Final Results

PYX Resources Limited

15 March 2024

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

15 March 2024

Pyx Resources Limited

("PYX" or "the Company")

2023 Full Year Results

PYX Resources Ltd (NSX: PYX | LSE: PYX), the world's third largest publicly listed zircon producer by zircon resources,¹ is pleased to announce its Full Year Results for the year ended 31 December 2023 ("FY2023").

FY2023 HIGHLIGHTS

· 24% Year on Year ("YoY") increase in total sales volume to 11,350 Tonnes

· Strong revenue recorded of US$22,672k - constant YoY

· 61% YoY increase in underlying EBITDA to US$676k

· 8% YoY increase in Net Cash Position to US$7,829k

· 22% YoY increase in Premium Zircon Inventory to 17 days

· 22% YoY decrease in total personnel to 95

· 28% & 47% YoY increase in female and indigenous (Dayak) employment respectively

· ZERO total recordable injury frequency rate

· Signed UN Global Compact Annual Communication on Progress in March 2023

· Post period, the Company announced that it will start shipping ilmenite following the award of a revised exporting licence

FINANCIAL AND OPERATIONS SUMMARY

US$	FY 2023	FY 2022	% change
Sales revenue	22,671,641	22,703,190	0%
Cash cost of production	(19,601,174)	(17,293,633)	13%
EBITDA	(10,039,681)	(9,254,205)	8%
EBIT	(10,400,680)	(9,496,707)	10%
Net loss before tax	(10,456,195)	(9,524,646)	10%
Net loss after tax (NLAT)	(10,456,356)	(9,433,600)	11%
Underlying EBITDA	676,301	419,289	61%

Cash	7,828,906	7,221,085	8%
Total assets	93,100,662	89,124,565	4%
Total liabilities	8,977,573	5,570,118	61%
Zircon Produced	11.8kt	9.1kt	31%
Zircon Sales	11.4kt	9.1kt	24%
Titanium Dioxide Minerals Produced	2.9kt	7.5kt	(61%)
Titanium Dioxide Minerals Sold	-	0.3kt
Value Per Tonne Zircon (USD/t)	1,998	$2,457	(19%)
Total Produced	14.8kt	16.6kt	(11%)
Total Sold	11.4kt	9.5kt	20%

¹According to publicly available information during the financial year ended June 2023

FY2023 OVERVIEW

During the 12 months to December 2023, the Company 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. The Company performed strongly during 2023 mainly due to a boost in premium zircon production and sales.

In FY2023 the company achieved revenue of US$22.7 million, while achieving a positive underlying EBITDA, increased net cash at the year end to US$7.8m and remaining debt free. All of this has been achieved despite an average price decrease of PYX's premium zircon of 19%.

Operationally, PYX produced 14.8kt of minerals sands (zircon, rutile and ilmenite) in total during the year, of which 11.8kt were premium zircon, representing a 31% year-on-year (YoY) increase in premium zircon production. YoY sales of premium zircon also grew by 24% to 11.4kt (2022: 9.5kt). No sales of titanium stockfeed were made while the Company awaited the modification of its rutile and ilmenite export licences which are required after changes in regulation made by the Industrial and Trade Department for Export Tax Billing in December 2023. On 12^th March 2024, post period, the Company announced that it had received the modified licence to export ilmenite and that it can now start delivering on orders placed prior to the modification of the licence. During the period, the Company also strengthened its finished goods inventories to 10.9kt (2022: 7.3kt) mainly as a result of the increase of rutile and ilmenite production. Alongside this, premium zircon inventories increased to 533t (17 days) from 438t at the end of 2022.

During the year, the Company's premium zircon market has been driven by Asia's demand, with little demand from Europe as a result of a sluggish global economy.

Since PYX's inception in 2020, the company has managed to sell all of its premium zircon production, mainly as a result of its high quality and scarcity. 2023 was no exception, with the Company maintaining a low premium zircon inventory at the year end.

International premium zircon prices remained unchanged for the first half of 2023 despite weak international market conditions but declined during the last five months of the year with average prices for 2023 ending 19% lower than in 2022.

Nonetheless, despite a soft global economy, the Company ended the year with US$7.8 million of cash on its balance sheet and no debt.

2023 was a significant year for PYX's Mandiri and Tisma mining licences. The renewal of a 10-year Izin Usaha Pertambangan Operasi Produksi (IUP-OP, Mining Operation and Production Licence) exploration and mining licence agreement for the Tisma project, which PYX has a contractual interest in, represents a significant milestone for the Company. The IUP-OP licence and newly issued RKAB Operasi Produksi Tahun 2023 (Working Plan and Budget) authorises the Company to extract, produce, and export 24kt of zircon, 20kt of rutile and 50kt of ilmenite, ensuring the extraction and production of other by-products, such as SiO2 .

This renewal, and access to this licence, solidifies PYX's position as a leading player in the mineral resources sector and opens up new opportunities for growth and expansion. The Directors believe 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.

Additionally, the Indonesian authorities have outlined the legislation for mineral sands companies to export ilmenite and rutile to international markets, following a change in Indonesian law. 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 receiving the same classification as zircon, as a Non-Metal Commodity.

The new law, 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 TiO2 ≥ 45% for ilmenite and TiO2 ≥ 90% for rutile. On 17 August 2023 the Company announced the award of the export licence for rutile and ilmenite however exports were put on hold following changes in regulation made by the Industrial and Trade Department for Export Tax Billing in December 2023, which required the use of two types of Ports, a Loading and Export port. The Company has now received the modified licence to export ilmenite from the Investment and One-Integrated Services Department (Dinas Penanaman Modal dan Pelayanan Terpadu Satu Pintu/ DPMPTSP) (See 12^th March 2024 RNS). PYX started producing rutile in January 2022 and ilmenite in June 2022, and by the end of December 2023 it had stockpiled 9.8kt.

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's strategy has resulted in a 24% increase in sales of premium zircon, from 9.1kt to 11.4kt, compared to the same period last year.

Revenues from sales of zircon for the year were US$22,671,641 and remained constant compared to 2022. This was driven by a 24% growth in premium zircon sales volumes offset by an average sales price reduction of 19%. During 2023, PYX achieved an average premium zircon price of US$1,998 per tonne compared to our estimate for other Indonesian suppliers of US$1,750 per tonne.

Zircon prices in the near future will depend on the performance of the world economy and the output of mining companies. PYX remains very positive on the need of increased zircon supply and, with the amended rutile and ilmenite export licence, the Company expects to increase sales during 2024. This will be achieved through both an increase of production volume and the sales of the 9.8kt rutile and ilmenite the Company has in inventory at the end of 2023.

PYX's existing customer base consists of global blue-chip organisations operating in various industries, sectors, and geographies. Through the strategy of market diversification, PYX has been able to mitigate the steep reduction in demand from the western economies. As a results, during 2023 most of PYX's sales focused on India and China, with sales to India increasing 126%. During the period, PYX grew its customer base by 23% with zircon utilisers around the world keen to approve PYX's premium zircon as they seek to secure future supply and look for new competitive options.

