REG - PYX Resources Ltd. - Operational Update FY 2022

PYX ResourcesAnnouncement

08/02/2023 07:00

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RNS Number : 2208P  PYX Resources Limited  08 February 2023

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 February 2023

Pyx Resources Limited

("PYX" or "the Company")

 

Operational Update FY 2022

Building Strong Fundamentals

 

 

PYX Resources Ltd (NSX: PYX | LSE: PYX), the world's second largest publicly
listed zircon producer by zircon resources(1),  is pleased to provide an
operational update for the Full Year 2022 ended 31 December 2022 ("FY 2022" or
"the Period").

 

Highlights

 

·    Strong increase in premium Zircon production and sale volumes with
year-on-year ("YoY") production increasing to 9.1kt, a 25% increase as
compared to FY 2021, and YoY sales increasing to 9.1kt, a 33% increase as
compared to FY 2021.

·    The Company commenced its production of rutile in January 2022 and
ilmenite in June 2022 (together "Titanium Dioxide Minerals") with joint
production volumes of 7.5kt and sales volumes of 0.3kt.

·    Premium Zircon prices continue to increase with a YoY price increase
of 36% as compared to FY 2021.

·    Commenced warehouse operations at Kuala Lumpur's Port Klang to reduce
shipping times and costs to end-users.

·    Appointed highly regarded Geologist and Indonesian Executive Dr.
Raden Sukhyar to its Board as a Non-executive Director

 

During the Period, the Company performed strongly with a significant increase
in mineral sands production including the commencement of rutile and ilmenite
production, sales volume growth and robust sales prices. Included below is a
summary view of the Company's operational performance.

 

 

                                      FY 2022  FY 2021  Variance
 Zircon Produced                      9.1kt    7.2kt    +25%
 Zircon Sales                         9.1kt    6.9kt    +33%
 Titanium Dioxide Minerals Produced   7.5kt    -
 Titanium Dioxide Minerals Sold       0.3kt    -
 Yearly Average Price Zircon (USD/t)  2,457    1,811    +36%
 Total Produced                       16.6kt   7.2kt    +129%
 Total Sold                           9.5kt    6.9kt    +38%

 

In the 12 months ended 31 December 2022, PYX produced 16.6kt and sold 9.5kt of
premium zircon, rutile, and ilmenite, resulting in a YoY production increase
of 129% and an overall 38% rise in sales volume. Premium zircon production
increased 25% YoY to 9.1kt and sales grew 33% to 9.1kt. The Company expanded
its finished goods inventories to 7.3kt; this growth is mainly attributable to
the commencement of rutile and ilmenite production, which the Company plans to
export upon the granting of its export licence.

 

A number of key announcements were made by the Company during the final
quarter of 2022, including securing £20 million investment commitment to
accelerate its growth plans, which added two notable US investors to its share
register.  Additionally, PYX appointed highly regarded Geologist and
Indonesian Executive Dr. Raden Sukhyar to its Board as a Non-executive
Director, and commenced operations at Kuala Lumpur's Port Klang to reduce
shipping time and costs to end-users.

 

Commenting on the Company's achievements in 2022, PYX Resources' Chairman and
Chief Executive Officer, Oliver B. Hasler, said:

"2022 was a highly successful year for PYX as we continued to set the
foundation for long term growth across several reporting areas. The 129%
increase in year-on-year ("YoY") production and 38% rise in sales volume is a
remarkable achievement and a testament to the quality of our assets, system
and team. We are also pleased to have commenced production of titanium dioxide
by-products, diversifying our offering and providing an additional revenue
stream.  With strong global demand forecast for our products and aggressive
growth plans, we are well positioned to deliver shareholder value and I look
forward to an exciting 2023."

 

Market Environment

Zircon, which has been in use for thousands of years but is labelled as one of
the most important metals you have never heard of, is making a resurgence as a
critical material used across a wide range of high-tech applications including
nuclear power, aerospace and catalytic converters. Notably, zirconium is
considered a crucial mineral by the Australian Government.(2)

 

Over the medium term, the major factors driving zircon market's growth are its
increased use in foundries and refractories, the increasing number of nuclear
power stations in the Asia-Pacific, and the accelerating usage of surface
coatings. The most significant increase in nuclear generation in Asia-Pacific
is expected in China (11 stations are under construction and 43 are being
planned) and India (7 stations are under construction, and 21 reactors are
expected to be brought online by 2031).(3)

 

Accordingly, the global zirconium market is projected to register a CAGR of
over 5% in terms of volume during 2022-2027.(4)  China dominated the markets
studied, accounting for about 50% of the total revenue, and it is expected to
witness the fastest CAGR over the forecast period.

 

Growth in PYX's by-products, titanium dioxide minerals, is equally robust with
the titanium market expected to grow at a rate of 6.4% between 2021 to
2028.(5) The use of titanium as pigments in paints and coatings formulation is
one of the major factors driving this growth as well as its utilisation in the
aerospace, aviation, shipping, offshore mining, and petrochemicals industries
owing to its durability, strength and exceptional chemical resistance
abilities.

 

'PYX Cares' Programme

Sustainability is a critical pillar for PYX in its daily operations.  The
Company continued to prioritise environmental sustainability alongside
partnerships with the local communities pursuing similar goals.   Looking
ahead, PYX pledges to promote economic growth through meaningful investments
to continue the positive economic and industrial development in Kalimantan.

 

During 2022, PYX was involved in several major community programmes: it
successfully vaccinated 100% of its employees against Covid-19; it is planting
10,000 Bengkirai trees at the Mandiri mining tenement; it oversaw blood
donation efforts in Kalimantan; and it supported both the local school and the
Borneo Orangutans Survival Foundation.

 

(1) According to publicly available information during the financial year
ended December 2020

(2) Australian Government, Australian Critical Minerals Prospectus 2021
https://bit.ly/3qfYInX

(3) The World Nuclear Association
https://world-nuclear.org/information-library/current-and-future-generation/plans-for-new-reactors-worldwide.aspx

(4) https://www.mordorintelligence.com/industry-reports/zirconium-market

(5) https://www.databridgemarketresearch.com/reports/global-titanium-market

 

*** 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 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.

 

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.

 

 

 

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