for US$5 million worth of PYX shares.
* On 2 December 2022, L1 has invested an additional
US$2,500,000 in the Company in exchange for US$2,777,778 worth of PYX shares.
The Company received the additional advance funds of US$2,443,500 (net of
costs) from L1 as a prepayment for US$2,777,778 worth of PYX shares. The
Company has issued to the Investor 1,700,000 shares ("the Additional Initial
Shares") and 2,323,645 unlisted options with an exercise price of GBP 0.45
which will expire three years from the applicable funding date.
The following variations to their agreement have since been made by the
Company and the Investor:
• The Company will issue 1,700,000 shares to the
Investor at the time of the funding of the Advance Payment of US$2.5m (the
Additional Shares).
• The Investor may elect to subscribe for the Placement
Shares at 95% of the average of 3 daily VWAPs over the 15 trading days (on the
applicable exchange) prior to the Share Issuance Date or 130% of the average
of 5 daily VWAPs over the 5 trading days immediately prior to the relevant
date of the Advance Payment.
• The Investor will not sell more than 40% of the
monthly trading volume in any month, provided that during the term the
Investor may not sell more than 30% of the aggregate trading volume during the
term.
• The term of the investment has been increased from 24
to 30 months.
The unconverted amounts of the prepayment and additional advance payment are
reported net of the fair value of initial shares, additional initial shares
and placement shares subscribed as at the reporting date.
NOTE 18: TAX
2024 2023
US$ US$
NON-CURRENT
Income tax recoverable 886,004 847,485
NOTE 19: AMOUNT DUE TO SHAREHOLDER
2024 2023
US$ US$
Cash deposit from an investor 5,000,000 5,100,000
Fees payable to share-provider 362,559 176,000
5,362,559 5,276,000
NOTE 20: ISSUED CAPITAL
2024 2023
US$ US$
461,643,854 (2023: 458,817,161) fully paid ordinary shares 105,787,285 105,592,118
2024 2023
Contributed Contributed
No. of shares equity No. of Shares equity
No. US$ No. US$
a. Ordinary Shares
At the beginning of the reporting period 458,817,161 105,592,118 441,349,100 102,226,925
Movement:
Year 2023 - - 17,468,061 3,365,193
29 May 2024 2,826,493 378,605 - -
Share issue costs - (183,438) - -
At the end of the reporting period 461,643,854 105,787,285 458,817,161 105,592,118
On 29 May 2024, 2,706,693 shares valued at US$275,000 were issued to L1
Capital Global Opportunities Master Fund ("L1"), these shares were issued in
connection with the funds of US$4,383,822 received from L1 as a prepayment for
US$5 million worth of PYX shares in financial year 2022 and 120,000 shares
valued at US$103,605 were issued to employee.
At the shareholders' meetings each ordinary share is entitled to one vote when
a poll is called; otherwise, each shareholder has one vote on a show of hands.
b. Unlisted Options
2024 2023
No. No.
At the beginning of the reporting period 4,407,076 4,944,576
Expired during the period - (537,500)
At the end of the reporting period 4,407,076 4,407,076
c. Unlisted Warrants
2024 2023
No. No.
At the beginning of the reporting period 3,000,000 3,000,000
At the end of the reporting period 3,000,000 3,000,000
d. Capital Management
Management controls the capital of the Group in order to maintain a
sustainable debt to equity ratio, generate long-term shareholder value and
ensure that the Group can fund its operations and continue as a going concern.
The Group's debt and capital include ordinary share capital, redeemable
preference shares, convertible preference shares and financial liabilities,
supported by financial assets.
The Group is not subject to any externally imposed capital requirements.
Management effectively manages the Group's capital by assessing the Group's
financial risks and adjusting its capital structure in response to changes in
these risks and in the market. These responses include the management of debt
levels, distributions to shareholders and share issues.
There have been no changes in the strategy adopted by management to control
the capital of the Group since the prior year.