All sales during the period continue to be in US dollars, reducing the risk of exchange rate exposure.

The Annual Report and Financial Statements for the year ended 31 December 2023 has been published today and is available for inspection at https://pyxresources.com/investors-reports.

2023 Full Year Results Conference Call

The Company will host a live investor presentation relating to the Company's 2023 Annual Results at 12:00pm GMT /20:00pm AWST / 23:00pm AEDT on Tuesday 19 March 2024, via the Investor Meet Company platform.

The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via your Investor Meet Company dashboard up until 9:00am GMT / 17:00 AWST / 20:00 AEDT on Monday 18 March 2024 or at any time during the live presentation.

Investors can sign up to Investor Meet Company for free and add to meet PYX RESOURCES LIMITED via: https://www.investormeetcompany.com/pyx-resources-limited/register-investor.

Annual General Meeting

The Company's Annual General Meeting (AGM) will be held virtually on or around Thursday, 16 May 2024. Details of all resolutions to be considered at the AGM will be contained in a Notice of AGM and Explanatory Notes which will be dispatched to shareholders prior to the meeting in accordance with the relevant legal requirements.

CHAIRMAN'S STATEMENT

In terms of the macroeconomic and political environment, it has been a period marked by notable shifts and challenges. Geopolitical tensions, including the Israel - Palestine conflict in the Middle East and the continuation of the war in Ukraine, have had a profound impact on governments and financial markets globally. Additionally, persistently high inflation, supply chain disruptions and higher interest rates in Europe and the US have posed challenges to local manufacturers, reducing demand for our products in these regions. Nevertheless, we have remained resilient and adaptable in the face of these circumstances. While global equity markets have performed relatively well, commodity prices have been soft overall, with global bearishness remaining high, and short-term debt interest at a decade high. All of this arguably builds into the most anticipated bear market in history. I am proud to say that PYX has navigated its way through rough seas and has done so in a remarkable manner yielding excellent results.

A pivotal accomplishment this year lies in our strategic decision to enhance trade dynamics by actively expanding our customer base in the Asian markets, particularly China and India. Recognising the immense growth potential in these regions, we have successfully realigned our operations to cater to their burgeoning demands. By establishing robust relationships with customers in these markets, we have unlocked new avenues for business expansion and cemented our presence in the vibrant Asian economies. This deliberate shift has not only widened our market reach but has also positioned us to leverage the thriving opportunities and meet the evolving needs of these influential markets. Our strengthened focus on China and India reflects our commitment to driving sustainable growth and maximising our trade potential in the Asian region.

In terms of pricing, premium zircon has experienced a remarkable upward trend. Starting from January 2021 at US$1,400, international market pricing steadily increased throughout the year, reaching US$1,800 in the second half of 2021 and US$2,000 by January 2022. This positive trajectory continued, and world premium zircon prices have remained stable, defying the volatility of the market. This exceptional outcome underscores the imbalanced supply and demand dynamics and highlights our ability to capitalise on this favourable market condition. Despite current market challenges, resulting from the weak global economy, we remain bullish in the long term, given the number of existing operations reaching the end of their mine life between 2025 and 2030. In addition, the increasing market uncertainty is heightening the challenge of developing new projects.

We are pleased to report a significant surge in our total sales volumes of 20%, witnessing a YoY growth of 24% of premium zircon, while finished goods inventory of premium zircon remains at a low of 17 days.

Furthermore, this year stands as an exceptional milestone for PYX Resources with a strong positive underlying EBITDA of US$676k, up 61% from the previous year. This is even more impressive when considering that the Company is in its 3rd year of operations since its original IPO in Australia, from which 2 years had a considerable slow down amid Covid-19. This momentous achievement serves as a resounding testament to our unwavering dedication to operational excellence and sound financial stewardship. One key catalyst driving our remarkable financial success has been the meticulous implementation of measures that have led to a substantial reduction in non-cash expenses. By optimising executive remuneration to align with profitability, we have effectively strengthened our financial position and generated favourable EBIT results. This strategic approach, combined with the positive fair value of our financial instruments, has substantially enhanced our financial performance, ensuring sustainable returns for our esteemed shareholders. Moreover, the strategic commencement of sales of by-products, coupled with our astute capitalisation on market demand, has not only diversified our revenue streams but generated additional income, further bolstering our overall financial prowess. This strategic manoeuvre, along with the noteworthy positive impact derived from the accumulated ilmenite inventory, has played a pivotal role in amplifying our overall profitability, serving as a compelling demonstration of the efficacy of our astute resource management strategies.

This remarkable progress aligns seamlessly with our strategic 5-year plan, showcasing our commitment to achieving the outlined objectives.

I am delighted to share the exciting news that PYX Resources has successfully obtained an IUP-OP (Izin Usaha Pertambangan Produksi - Production Operation Mining Business Licence) extension for the Tisma tenement. This achievement solidifies our position and grants us the invaluable opportunity to operate within this tenement for the next 10 years. The extension not only brings stability and certainty to our operations but also serves as a strong foundation for continued growth and expansion. With this extended tenure, we can confidently pursue our long-term strategies and continue to explore new opportunities to consolidate the mineral sands industry in Kalimantan.

To this end, we were delighted to be awarded the licence for the export of ilmenite and rutile ores from the Indonesian government in August 2023, which allows us to extract, produce, and export up to 24kt of zircon, 20kt of rutile and 50kt of ilmenite per annum, as well as extract and produce other by-products such as SiO2 . With 9,833 tonnes of finished ilmenite and rutile in inventory, the Company has an important cash generation potential through sales during 2024.

These milestones are testament to our strong relationships with regulatory bodies and our unwavering commitment to compliance and responsible resource management.

Sustainability remains at the core of our operations and values. We are proud to actively uphold the United Nations' Sustainable Development Goals (SDGs) as part of our commitment to creating a more sustainable future. Our dedication to sustainability goes beyond mere compliance; it reflects our genuine desire to make a positive impact on the environment and the communities in which we operate. We have undertaken a multitude of sustainability projects and initiatives, such as: active community engagement programmes, environmental preservation efforts, and social welfare initiatives, we actively strive to make a difference in the areas that matter most. By integrating the SDGs into our operations, we aim to foster long-term sustainability, promote responsible business practices, and create lasting positive change.

In summary, the year 2023 is a clear example of the focus all members of the Company have on the accomplishment of our Plan. We have reduced our production costs significantly, increased volumes and started selling our titanium dioxide by-products.

Your unwavering support, trust, and belief in our vision have been instrumental in our journey of success. This year has been filled with significant achievements and notable milestones, and we attribute a great deal of our accomplishments to your continued commitment to our Company.

Oliver B. Hasler

Chairman and Chief Executive

*** ENDS ***

For more information:

PYX Resources Limited

T: +61 2 8823 3132

E: ir@pyxresources.com

WH Ireland Limited (Broker)

Harry Ansell / Katy Mitchell / Megan Liddell

T: +44 (0)20 7220 1666

St Brides Partners Ltd (Financial PR)

Ana Ribeiro / Isabel de Salis / Isabelle Morris

E: pyx@stbridespartners.co.uk

This announcement is authorised for release by Oliver B. Hasler, Chairman and Chief Executive Officer.

