Increased Demand Results in Price Increase
At present, demand for zircon is being driven by China, as its economy shows a sustained growth, and India, as its economy recovers after the COVID-19 crisis. The Company is also planning for increased demand from Europe which is expected to return by summer 2021 as the entire supply chain in the region has to be replenished. All these factors mean that demand is outstripping the current available supply of zircon, which has enabled PYX to implement a US$75 per tonne price increase.
PYX has also seen a growing number of orders for its premium zircon due to the superior quality and unique whiteness of the product. The Company continues to maintain a very strong order book, with 100% of production accounted for until end of the 2nd quarter 2021.
In February 2021, PYX announced the acquisition of Tisma Development (HK) Ltd., which signalled an important change of scale in the Company's activities. The addition of the Tisma deposit has boosted production such that PYX has become the second-largest producing mining company globally in terms of JORC-compliant zircon resources. PYX now controls 263MM tonnes of JORC-compliant resources, with 10.5MM tonnes of contained zircon.
PYX's Chairman and Chief Executive Officer, Oliver Hasler, said: "We are entering an up-cycle for commodities, the commodity index has bottomed out and globally there is a demand/ supply imbalance for zircon, leading to suitable market conditions for PYX to increase pricing. Our recent acquisition of a second deposit in Kalimantan could not come at a better time, with 2021 shaping up to be the perfect time window for us to increase margins, boost capacity and gain market share."
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About Pyx Resources Limited
PYX Resources Limited (NSX:PYX) is a global producer of premium zircon listed on the National Stock Exchange of Australia. The Company's flagship asset is the Mandiri mineral sands deposit, located in the alluvium sediment rich region of Central Kalimantan, Indonesia. Boasting the world's 5th largest producing deposit of zircon, PYX is a large-scale, near-surface open pit operation in production since 2015 and with exploration to date validating the presence of additional Valuable Heavy Minerals such as rutile, ilmenite among others within its mineral sands.
Pyx Resources Limited