TIDMPYX
RNS Number : 2208P
PYX Resources Limited
08 February 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
8 February 2023
Pyx Resources Limited
("PYX" or "the Company")
Operational Update FY 2022
Building Strong Fundamentals
PYX Resources Ltd (NSX: PYX | LSE: PYX), the world's second
largest publicly listed zircon producer by zircon resources(1) , is
pleased to provide an operational update for the Full Year 2022
ended 31 December 2022 ("FY 2022" or "the Period").
Highlights
-- Strong increase in premium Zircon production and sale volumes
with year-on-year ("YoY") production increasing to 9.1kt, a 25%
increase as compared to FY 2021, and YoY sales increasing to 9.1kt,
a 33% increase as compared to FY 2021.
-- The Company commenced its production of rutile in January
2022 and ilmenite in June 2022 (together "Titanium Dioxide
Minerals") with joint production volumes of 7.5kt and sales volumes
of 0.3kt.
-- Premium Zircon prices continue to increase with a YoY price
increase of 36% as compared to FY 2021.
-- Commenced warehouse operations at Kuala Lumpur's Port Klang
to reduce shipping times and costs to end-users.
-- Appointed highly regarded Geologist and Indonesian Executive
Dr. Raden Sukhyar to its Board as a Non-executive Director
During the Period, the Company performed strongly with a
significant increase in mineral sands production including the
commencement of rutile and ilmenite production, sales volume growth
and robust sales prices. Included below is a summary view of the
Company's operational performance.
FY 2022 FY 2021 Variance
Zircon Produced 9.1kt 7.2kt +25%
-------- -------- ---------
Zircon Sales 9.1kt 6.9kt +33%
-------- -------- ---------
Titanium Dioxide Minerals 7.5kt -
Produced
-------- -------- ---------
Titanium Dioxide Minerals 0.3kt -
Sold
-------- -------- ---------
Yearly Average Price Zircon
(USD/t) 2,457 1,811 +36%
-------- -------- ---------
Total Produced 16.6kt 7.2kt +129%
-------- -------- ---------
Total Sold 9.5kt 6.9kt +38%
-------- -------- ---------
In the 12 months ended 31 December 2022, PYX produced 16.6kt and
sold 9.5kt of premium zircon, rutile, and ilmenite, resulting in a
YoY production increase of 129% and an overall 38% rise in sales
volume. Premium zircon production increased 25% YoY to 9.1kt and
sales grew 33% to 9.1kt. The Company expanded its finished goods
inventories to 7.3kt; this growth is mainly attributable to the
commencement of rutile and ilmenite production, which the Company
plans to export upon the granting of its export licence.
A number of key announcements were made by the Company during
the final quarter of 2022, including securing GBP20 million
investment commitment to accelerate its growth plans, which added
two notable US investors to its share register. Additionally, PYX
appointed highly regarded Geologist and Indonesian Executive Dr.
Raden Sukhyar to its Board as a Non-executive Director, and
commenced operations at Kuala Lumpur's Port Klang to reduce
shipping time and costs to end-users.
Commenting on the Company's achievements in 2022, PYX Resources'
Chairman and Chief Executive Officer, Oliver B. Hasler, said:
"2022 was a highly successful year for PYX as we continued to
set the foundation for long term growth across several reporting
areas. The 129% increase in year-on-year ("YoY") production and 38%
rise in sales volume is a remarkable achievement and a testament to
the quality of our assets, system and team. We are also pleased to
have commenced production of titanium dioxide by-products,
diversifying our offering and providing an additional revenue
stream. With strong global demand forecast for our products and
aggressive growth plans, we are well positioned to deliver
shareholder value and I look forward to an exciting 2023."
Market Environment
Zircon, which has been in use for thousands of years but is
labelled as one of the most important metals you have never heard
of, is making a resurgence as a critical material used across a
wide range of high-tech applications including nuclear power,
aerospace and catalytic converters. Notably, zirconium is
considered a crucial mineral by the Australian Government.(2)
Over the medium term, the major factors driving zircon market's
growth are its increased use in foundries and refractories, the
increasing number of nuclear power stations in the Asia-Pacific,
and the accelerating usage of surface coatings. The most
significant increase in nuclear generation in Asia-Pacific is
expected in China (11 stations are under construction and 43 are
being planned) and India (7 stations are under construction, and 21
reactors are expected to be brought online by 2031).(3)
Accordingly, the global zirconium market is projected to
register a CAGR of over 5% in terms of volume during 2022-2027.(4)
China dominated the markets studied, accounting for about 50% of
the total revenue, and it is expected to witness the fastest CAGR
over the forecast period.
Growth in PYX's by-products, titanium dioxide minerals, is
equally robust with the titanium market expected to grow at a rate
of 6.4% between 2021 to 2028.(5) The use of titanium as pigments in
paints and coatings formulation is one of the major factors driving
this growth as well as its utilisation in the aerospace, aviation,
shipping, offshore mining, and petrochemicals industries owing to
its durability, strength and exceptional chemical resistance
abilities.
'PYX Cares' Programme
Sustainability is a critical pillar for PYX in its daily
operations. The Company continued to prioritise environmental
sustainability alongside partnerships with the local communities
pursuing similar goals. Looking ahead, PYX pledges to promote
economic growth through meaningful investments to continue the
positive economic and industrial development in Kalimantan.
During 2022, PYX was involved in several major community
programmes: it successfully vaccinated 100% of its employees
against Covid-19; it is planting 10,000 Bengkirai trees at the
Mandiri mining tenement; it oversaw blood donation efforts in
Kalimantan; and it supported both the local school and the Borneo
Orangutans Survival Foundation.
(1) According to publicly available information during the
financial year ended December 2020
(2) Australian Government, Australian Critical Minerals
Prospectus 2021 https://bit.ly/3qfYInX
(3) The World Nuclear Association
https://world-nuclear.org/information-library/current-and-future-generation/plans-for-new-reactors-worldwide.aspx
(4)
https://www.mordorintelligence.com/industry-reports/zirconium-market
(5)
https://www.databridgemarketresearch.com/reports/global-titanium-market
***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
/ Megan Liddell
------------------------------
St Brides Partners Ltd (Financial E: pyx@stbridespartners.co.uk
PR)
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 2nd 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.
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disapproved the information contained in this Announcement.
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UPDFLFVDFVIDIIV
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