Consolidated Statement of Profit or Loss For the year ended 31 December 2023

	Note	2023 US$	2022 US$
Revenue	3	22,671,641	22,703,190
Cost of sales	4	(19,894,961)	(17,449,606)
Gross Profit		2,776,680	5,253,584
Other income	3	28,900	8,043
Selling and distribution expenses		(1,222,886)	(2,120,337)
Corporate and administrative expenses		(2,587,605)	(4,285,962)
Share based payment		(7,616,663)	(5,566,871)
Loss on fair value change	5	(1,685,242)	(2,297,990)
Foreign exchange loss		(93,864)	(487,174)
Interest expense	4	(55,515)	(27,939)
Loss before income tax		(10,456,195)	(9,524,646)
Income tax (expense)/benefit	6	(161)	91,046
Net loss for the year		(10,456,356)	(9,433,600)
Net loss attributable to:
Owners of the Parent Entity		(10,588,047)	(9,471,192)
Non-controlling interests		131,691	37,592
Net loss for the year		(10,456,356)	(9,433,600)
Other comprehensive income
Items that will be reclassified subsequently to profit or loss
when specific conditions are met: Exchange differences on translating foreign operations, net of tax		43,142	(621,873)
Total comprehensive income for the year		(10,413,214)	(10,055,473)
Total comprehensive income attributable to:
Owners of the Parent Entity		(10,580,534)	(9,446,042)
Non-controlling interests		167,320	(609,431)
		(10,413,214)	(10,055,473)
Loss per share
Basic loss per share (cents)	9	(2.32)	(2.16)
Diluted loss per share (cents)	9	(2.32)	(2.16)

The accompanying notes form part of these financial statements.

Consolidated Statement of Financial Position

As at 31 December 2023

	Note	2023 US$	2022 US$
ASSETS CURRENT ASSETS
Cash and cash equivalents	10	7,828,906	7,221,085
Trade and other receivables	11	1,557,570	1,396,300
Advances to suppliers		432,498	619,782
Other assets		-	517,847
Prepayments and deposits		58,345	102,457
Prepaid tax	18	847,485	661,130
Inventories	12	2,308,586	705,776
TOTAL CURRENT ASSETS		13,033,390	11,224,377
NON-CURRENT ASSETS
Property, plant and equipment	14	6,042,116	4,051,196
Intangible assets	15	73,496,367	73,314,239
Right of use assets		2,163	11,332
Deferred tax assets	16	526,626	523,421
TOTAL NON-CURRENT ASSETS		80,067,272	77,900,188
TOTAL ASSETS		93,100,662	89,124,565
LIABILITIES CURRENT LIABILITIES
Trade and other payables		1,370,005	1,505,996
Other liabilities	17	2,331,568	4,064,122
Amount due to shareholder	19	5,276,000	-
TOTAL CURRENT LIABILITIES		8,977,573	5,570,118
TOTAL LIABILITIES		8,977,573	5,570,118
NET ASSETS		84,123,089	83,554,447
EQUITY Issued capital	20	105,592,118	102,226,925
Reserves	24	672,381	8,905,334
Accumulated losses		(20,758,040)	(26,027,122)
Equity attributable to owners of the Parent Entity		85,506,459	85,105,137
Non-controlling interest		(1,383,370)	(1,550,690)
TOTAL EQUITY		84,123,089	83,554,447

Consolidated Statement of Changes in Equity For the year ended 31 December 2023

	Ordinary Shares	Share Based Payment Reserve	Foreign Exchange Translation Reserve	Options Reserve	Accumulated losses	Subtotal	Non- controlling Interests	Total
	US$	US$	US$	US$	US$	US$	US$	US$
Balance at 1 January 2022	96,651,080	3,906,968	(24,207)	-	(16,555,930)	83,977,911	(941,260)	83,036,651
Comprehensive income
Loss for the year	-	-	-	-	(9,471,192)	(9,471,192)	37,592	(9,433,600)
Other comprehensive income for the year	-	-	25,149	-	-	25,149	(647,022)	(621,873)
Total comprehensive income for the year	-	-	25,149	-	(9,471,192)	(9,446,043)	(609,430)	(10,055,473)
Transactions with owners, in their capacity as owners, and other transfers
Shares issued during the year	4,452,459	-	-	-	-	4,452,459	-	4,452,459
Options reserve	-	-	-	553,939	-	553,939	-	553,939
Share based payments	-	5,566,871	-	-	-	5,566,871	-	5,566,871
Issue of shares to employees	1,123,386	(1,123,386)	-	-	-	-	-	-
Total transactions with owners and other transfers	5,575,845	4,443,485	-	553,939	-	10,573,269	-	10,573,269
Balance at 31 December 2022	102,226,925	8,350,453	942	553,939	(26,027,122)	85,105,137	(1,550,690)	83,554,447

Consolidated Statement of Changes in Equity For the year ended 31 December 2023

	Ordinary Shares	Share Based Payment Reserve	Foreign Exchange Translation Reserve	Options Reserve	Accumulated losses	Subtotal	Non- controlling Interests	Total
	US$	US$	US$	US$	US$	US$	US$	US$
Balance at 1 January 2023	102,226,925	8,350,453	942	553,939	(26,027,122)	85,105,137	(1,550,690)	83,554,447
Comprehensive income
Loss for the year	-	-	-	-	(10,588,047)	(10,588,047)	131,691	(10,456,356)
Other comprehensive income for the year	-	-	7,513	-	-	7,513	35,629	43,142
Total comprehensive income for the year	-	-	7,513	-	(10,588,047)	(10,580,534)	167,320	(10,413,214)
Transactions with owners, in their capacity as owners, and other transfers
Shares issued during the year	3,365,193	-	-	-	-	3,365,193	-	3,365,193
Share based payments	-	7,616,663	-	-	-	7,616,663	-	7,616,663
Share based payments cancelled	-	(15,857,129)	-	-	15,857,129	-	-	-
Total transactions with owners and other transfers	3,365,193	(8,240,466)	-	-	15,857,129	10,981,856	-	10,981,856
Balance at 31 December 2023	105,592,118	109,987	8,455	553,939	(20,758,040)	85,506,459	(1,383,370)	84,123,089

Consolidated Statement of Cash Flow For the year ended 31 December 2023

	Note	2023 US$	2022 US$
CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers		22,465,734	22,148,216
Payments to suppliers and employees		(24,164,605)	(25,646,834)
Other income		28,900	8,043
Interest received		2,080	2,007
Finance costs		(57,595)	(29,946)
Income tax paid		(195,015)	(408,885)
Net cash used in operating activities	21	(1,920,501)	(3,927,399)
CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property, plant and equipment		(2,523,961)	(2,021,930)
Net cash used in investing activities		(2,523,961)	(2,021,930)
CASH FLOWS FROM FINANCING ACTIVITIES Advances from investor (Net of costs)		-	6,452,285
Gross proceeds from placement funds		-	483,927
Payment of placement fund costs		-	(40,283)
Cash receipts from shareholder		5,100,000	-
Repayments of lease liabilities		(917)	(14,566)
(Payments)/Receipts of employee loans		(107)	6,930
Net cash provided by financing activities		5,098,976	6,888,293
Net increase in cash and cash equivalents		654,514	938,964
Cash and cash equivalents at the beginning of financial year		7,221,085	6,624,364
Effect of foreign exchange rate changes		(46,693)	(342,243)
Cash and cash equivalents at the end of financial year	10	7,828,906	7,221,085

