REG - PYX Resources Ltd. - Half-year Report
13/09/2022 08:00
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RNS Number : 2393Z PYX Resources Limited 13 September 2022
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PYX Resources Limited / EPIC: PYX / Market: Standard / Sector: Mining
13(th) September 2022
PYX Resources Ltd
("PYX" or the "Company")
Half Year 2022 Results
Positive EBITDA from Operations & 128% Revenue Growth
HIGHLIGHTS
· 128% increase in revenue growth to US$10.6 million
· 92% increase in premium zircon realised prices to US$2,749 per tonne
· 163% uplift in total production after starting production of titanium
dioxide minerals
· 19% growth in premium zircon sales volumes and 23% increase in
premium zircon production
· Achieved positive underlying EBITDA with limited negative operating
cash flow
· Maintained debt free status and strengthened cash position to US$7.7
million
· Continued diversification of sales into different countries and
industries including high-tech application
· Strong industry up-cycle to continue through 2022, representing a
great opportunity for PYX to boost capacity and grow market share
PYX Resources Ltd (PYX or the Company) (NSX: PYX | LSE: PYX), the world's
second largest publicly listed zircon producer by zircon resources(1), is
pleased to announce its results for the six months ended 30 June 2022 ("H1
2022").
The Company performed strongly in the first half of the year due to a boost in
premium zircon, rutile and ilmenite production, sales volume and ongoing price
increases; accordingly, H1 2022 has seen PYX deliver a 128% increase in
revenue growth to US$10.6 million.
Furthermore, PYX produced 9.2kt in total and sold 3.9kt of premium zircon, up
163% and 19% year-on-year ('YoY') respectively, and increased its zircon
production 23%, with average realised sales price up 92% to US$2,749 per
tonne. The Company also strengthened its finished goods inventories to 5.8kt
(2021: 0.3 kt) as a result of the start of rutile and ilmenite production and
limited freight availability at the end of June 2022.
With a premium zircon production of 2,623 tonnes and sales of 2,122 tonnes Q2
2022 showed to be the best quarter the company has had so far, resulting in a
record revenue for the months of April to June of this year.
In December 2021, PYX announced that it had increased its capacity at its
Minerals Separation Plant by 33% to 24ktpa with the additional 6ktpa capacity
being utilised to start production of titanium dioxide minerals (rutile and
ilmenite) during H1 2022. Tailings accumulated over the years were used to
feed the process, which resulted in an ilmenite inventory of 4.6kt tonnes and
rutile of 318 tonnes. Moving from sole premium zircon production to include
rutile and ilmenite reduced the premium zircon potential output for H1 2022,
but PYX believes it will benefit the total operation and margins in the long
run.
June 2022 saw industrial metals markets come under pressure and experience the
most significant price decline since 2008(2). The Company believes the trigger
was not only the equity markets correction but the uncertainty surrounding the
possibility of an upcoming of global recession, high inflation, higher
interest rates, and the concern that the war in Ukraine might spread to other
countries. In the period from 1 January 2022 to 30 June 2022, copper price
as an example, had a -14.9% correction to US$8,245 per tonne and tin price
fell sharply by -32.2% to US$26,689 per tonne(3). During the same period,
zircon prices (as measured by Asian Metal) showed an increase, with South
African and Australian zircon increasing from US$1,860 per tonne to US$2,110
per tonne(4) and PYX's premium zircon rising from US$2,450 per tonne to
US$2,766 per tonne (being the Company's average realised prices for the month
of June 2022 compared with the prices for January 2022). The Directors
believe this illustrates that zircon prices are more driven by physical trade,
which is impacted by a strong demand/supply imbalance, than by geopolitical
concerns.
Customer demand continued to be strong, with particular interest being shown
in PYX's premium zircon due to its low aluminium oxide of under 0.2% and
uranium and thorium content of less than 500ppm. PYX has continued to
diversify its sales into different countries and industries, adding customers
in Spain, the USA, and the UK in the last six months as the Company seeks to
limit its exposure to potential customer disruptions amid geopolitical issues.
