REG - PYX Resources Ltd. - Operations Update Q3 2022

PYX ResourcesAnnouncement

08/11/2022 07:00

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RNS Number : 5986F  PYX Resources Limited  08 November 2022

 

8th November 2022

 

 

Pyx Resources Limited

("PYX" or the Company")

 

Operations Update Q3 2022

Continued Strong Performance & Growth

 

 

SUMMARY

                                     Q3 '22  Q3 '21  Var   YTD '22  YTD '21  Var
 Zircon Produced                     2.5kt   1.5kt   62%   6.8kt    5.0kt    35%
 Zircon Sales                        2.3kt   1.5kt   50%   6.1kt    4.8kt    29%
 Titanium Dioxide Minerals Produced  1.0kt   -             6.0kt    -
 Titanium Dioxide Minerals Sold      0.2kt   -             0.2kt    -
 Value Per Tonne Zircon (USD)        2,606   1,737   50%   2,697    1,530    76%
 Total Produced                      3.5kt   1.5kt   129%  12.7kt   5.0kt    153%
 Total Sold                          2.5kt   1.5kt   66%   6.4kt    4.8kt    34%

 

Commenting on the Company's achievements in Q3 2022, PYX Resources' Chairman
and Chief Executive Officer, Oliver B. Hasler, said:

 

 "We continue to fast-track PYX's aggressive expansion strategy to cement its
position as a key international supplier of premium zircon and take advantage
of the strong mineral sands market.  Accordingly, the fruits of our labours
are increasingly visible, with production and sales of our premium zircon
reaching new heights, and further value being achieved with the titanium
dioxide minerals by-products. The remainder of 2022, will, we believe,
continue in the same positive vein."

 

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 nine months ended 30 September 2022 ("Q3
2022" or "the period").

 

During the period, the Company performed strongly with an increase in mineral
sands production including the commencement of rutile and ilmenite production,
sales volume growth and robust sales prices.

 

In the nine months ended 30 September 2022, PYX produced 12.7kt and sold 6.4kt
of premium zircon, rutile, and ilmenite, resulting in a year-on-year ("YoY")
production increase of 153% and an overall 34% rise in sales. Premium zircon
production increased by 35% YoY to 6.8kt and sales grew by 29% to 6.1kt. The
Company expanded its finished goods inventories to 6.8kt; this growth is
attributable to the commencement of rutile and ilmenite production, which the
Company plans to export upon the granting of its export licence.

 

In Q3 2022, the Company achieved record premium zircon sales of 2.3kt, with
production standing at 2.5kt and resulting in an increased inventory. This
represents an impressive YoY sales volume increase of 50% and 62% increase in
production.

 

In December 2021, PYX completed the first phase of an expansion programme,
which boosted capacity at its Minerals Separation Plant ("MSP") by 6ktpa or
33% to 24,000tpa.  This enabled it to add titanium dioxide minerals, rutile
and ilmenite, to its sales profile, which have large, fast-growing end
markets. In particular, demand has grown for titanium metal due to its
increased use in body and engine parts for aeronautics, defence applications,
biomedical and sporting goods, as well as welding flux cord wire used in ship
building, and steel construction. Market commentators suggest that titanium
feedstock production as an industry is worth approximately US$4.5 billion each
year.

 

The Company achieved robust, stable prices for its products, with ongoing
price increases in H1 2022 and a stabilisation of prices in Q3 2022; pricing
for Q3 2022 was up 50% compared with Q3 2021.

 

PYX continues to receive strong investor support. Post period end, on 4
October 2022, the Company announced a £20 million investment commitment from
the international investment firm GEM Global Yield LLC SCS. The proceeds will
extend the Company's effort to upgrade its mining operations and increase its
production volumes, which enables PYX to continue its growth trajectory.

 

Market Environment

 

Over the past quarter, the mineral sands market has been largely supported by
China's demand for imported ilmenite. Although, demand softened in the build
up to the mid-autumn holiday period, this was largely offset by stronger
demand from Europe.

 

Demand for minerals sands is expected to ease in Europe as a result of the
unfolding energy crisis which is putting cost pressure on a myriad of
manufacturing sectors. In Q4, weakness in Europe is expected to be countered
partially, if not fully, by an uptick in Chinese manufacturing activity.

 

While we expect some downward price movements in mineral sands products to
extend to the year-end, the structural supply gap in the market, the
prolongation of supply chain constraints and the reactivation of the Chinese
manufacturing sector indicates that the impact will be relatively minor.

 

'PYX Cares' Programme

 

PYX continued with its "PYX Cares" programme, its blueprint for making a
meaningful difference to the communities in which it operates and achieving
sustainable growth. To further its goals based on the five pillars of the
programme, People, Planet, Prosperity, Peace and Partnership, during 2022, the
Company has launched projects on quality education, clean water and
sanitation, viable employment, and building partnerships.

 

Additionally, on 2 August 2022, PYX joined the United Nations Global Compact
initiative ("UN Global Compact"), a voluntary leadership platform for the
development, implementation, and disclosure of responsible business
practices.  The membership aligns with the "PYX Cares" sustainability
programme, based on the 17 Sustainable Development Goals set out by the United
Nations Development Programme, which include: No Poverty, Zero Hunger, Clean
Water and Sanitation, Climate Action, Gender Equality, and Quality Education
among others.

 

 

 

PYX's Mandiri Mining Field Unit

 

*** ENDS ***

 

For more information:

 

 PYX Resources Limited                                    T: +61 2 8823 3132

                                                          E: ir@pyxresources.com (mailto:ir@pyxresources.com)
 WH Ireland Limited (Financial Adviser and Joint 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.

 

 

 

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

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