Notes to the Consolidated Financial Statements

For the year ended 31 December 2023

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Preparation

These general-purpose consolidated financial statements have been prepared in accordance with the Corporations Act 2001, Australian Accounting Standards and Interpretations of the Australian Accounting Standards Board and in compliance with International Financial Reporting Standards as issued by the International Accounting Standards Board. The Group is a for profit entity for financial reporting purposes under Australian Accounting Standards. Material accounting policies adopted in the preparation of these financial statements are presented below and have been consistently applied unless stated otherwise.

Except for cash flow information, the financial statements have been prepared on an accrual basis and are based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities.

Going Concern

During the year ended 31 December 2023 the Group incurred a loss after tax of US$10,456,356 and had negative cash flows from operations of US$1,920,501.

Management has considered it is appropriate to prepare the financial statements on a going concern basis. The year-end net cash position of the Group was US$7,828,906. The losses were partly because of the non-operating and non-cash items of US$9,752,935. One of the major non-operating items in the period were loss on fair value change of financial instrument expenses of US$1,685,242 and a share-based payment expense of US$7,616,663. Therefore, the underlying EBlTDA for the period was positive US$676,301. Management has a detailed plan to increase the mining and production capacity which is expected to generate profit and positive cash flows from operations in the forthcoming years.

These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, nor to the amounts or classification of liabilities that might be necessary should the Group not be able to continue as a going concern.

a. Principles of Consolidation

The consolidated financial statements incorporate all of the assets, liabilities and results of the Parent (Pyx Resources Limited) and all of the subsidiaries (including any structured entities). Subsidiaries are entities the Parent controls. The Parent controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. A list of the subsidiaries is provided in Note 12.

The assets, liabilities and results of all subsidiaries are fully consolidated into the financial statements of the Group from the date on which control is obtained by the Group. The consolidation of a subsidiary is discontinued from the date that control ceases. Intercompany transactions, balances and unrealised gains or losses on transactions between Group entities are fully eliminated on consolidation. Accounting policies of subsidiaries have been changed and adjustments made where necessary to ensure uniformity of the accounting policies adopted by the Group.

Equity interests in a subsidiary not attributable, directly or indirectly, to the Group are presented as "non-controlling interests". The Group initially recognises non-controlling interests that are present ownership interests in subsidiaries and are entitled to a proportionate share of the subsidiary's net assets on liquidation at either fair value or at the

non-controlling interests' proportionate share of the subsidiary's net assets. Subsequent to initial recognition,

non-controlling interests are attributed their share of profit or loss and each component of other comprehensive income. Non-controlling interests are shown separately within the equity section of the statement of financial position and statement of comprehensive income.

Goodwill

Goodwill is carried at cost less any accumulated impairment losses. Goodwill is calculated as the excess of the sum of:

(i) the consideration transferred at fair value;

(ii) any non-controlling interest (determined under either the fair value or proportionate interest method); and

(iii) the acquisition date fair value of any previously held equity interest;

over the acquisition date fair value of any identifiable assets acquired and liabilities assumed.

The acquisition date fair value of the consideration transferred for a business combination plus the acquisition date fair value of any previously held equity interest shall form the cost of the investment in the separate financial statements.

Changes in the Group's ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the Group's interests and the

non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity and attributed to owners of the Company.

When the Group loses control of a subsidiary, a gain or loss is recognised in profit or loss and is calculated as the difference between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest and (ii) the previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-controlling interests. All amounts previously recognised in other comprehensive in come in relation to that subsidiary are accounted for as if the Group had directly disposed of the related assets or liabilities of the subsidiary (ie reclassified to profit or loss or transferred to another category of equity as specified/permitted by applicable Accounting Standards). The fair value of any investment retained in the former subsidiary at the date when control is lost is regarded as the fair value on initial recognition for subsequent accounting under AASE 139: Financial Instruments: Recognition and Measurement, when applicable, the cost on initial recognition of an investment in an associate or a joint venture.

The amount of goodwill recognised on acquisition of each subsidiary in which the Group holds less than 100% interest will depend on the method adopted in measuring the non-controlling interest. The Group can elect in most circumstances to measure the non-controlling interest in the acquiree either at fair value (full goodwill method) or at the non-controlling interest's proportionate share of the subsidiary's identifiable net assets (proportionate interest method). In such circumstances, the Group determines which method to adopt for each acquisition and this is stated in the respective note to the financial statements disclosing the business combination.

Under the full goodwill method, the fair value of the non-controlling interest is determined using valuation techniques which make the maximum use of market information where available.

Goodwill on acquisition of subsidiaries is included in intangible assets. Goodwill on acquisition of associates is included in investments in associates.

Goodwill is tested for impairment annually and is allocated to the Group's cash-generating units or groups of cash generating units, representing the lowest level at which goodwill is monitored and not larger than an operating segment. Gains and losses on the disposal of an entity include the carrying amount of goodwill related to the entity disposed of.

Changes in the ownership interests in a subsidiary that do not result in a loss of control are accounted for as equity transactions and do not affect the carrying amounts of goodwill.

Prior Year Share Placement

During the 2022 financial year PYX received a total initial investment of US$6,827,322 from a US Institutional Investor, L1 Capital Global Opportunities Master Fund ("Investor"), for US$7,777,778 worth of PYX shares ("Subscription Amount") via a share placement, as announced on 11 March 2022 and 2 December 2022.

Statement of financial position

The consolidated statement of financial position as at 31 December 2023 represents the consolidated financial position of Pyx Resources Limited and its controlled entities as at 31 December 2023.

b. Income Tax

The income tax expense (income) for the year comprises current income tax expense (income) and deferred tax expense (income).

Current income tax expense charged to profit or loss is the tax payable on taxable income for the current period. Current tax liabilities (assets) are measured at the amounts expected to be paid to (recovered from) the relevant taxation authority using tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax expense reflects movements in deferred tax asset and deferred tax liability balances during the year as well as unused tax losses.

Current and deferred income tax expense (income) is charged or credited outside profit or loss when the tax relates to items that are recognised outside profit or loss or arising from a business combination.

A deferred tax liability shall be recognised for all taxable temporary differences, except to the extent that the deferred tax liability arises from: (a) the initial recognition of goodwill; or (b) the initial recognition of an asset or liability in a transaction which: (i) is not a business combination; and (ii) at the time of the transaction, affects neither accounting profit nor taxable profit (tax loss).

Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled and their measurement also reflects the manner in which management expects to recover or settle the carrying amount of the related asset or liability. With respect to non-depreciable items of property, plant and equipment measured at fair value and items of investment property measured at fair value, the related deferred tax liability or deferred tax asset is measured on the basis that the carrying amount of the asset will be recovered entirely through sale. When an investment property that is depreciable is held by the entity in a business model whose objective is to consume substantially all of the economic benefits embodied in the property through use over time (rather than through sale), the related deferred tax liability or deferred tax asset is measured on the basis that the carrying amount of such property will be recovered entirely through use.

Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is probable that future taxable profit will be available against which the benefits of the deferred tax asset can be utilised, unless the deferred tax asset relating to temporary differences arises from the initial recognition of an asset or liability in a transaction that:

- is not a business combination; and

- at the time of the transaction, affects neither accounting profit nor taxable profit (tax loss).

Where temporary differences exist in relation to investments in subsidiaries, branches, associates, and joint ventures, deferred tax assets and liabilities are not recognised where the timing of the reversal of the temporary difference can be controlled and it is not probable that the reversal will occur in the foreseeable future.

Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur. Deferred tax assets and liabilities are offset where: (i) a legally enforceable right of set-off exists; and (ii) the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur in future periods in which significant amounts of deferred tax assets or liabilities are expected to be recovered or settled.

c. Inventories

Inventories are measured at the lower of cost and net realisable value. The cost of manufactured products includes direct materials, direct labour and an appropriate proportion of variable and fixed overheads. Overheads are applied on the basis of normal operating capacity. Costs are assigned on the first-in, first-out basis.

d. Property, Plant and Equipment

Each class of property, plant and equipment is carried at cost or fair value as indicated less, where applicable, any accumulated depreciation and impairment losses.

Property, plant and equipment are measured on the cost basis and therefore carried at cost less accumulated depreciation and any accumulated impairment. In the event the carrying amount of plant and equipment is greater than the estimated recoverable amount, the carrying amount is written down immediately to the estimated recoverable amount and impairment losses are recognised. A formal assessment of recoverable amount is made when impairment indicators are present (refer to Note 1(g) for details of impairment).

The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the asset's employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts.

The cost of fixed assets constructed within the Consolidated Group includes the cost of materials, direct labour, borrowing costs and an appropriate proportion of fixed and variable overheads.

Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance are recognised as expenses in profit or loss during the financial period in which they are incurred.

Depreciation

The depreciable amount of all fixed assets including buildings and capitalised leased assets, but excluding freehold land, is depreciated on a straight-line basis over the asset's useful life to the Consolidated Group commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.

The depreciation rates used for each class of depreciable assets are:

Class of Fixed Asset	Depreciation Rate
Buildings	5%
Plant and Equipment	20%
Furniture and Fittings	25%
Motor Vehicle	25%

The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are recognised in profit or loss in the period in which they arise. Gains shall not be classified as revenue. When revalued assets are sold, amounts included in the revaluation surplus relating to that asset are transferred to retained earnings.

e. Leases (the Group as lessee)

At inception of a contract, the Group assesses if the contract contains or is a lease. If there is a lease present, a

right-of-use asset and a corresponding lease liability is recognised by the Group where the Group is a lessee. However, all contracts that are classified as short-term leases (lease with remaining lease term of 12 months or less) and leases of low value assets are recognised as an operating expense on a straight-line basis over the term of the lease.

Initially the lease liability is measured at the present value of the lease payments still to be paid at commencement date. The lease payments are discounted at the interest rate implicit in the lease. If this rate cannot be readily determined, the Group uses the incremental borrowing rate.

Lease payments included in the measurement of the lease liability are as follows:

- fixed lease payments less any lease incentives;

- variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date;

- the amount expected to be payable by the lessee under residual value guarantees;

- the exercise price of purchase options, if the lessee is reasonably certain to exercise the options;

- lease payments under extension options if lessee is reasonably certain to exercise the options; and

- payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate the lease.

The right-of-use assets comprise the initial measurement of the corresponding lease liability as mentioned above, any lease payments made at or before the commencement date as well as any initial direct costs. The subsequent measurement of the right-of-use assets is at cost less accumulated depreciation and impairment losses.

Right-of-use assets are depreciated over the lease term or useful life of the underlying asset whichever is the shortest.

Where a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Group anticipates to exercise a purchase option, the specific asset is depreciated over the useful life of the underlying asset.

f. Financial Instruments

Initial recognition and measurement

Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions to the instrument. For financial assets, this is the date that the Group commits itself to either the purchase or sale of the asset (i.e. trade date accounting is adopted).

Financial instruments (except for trade receivables) are initially measured at fair value plus transaction costs, except where the instrument is classified "at fair value through profit or loss", in which case transaction costs are expensed to profit or loss immediately. Where available, quoted prices in an active market are used to determine fair value. In other circumstances, valuation techniques are adopted.

Trade receivables are initially measured at the transaction price if the trade receivables do not contain a significant financing component or if the practical expedient was applied as specified in AASB 15.63.

Classification and subsequent measurement financial liabilities

Financial instruments are subsequently measured at:

- amortised cost; or

- fair value through profit or loss.

A financial liability is measured at fair value through profit and loss if the financial liability is:

- a contingent consideration of an acquirer in a business combination to which AASB 3: Business Combinations applies;

- held for trading; or

- initially designated as at fair value through profit or loss.

All other financial liabilities are subsequently measured at amortised cost using the effective interest method.

The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest expense in profit or loss over the relevant period. The effective interest rate is the internal rate of return of the financial asset or liability. That is, it is the rate that exactly discounts the estimated future cash flows through the expected life of the instrument to the net carrying amount at initial recognition.

Financial assets

Financial assets are subsequently measured at:

- amortised cost;

- fair value through other comprehensive income; or

- fair value through profit or loss. Measurement is on the basis of two primary criteria:

- the contractual cash flow characteristics of the financial asset; and

- the business model for managing the financial assets.

A financial asset that meets the following conditions is subsequently measured at amortised cost:

- the financial asset is managed solely to collect contractual cash flows; and

- the contractual terms within the financial asset give rise to cash flows that are solely payments of principal and interest on the principal amount outstanding on specified dates.

A financial asset that meets the following conditions is subsequently measured at fair value through other comprehensive income:

- the contractual terms within the financial asset give rise to cash flows that are solely payments of principal and interest on the principal amount outstanding on specified dates;

- the business model for managing the financial assets comprises both contractual cash flows collection and the selling of the financial asset.

By default, all other financial assets that do not meet the measurement conditions of amortised cost and fair value through other comprehensive income are subsequently measured at fair value through profit or loss.

The Group initially designates a financial instrument as measured at fair value through profit or loss if:

- it eliminates or significantly reduces a measurement or recognition inconsistency (often referred to as "accounting mismatch") that would otherwise arise from measuring assets or liabilities or recognising the gains and losses on them on different bases;

- it is in accordance with the documented risk management or investment strategy, and information about the groupings was documented appropriately, so that the performance of the financial liability that was part of a group of financial liabilities or financial assets can be managed and evaluated consistently on a fair value basis;

- it is a hybrid contract that contains an embedded derivative that significantly modifies the cash flows otherwise required by the contract.

