REG - PYX Resources Ltd. - Q3 2023 Operational Update

PYX ResourcesAnnouncement

02/11/2023 07:16

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RNS Number : 1184S  PYX Resources Limited  02 November 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

2 November 2023

Pyx Resources Limited

("PYX" or "the Company")

 

Q3 2023 Operational Update

61% Increase in Premium Zircon Production and 88% Increase in Sales

Q3 HIGHLIGHTS

·    Premium Zircon production increased by 61% to 4.0kt (Q3 2022: 2.5kt),
its highest to date

·    Sales of Premium Zircon increased 88% in Q3 2023 to 4.2kt (Q3 2022:
2.3kt) driven by demand from China and India

·    Award of the export licence announced on the 17(th) August 2023. The
Company had stockpiled 8.2kt of Titanium Dioxide.

·    Successful renewal of 10-year mining and exploration licence for the
Tisma Mineral Sands Project

·    Awarded with the COVID-19 Prevention and Management and Zero Accident
Award 2023 from the Government authorities in Kalimantan

PYX Resources Ltd  (NSX: PYX | LSE: PYX), the world's third largest publicly
listed zircon producer by zircon resources, 1  (#_ftn1)  is pleased to
announce an Operational Update for the three months ended 30 September 2023
("Q3 2023").

 

SUMMARY

                               Q3 '23  Q3'22  Var   YTD'23  YTD'22  Var
 Zircon Produced               4.0kt   2.5kt  61%   9.7kt   6.8kt   43%
 Zircon Sales                  4.2kt   2.3kt  88%   9.4kt   6.1kt   54%
 Value per tonne (USD)         2,116   2,606  -19%  2,012   2,697   -25%
 Total Mineral Sands Produced  4.9kt   3.5kt  39%   11.7kt  12.7kt  -8%
 Total Mineral Sands Sold      4.2kt   2.5kt  70%   9.4kt   6.4kt   48%

 

The Company has reported a significant increase in Premium Zircon production
of 4,021t in Q3 2023, which is equivalent to a yearly production rate above
16kt and in line with the PYX's five-year plan.

 

Premium Zircon sales experienced robust growth during the period with an
increase of 88% to a sales volume of 4.2kt, mainly to China and India as the
Western economy slows. The Company believes this growth is a result of the
Company's customer-centric approach, strong relationships with clients, and
the ability to deliver high-quality products that meet their specific needs.

 

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 Bloomberg) steadily increased throughout the year, reaching US$1,800/t in
H2 2021 and US$2,000/t by January 2022.

 

This positive trajectory continued into Q2 2023, with the price reaching
US$2,100/t. Since Q3 2022, the price has remained stable at US$2,200/t, a 64%
increase on 2021 prices, defying the volatility of the market. This
exceptional outcome underscores the imbalanced supply and demand dynamics, and
PYX's ability to capitalize on this favourable market situation.

 

 

Commenting on the Company's achievements in Q3 2023, PYX's Chairman and Chief
Executive Officer Oliver Hasler, said:

"I am delighted with our achievements in Q3 2023. The Company experienced
substantial growth in Premium Zircon sales, with a 54% increase, and a
production increase of 43% year-to-date. Our diversified global client base
has allowed us to manage and minimise risk. This coupled with the quality of
our Premium 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 are 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."

Licences

The renewal of a 10-year Izin Usaha Pertambangan Operasi Produksi (IUP-OP,
Mining Operation and Production Licence) exploration and mining licence
agreement for the Tisma project, which PYX has a contractual interest in,
represents a significant milestone for the Company.

 

The IUP-OP license and newly issued RKAB Operasi Produksi Tahun 2023 (Working
Plan and Budget) authorises the Company to extract, produce, and export 24kt
of zircon, 20kt of rutile and 50kt of ilmenite, ensuring the extraction and
production of other by-products, such as SiO(2).

 

This renewal, and access to this licence, solidifies PYX's position as a
leading player in the mineral resources sector and opens up new opportunities
for growth and expansion. The Directors believe 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.

 

Additionally, the Indonesian authorities have outlined the legislation for
Mineral Sands companies to export Ilmenite and Rutile to international
markets, following a change in Indonesian law. 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 receiving the same classification as Zircon, as a
Non-Metal Commodity.

 

The new law, 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. On 17(th) August
2023 the Company announced the award of the export licence for Rutile and
Ilmenite. PYX started producing rutile in January 2022 and ilmenite in June
2022, and by the end of June 2023 it had stockpiled 8.2kt.

 

Awards

Also, during the period, the Company was delighted to be awarded with the
COVID-19 Prevention and Management and Zero Accident Award 2023 from the
Indonesian Ministry of Manpower.

 

 

(( 1 )) According to publicly available information as of 30 June 2023

 

***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 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.

 

Compliance Statement

 

The Mandiri mineral sands deposit hosts a 6 Mt Inferred JORC Resource of
zircon. The Company

originally announced this resource in its Prospectus released on 20 February
2020 and confirms that it is not aware of any new information or data that
materially affects the information included in the

Prospectus. All material assumptions and technical parameters disclosed in the
Prospectus that

underpin the estimates continue to apply and have not materially changed.

 

The Tisma mineral sands deposit hosts a 4.5 Mt Inferred JORC Resource of
zircon. The Company

originally announced this resource in its Announcement "PYX Resources Limited
Agrees to Acquire

Tisma Development (HK) Limited, a World-Class, Fully Licensed Mineral Sands
Deposit" on NSX on

13 January 2021 and confirms that it is not aware of any new information or
data that materially

affects the information included in the Announcement. All material assumptions
and technical

parameters disclosed in the Announcement that underpin the estimates continue
to apply and have

not materially changed.

 

Together the Mandiri and Tisma mineral sand deposits total 10.5 Mt of
contained zircon within a

total of 263.5 Mt of heavy mineral sands.

 

 

(#_ftnref1)

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