Note 2024 2023
US$ US$
Total borrowings 19,434 5,008,389 - 7,828,906
Less cash and cash equivalents 10
Net cash/(debt) 5,027,823 7,828,906
Total equity 78,463,200 84,123,089
Total capital 78,463,200 84,123,089
Gearing ratio 0.02% 0.00%
NOTE 21: CASH FLOW INFORMATION
2024 2023
US$ US$
a. Reconciliation of Cash Flows from Operating Activities with Loss
after Income Tax
Loss after income tax (5,390,488) (10,456,356)
Non-cash flows in (loss):
- depreciation 345,642 360,999
- share-based payments 8,062 7,616,663
- exchange differences (128,869) 90,031
- Fair value change of financial instrument 878,098 1,685,242
Changes in assets and liabilities:
- (increase) in trade and other receivables 1,204,177 (161,130)
- decrease in advances to suppliers 401,598 187,284
- decrease/(increase) in inventories 2,254,278 (1,602,810)
- (increase)/decrease in prepayments and deposits (60,104) 44,112
- (increase) in deferred tax assets (404,149) (3,205)
- (decrease)/increase in trade and other payables (133,884) 505,024
- (increase) in current tax liabilities (38,519) (186,355)
Net cash (used in) operating activities (1,064,158) (1,920,501)
b. Changes in Liabilities arising from Financing Activities
Non-cash changes
1 January Cash flows Acquisition Re-classification 31 December
2024 2024
US$ US$ US$ US$ US$
Short term borrowings - 19,434 - - 19,434
Amount due to shareholder 5,276,000 86,559 - - 5,362,559
Total 5,276,000 105,993 - - 5,381,993
c. Non-Cash Financing and Investing Activities
(i) Share issue:
Refer to note 20 for details of non-cash financing activities arising from
shares issued.
NOTE 22: RELATED PARTY TRANSACTIONS
Phoenician Management Services Limited, a related party of Mr. Hasler,
provided management support, general administration and IT services to PT
Investasi Mandiri. For the year ended 31 December 2024, Phoenician Management
Services Limited was paid $1,161,046 (2023: $1,263,694), payable balance at
year-end was $92,448 (2023: $106,008) and expenses recognised during the year
amounted to $1,147,486 (2023: $1,369,702).
NOTE 23: FINANCIAL RISK MANAGEMENT
The Group's financial instruments consist mainly of deposits with banks,
accounts receivable and payable, loan and leases.
The totals for each category of financial instruments, measured in accordance
with AASB 9: Financial Instruments as detailed in the accounting policies to
these financial statements, are as follows:
Note 2024 2023
US$ US$
Financial assets
Financial assets at amortised cost
- cash and cash equivalents 10 5,008,389 7,828,906
- trade and other receivables 11 353,070 1,557,570
Total financial assets 5,361,459 9,386,476
Financial liabilities
Financial liabilities at amortised cost
- trade and other payables 17 1,205,107 1,370,005
- amount due to shareholder 5,362,559 5,276,000
Financial liabilities at fair value
- other liabilities 2,934,666 2,331,568
Total financial liabilities 9,502,332 8,977,573
Financial Risk Management Policies
The Finance and Operations Committee (FOC) has been delegated responsibility
by the Board of Directors for, among other issues, managing financial risk
exposures of the Group. The FOC monitors the Group's financial risk management
policies and exposures and approves financial transactions within the scope of
its authority. It also reviews the effectiveness of internal controls relating
to commodity price risk, counterparty credit risk, foreign currency risk,
liquidity risk, and interest rate risk.
The FOC meets on a bi-monthly basis and minutes of the FOC are reviewed by the
Board.
The FOC's overall risk management strategy seeks to assist the Consolidated
Group in meeting its financial targets, while minimising potential adverse
effects on financial performance. Its functions include the review of the use
of hedging derivative instruments, credit risk policies and future cash flow
requirements.
The main risks the Group is exposed to through its financial instruments are
credit risk, liquidity risk, and market risk consisting of interest rate risk,
foreign currency risk and other price risk (commodity and equity price risk).
There have been no substantive changes in the types of risks the Group is
exposed to, how these risks arise, or the Board's objectives, policies and
processes for managing or measuring the risks from the previous period.
a. Credit risk
Exposure to credit risk relating to financial assets arises from the potential
non-performance by counterparties of contract obligations that could lead to a
financial loss to the Group.
Credit risk is managed through the maintenance of procedures (such as the
utilisation of systems for the approval, granting and renewal of credit
limits, regular monitoring of exposures against such limits and monitoring of
the financial stability of significant customers and counterparties), ensuring
to the extent possible that customers and counterparties to transactions are
of sound credit worthiness. Such monitoring is used in assessing receivables
for impairment.
Depending on the division within the Group, credit terms are generally 14 to
30 days from the invoice date.
