REG - PYX Resources Ltd. - Ilmenite Shipment Update

PYX ResourcesAnnouncement

05/01/2024 07:00

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RNS Number : 7805Y  PYX Resources Limited  05 January 2024

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

 

 

5 January 2024

 

Pyx Resources Limited

("PYX" or "the Company")

 

Ilmenite Shipment Update

 

PYX Resources (NSX: PYX | LSE: PYX), the world's third largest publicly listed
zircon producer by zircon resources¹, provides an update on the shipment of
ilmenite. On the 17(th) August 2023, the Company announced that it had
obtained the licence to export rutile and ilmenite from the Investment and
One-Integrated Services Department (Dinas Penanaman Modal dan Pelayanan
Terpadu Satu Pintu/ DPMPTSP). A subsequent change introduced in December 2023
by the Industrial and Trade Department for Export Tax Billing, requires the
exporter to use two types of Port, Loading Port and Export Port. The licence,
which the government originally issued only stated the loading port in
Banjarmasin. A request to modify the licence has been made to the Trade
department and we anticipate receiving the revised licence imminently.
Accordingly, the Company will have to delay its actual ilmenite orders until
the amendment of the licence is granted. Further updates will be provided in
due course as appropriate.

 

PYX has been producing and stockpiling ilmenite and rutile since 2022 (see RNS
announcements on 12 January 2022 and 27 June 2022), and by the end of December
2023, has accumulated 10kt of Titanium Dioxide material (pre-audit).  The
start of shipping will represent a significant milestone for the Company and
strengthen its financial position through the diversification of its revenue
sources.

 

PYX's Chairman and Chief Executive Officer Oliver Hasler, said:

 

"We have produced and stockpiled 10kt of titanium dioxide, ready for shipment.
Although the timing of the change to the conditions of the export licence is
less than ideal, we have acted swiftly in requesting the modification to our
existing licence and are confident that a revised licence will be issued
imminently. Meanwhile, demand for our Premium Zircon continues and we look
forward to building on the 61% increase in production and 88% increase in
sales announced in our Q3'23 update."

 

Other terms of the export licence

The IUP-OP licence and newly issued RKAB Operasi Produksi Tahun 2023 (Working
Plan and Budget) authorises the Company to extract, produce, and export 24kt
of zircon p.a., 20kt of rutile p.a. and 50kt of ilmenite p.a., ensuring the
extraction and production of other by-products, such as SiO(2).

 

Minimum grades for the export of ilmenite and rutile are: ilmenite TiO(2) ≥
45% and rutile TiO(2) ≥ 90%, as stipulated by the Industrial and Trade
Department's regulation.

*** ENDS ***

 

For more information:

 

 PYX Resources Limited                             T: +61 2 8823 3132

                                                   E: ir@pyxresources.com (mailto:ir@pyxresources.com)
 WH Ireland Limited (Broker)                       T: +44 (0)20 7220 1666

 Harry Ansell / Katy Mitchell / Darshan Patel

 St Brides Partners Ltd (Financial PR)             E: pyx@stbridespartners.co.uk (mailto:pyx@stbridespartners.co.uk)

 Ana Ribeiro / Isabel de Salis / Isabelle Morris

 

 

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

 

About PYX Resources

 

PYX Resources Limited (NSX: PYX | LSE: PYX) is a producer of premium zircon
dual listed on the National Stock Exchange of Australia and on the Main Market
of the London Stock Exchange. PYX's key deposits, Mandiri and Tisma, are
large-scale, near-surface open pit deposits both located in the alluvium-rich
region of Central Kalimantan, Indonesia. PYX, whose Mandiri deposit has been
in production since 2015, is the 3(rd) 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.

 

 

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.

 

No stock exchange, regulation services provider, securities commission or
other regulatory authority has approved or disapproved the information
contained in this Announcement.

 

 

Compliance Statement

 

The Mandiri mineral sands deposit hosts a 6Mt Inferred JORC Resource of
zircon. The Company originally announced this resource in its Prospectus
released on 20 February 2020 and confirms that it is not aware of any new
information or data that materially affects the information included in the
Prospectus. All material assumptions and technical parameters disclosed in the
Prospectus that underpin the estimates continue to apply and have not
materially changed.

 

The Tisma mineral sands deposit hosts a 4.5 Mt Inferred JORC Resource of
zircon. The Company originally announced this resource in its Announcement
"PYX Resources Limited Agrees to Acquire Tisma Development (HK) Limited, a
World-Class, Fully Licensed Mineral Sands Deposit" on NSX on 13 January 2021
and confirms that it is not aware of any new information or data that
materially affects the information included in the Announcement. All material
assumptions and technical parameters disclosed in the Announcement that
underpin the estimates continue to apply and have not materially changed.

 

Together the Mandiri and Tisma mineral sand deposits total 10.5 Mt of
contained zircon within a total of 263.5 Mt of heavy mineral sands.

 

 

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