REG - PYX Resources Ltd. - Operations Update HY 2024

PYX ResourcesAnnouncement

06/08/2024 07:00

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RNS Number : 3321Z  PYX Resources Limited  06 August 2024

 

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

 

6 August 2024

PYX Resources Limited

("PYX" or the "Company")

Operations Update HY 2024

 

Positioned for growth with continued demand for Premium Zircon

and operations now optimised

 

·      Total minerals sands sold during the period rose by 84% to 9.5kt
(2023: 5.2Kt)

·      Granted a two-year licence to extract and process up to 94.0kt of
minerals per year at Mandiri

·      Granted a three-year licence to extract and process up to 88.8kt
of minerals per year at Tisma

·      Commenced ilmenite exports following the award of a modified
export licence

·      Successfully connected operations to the local electric grid with
expected fuel cost savings of circa. 80% and a reduction in carbon emissions

·      Positioned for growth and positive about the second half of the
year, as the Company looks to deliver on its stated strategy; to increase
production, reduce costs, and boost operational margins

 

PYX Resources Ltd (NSX: PYX | LSE: PYX), the world's third largest publicly
listed Premium Zircon producer by Zircon resources(( 1 )), is pleased to
announce an operational update for the six months ended 30 June 2024 ("HY
2024") ahead of the publication of its interim results for the same period,
anticipated to be released on or around 13 September 2024.

 

SUMMARY OF RESULTS (all unaudited)

 

                               HY 2024  HY 2023  Variance
 Zircon Produced               4.5kt    5.7kt    -20%
 Zircon Sales                  4.5kt    5.2kt    -13%
 Total Mineral Sands Produced  5.7kt    6.8kt    -16%
 Total Mineral Sands Sold      9.5kt    5.2kt    +84%

 

 

It has been a pivotal first half of the year for PYX, but has not been without
its challenges. Unusual heavy rain in May and June, coupled with the collapse
of a bridge providing access to the mine, impacted operations and contributed
in total mineral sands (zircon, rutile and ilmenite) produced decreasing 16%
to 5.7kt (2023: 6.8kt) and zircon production decreasing 20% to 4.5kt (2023:
5.7kt).

 

Encouragingly though, and testament to the quality of the Company's mineral
sands assemblage, particularly its premium zircon, the Company has experienced
strong client demand for its products which resulted in total mineral sand
sales increasing 84% to 9.5kt (2023: 5.2kt).  PYX's client base consists of
blue-chip organisations across several industries, geographies and sectors,
which helps eliminate risk and ensures continued sales.

 

During the reporting period, the Company announced that it had received a
two-year licence from the Indonesian authorities to produce 94kt per annum
('ktpa') of Premium Zircon, Ilmenite, and Rutile at Mandiri, as opposed to the
usual one-year licence. Under the terms of the licence, PYX can export a total
of 24kt per year of Premium Zircon with grades of 65.5%, 50,000 Wet Ton
("WE")(*)/year of Ilmenite with 45% grades and 20,000 WE/year of Rutile with
90% grades.  In July PYX also announced that it has received a three-year
licence to extract and process up to 88.8kt minerals from its Tisma Project
("Tisma") in Central Kalimantan, Indonesia. With a 27% recovery factor, this
enables the production of circa 8ktpa of premium zircon of which 6.4ktpa may
be exported and 1.6ktpa sold to domestic Indonesian markets. Importantly,
these licences allow for over 80% of the minerals produced to be exported,
resulting in the Company being able to achieve better prices and higher
margins. The Company believes that the granting these two licences is a result
of PYX's operational excellence in the region.

 

Client orders and sales of titanium stockfeed were put on hold during the
period while the Company awaited the modification of its rutile and ilmenite
export licences. These modifications were required after changes in regulation
made by the Industrial and Trade Department for Export Tax Billing in December
2023. On 12 March 2024, the Company announced that it had received the
modified licence to export ilmenite, which it had been stockpiling since the
changes in regulation and, as announced on 12 March 2024 commenced delivering
on orders placed prior to the modification of the licence With a shipment of
1,040 tonnes of ilmenite at a grade of 45% TiO(2) exported to a customer in
Zhanjiang, Guangdong Province in the People's Republic of China.

 

During the period, the Company was proud to receive a Gold Environmental,
Social and Governance ("ESG") Excellence Award under the Zircon Industry
Association's ("ZIA") industry wide ESG reporting and rating process. The ZIA
is the trade association of the world's primary zircon producers and consumers
who together account for approximately 80% of global annual production of
zircon and zirconia. The Gold ESG Excellence Award is one of the highest
awards achievable under the ZIA's ESG reporting and rating process and cements
the Company's continued commitment to good ESG and business stewardship
practices.

 

Outlook

The first half of 2024 posed significant operational challenges due to unusual
heavy rains in May and June and the collapse of a bridge providing access to
the mine. Whilst these issues had a negative impact on the Company's
production numbers during HY 24, they are now resolved and a robust second
half of 2024 is expected. This is being driven by increased production and
sales, especially given the Company's existing ilmenite inventory, which was
stockpiled while the Company waited for the modification of its rutile and
ilmenite export licences and is now ready for sale.

 

Commenting on the HY 2024 operational results, Oliver Hasler, Executive
Chairman of PYX Resources said:

 

"As we look ahead to the second half of 2024, PYX Resources remains committed
to laying the foundations for sustainable growth. The recent award of export,
extraction and processing licences, along with significant operational
improvements, such as our connection to the local electricity grid, are
pivotal steps forward. These advancements not only enhance our operational
efficiency but also improve our margins and will, ultimately, lead to greater
profitability. We are committed to driving our strategic initiatives to unlock
the full potential of our assets and deliver long-term value to our
stakeholders."

 

* WE = Wet Ton (the new scale for Titanium based on MoF Department No 23,
2023)

 

 

*** ENDS ***

 

For more information:

 PYX Resources Limited                                    T: +852 3519 2860

 Oliver B. Hasler, Chairman and Chief Executive Officer   E: ir@pyxresources.com
 Zeus Capital Limited (Broker)                            T: +44 (0)20 3829 5000

 Harry Ansell / Katy Mitchell / Darshan Patel
 St Brides Partners Ltd (Financial PR)                    E: pyx@stbridespartners.co.uk

 Ana Ribeiro / Isabel de Salis

 

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 3rd 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.

 

 

 1  according to publicly available information as of 30 June 2023

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