REG - PYX Resources Ltd. - Operations Update HY 2023

PYX ResourcesAnnouncement

10/08/2023 07:30

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RNS Number : 9224I  PYX Resources Limited  10 August 2023

 

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

 

10 August 2023

PYX Resources Limited

 

Operations Update HY 2023

Strong HY 2023 Performance with Increased Sales and Production

 

·      Premium Zircon production increased by 33% to 5.7kt

·      Premium Zircon sales also experienced growth, with a 34% increase
to 5.2kt

·      Successful renewal of a 10-year exploration and mining license
(maximum term) for the Tisma Mineral Sands project

·      Award for Prevention and Management of COVID-19 in the Workplace
in 2023 and

Zero Accident Award 2023, both from the Government authorities in Kalimantan

 

PYX Resources Ltd (PYX or the Company) (NSX: PYX | LSE: PYX), the world's
third largest publicly listed Premium Zircon producer by Zircon resources(( 1 
(#_ftn1) )), is pleased to announce an operational update for the six months
ended 30 June 2023 ("HY 2023") ahead of the publication of its interim results
for the same period, anticipated to be released on or around 13 September
2023.

 

SUMMARY OF RESULTS (all unaudited)

 

                                      HY 2023  HY 2022  Variance
 Zircon Produced                      5.7kt    4.3kt    +33%
 Zircon Sales                         5.2kt    3.9kt    +34%
 Yearly Average Price Zircon (USD/t)  1,927    2,749    -30%
 Total Mineral Sands Produced         6.8kt    9.2kt    -26%
 Total Mineral Sands Sold             5.2kt    3.9kt    +34%

 

Premium Zircon sales experienced robust growth during the period, with a
remarkable increase of 34% to a sales volume of 5.2kt. The Directors believe
this growth is a result of our global client base, customer-centric approach,
strong relationships with clients, and the ability to deliver high-quality
products that meet their specific needs.

 

PYX's premium Zircon production has experienced substantial progress, with a
noteworthy increase of 33% compared to the previous year. In HY 2023,
production volumes reached 5.7kt, showcasing the operational efficiency and
dedication to meeting market demand positioning PYX as a leading supplier of
premium zircon to the global markets.

Total production for the first half of the year amounted to 6.8kt, a 26%
reduction over the same period last year. The Company believes the reduction
is attributable to the decision to focus on the production and sale of premium
Zircon due to high demand. This follows last year's ramp up of production of
its by-products Rutile and Ilmenite, following the award of exploration and
extraction licenses, which have been stockpiled with a total of 8.0kt of
titanium stockfeed being held in storage. This titanium stockfeed will be sold
once the Company receives its export licence from the Indonesian Trade
Department, anticipated to be during Q3 2023. PYX Resources remains confident
in its ability to maintain this growth trajectory and deliver long-term value
to our stakeholders.

In terms of pricing, Premium Zircon has experienced a remarkable upward trend.
Starting from January 2021 at US$1,400/t, international pricing (as reported
by Asian Metal) steadily increased throughout the year, reaching US$1,800/t in
the second half of 2021 and US$2,000/t by January 2022. This positive
trajectory continued in the second quarter of 2023, with the price reaching
US$2,100/t. Since the third quarter of 2022, the price has remained stable at
an impressive US$2,300/t, a 64% increase on 2021 prices, defying the
volatility of the market. This exceptional outcome underscores the imbalanced
supply and demand dynamics, and our ability to capitalise on this favourable
market situation.

PYX's revenue is linked to lower prices in HY 2023 compared to the same period
last year, as it took historic advantage of spot prices which were as high as
US$3,100 per tonne during HY 2022. During the first half of 2023, PYX sold
most of its Premium Zircon at contract prices, following international
pricing.

The Directors believe the continued rise in demand for PYX's mineral products,
strong market fundamentals and the Company's operational capabilities, ensures
PYX is positioned to capitalise on the continued global demand for mineral
sands paving the way for sustained growth. PYX remains committed to delivering
on our strategic objectives and maximising shareholder value.

Commenting on the Company's achievements in HY23 PYX Resources' Chairman and
Chief Executive Officer, Oliver B. Hasler, said:

 

"I am delighted with our achievements in HY 2023. The Company experienced
substantial growth in premium Zircon sales, with a 34% increase, and a
production increase of 33%.  Our diversified global client base has allowed
us to manage and minimise risk. This coupled with the quality of our zircon
has resulted in consistent growth in sales whilst our exceptional team on site
have been instrumental in ensuring maximum efficiency.  I am particularly
proud of the two awards given to the Company by the Government authorities in
Kalimantan - the Award for the Prevention and Management of COVID-19 in the
Workplace and Zero Accident Award 2023 - we are passionate about our people
and the safety of our team.

 

"As we enter the second half of the year, we remain optimistic about our
strategic plan and the continued rise of Mineral Sands prices. We remain well
positioned to deliver on our goals and benefit from the industry's strength."

One of the significant milestones this year has been the renewal of a 10-year
Izin Usaha Pertambangan Operasi Produksi (IUP-OP, Mining Operation and
Production Licence) exploration and mining license agreement for the Tisma
project, which PYX has a contractual interest in. This renewal, and access to
this licence, should solidify PYX's position as a leading player in the
mineral resources sector and opens up new opportunities for growth and
expansion. PYX believes the Tisma project holds immense potential, and this
long-term licence agreement should provide stability and confidence to
maximise its value over the coming years.

Also, the Indonesian authorities have set the legislation for Indonesian
Mineral Sands companies to export Ilmenite and Rutile to international
markets, following a change of the law in Indonesia. The Ministry of Trade of
the Republic of Indonesia, following the recommendation of the Ministry of
Energy and Natural Resources, has changed the category of Titanium dioxide,
with Ilmenite and Rutile now being classified as Non-Metal Commodities, the
same as Zircon.

This law change, issued by the Ministry of Trade under regulation No. 13,
allows for the export of Ilmenite and Rutile as Non-Metal with a minimum grade
of TiO(2) ≥ 45% for Ilmenite and TiO(2) ≥ 90% for Rutile. As a result, PYX
Resources is now awaiting the export license of Titanium dioxide from the
Trade Department, which is a formality before it can proceed with the export
of its titanium stockfeed, of which it currently has 8.3kt in inventory.

PYX Cares Programme

 

Throughout 2023, PYX remained committed to its PYX Cares programme and
submitted its Second Communication on Progress Report to the United Nations
Global Compact Organisation, which encompasses five key pillars: People,
Planet, Prosperity, Peace, and Partnership.

 

PYX Resources firmly believes in the importance of community engagement and
environmental stewardship. The Company is committed to implementing community
projects that not only empower the local population but contribute to the
protection of wildlife and the preservation of the natural environment.
Through these projects, the Company aims to create sustainable and inclusive
opportunities for the community, fostering economic development and improving
their quality of life. An example of this was PYX's partnership, for a third
year, with the Indonesian Red Cross Society in its annual Indonesian National
Blood Donor Day.

 

Amid this local engagement PYX Resources received an Award for Prevention and
Management of COVID-19 in the Workplace in 2023 and a Zero Accident Award
2023, both from the Government authorities in Kalimantan.

 

*** 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 licences 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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