Trade and other receivables that are neither past due nor impaired are
considered to be of high credit quality. Aggregates of such amounts are
detailed in Note 11.
b. Liquidity risk
Liquidity risk arises from the possibility that the Group might encounter
difficulty in settling its debts or otherwise meeting its obligations related
to financial liabilities. The Group manages this risk through the following
mechanisms:
- preparing forward-looking cash flow analyses in relation
to its operating, investing and financing activities;
- obtaining funding from a Parent Group;
- maintaining a reputable credit profile;
- managing credit risk related to financial assets; and
- comparing the maturity profile of financial liabilities
with the realisation profile of financial assets.
c. Other price risk
Other price risk relates to the risk that the fair value or future cash flows
of a financial instrument will fluctuate because of changes in market prices
for zircon largely due to demand and supply factors (other than those arising
from interest rate risk or foreign currency risk) for sand minerals.
The Group is exposed to commodity price risk through the operations of its
zircon Product Contracts for the sale and physical delivery of zircons are
executed whenever possible on a pricing basis intended to achieve a relevant
index target. Where pricing terms deviate from the index, derivative commodity
contracts may be used when available to return realised prices to the index.
Contracts for the physical delivery of zircon are generally not financial
instruments and are carried in the statement of financial position at cost
(typically at nil). There were no hedges in place at the end of the reporting
period.
d. Foreign currency risk
Exposure to foreign currency risk may result in the fair value or future cash
flows of a financial instrument fluctuating due to movement in foreign
exchange rates of currencies in which the Group holds financial instruments
which are other than the USD functional and presentation currency of the
Group.
With instruments being held by overseas operations, fluctuations in the IDR
and AUD may impact on the Group's financial results unless those exposures are
appropriately hedged.
Financial Liability and Financial Asset Maturity Analysis
The following table reflects an undiscounted contractual maturity analysis for
financial assets and financial liabilities.
Cash flows realised from financial assets reflect management's expectation as
to the timing of realisation. Actual timing may therefore differ from that
disclosed. The timing of cash flows presented in the table to settle financial
liabilities reflects the earliest contractual settlement dates and does not
reflect management's expectations that banking facilities will be rolled
forward.
Within 1 Year 1 to 5 Years Total
2024 2023 2024 2023 2024 2023
US$ US$ US$ US$ US$ US$
Financial liabilities due for payment
Trade and other payables 1,205,107 1,370,005 - - 1,205,107 1,370,005
Amount due to shareholder 5,362,559 5,276,000 5,362,559 5,276,000
Lease liabilities - - - - - -
Total expected outflows 6,567,666 6,646,005 - - 6,567,666 6,646,005
Financial assets - cash flows realisable
Cash and cash equivalents 5,008,389 7,828,906 - - 5,008,389 7,828,906
Trade and other receivables 353,070 1,557,570 - - 353,070 1,557,570
Total anticipated inflows 5,361,459 9,386,476 - - 5,361,459 9,386,476
Net inflow/(outflow) on financial instruments (1,206,207) 2,740,471 - - (1,206,207) 2,740,471
The following table shows foreign currency risk on the financial assets and
liabilities of the Group's operations denominated in currencies other than the
functional currency of the Group's operations. The foreign currency risk in
the books of the Parent Entity is considered immaterial and is therefore not
shown.
2024
Net Financial Assets/(Liabilities) in USD
USD GBP AUD Total USD
Functional currency of entity:
US dollar - (288,588) 857,841 569,253
Indonesian Rupiah 7,742 - - 7,742
Statement of financial position exposure 7,742 (288,588) 857,841 576,996
2023
Net Financial Assets/(Liabilities) in USD
USD GBP AUD Total USD
Functional currency of entity:
US Dollar - (86,535) 1,994,028 1,907,493
Indonesian Rupiah 720,571 - - 720,571
Statement of financial position exposure 720,571 (86,535) 1,994,028 2,628,064
Fair Values
Fair value estimation
The fair values of financial assets and financial liabilities are presented in
the following table and can be compared to their carrying amounts as presented
in the statement of financial position.
Differences between fair values and carrying amounts of financial instruments
with fixed interest rates are due to the change in discount rates being
applied by the market since their initial recognition by the Group.
