TIDMPYX
RNS Number : 4033Y
PYX Resources Limited
04 May 2023
4 May 2023
Pyx Resources Limited
("PYX" or the Company ")
Operations Update Q1 2023
Continued Strong Performance in Improving Critical Minerals
Markets
PYX Resources Ltd (NSX: PYX | LSE: PYX), the world's
second-largest publicly listed zircon producer by zircon resources,
is pleased to provide an operational update for the three months
ended 31 March 2023 ("Q1 2023" or "the period").
SUMMARY
Q1 2023 Q1 2022 Variance
Production
-------- -------- ---------
Zircon Produced 1.9kt 1.7kt 12%
-------- -------- ---------
Titanium Dioxide Minerals
Produced 0.6kt 0.3kt 127%
-------- -------- ---------
Total Produced 2.5kt 2.0kt 29%
-------- -------- ---------
Sales
-------- -------- ---------
Zircon Sales 1.3kt 1.8kt -27%
-------- -------- ---------
Titanium Dioxide Minerals - - -
Sold
-------- -------- ---------
Total Sold 1.3kt 1.8kt -27%
-------- -------- ---------
Value Per Tonne (USD) 2,031 2,554 -20%
-------- -------- ---------
Inventories
-------- -------- ---------
Zircon Inventory 0.6kt 0.3kt +136%
-------- -------- ---------
Titanium Dioxide Minerals
Inventory 7.5kt 0.3kt +2,506%
-------- -------- ---------
Total Inventory 8.1kt 0.5kt 1,406%
-------- -------- ---------
During the period, the Company performed strongly with an
increase in both mineral sands and premium zircon production.
In Q1 2023, PYX produced 2.5kt of premium zircon, rutile and
ilmenite (together "Titanium Dioxide Minerals"), resulting in a
year-on-year production increase of 29% (Q1 2022: 2.0kt).
Premium zircon production in Q1 2023 increased by 12% to 1.9kt
(Q1 2022: 1.7kt) with sales decreasing by 27% to 1.3kt (Q1 2022:
1.8kt). The slight reduction in zircon sales for Q1 2023, when
compared to Q1 2022 was a result of temporary delays in shipping
causing the sales to fall into the following accounting period. Had
these sales occurred in Q1 2023 the Company would have exceeded
premium zircon sales when compared to Q1 2022. Accordingly, the
Company ended the period with 604t of premium zircon inventory (Q1
2022: 256t).
During the period, the Company expanded its finished goods
inventories to 8.1kt, a 1,406% increase on the prior year (Q1 2022:
0.5kt). This included 7.5kt of titanium oxide which the Company
will sell once it receives its export licence from the Indonesian
Trade Department, which is expected imminently.
Commenting on the Company's achievements in Q1 2023, PYX
Resources' Chairman and Chief Executive Officer, Oliver B. Hasler,
said:
"PYX is an Indonesian focused company looking to consolidate the
minerals sands market in the region. We are very lucky to work with
a professional and dedicated team and to be operating in a
mining-friendly and supportive country like Indonesia.
"We recently made another important step forward on our
successful growth path when we renewed the Tisma tenement licence
for a further 10 years, after which the licence can be extended
further.
"I would like to take the time to thank our team and the
Indonesian government departments, officials, and stakeholders for
the quick decision on the licence application. Extending the term
of the tenement licence where we operate is a key development in
that it enables PYX to continue its critical exploration and mining
activity at a time when the mineral sands market is experiencing
increased demand and consistent growth.
"In an improving zircon market, we are forecasting strong
production and sales growth within our operations against a
backdrop of improving global demand and pricing. All these factors
give us great confidence for the remainder of the year ahead.
"Once again, I wish to thank our loyal shareholders, trading
partners and hard-working team for maintaining PYX Resources as a
world-leading producer of critical minerals for the world's clean
energy future."
Premium Zircon Market
Premium zircon prices are mixed when compared with last year,
largely because of the huge imbalance between supply and demand in
2022 which caused spot prices into China to drastically increase.
Most spot sales are undertaken for the Chinese market, which slowed
down in the second half of 2022 [1] and resulted in PYX selling
mostly into India, Europe, and the Americas at international
contract prices H2 2022 and Q1 2023.
Conversely, international contract prices, set mainly by the
major Australian and South African producers, have increased by 15%
year-on-year (1) .
The Directors see the potential for an increase in premium
zircon demand in Q2 2023 and expects a return to stronger sales to
China in the second half of 2023, which should help mitigate the
risk of Western economies declining.
According to Mordor Intelligence, the global zirconium market is
anticipated to register a compound annual growth rate ("CAGR") of
4% between 2023 and 2028, driven by an increase in foundries and
refractories, increased nuclear power plants in the Asia-Pacific
region, and the rising demand for surface coatings. [2]
Tisma Mineral Sands Project Licence Grant
On 23 February 2023, PYX Resources Ltd was pleased to announce
it had received notification that the application by PT. Tisma
Global Nusantara's ("PT TGN") for the renewal of the licence for
the Tisma tenement in Indonesia had been granted for the maximum
authorized period of 10 years, after which the licence can be
renewed for additional periods. PYX holds a contractual interest in
PT TGN though an Exclusive Option and Management Agreement.
The renewal of the tenement licence allows PT TGN to continue to
perform exploration and mining works in the tenement area.
A summary of key provisions of the permit extension include:
-- 1.5% Royalty on sales value of exported Zircon;
-- Fixed rent payable to the Government of Indonesia of US$4 per hectare per annum;
-- Corporate tax of 22% payable to the Government of Indonesia;
-- Land and building taxes of 0.5% of taxable sales value payable to local government; and
-- Environmental obligations, including reclamation bonding and plans
PYX Resources also advises that all Performance Rights held by
the Chairman and CEO, Mr Oliver Hasler, have been cancelled in
order to reflect a clearer picture of the financial performance of
the Company. A total of 80,000 Performance Rights remain in issue,
which are convertible into a maximum of 120,000 shares, subject to
the achievement of certain milestones.
***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 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
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] Asian Metal (https://www.asianmetal.com)
[2] "Global Zirconium Market - (2023 - 2028)" Mordor
Intelligence.
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END
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