The Company is also seeing a diversification in end users for its products.
Traditionally, zircon and its derivatives, which have remarkable properties
including opacity/whiteness, hardness, low thermal expansion, high melting
point, low thermal conductivity, chemical inert, and low neutron absorption,
were principally used in ceramics manufacturing, but are now being utilised
for a wider variety of applications including high tech applications that
support the green transition. These include additive manufacturing,
semiconductors, implants, solar cells, fuel cells and batteries, which are
growing at circa 10 times faster than traditional uses, as well as
electronics, nuclear fuel rods, paper, brake pads, investment casting, and
catalysts. With this background, as the world moves toward decarbonisation,
the demand for zircon is expected to continue to increase; notably, the
Australian Government classes zircon, rutile, and ilmenite, as crucial
minerals vital for the economic wellbeing of the world's major and emerging
economies(5).
PYX achieved a positive underlying EBITDA of US$90k during H1 2022, compared
to a negative EBITDA of US$661k in H1 2021. The Company's net loss after tax
for the period totalled US$3.6 million compared to a loss of US$1.2 million in
2021, mainly as a result of share grants with no effect on cash, loss on fair
value change of financial instrument, improvements to operations and capex to
increase extraction capacity and production and sales volumes; PYX's economics
will improve significantly as a result of these investments.
The resulting cash and cash equivalent balance for the period was US$7.7
million, up from US$6.6 million at the end of December 2021. The increase was
due mainly to the March US$4.5 million fundraise from L1 Capital Global
Opportunities Master Fund, less the capital expenditures required to produce
rutile and ilmenite and the increased working capital requirements resulting
from the production and inventory increase. PYX remains debt free, as planned.
US$ H1 2022 H1 2021 % change
Sales revenue $ 10,645,890 $ 4,660,223 128%
Cash cost of production $ (7,333,047) $ (4,008,639) -83%
EBITDA $ (3,486,822) $ (1,254,832) -178%
EBIT $ (3,598,520) $ (1,346,969) -167%
Net loss before tax $ (3,613,644) $ (1,352,830) -167%
Net loss after tax (NLAT) $ (3,623,751) $ (1,194,190) -203%
Underlying EBITDA $ 90,008 $ (660,567) 114%
US$ At 30 Jun 2022 At 31 Dec 2021 % change
Cash $ 7,653,070 $ 6,624,364 15.5%
Total assets $ 87,873,627 $ 84,796,550 3.6%
Total liabilities $ (3,951,428) $ (1,759,899) -79.3%
Results Summary
(1)According to publicly available information during the financial year ended December 2020
(2)Refer article “Industrial Metals see biggest Q2 drop since 2008 as sentiment collapses – ANZ” by Anna Golubova, Monday July 11, 2022, Kitco News www.kitco.com
(3)London Metal Exchange – LME Copper Official Prices and LME Tin Official Prices (lme.com)
(4)Prices sourced from Asian Metal (asianmetal.com)
(5)Australian Government, Australian Critical Minerals Prospectus
2021 https://bit.ly/3qfYInX
Commenting on the Company's achievements in H1 2022, PYX Resources' Chairman
and Chief Executive Officer, Oliver B. Hasler, said:
"The six-month review period has not only seen us lift revenue by 128% to
US$10.6 million but also post a material uplift in our underlying EBITDA that
moved into positive territory for the first time as planned. Together with the
strengthening of zircon prices, the other key catalyst behind the step-up in
performance has been the expansion in production capacity at Mandiri from
18ktpa to 24ktpa, which has enabled us to diversify our offering to include
rutile and ilmenite; ultimately, this will lift to 48ktpa as of our 5-year
plan."
