Half Year 2023 Results
Sydney, Sep 13, 2023 AEST (ABN Newswire) - PYX Resources Ltd (LON:PYX) (NSX:PYX), the world's third largest publicly listed Premium Zircon producer by Zircon resources , is pleased to announce its results for the six months ended 30 June 2023 ("HY 2023").
Commenting on the half year results, Chairman and Chief Executive of PYX said:
"In the six months to June 2023, PYX has made significant headways in establishing itself as a leading player in the Premium Zircon market. Since its listing in February 2020, the Company has focused on delivering its strategy and creating shareholder value. Today, I am delighted to report several milestones achieved during the period, but I am particularly proud of our operational achievements which resulted in a positive underlying EBITDA in just under two years since our London listing and three years since our Australian listing.
"Looking ahead, PYX remains well positioned for growth with the award of the exploration and mining licence for Tisma and Mandiri's export licence for Rutile and Ilmenite, of which we have 8.5kt stockpiled and are ready to ship at the end of August 2023."
PYX has achieved significant milestones in its third year as a public company following its Australian IPO in 2020 and two years since its London Stock Exchange listing. The Company reported positive underlying EBITDA and finished with the same cash on the balance sheet as 31 December 2022, with no debt, since its initial public offering in February 2020. The Company's strategy of producing and selling Premium Zircon has resulted in a 33% increase in production, from 4.3kt to 5.7kt, and a 34% increase in Premium Zircon sales, from 3.9kt to 5.2kt, compared to the same period last year, which helped to reduce the cash cost of production in US$ per tonne by 8% compared to the same period last year.
This is a significant achievement for PYX Resources. The increase in production and sales of Premium Zircon is a testament to the Company's commitment to providing high-quality products to its customers.
PYX Resources' Premium Zircon is highly sought-after in the market due to its superior quality, and the increase in demand for the product is a clear indication of the market's trust in the company's products.
The negative EBITDA and the resulting Net Loss are the result of the non-cash loss on fair value change of financial instrument of US$1.2m and the cancellation of 20,332,494 performance rights convertible into a maximum of 23,532,494 shares. According to Australian Accounting Standards Board 2, share-based payments should be settled or cancelled as an acceleration of vesting. All this with no effect on cash.
The cash on our balance sheet at the end of the first half of this year was slightly higher than at the end of last fiscal year with US$7,232k. This is a result of an increase of Operating Working capital of US$1.4m required for the increase of production, US$1.3m investment in capex and a positive US$2.8m of financial activities, mainly showing the strong support of our shareholders.
Moreover, PYX Resources has successfully renewed its exploration and mining licence for the Tisma Mineral Sands project, with a maximum term of 10 years. The Tisma project is focused on exploring mineral sands and producing and exporting premium grade Zircon. The project has significant inferred resources, including approximately 4.5Mt of zircon, along with gold and Titanium minerals (Rutile and Ilmenite).
The renewal of the exploration and mining licence for Tisma Mineral Sands, our second project, is a significant milestone for PYX Resources. The licence renewal provides the Company with long-term stability and growth opportunities.
On 17 August 2023, PYX announced the receipt of the licence for the export of Ilmenite and Rutile ores from the Indonesian government, allowing it to extract, produce, and export 24kt of Zircon, 20kt of Rutile and 50kt of Ilmenite, as well as extract and produce other by-products such as SiO2. This followed the introduction of the new Indonesian regulation which allows the export of Titanium Dioxide with minimum grades of TiO2 greater than or equal to 45% for Ilmenite and TiO2 greater than or equal to 90% for Rutile.
The Company has already stockpiled 8.3kt of Titanium Dioxide feedstock and, with the new export licence, PYX Resources can expand its export opportunities and contribute to the global Ilmenite and Rutile market. The Titanium Dioxide feedstock production industry is valued at around US$4.5 billion annually.
Moreover, PYX received approval for its Tisma Work Plan and Budget for 2023 from the Energy and Resource Service Department of the Government of the Province of Central Kalimantan. This approval allows the Company to extract and process 24kt of zircon from its Tisma asset, which was acquired in January 2021.
The Work Plan and Budget costs cover various areas, including mining operations, processing, marketing, environment, safety, training, and community development.
PYX remains committed to its PYX Cares program in 2023 and submitted its Second Communication on Progress Report to the United Nations Global Compact Organization which focuses on five key pillars: People, Planet, Prosperity, Peace, and Partnership.
PYX Resources emphasises community engagement and environmental stewardship, implementing projects that empower local communities and protect wildlife and the natural environment. These initiatives aim to create sustainable opportunities and improve the quality of life for the community.
The Company partnered with the Indonesian Red Cross Society in its annual Indonesian National Blood Donor Day, received the Award for Prevention and Management of COVID-19 in the Workplace in 2023, and the Zero Accident Award 2023 from the government authorities in Kalimantan.
These recent developments are expected to contribute significantly to the company's long-term stability and growth opportunities, expand its export capabilities, and contribute to the global business community. PYX Resources is well positioned to continue its growth trajectory and establish itself as a leading player in the zircon market.
2023 Half Year Results Conference Call and Investor Meet Company Presentation
A conference call for equity market participants will take place on Monday 18 September 2023 at 4pm AWST / 6pm AEST / 9am BST. All participants wishing to listen in to the call must pre-register here before they can receive the dial-in number.
The Company is also providing a live presentation via the Investor Meet Company platform on 20 September 2023 at 11am BST / 6pm AWST / 8pm AEST. Current and potential investors can sign up and submit questions.
To view the Investor Meet Company platform, please visit:
About Pyx Resources Limited
PYX Resources Limited (NSX:PYX) (LON:PYX) is a global producer of premium zircon listed on the National Stock Exchange of Australia and the London Stock Exchange. 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