REG - PYX Resources Ltd. - Receives Licence to Export Rutile and Ilmenite

PYX ResourcesAnnouncement

17/08/2023 07:00

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RNS Number : 6228J  PYX Resources Limited  17 August 2023

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

 

 

17 August 2023

 

Pyx Resources Limited

("PYX" or "the Company")

 

PYX Receives Licence to Export Rutile and Ilmenite

8.2kt of Titanium Dioxide has been stockpiled and is ready to ship

 

 

HIGHLIGHTS
 

•    PYX receives licence to export rutile and ilmenite

•    The Company has been producing and stockpiling rutile and ilmenite
and currently has 8.2kt ready to ship

•    Some stock of ilmenite has been transported to the Port of
Banjarmasin to accelerate the shipping process

•    PYX is now authorised to:

o extract, produce, and export 24kt of zircon, 20kt of rutile and 50kt of
ilmenite; and

o extract and produce other by-products such as SiO(2)

•    Industrial and Trade Department (Departement Industri dan
Perdagangan) announced minimum grades for ilmenite TiO(2) ≥ 45% and rutile
TiO(2) ≥ 90%

 

PYX Resources (NSX: PYX | LSE: PYX), the world's third-largest publicly listed
zircon producer by zircon resources,  1   is pleased to announce that it has
received the licence for the export of rutile and ilmenite ores from the
Indonesian government. The Company, which announced the start of rutile
production on 12 January 2022 and ilmenite production on 27 June 2022, has
been stockpiling the material, and by the end of June 2023, has accumulated
8.2kt of these minerals. Future Titanium Dioxide sales will have a significant
positive impact on PYX's finances, since the Company has been absorbing all
costs with its zircon production.

 

Additionally, to expedite the shipping process, PYX has moved a portion of its
accumulated ilmenite to the Port of Banjarmasin. 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).

 

In line with the Industrial and Trade Department's regulations, which
stipulate minimum grades for ilmenite TiO(2) ≥ 45% and rutile TiO(2) ≥
90%, the Company has received a new export licence for ilmenite TiO(2) ≥
45%. The licence was issued by the Investment and One-Integrated Services
Department (Dinas Penanaman Modal dan Pelayanan Terpadu Satu Pintu/ DPMPTSP),
with the recommendation from both the Energy and Mineral Resources Department
and Industrial and Trade Department.

 

Titanium feedstock production represents an approximately US$4.5 billion per
annum industry. 2 

 

Commenting on the start of ilmenite export, PYX's Chairman and Chief Executive
Officer Oliver Hasler, said:

 

"We are absolutely thrilled to have received the necessary authorisations and
the new licence to export rutile and ilmenite. The board took the decision to
start producing and stockpiling ilmenite mid-last year in anticipation of
receiving the licence.  Rutile and ilmenite are by-products for PYX, which
can significantly increase our revenue and margin levels, which is good news
for all shareholders.

 

"I would like to take this opportunity to thank the Indonesian government for
its continued support and look forward to working together, alongside our
local communities, to deliver prosperity and growth to our local economy and
beyond."

 

 

*** 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 6Mt 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.

 1  According to publicly available information during the financial year
ended June 2023

 2  https://www.kenmareresources.com/en/our-products/titanium-feedstocks
(https://www.kenmareresources.com/en/our-products/titanium-feedstocks)

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