"Looking forward, I believe that the Company is well positioned to enter a
period of sustained growth in financial performance. With a strong balance
sheet and buoyant market, we anticipate delivering on our objective to develop
the Group into one of the most prominent mineral sands producers globally, one
which benefits all stakeholders including the local communities around which
our business is centred, and I look forward to providing further updates on
progress made."
PYX Cares Programme
PYX continued with its PYX Cares programme based on five pillars: People,
Planet, Prosperity, Peace, and Partnership and subscribed to the UN Global
Compact. Working with local communities in Kalimantan, to learn what they need
to ensure it leaves a lasting legacy to the region and its people, in 2022,
PYX realised projects on education, clean water and sanitation, viable
employment, and building partnerships to further these goals.
Furthermore, PYX commenced several environmental projects including a
collaboration with an off-site Orangutan Sanctuary in Indonesia and a
reforestation programme, which will see the Company plant 10,000 trees on its
tenement area.
PYX also continued its Covid-19 vaccination programme; as of 31 August, 100%
of its employees had received the first two vaccines and 86% had received the
third. Additionally, for the second consecutive year, PYX has taken part in
National Blood Donor Day, using the banner 'Give Blood, Save Life'.
2022 Half Year Results Conference Call
A conference call for equity market participants will take place on Tuesday 20
September 2022 at 6pm AEST / 9am BST. All participants wishing to listen in to
the call must pre-register before they can receive the dial-in number. Please
register here: https://bit.ly/3RDNSmS (https://bit.ly/3RDNSmS) .
PYX's Zircon, Rutile, and Ilmenite
*** ENDS ***
For more information:
PYX Resources Limited T: +852 3519 2860
Oliver B. Hasler, Chairman and Chief Executive Officer E: ir@pyxresources.com (mailto:ir@pyxresources.com)
WH Ireland Limited (Financial Adviser and Joint 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
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 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 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.
CONSOLIDATED STATEMENT of Profit or Loss and Other comprehensive Income
FOR THE HALF-YEAR ENDED 30 JUNE 2022
Consolidated Group
Note Half-year Ended Half-year Ended
30 June 2022
30 June 2021
US$ US$
Revenue 2 10,645,890 4,660,223
Cost of sales 3 (7,403,682) (4,059,354)
Selling and distribution expenses (970,335) (354,684)
Corporate and administrative expenses (4,754,501) (1,488,908)
Foreign exchange loss (319,902) (15,781)
Loss on FV change of financial instrument (795,990) -
Listing costs - (206)
Finance costs (15,124) (5,861)
Other expenses - (88,259)
Loss before income tax (3,613,644) (1,352,830)
Income tax benefit (10,107) 158,640
Net loss for the period (3,623,751) (1,194,190)
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 (55,457) 59,582
Total comprehensive income for the period (3,679,208) (1,134,608)
Net loss attributable to:
- owners of the Parent Entity (3,729,389) (637,735)
- non-controlling interest 105,638 (556,455)
(3,623,751) (1,194,190)
Total comprehensive income attributable to:
- owners of the Parent Entity 51,170 13,791
- non-controlling interest (106,627) 45,791
(55,457) 59,582
Loss per share
Basic loss per share (US$ cents per share) (0.84) (0.20)
Diluted loss per share (US$ cents per share) (0.81) (0.19)
The accompanying notes form part of these financial statements.