The initial designation of the financial instruments to measure at fair value through profit or loss is a one-time option on initial classification and is irrevocable until the financial asset is derecognised.

Derecognition

Derecognition refers to the removal of a previously recognised financial asset or financial liability from the statement of financial position.

Derecognition of financial liabilities

A liability is derecognised when it is extinguished (i.e. when the obligation in the contract is discharged, cancelled or expires). An exchange of an existing financial liability for a new one with substantially modified terms, or a substantial modification to the terms of a financial liability is treated as an extinguishment of the existing liability and recognition of a new financial liability.

The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss.

Derecognition of financial assets

A financial asset is derecognised when the holder's contractual rights to its cash flows expires, or the asset is transferred in such a way that all the risks and rewards of ownership are substantially transferred.

All of the following criteria need to be satisfied for derecognition of financial asset:

- the right to receive cash flows from the asset has expired or been transferred;

- all risk and rewards of ownership of the asset have been substantially transferred; and

- the Group no longer controls the asset (i.e. the Group has no practical ability to make a unilateral decision to sell the asset to a third party).

On derecognition of a financial asset measured at amortised cost, the difference between the asset's carrying amount and the sum of the consideration received and receivable is recognised in profit or loss.

On derecognition of a debt instrument classified as at fair value through other comprehensive income, the cumulative gain or loss previously accumulated in the investment revaluation reserve is reclassified to profit or loss.

On derecognition of an investment in equity which was elected to be classified under fair value through other comprehensive income, the cumulative gain or loss previously accumulated in the investment revaluation reserve is not reclassified to profit or loss, but is transferred to retained earnings.

Impairment

The Group recognises a loss allowance for expected credit losses on:

- financial assets that are measured at amortised cost or fair value through other comprehensive income;

- lease receivables;

- contract assets (e.g. amounts due from customers under construction contracts);

- loan commitments that are not measured at fair value through profit or loss; and

- financial guarantee contracts that are not measured at fair value through profit or loss. Loss allowance is not recognised for:

- financial assets measured at fair value through profit or loss; or

- equity instruments measured at fair value through other comprehensive income.

Expected credit losses are the probability-weighted estimate of credit losses over the expected life of a financial instrument. A credit loss is the difference between all contractual cash flows that are due and all cash flows expected to be received, all discounted at the original effective interest rate of the financial instrument.

The Group uses the following approaches to impairment, as applicable under AASB 9: Financial Instruments:

- the general approach

- the simplified approach

General approach

Under the general approach, at each reporting period, the Group assesses whether the financial instruments are credit-impaired, and if:

- the credit risk of the financial instrument has increased significantly since initial recognition, the Group measures the loss allowance of the financial instruments at an amount equal to the lifetime expected credit losses; or

- there is no significant increase in credit risk since initial recognition, the Group measures the loss allowance for that financial instrument at an amount equal to 12-month expected credit losses.

Simplified approach

The simplified approach does not require tracking of changes in credit risk at every reporting period, but instead requires the recognition of lifetime expected credit loss at all times. This approach is applicable to:

- trade receivables or contract assets that result from transactions within the scope of AASB 15: Revenue from Contracts with Customers and which do not contain a significant financing component; and

- lease receivables.

In measuring the expected credit loss, a provision matrix for trade receivables was used taking into consideration various data to get to an expected credit loss (i.e. diversity of customer base, appropriate groupings of historical loss experience, etc).

Recognition of expected credit losses in financial statements

At each reporting date, the Group recognises the movement in the loss allowance as an impairment gain or loss in the statement of profit or loss and other comprehensive income.

The carrying amount of financial assets measured at amortised cost includes the loss allowance relating to that asset.

Assets measured at fair value through other comprehensive income are recognised at fair value, with changes in fair value recognised in other comprehensive income. Amounts in relation to change in credit risk are transferred from other comprehensive income to profit or loss at every reporting period.

For financial assets that are unrecognised (e.g. loan commitments yet to be drawn, financial guarantees), a provision for loss allowance is created in the statement of financial position to recognise the loss allowance.

g. Impairment of Assets

At the end of each reporting period, the Group assesses whether there is any indication that an asset may be impaired. The assessment will include the consideration of external and internal sources of information including dividends received from subsidiaries, associates or joint ventures deemed to be out of pre-acquisition profits. If such an indication exists, an impairment test is carried out on the asset by comparing the recoverable amount of the asset, being the higher of the asset's fair value less costs of disposal and value in use, to the asset's carrying amount. Any excess of the asset's carrying amount over its recoverable amount is recognised immediately in profit or loss, unless the asset is carried at a revalued amount in accordance with another Standard (e.g. in accordance with the revaluation model in AASB 116: Property, Plant and Equipment). Any impairment loss of a revalued asset is treated as a revaluation decrease in accordance with that other Standard.

Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Impairment testing is performed annually for goodwill, intangible assets with indefinite lives and intangible assets not yet available for use.

When an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or

cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

h. Foreign Currency Transactions and Balances

Functional and presentation currency

The functional currency of each of the Group's entities is the currency of the primary economic environment in which that entity operates. The consolidated financial statements are presented in United States dollars, which is the Parent Entity's functional currency.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the date of the transaction. Foreign currency monetary items are translated at the year-end exchange rate. Non-monetary items measured at historical cost continue to be carried at the exchange rate at the date of the transaction. Non-monetary items measured at fair value are reported at the exchange rate at the date when fair values were determined.

Exchange differences arising on the translation of monetary items are recognised in profit or loss, except exchange differences that arise from net investment hedges.

Exchange differences arising on the translation of non-monetary items are recognised directly in other comprehensive income to the extent that the underlying gain or loss is recognised in other comprehensive income; otherwise the exchange difference is recognised in profit or loss.

Group companies

The financial results and position of foreign operations, whose functional currency is different from the Group's presentation currency, are translated as follows:

- assets and liabilities are translated at exchange rates prevailing at the end of the reporting period;

- income and expenses are translated at exchange rates on the date of transaction; and

- all resulting exchange differences are recognised in other comprehensive income.

Exchange differences arising on translation of foreign operations with functional currencies other than US dollars are recognised in other comprehensive income and included in the foreign exchange translation reserve in the statement of change in equity and allocated to non-controlling interest where relevant. The cumulative amount of these differences is reclassified into profit or loss in the period in which the operation is disposed of.

i. Fair Value Measurement

When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure purposes, the fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; and assumes that the transaction will take place either: in the principal market; or in the absence of a principal market, in the most advantageous market.

