REG - PYX Resources Ltd. - Operational Update - Indonesia

PYX ResourcesAnnouncement

15/08/2025 07:00

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RNS Number : 5030V  PYX Resources Limited  15 August 2025

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

 

 

15 August 2025

 

Pyx Resources Limited

("PYX" or "the Company")

 

Operational Update - Indonesia

 

 

PYX Resources (NSX: PYX | LSE: PYX), provides the following update on its
operations in Central Kalimantan, Indonesia.

As previously disclosed, PYX achieved positive EBITDA and strong underlying
EBITDA in the first half of FY2024. However, the second half was impacted by
adverse weather, infrastructure disruptions, and declining mineral sands
prices, resulting in reduced production and lower average realised prices.

In the first half of 2025, PYX did not undertake production activities. This
decision was made in response to:

·      Continued weakness in global mineral sands pricing;

·      Elevated operating costs, particularly from third-party contract
mining arrangements; and

·      A steep increase in regional royalties from approx. US$8 per
tonne to US$59 per tonne, as announced by PYX on 28 February 2025.

In addition, PYX has been navigating a complex regulatory environment in
Indonesia following the recent presidential elections. Key developments
include:

·      PYX's local subsidiaries, PT Investasi Mandiri and Tisma,
received formal notification from the Provincial Department of Energy and
Mineral Resources that their RKAB (Work Plan and Budget) approvals for
production operations have been suspended. This action applies to all zircon
producers in Central Kalimantan. Fourteen (14) companies were notified.

·      As a result, PYX's export licenses for zircon, ilmenite, and
rutile have also been suspended.

·      PT Investasi Mandiri has received tax assessments amounting to
approximately USD2 million, which are being challenged through appropriate
legal channels, with several matters already submitted to the courts.

To PYX's knowledge, all mineral sands producers in Central Kalimantan have
suspended operations pending resolution of licensing matters.

While PYX is not the subject of any specific allegations, the Company is
committed to full cooperation with any investigation by the relevant
authorities and supports efforts to ensure regulatory compliance across the
sector.

PYX has welcomed site visits and audits by relevant authorities and has
received verbal assurances that its RKAB may be reinstated upon submission of
supporting documentation.

Despite the absence of production in H1 2025, PYX continues to manage its
inventory and sales strategy prudently and remains focused on preserving
shareholder value.

PYX's Chairman and CEO Oliver Hasler commented: "PYX continues to believe in
the long-term potential of the mineral sands sector. However, we are currently
facing a number of complex regulatory and administrative challenges in
Indonesia, including a steep increase in royalties, that need to be resolved
before we can move forward with our project. We are engaging constructively
with the relevant authorities and remain committed to working through these
hurdles in a responsible and transparent manner."

The Company will continue to monitor developments and provide further updates
as appropriate.

 

 

 

*** 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.

 

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.

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