CONSOLIDATED Statement of Financial Position
AS AT 30 JUNE 2022
Consolidated Group
Note As at As at
30 June 2022
31 December 2021
US$ US$
ASSETS
CURRENT ASSETS
Cash and cash equivalents 7,653,070 6,624,364
Trade and other receivables 462,440 968,915
Advance to suppliers 753,743 337,214
Prepayments and deposits 93,850 68,484
Prepaid tax 358,336 210,513
Inventories 1,676,936 530,716
TOTAL CURRENT ASSETS 10,998,375 8,740,206
NON-CURRENT ASSETS
Right of use assets 22,982 21,595
Property, plant and equipment 8 3,081,305 2,228,372
Deferred tax assets 445,297 471,811
Intangible assets 9 73,325,668 73,334,566
TOTAL NON-CURRENT ASSETS 76,875,252 76,056,344
TOTAL ASSETS 87,873,627 84,796,550
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 3,951,428 1,758,140
Lease liabilities - 1,759
TOTAL CURRENT LIABILITIES 3,951,428 1,759,899
TOTAL LIABILITIES 3,951,428 1,759,899
NET ASSETS 83,922,199 83,036,651
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2022
Consolidated Group
Note As at As at
30 June 2022
31 December 2021
US$ US$
EQUITY
Issued capital 5 100,038,400 96,651,080
Reserves 6 5,111,367 3,882,761
Accumulated losses (20,285,319) (16,555,930)
Equity attributable to owners of the Parent Entity 84,864,448 83,977,911
Non-controlling interest (942,249) (941,260)
TOTAL EQUITY 83,922,199 83,036,651
The accompanying notes form part of these financial statements.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the half-year ended 30 JUNE 2022
Consolidated Group Note Ordinary Share Capital Share-based payment reserve Accumulated losses Foreign currency translation reserve Options reserve Subtotal Non-controlling Interests Total
US$ US$ US$ US$ US$ US$ US$ US$
Balance at 1 January 2021 14,873,158 2,804,535 (12,877,048) (22,084) - 4,778,561 (257,712) 4,520,849
Comprehensive income
Loss for the period - - (637,735) - - (637,735) (556,455) (1,194,190)
Other comprehensive income for the period - - - 13,791 - 13,791 45,791 59,582
Total comprehensive income for the period - - (637,735) 13,791 - (623,944) (510,664) (1,134,608)
Transactions with owners, in their capacity as owners, and other transfers
Shares issued during the period 81,777,922 - - - - 81,777,922 - 81,777,922
Non-controlling interests on acquisitions - - - - - - (61,957) (61,957)
Share based payments - 566,725 - - - 566,725 - 566,725
Issue of shares to employees - (959,174) - - - (959,174) - (959,174)
Total transactions with owners and other transfers 81,777,922 (392,449) - - - 81,385,473 (61,957) 81,323,516
Balance at 30 June 2021 96,651,080 2,412,086 (13,514,783) (8,293) - 85,540,090 (830,333) 84,709,757
Balance at 1 January 2022 96,651,080 3,906,968 (16,555,930) (24,207) - 83,977,911 (941,260) 83,036,651
Comprehensive income
Loss for the period - - (3,729,389) - - (3,729,389) 105,638 (3,623,751)
Other comprehensive income for the period - - - 51,170 - 51,170 (106,627) (55,457)
Total comprehensive income for the period - - (3,729,389) 51,170 - (3,678,219) (989) (3,679,208)
Transactions with owners, in their capacity as owners, and other transfers
Shares issued during the period 3,387,320 - - - - 3,387,320 - 3,387,320
Options reserve - - - - 411,732 411,732 - 411,732
Share based payments - 1,889,090 - - - 1,889,090 - 1,889,090
Issue of shares to employees - (1,123,386) - - - (1,123,386) - (1,123,386)
Total transactions with owners and other transfers 3,387,320 765,704 - - 411,732 4,564,756 - 4,564,756
Balance at 30 June 2022 100,038,400 4,672,672 (20,285,319) 26,963 411,732 84,864,448 (942,249) 83,922,199
CONSOLIDATED STATEMENT of Cash Flows
FOR THE HALF-YEAR ENDED 30 JUNE 2022
Consolidated Group
Half-year Ended Half-year Ended
30 June 2022
30 June 2021
US$ US$
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 11,050,784 4,614,853
Payments to suppliers and employees (12,954,223) (5,205,032)
Other income - (88,259)
Interest received 148 96
Finance costs (15,272) (5,957)
Income taxes refunded/(paid) 9,674 (55,141)
Net cash used in operating activities (1,908,889) (739,440)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment (943,247) (568,914)
Payments for acquisitions costs, net of cash acquired - (24,275)
Net cash used in investing activities (943,247) (593,189)
CASH FLOWS FROM FINANCING ACTIVITIES
Net proceeds from placement funds 4,383,822 8,327,092
Costs associated with shares issues - (769,914)
