TIDMPYX
RNS Number : 9224I
PYX Resources Limited
10 August 2023
PYX Resources Limited / EPIC: PYX / Market: Standard / Sector:
Mining
10 August 2023
PYX Resources Limited
Operations Update HY 2023
Strong HY 2023 Performance with Increased Sales and
Production
-- Premium Zircon production increased by 33% to 5.7kt
-- Premium Zircon sales also experienced growth, with a 34% increase to 5.2kt
-- Successful renewal of a 10-year exploration and mining
license (maximum term) for the Tisma Mineral Sands project
-- Award for Prevention and Management of COVID-19 in the Workplace in 2023 and
Zero Accident Award 2023, both from the Government authorities
in Kalimantan
PYX Resources Ltd (PYX or the Company) (NSX: PYX | LSE: PYX),
the world's third largest publicly listed Premium Zircon producer
by Zircon resources ([1]) , is pleased to announce an operational
update for the six months ended 30 June 2023 ("HY 2023") ahead of
the publication of its interim results for the same period,
anticipated to be released on or around 13 September 2023 .
SUMMARY OF RESULTS (all unaudited)
HY 2023 HY 2022 Variance
Zircon Produced 5.7kt 4.3kt +33%
-------- -------- ---------
Zircon Sales 5.2kt 3.9kt +34%
-------- -------- ---------
Yearly Average Price Zircon
(USD/t) 1,927 2,749 -30%
-------- -------- ---------
Total Mineral Sands Produced 6.8kt 9.2kt -26%
-------- -------- ---------
Total Mineral Sands Sold 5.2kt 3.9kt +34%
-------- -------- ---------
Premium Zircon sales experienced robust growth during the
period, with a remarkable increase of 34% to a sales volume of
5.2kt. The Directors believe this growth is a result of our global
client base, customer-centric approach, strong relationships with
clients, and the ability to deliver high-quality products that meet
their specific needs.
PYX's premium Zircon production has experienced substantial
progress, with a noteworthy increase of 33% compared to the
previous year. In HY 2023, production volumes reached 5.7kt,
showcasing the operational efficiency and dedication to meeting
market demand positioning PYX as a leading supplier of premium
zircon to the global markets.
Total production for the first half of the year amounted to
6.8kt, a 26% reduction over the same period last year. The Company
believes the reduction is attributable to the decision to focus on
the production and sale of premium Zircon due to high demand. This
follows last year's ramp up of production of its by-products Rutile
and Ilmenite, following the award of exploration and extraction
licenses, which have been stockpiled with a total of 8.0kt of
titanium stockfeed being held in storage. This titanium stockfeed
will be sold once the Company receives its export licence from the
Indonesian Trade Department, anticipated to be during Q3 2023. PYX
Resources remains confident in its ability to maintain this growth
trajectory and deliver long-term value to our stakeholders.
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 Asian Metal) steadily
increased throughout the year, reaching US$1,800/t in the second
half of 2021 and US$2,000/t by January 2022. This positive
trajectory continued in the second quarter of 2023, with the price
reaching US$2,100/t. Since the third quarter of 2022, the price has
remained stable at an impressive US$2,300/t, a 64% increase on 2021
prices, defying the volatility of the market. This exceptional
outcome underscores the imbalanced supply and demand dynamics, and
our ability to capitalise on this favourable market situation.
PYX's revenue is linked to lower prices in HY 2023 compared to
the same period last year, as it took historic advantage of spot
prices which were as high as US$3,100 per tonne during HY 2022.
During the first half of 2023, PYX sold most of its Premium Zircon
at contract prices, following international pricing.
The Directors believe the continued rise in demand for PYX's
mineral products, strong market fundamentals and the Company's
operational capabilities, ensures PYX is positioned to capitalise
on the continued global demand for mineral sands paving the way for
sustained growth. PYX remains committed to delivering on our
strategic objectives and maximising shareholder value.
Commenting on the Company's achievements in HY23 PYX Resources'
Chairman and Chief Executive Officer, Oliver B. Hasler, said:
"I am delighted with our achievements in HY 2023. The Company
experienced substantial growth in premium Zircon sales, with a 34%
increase, and a production increase of 33%. Our diversified global
client base has allowed us to manage and minimise risk. This
coupled with the quality of our 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 remain 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."
One of the significant milestones this year has been the renewal
of a 10-year Izin Usaha Pertambangan Operasi Produksi (IUP-OP,
Mining Operation and Production Licence) exploration and mining
license agreement for the Tisma project, which PYX has a
contractual interest in. This renewal, and access to this licence,
should solidify PYX's position as a leading player in the mineral
resources sector and opens up new opportunities for growth and
expansion. PYX believes 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.
Also, the Indonesian authorities have set the legislation for
Indonesian Mineral Sands companies to export Ilmenite and Rutile to
international markets, following a change of the law in Indonesia.
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
now being classified as Non-Metal Commodities, the same as
Zircon.
This law change, 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. As a result, PYX Resources is now
awaiting the export license of Titanium dioxide from the Trade
Department, which is a formality before it can proceed with the
export of its titanium stockfeed, of which it currently has 8.3kt
in inventory.
PYX Cares Programme
Throughout 2023, PYX remained committed to its PYX Cares
programme and submitted its Second Communication on Progress Report
to the United Nations Global Compact Organisation, which
encompasses five key pillars: People, Planet, Prosperity, Peace,
and Partnership.
PYX Resources firmly believes in the importance of community
engagement and environmental stewardship. The Company is committed
to implementing community projects that not only empower the local
population but contribute to the protection of wildlife and the
preservation of the natural environment. Through these projects,
the Company aims to create sustainable and inclusive opportunities
for the community, fostering economic development and improving
their quality of life. An example of this was PYX's partnership,
for a third year, with the Indonesian Red Cross Society in its
annual Indonesian National Blood Donor Day.
Amid this local engagement PYX Resources received an Award for
Prevention and Management of COVID-19 in the Workplace in 2023 and
a Zero Accident Award 2023, both from the Government authorities in
Kalimantan.
***S ***
For more information:
PYX Resources Limited T: +61 2 8823 3132
E: 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
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
licences 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 June 2023
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