PYX Resources' HY 2023 performance with increased sales and production

2023-08-11

Aug. 10, 2023 - PYX Resources Ltd (“PYX” or “the Company”) (NSX: PYX | LSE: PYX), the world’s third largest publicly listed Premium Zircon producer by Zircon resources1, 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)

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