Costs associated with option issues (250,037) -
Receipts/(Advances) of employee loans 4,092 (6,376)
Repayment of lease liabilities (15,631) (11,415)
Net cash generated by financing activities 4,122,246 7,539,387
Net increase in cash held 1,270,110 6,206,758
Cash and cash equivalents at beginning of period 6,624,364 3,509,395
Effect of foreign exchange rate changes (241,404) 1,488
Cash and cash equivalents at end of period 7,653,070 9,717,641
The accompanying notes form part of these financial statements.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE HALF-YEAR ENDED 30 JUNE 2022
Note 1: Summary of Significant accounting policies
a. Basis of Preparation
These general purpose interim financial statements for half-year reporting
period ended 30 June 2022 have been prepared in accordance with requirements
of the Corporations Act 2001 and Australian Accounting Standard AASB 134:
Interim Financial Reporting. The Group is a for-profit entity for financial
reporting purposes under Australian Accounting Standards.
This interim financial report is intended to provide users with an update on
the latest annual financial statements of Pyx resources Limited and its
controlled entities (referred to as the "Consolidated Group" or "Group"). As
such, it does not contain information that represents relatively insignificant
changes occurring during the half-year within the Group. It is therefore
recommended that this financial report be read in conjunction with the annual
financial statements of the Group for the year ended 31 December 2021,
together with any public announcements made during the following half-year.
These interim financial statements were authorised for issue on 12 September
2022.
b. Accounting Policies
The same accounting policies and methods of computation have been followed in
this interim financial report as were applied in the most recent annual
financial statements.
The Group has considered the implications of new or amended Accounting
Standards, but determined that their application to the financial statements
is either not relevant or not material.
Note 2: Revenue and Other Income
The Group has recognised the following amounts relating to revenue in the
statement of profit or loss.
Half-year Ended Half-year Ended
30 June 2022 30 June 2021
US$
US$
Revenue from contracts with customers 10,645,890 4,660,223
Revenue from contracts with customers
Revenue from contracts with customers represents the amounts received and
receivable for production and distribution of premium Zircon.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE HALF-YEAR ENDED 30 JUNE 2022
NOTE 3: LOSS FOR THE PERIOD
Consolidated Group
Half-year Ended Half-year Ended
30 June 2022
30 June 2021
US$ US$
Loss before income tax from continuing operations includes the following
specific expenses:
Expenses
Cost of sales 7,403,682 4,059,354
Interest expense on financial liabilities not classified as at fair value
through profit or loss:
- unrelated parties 15,233 4,676
Finance charges 39 1,281
Less: Interest income (148) (96)
Net interest expense 15,124 5,861
Employee benefits expense:
- Staff salaries and benefits 183,163 163,686
- Share based payments 1,889,090 566,725
Rental expense on operating leases
short- term lease expense 2,574 2,421
Depreciation 111,698 92,137
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE HALF-YEAR ENDED 30 JUNE 2022
Note 4: Contingent Liabilities
There has been no change in contingent liabilities since the last reporting
period.
Note 5: ISSUED CAPITAL
Consolidated Group
Half-year Ended Year Ended
30 June 2022 31 December 2021
US$
US$
436,699,484 (2021: 429,520,222) fully paid ordinary shares 100,038,400 96,651,080
100,038,400 96,651,080
Consolidated Group
2022 2021
No. of Contributed No. of Contributed
shares equity Shares equity
US$ US$
a. Ordinary Shares
At the beginning of the reporting period 429,520,222 96,651,080 267,777,037 14,873,158
Movement :
Year 2021 - - 161,743,185 81,777,922
17 January 2022 2,182,894 586,762 - -
21 March 2022 3,000,000 2,513,971 - -
21 March 2022 1,996,368 536,624 - -
Share issue costs - (250,037) -
At the end of the reporting period 436,699,484 100,038,400 429,520,222 96,651,080
On 17 January 2022, 2,182,894 shares were issued on conversion of 2,182,894
Performance Rights to Shares on achievement of milestones.