2024 Fair Value US$ 2023 Fair Value US$
Carrying Amount Carrying Amount
Note US$ US$
Financial assets
Financial assets at amortised cost:
Cash and cash equivalents(i) 10 5,008,389 5,008,389 7,828,906 7,828,906
Trade and other receivables(i) 11 353,070 353,070 1,557,570 1,557,570
Total financial assets 5,361,459 5,361,459 9,386,476 9,386,476
Financial liabilities
Financial liabilities at amortised costs
Trade and other payables(i) 1,205,107 1,205,107 1,370,005 1,370,005
Amount due to shareholder 5,362,559 5,362,559 5,276,000 5,276,000
Financial liabilities at fair value
Other liabilities(i) 17 2,934,666 2,934,666 2,331,568 2,331,568
Total financial liabilities 9,502,332 9,502,332 8,977,573 8,977,573
(i) The carrying amounts of cash and cash equivalents, trade and
other receivables and trade and other payables are equivalent to their fair
values.
NOTE 24: RESERVES
a. Share-Based Payment Reserve
The share-based payment reserve records items recognised as expenses on
valuation of share-based payments.
2024 2023
US$ US$
Share Based Payment Reserve
At the beginning of the reporting period 109,987 8,350,453
Share based payments 8,062 7,616,663
Share based payments cancelled - (15,857,129)
Issue of shares to employees (103,605) -
Closing balance in share-based payment reserve 14,444 109,987
b. Options Reserve
The options reserve records costs associated with the option issue.
c. Foreign Currency Translation Reserve
The foreign currency translation reserve records exchange differences arising
on translation of the foreign controlled subsidiaries.
NOTE 25: CAPITAL COMMITMENTS
The Company had no capital commitments at the balance sheet date.
NOTE 26: CONTINGENT LIABILITIES
There has been no change in contingent liabilities since the last reporting
period.
NOTE 27: EVENTS AFTER THE REPORTING PERIOD
On 28 February 2025, the Company announced that it has been made aware by the
local authorities in Central Kalimantan, Indonesia of the increase in
royalties for the export of premium zircon, rutile and ilmenite. The royalties
have gone up from 4% of the base price of IDR3.0 million per tonne (aprox US$8
per tonne) in 2022 to20% utilizing IDR4.8 million as a base price (aprox US$59
per tonne). This local royalty tax increase for zircon, rutile and ilmenite is
in addition to the 1.5% export tax.
PYX Resources received the licence for the export 10,000 tonnes of ilmenite
ores from the Indonesian government. This licence was issued by the Ministry
of Industry and Trade (Departemen Perindustrian dan Perdagangan - Deperindag)
on 17 February 2025. Titanium Dioxide sales have a significant positive impact
on PYX's finances.
No other significant events are noted by management since the end of the
reporting period.
NOTE 28: NEW AND AMENDED STANDARDS
There are no new or amended accounting standards that required the Group to
change its accounting policies in the current reporting period.
Forthcoming standards and amendments not yet adopted - AASB 18 Presentation
and Disclosure in Financial Statements.
AASB 18 was issued in June 2024 and replaces AASB 101 Presentation of
Financial Statements. The new standard introduces new requirements for the
Statement of Profit or Loss, including:
(i) new categories for the classification of income and expenses
into operating, investing and financing categories, and
(ii) presentation of subtotals for "operating profit" and "profit
before financing and income taxes"
Additional disclosure requirements are introduced for management-defined
performance measures and new principles for aggregation and disaggregation of
information in the notes and the primary financial statements and the
presentation of interest and dividends in the statement of cash flows. The new
standard is effective for annual periods beginning on or after 1 January 2027
and will first apply to the Group for the financial year ending 31 December
2027.
Consolidated Entity Disclosure Statement
As at 31 December 2024
PYX Resources Limited is required by Australian Accounting Standards to
prepare consolidated financial statements in relation to the company and its
controlled entities (the consolidated entity).
In accordance with subsection 295(3A) of the Corporations Act 2001, this
consolidated entity disclosure statement provided information about each
entity that was part of the consolidated entity at the end of the financial
year.
Australian Place of
Place of tax resident foreign tax
incorporation % of share or foreign jurisdiction
Name of entity Type of entity or formation capital held tax resident (if applicable)
PYX Resources Limited Body corporate Australia n/a Australian n/a
Takmur Pte Limited Body corporate Singapore 100% Foreign Singapore
PT Andary Usaha Makmur Body corporate Indonesia 99.5% Foreign Indonesia
PT Investasi Mandiri Body corporate Indonesia - Foreign Indonesia
Tisma Development (HK) Ltd. Body corporate Hong Kong 100% Foreign Hong Kong
PT Tisma Investasi Abadi Body corporate Indonesia 99% Foreign Indonesia
PT Tisma Global Nusantara Body corporate Indonesia - Foreign Indonesia
1 According to publicly available information during the financial year
ended June 2023
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