REG - PYX Resources Ltd. - Operational Results FY 2023

PYX ResourcesAnnouncement

29/01/2024 07:00

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RNS Number : 1925B  PYX Resources Limited  29 January 2024

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

 

29 January 2024

Pyx Resources Limited

("PYX" or "the Company")

 

Operational Results FY 2023

PYX Resources Ltd (NSX: PYX | LSE: PYX), the world's third largest publicly
listed zircon producer by zircon resources,(( 1  (#_ftn1) )) is pleased to
provide operational results for the Full Year 2023 ended 31 December 2023 ("FY
2023" or "the Period").

 

                                      FY 2023  FY 2022  Variance
 Zircon Produced                      11.8kt   9.1kt    +31%
 Zircon Sales                         11.4kt   9.1kt    +24%
 Titanium Dioxide Minerals Produced   2.9kt    7.5kt    -61%
 Titanium Dioxide Minerals Sold       -        0.3kt
 Yearly Average Price Zircon (USD/t)  1,998    2,457    -19%
 Total Produced                       14.8kt   16.6kt   -11%
 Total Sold                           11.4kt   9.5kt    +20%

 

Highlights

·    Continued upswing in premium Zircon production with a second half 29%
YoY increase and a total 31% increase in FY2023 compared to the corresponding
period in FY2022

·    Zircon sales have witnessed an impressive surge with a second half
year 2023 increase of 18%, and a 24% increase for FY 2023 compared to FY2022,
reflecting the demand for PYX's high quality premium zircon

·    Premium Zircon Inventory up 22% to 17.1 days (2022: 17.5 days)

·    PYX encourages diversity and inclusiveness in the workforce. In the
FY2023 the Company saw a 5pp increase in female employment and 2pp in
indigenous (Dayak) employment

·    Continued to maintain a safe and secure working environment with zero
recordable injury frequency rate for the period.

·    Submitted Communication of Progress ("CoP") report to the United
Nations Global Compact as part of its commitment to upholding the United
Nations' Sustainable Development Goals (SDGs)

·    Positive regulatory environment - the Company announced the receipt
of a two-year licence to extract and process up to 94,000 tonnes per year of
minerals from its Mandiri Project

 

PYX continues to set industry standards and remains optimistic about the
Company's trajectory in the coming years. In the 12 months ended 31 December
2023, PYX produced 14.8kt and sold 11.4kt of premium zircon, rutile, and
ilmenite, showing an increase of 31% of produced premium zircon and a 11%
reduction on total minerals produced in comparison to the same period last
year. The production numbers are even more significant, when we consider that
the total employee number for 2023 was 22% lower than in 2022, showing an
important productivity increase. Encouragingly, premium zircon sales increased
by 24% and total sales grew by 20% during the period, as demand for our
premium zircon continued YoY.

 

The second half of the year showed an encouraging progression with a premium
zircon production of 6.1kt (+29% YoY increase). Zircon sales followed the same
trend, showing an impressive surge during the second half year 2023 of 6.2kt
(+18% YoY increase).

 

In the last few years, PYX has been able to secure a global, diversified
client base. This has proved instrumental in securing continued sales in
FY2023, particularly as demand for mineral sands retracted in Europe with
India and China leading the way.  Premium Zircon Inventory of 533 tonnes on
31 December 2023 was up 22% to 17.1 days (2022: 17.5 days). Ilmenite and
rutile inventory at the end of the year were 9.8 tonnes, representing an
important cash source resulting from its potential sales in 2024.

 

We remain steadfast in our ambition for growth, facilitated by Indonesia's
positive regulatory environment showcased by the award of several of our
licenses recently, including the successful renewal of a 10-year exploration
and mining licence for the Tisma Mineral Sands Project, providing long-term
visibility over this highly prospective project. PYX started producing rutile
in January 2022 and ilmenite in June 2022, and by the end of December 2023 it
had stockpiled 10kt. To this end, we were also delighted to be awarded the
licence for the export of ilmenite and rutile ores from the Indonesian
government in August 2023 (this licence is being amended to include the export
port of Jakarta), and a 2-year licence which allows us to extract, produce,
and export up to 24kt of zircon, 20kt of rutile and 50kt of ilmenite per
annum, as well as extract and produce other by-products such as SiO(2) from
the Mandiri Project.

 

PYX Cares Programme

PYX is continually improving its integration of the United Nations Global
Compact into the Company's daily operations, culture and business strategy
while simultaneously engaging in collaborative projects to advance broader
development goals of the United Nations, particularly the Sustainable
Development Goals.

 

In the Annual Communication on Progress, the Company outlined its continuous
commitment to the Global Compact in daily and future operations. Internally
PYX has made important progress in equality by increasing its female
employment to 28%, which is up 5 percentage points compared to 2022. In the
same way, the Company has increased its Dayak employment (Indigenous) to 47%
of the total work force, up 2 percentage points YoY.

 

Commenting on FY2023 achievements, PYX Resources' Chairman and Chief Executive
Officer, Oliver B. Hasler, said:

"I am immensely proud to share the achievements PYX has attained in the past
year.  Our robust performance in Q4 FY2023, marked by a 31% increase in
zircon production, a 24% rise in zircon sales and renewal of key licenses for
Tisma and Mandiri, reflects our unwavering commitment to excellence and
sustainable business practices.

 

"As we reflect on our achievements, we are excited about the growth prospects
for 2024. Despite the challenges posed by the market, we remain optimistic
about our ability to navigate and capitalise on emerging opportunities. Our
commitment to responsible mining, sustainable practices, and community
engagement positions PYX Resources for continued success."

 

 

*** 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 / Megan Liddell

 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.

 

 

 

 1  (#_ftnref1) According to publicly available information during the
financial year ended June 2023

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