On 21 March 2022, the Company issued initial 3,000,000 shares valued at
US$2,513,971, net of costs and 2,083,431 unlisted options to L1 Capital Global
Opportunities Master Fund ("L1"). These initial shares and unlisted options
were issued in connection with the advance funds of US$4,383,822 received from
L1 as a prepayment for US$5 million worth of PYX shares. These advance funds
will be converted to ordinary shares of the Company within 24 months after the
funding date. The unconverted amount of the advance funds is reported net of
the value of initial shares and included in trade and other payables in the
consolidated statement of financial position.
On 21 March 2022, 1,996,368 shares were issued on conversion of 2,675,943
Performance Rights to Shares on achievement of milestones.
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.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE HALF-YEAR ENDED 30 JUNE 2022
30 June 2022 31 December 2021
No. No.
b. Unlisted options
At the beginning of the reporting period - -
21 March 2022 2,083,431 -
2,083,431 -
During the period, 2,083,431 unlisted options were issued to L1 Capital Global
Opportunities Master Fund, pursuant to the Share Placement Agreement. Options
are exercisable at any time prior to their expiration, being 21 March 2025.
These options are valued at US$1.32.
c. Capital Management
Management controls the capital of the Group in order to maintain a
sustainable debt to equity ratio, generate long-term shareholder value and
ensure that the Group can fund its operations and continue as a going concern.
Management effectively manages the Group's capital by assessing the Group's
financial risks and adjusting its capital structure in response to changes in
these risks and in the market. These responses include the management of debt
levels, distributions to shareholders and share issues.
Consolidated Group
Half-year Ended Year Ended
30 June 2022 31 December 2021
US$
US$
Total borrowings - 1,759
Less cash and cash equivalents 7,653,070 6,624,364
Net cash/(debt) 7,653,070 6,622,605
Total equity 83,922,199 83,036,651
Total capital 83,922,199 83,036,651
Gearing ratio 0.000% 0.002%
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE HALF-YEAR ENDED 30 JUNE 2022
NOTE 6: RESERVES
a. Share-based Payment Reserve
The share-based payment reserve records items recognized as expenses on
valuation of share-based payments.
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.
d. Analysis of Reserves
Consolidated Group
Half-year Ended Year Ended
30 June 2022 31 December 2021
US$ US$
Share-Based Payment Reserve
At the beginning of the reporting period 3,906,968 2,804,535
Share-based payments 1,889,090 2,061,607
Issue of shares to employees (1,123,386) (959,174)
Closing balance in share-based payment reserve 4,672,672 3,906,968
Options Reserve
At the beginning of the reporting period - -
Options reserve 411,732 -
Closing balance in options reserve 411,732 -
Foreign Currency Translation Reserve
At the beginning of the reporting period (24,207) (22,084)
Exchange differences on translation of foreign operations 51,170 (2,123)
Closing balance in foreign currency translation reserve 26,963 (24,207)
Total 5,111,367 3,882,761
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE HALF-YEAR ENDED 30 JUNE 2022
NOTE 7: SHARE-BASED PAYMENT PLANS
Performance Rights
The following performance rights were granted to Director and staff during the
period.