Fair value is measured using the assumptions that market participants would use when pricing the asset or liability, assuming they act in their economic best interests. For non-financial assets, the fair value measurement is based on its highest and best use. Valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, are used, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

Assets and liabilities measured at fair value are classified into three levels, using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. Classifications are reviewed at each reporting date and transfers between levels are determined based on a reassessment of the lowest level of input that is significant to the fair value measurement.

j. Exploration and Evaluation Assets

Exploration and evaluation expenditure in relation to separate areas of interest for which rights of tenure are current is carried forward as an asset in the statement of financial position where it is expected that the expenditure will be recovered through the successful development and exploitation of an area of interest, or by its sale; or exploration activities are continuing in an area and activities have not reached a stage which permits a reasonable estimate of the existence or otherwise of economically recoverable reserves. Where a project or an area of interest has been abandoned, the expenditure incurred thereon is written off in the year in which the decision is made.

k. Employee Benefits

Short-term employee benefits

Provision is made for the Group's obligation for short-term employee benefits. Short-term employee benefits are benefits (other than termination benefits) that are expected to be settled wholly before 12 months after the end of the annual reporting period in which the employees render the related service, including wages, salaries and sick leave. Short-term employee benefits are measured at the (undiscounted) amounts expected to be paid when the obligation is settled.

The Group's obligations for short-term employee benefits such as wages, salaries and sick leave are recognised as part of current trade and other payables in the statement of financial position. The Group's obligations for employees' annual leave and long service leave entitlements are recognised as provisions in the statement of financial position.

Other long-term employee benefits

Provision is made for employees' long service leave and annual leave entitlements not expected to be settled wholly within 12 months after the end of the annual reporting period in which the employees render the related service. Other long-term employee benefits are measured at the present value of the expected future payments to be made to employees. Expected future payments incorporate anticipated future wage and salary levels, durations of service and employee departures and are discounted at rates determined by reference to market yields at the end of the reporting period on government bonds that have maturity dates that approximate the terms of the obligations. Any remeasurements for changes in assumptions of obligations for other long-term employee benefits are recognised in profit or loss in the periods in which the changes occur.

The Group's obligations for long-term employee benefits are presented as non-current provisions in its statement of financial position, except where the Group does not have an unconditional right to defer settlement for at least 12 months after the end of the reporting period, in which case the obligations are presented as current provisions.

Equity-settled compensation

The Group operates an employee performance rights plan. Share-based payments to employees are measured at the fair value of the instruments at grant date and amortised over the vesting periods. The corresponding amounts are recognised in the share-based payment reserve and statement of profit and loss respectively. The fair value of rights is determined by reference to the share price of the Company. The number of rights expected to vest is reviewed and adjusted at the end of each reporting period such that the amount recognised for services received as consideration for the equity instruments granted is based on the number of equity instruments that eventually vest.

l. Provisions

Provisions are recognised when the Group has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured.

Provisions are measured using the best estimate of the amounts required to settle the obligation at the end of the reporting period.

m. Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, deposits available on demand with banks, other short-term highly liquid investments with original maturities of 3 months or less, and bank overdrafts. Bank overdrafts are reported within borrowings in current liabilities on the statement of financial position.

n. Revenue and Other Income

Revenue from sales of zircon is recognised either when the customer takes possession of and accepts the products or when the products are ready for shipment, according to the sales contract terms. If the products are a partial fulfilment of a contract covering other goods and/or services, then the amount of revenue recognised is an appropriate proportion of the total transaction price under the contract, allocated between all the goods and services promised under the contract on a relative stand-alone selling price basis.

Interest income is recognised using the effective interest method.

o. Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of assets that necessarily take a substantial period of time to prepare for their intended use or sale are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

All other borrowing costs are recognised in profit or loss in the period in which they are incurred.

p. Comparative Figures

When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.

q. Critical Accounting Estimates, Judgements and Assumptions

The directors evaluate estimates and judgements incorporated into the financial statements based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the Group.

Key estimates

(i) Impairment

The Group assesses impairment on inventories, property, plant and equipment and intangible assets at the end of each reporting period by evaluating the conditions and events specific to the Group that may be indicative of impairment triggers. Recoverable amounts of relevant assets are reassessed using value-in-use calculations which incorporate various key assumptions.

Key judgements

(i) Share-based payments

The fair value of performance rights is measured at grant date, taking into account the terms and conditions upon which those shares were granted. The cumulative expense recognised between grant date and vesting date is adjusted to reflect the Director's best estimate of the number of rights that will ultimately vest because of internal and market conditions, such as the employees having to remain with the Group until vesting date or such that employees are required to meet internal KPI.

When shareholders' approval is required for the issuance of performance rights, the expenses are recognised based on the grant date fair value according to the management estimation.

(ii) Recovery of deferred tax assets

Deferred tax assets are recognised for deductible temporary differences only if the Group considers it is probable that future taxable amounts will be available to utilise those temporary differences and losses.

(iii) Exploration and evaluation cost

Exploration and evaluation costs have been capitalised on the basis that the Group will commence commercial production in the future, from which time the costs will be amortised in proportion to the depletion of the mineral resources. Key judgements are applied in considering costs to be capitalised which includes determining expenditures directly related to these activities and allocating overheads between those that are expensed and capitalised. In addition, costs are only capitalised that are expected to be recovered either through successful development or sale of the relevant mining interest. Factors that could impact the future commercial production at the mine include the level of reserves and resources, future technology changes, which could impact the cost of mining, future legal changes and changes in commodity prices. To the extent that capitalised costs are determined not to be recoverable in the future, they will be written off in the period in which this determination is made.

NOTE 2: PARENT INFORMATION

The following information has been extracted from the books and records of the financial information of the Parent Entity set out below and has been prepared in accordance with Australian Accounting Standards.

	2023 US$	2022 US$
Statement of Financial Position ASSETS
Current assets	21,370,158	17,441,243
Non-current assets	78,058,861	78,058,861
TOTAL ASSETS	99,429,019	95,500,104
LIABILITIES
Current liabilities	8,107,660	4,857,163
Non-current liabilities	-	-
TOTAL LIABILITIES	8,107,660	4,857,163
EQUITY
Issued capital	112,862,604	109,497,411
Accumulated losses	(22,544,235)	(28,097,926)
Reserves	1,002,990	9,243,456
Non-controlling interest	-	-
TOTAL EQUITY	91,321,359	90,642,941
Statement of Profit or Loss and Other Comprehensive Income Net loss	(10,303,438)	(9,231,282)
Total comprehensive income	(10,303,438)	(9,231,282)

NOTE 3: REVENUE

The Group has recognised the following amounts relating to revenue in the statement of profit or loss.

Note

2023

US$

2022

US$

Sales Revenue

22,671,641

22,703,190

Other income

28,900

8,043

a. Sales of mineral sands

The Group earns revenue by mining, processing, and subsequently selling mineral sands (including zircon and rutile) to customers based in the Americas, Asia, China and Europe. Revenue from the sale of product is recognised at the point in time when control has been transferred to the customer, generally being when the product has been dispatched and is no longer under the physical control of the Group. In cases where control of product is transferred to the customer before dispatch takes place, revenue is recognised when the customer has formally acknowledged their legal ownership of the product, which includes all inherent risks associated with control of the product. In these cases, product is clearly identified and immediately available to the customer.