Number Grant date Expiry date Share price at grant date
3,500,000 18/05/2022 31/12/2024 A$1.15
3,500,000 18/05/2022 31/12/2024 A$1.15
3,500,000 18/05/2022 31/12/2024 A$1.15
During the half year, 4,858,837 performance rights were exercised and
converted into 4,179,262 shares
NOTE 8: PROPERTY, PLANT, AND EQUIPMENT
Consolidated Group
Half-year Ended Year Ended
30 June 2022 31 December 2021
US$ US$
Land and Buildings
Freehold land at cost 211,839 196,989
Total land 211,839 196,989
Buildings at cost 878,333 826,936
Accumulated depreciation (197,584) (176,542)
Total buildings 680,749 650,394
Total land and buildings 892,588 847,383
Construction in Progress
Construction in progress at cost 1,406,813 659,605
Total Construction in Progress 1,406,813 659,605
Plant and Equipment
Plant and equipment at cost 946,109 818,856
Accumulated depreciation (240,453) (183,903)
Total plant and equipment 705,656 634,953
Motor Vehicles
Motor vehicles at cost 81,161 79,758
Accumulated depreciation (26,465) (15,777)
Total motor vehicles 54,696 63,981
Furniture and Fittings
Furniture and fittings at cost 31,805 30,668
Accumulated depreciation (10,253) (8,218)
Total furniture and fittings 21,552 22,450
Total property, plant and equipment 3,081,305 2,228,372
During the half year, 4,858,837 performance rights were exercised and
converted into 4,179,262 shares
NOTE 8: PROPERTY, PLANT, AND EQUIPMENT
Consolidated Group
Half-year Ended
Year Ended
30 June 2022
31 December 2021
US$
US$
Land and Buildings
Freehold land at cost
211,839
196,989
Total land
211,839
196,989
Buildings at cost
878,333
826,936
Accumulated depreciation
(197,584)
(176,542)
Total buildings
680,749
650,394
Total land and buildings
892,588
847,383
Construction in Progress
Construction in progress at cost
1,406,813
659,605
Total Construction in Progress
1,406,813
659,605
Plant and Equipment
Plant and equipment at cost
946,109
818,856
Accumulated depreciation
(240,453)
(183,903)
Total plant and equipment
705,656
634,953
Motor Vehicles
Motor vehicles at cost
81,161
79,758
Accumulated depreciation
(26,465)
(15,777)
Total motor vehicles
54,696
63,981
Furniture and Fittings
Furniture and fittings at cost
31,805
30,668
Accumulated depreciation
(10,253)
(8,218)
Total furniture and fittings
21,552
22,450
Total property, plant and equipment
3,081,305
2,228,372
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE HALF-YEAR ENDED 30 JUNE 2022
NOTE 9: INTANGIBLE ASSETS
Consolidated Group
Half-year Ended Year Ended
30 June 2022 31 December 2021
US$ US$
Goodwill:
Cost 7,774 7,774
Accumulated impairment losses - -
Net carrying amount 7,774 7,774
Mining License Renewal:
Cost 88,984 88,984
Accumulated amortization (31,143) (22,245)
Net carrying amount 57,841 66,739
Exploration asset
Cost 73,260,053 73,260,053
Net carrying amount 73,260,053 73,260,053
Total intangible assets 73,325,668 73,334,566
Goodwill Mining License Exploration asset Total
US$ US$ US$ US$
Consolidated Group:
Half-year ended 30 June 2022
Balance at the beginning of the year 7,774 66,739 73,260,053 73,334,566
Amortisation - (8,898) - (8,898)
Closing value at 30 June 2022 7,774 57,841 73,260,053 73,325,668
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE HALF-YEAR ENDED 30 JUNE 2022
Note 10: INTERESTS IN SUBSIDIARIES
Name of Entity Equity Interest Proportion of Non-Controlling Interest Contribution to Net Profit/(Loss) before taxation
2022 2021 2022 2021 2022 2021
%
%
%
%
US$
US$
Takmur Pte Ltd. 100 100 - - (11,702) (22,250)
PT Andary Usaha Makmur 99.5 99 0.5 1 (142,681) (94,016)
PT Investasi Mandiri* - - 100 100 128,139 (692,421)
Tisma Development (HK) Ltd. 100 100 - - 8,214 4,392
PT Tisma Investasi Abadi 99 99 1 1 (1,719) (524)
PT Tisma Global Nusantara** - - 100 100 (11,663) 3,664
* 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 Global
Nusantara 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.
* 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 Global
Nusantara 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.
DIRECTORS' DECLARATION
In accordance with a resolution of the directors of Pyx resources Limited, the
directors of the Entity declare that:
1. The financial statements and notes, as set out on pages 8 to 20, are in
accordance with the Corporations Act 2001, including:
a. complying with Accounting Standard AASB 134: Interim Financial Reporting; and
b. giving a true and fair view of the Consolidated Group's financial position as
at 30 June 2022 and of its performance for the half-year ended on that date.
2. In the directors' opinion there are reasonable grounds to believe that the
Entity will be able to pay its debts as and when they become due and payable.
Oliver B. Hasler
Chairman and Chief Executive Officer
Hong Kong
Date: 12 September 2022
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
This Announcement contains forward-looking statements and forward-looking
information within the meaning of applicable Australian and UK securities
laws, which are based on expectations, estimates and projections as of the
date of this Announcement.
This forward-looking information includes, or may be based upon, without
limitation, estimates, forecasts and statements as to management's
expectations with respect to, among other things, the timing and amount of
funding required to execute the Company's exploration, development and
business plans, capital and exploration expenditures, the effect on the
Company of any changes to existing legislation or policy, government
regulation of mining operations, the length of time required to obtain
permits, certifications and approvals, the success of exploration, development
and mining activities, the geology of the Company's properties, environmental
risks, the availability of labour, the focus of the Company in the future,
demand and market outlook for precious metals and the prices thereof, progress
in development of mineral properties, the Company's ability to raise funding
privately or on a public market in the future, the Company's future growth,
results of operations, performance, and business prospects and opportunities.
Wherever possible, words such as "anticipate", "believe", "expect", "intend",
"may" and similar expressions have been used to identify such forward-looking
information.
Forward-looking information is based on the opinions and estimates of
management at the date the information is given, and on information available
to management at such time. Forward looking information involves significant
risks, uncertainties, assumptions, and other factors that could cause actual
results, performance, or achievements to differ materially from the results
discussed or implied in the forward-looking information. These factors,
including, but not limited to, fluctuations in currency markets, fluctuations
in commodity prices, the ability of the Company to access sufficient capital
on favourable terms or at all, changes in national and local government
legislation, taxation, controls, regulations, political or economic
developments in Indonesia and Australia or other countries in which the
Company does business or may carry on business in the future, operational or
technical difficulties in connection with exploration or development
activities, employee relations, the speculative nature of mineral exploration
and development, obtaining necessary licenses and permits, diminishing
quantities and grades of mineral reserves, contests over title to properties,
especially title to undeveloped properties, the inherent risks involved in the
exploration and development of mineral properties, the uncertainties involved
in interpreting drill results and other geological data, environmental
hazards, industrial accidents, unusual or unexpected formations, pressures,
cave-ins and flooding, limitations of insurance coverage and the possibility
of project cost overruns or unanticipated costs and expenses, and should be
considered carefully. Many of these uncertainties and contingencies can affect
the Company's actual results and could cause actual results to differ
materially from those expressed or implied in any forward-looking statements
made by, or on behalf of, the Company. Prospective investors should not place
undue reliance on any forward-looking information.
Although the forward-looking information contained in this Announcement is
based upon what management believes, or believed at the time, to be reasonable
assumptions, the Company cannot assure prospective purchasers that actual
results will be consistent with such forward-looking information, as there may
be other factors that cause results not to be as anticipated, estimated or
intended, and neither the Company nor any other person assumes responsibility
for the accuracy and completeness of any such forward-looking information. The
Company does not undertake, and assumes no obligation, to update or revise any
such forward-looking statements or forward-looking information contained
herein to reflect new events or circumstances, except as may be required by
law.
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other regulatory authority has approved or disapproved the information
contained in this Announcement.
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