Sales to customers are generally denominated in US Dollars. The effect of variable consideration arising from rebates, discounts and other similar arrangements with customers is included in revenue to the extent that it is highly probable that there will be no significant reversal of the cumulative amount of revenue recognised when any pricing uncertainty is resolved.

NOTE 4: LOSS FOR THE YEAR

	2023	2022
	US$	US$
Loss before income tax from continuing operations includes the following specific expenses:
a. Expenses
Cost of sales	19,894,961	17,449,606
Interest expense on financial liabilities not classified as at fair
value through profit or loss: - unrelated parties	57,595	29,907
Finance charges	-	39
Less: Interest income	(2,080)	(2,007)
Net interest expense	55,515	27,939
Employee benefits expense: - Staff salaries and benefits	322,207	323,931
- Share based payments	7,616,663	5,566,871
Rental expense on operating leases - short-term lease expense	1,970	4,304
Depreciation and amortisation	360,999	242,502
NOTE 5: LOSS ON FAIR VALUE CHANGE
	2023	2022
	US$	US$
Loss on fair value change of financial instruments	(1,685,242)	(2,297,990)
	(1,685,242)	(2,297,990)

NOTE 6: TAX EXPENSE

	2023	2022
	US$	US$
a. The components of tax benefit income comprise:	(161)	91,046
Deferred tax (expense)/benefit	(161)	91,046

	2023	2022
	US$	US$
b. The prima facie tax on (loss) from ordinary activities before income tax is reconciled to income tax as follows:
(Loss) before income tax expense	(10,456,195)	(9,524,646)
Prima facie tax payable on (loss) from ordinary activities before income tax at 25% (2022: 25%)	2,614,049	2,381,162

Tax effect of:

- non-deductible items	(422,218)	(2,249,813)
- Tax losses and temporary differences not recognised as deferred tax assets	(2,180,050)	(67,224)
- Impact of overseas tax differential	(11,942)	26,921
Income tax (expense)/benefit	(161)	91,046

NOTE 7: KEY MANAGEMENT PERSONNEL COMPENSATION

Refer to the remuneration report contained in the directors' report for details of the remuneration paid or payable to each member of the Group's key management personnel (KMP) for the year ended 31 December 2023. The total remuneration paid to KMP of the Company and the Group during the year are as follows:

	2023 US$	2022 US$
Short-term employee benefits	762,141	728,876
Share-based payments	-	5,515,195
Total KMP compensation	762,141	6,244,071

During the 2023 financial year, all performance rights value of US$15,857,129 held by Mr. Oliver Hasler were cancelled.

NOTE 8: AUDITOR'S REMUNERATION

	2023	2022
	US$	US$
Remuneration of the auditor for:
Audit or review of financial statement
Pitcher Partners	34,522	-
Hall Chadwick (NSW)	17,925	67,924
Other services
T.K. Lo (HK)	4,000	3,800
KAP Syarief Basir & Rekan	5,092	15,664
SingAssure	2,651	-
Hall Chadwick (NSW)	2,655	-
	66,845	87,388

NOTE 9: LOSS PER SHARE
	2023	2022
	US$	US$
a. Reconciliation of losses to profit or loss:
Loss attributable to non-controlling equity interest	(10,456,356)	(9,433,600)
Loss used to calculate basic and dilutive EPS	(10,456,356)	(9,433,600)
	2023	2022
	No.	No.
Weighted average number of ordinary shares on issue used in the calculating of
basic loss per share	451,589,470	436,375,601
Weighted average number of dilutive options outstanding	4,407,076	4,944,576
Weighted average number of dilutive warrants outstanding	3,000,000	3,000,000
Weighted average number of ordinary shares outstanding during the year used in
calculating dilutive loss per share	458,996,546	464,540,177
Weighted average number of anti-dilutive performance rights outstanding	240,000	20,220,000
	240,000	20,220,000
Loss per share
Basic loss per share (cents)	(2.32)	(2.16)
Diluted loss per share (cents)	(2.32)	(2.16)
NOTE 10: CASH AND CASH EQUIVALENTS
	2023	2022
	US$	US$
Cash at bank and on hand	7,828,906	7,221,085
	7,828,906	7,221,085
Reconciliation of cash Cash and cash equivalents at the end of the financial year as shown in the statement of
cash flows is reconciled to items in the statement of financial position as follows:
Cash and cash equivalents	7,828,906	7,221,085
	7,828,906	7,221,085

NOTE 11: TRADE AND OTHER RECEIVABLES
	2023	2022
	US$	US$
CURRENT Trade receivables	1,537,916	1,379,259
	1,537,916	1,379,259
Other receivables	1,871	1,731
GST/VAT receivable	17,783	15,310
	19,654	17,041
Total current trade and other receivables	1,557,570	1,396,300

a. Credit Risk

The Group has no significant concentration of credit risk with respect to any single counterparty or group of counterparties other than those receivables specifically provided for and mentioned within Note 10. The class of assets described as "trade and other receivables" is considered to be the main source of credit risk related to the Group.

The Group always measures the loss allowance for trade receivables at an amount equal to lifetime expected credit loss. The expected credit losses on trade receivables are estimated using a provision matrix by reference to past default experience of the debtor and an analysis of the debtor's current financial position, adjusted for factors that are specific to the debtor, general economic conditions of the industry in which the debtor operates and an assessment of both the current and the forecast direction of conditions at the reporting date.

There has been no change in the estimation techniques used or significant assumptions made during the current reporting period.

The Group writes off a trade receivable when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery; for example, when the debtor has been placed under liquidation or has entered into bankruptcy proceedings, or when the trade receivables are over two years past due, whichever occurs earlier. None of the trade receivables that have been written off are subject to enforcement activities.

b. Collateral Held as Security

The Group does not hold any collateral over the trade and other receivables.

NOTE 12: INVENTORIES
	2023	2022
	US$	US$
CURRENT At cost: Finished goods	2,308,586	705,776
	2,308,586	705,776

NOTE 13: INTERESTS IN SUBSIDIARIES

a. Information about Principal Subsidiaries

The subsidiaries listed below have share capital consisting solely of ordinary shares, which are held directly or indirectly by the Group. The proportion of ownership interests held equals the voting rights held by the Group. Each subsidiary's principal place of business is also its country of incorporation.

Name of Subsidiary	Principal Place of Business		Ownership Interest Held by the Group		Proportion of Non- Controlling Interests
			2023 %	2022 %	2023 %	2022 %
Takmur Pte Limited		Singapore	100	100	-	-
PT Andary Usaha Makmur		Indonesia	99.5	99.5	0.5	0.5
PT Investasi Mandiri*		Indonesia	-	-	100	100
Tisma Development (HK) Ltd.		Hong Kong	100	100	-	-
PT Tisma Investasi Abadi		Indonesia	99	99	1	1
PT Tisma Global Nusantara**		Indonesia	-	-	100	100

* This entity is accounted for as a controlled entity on the basis that control was obtained through the execution of an exclusive operations and management agreement between PT Andary Usaha Makmur and PT Investasi Mandiri and was for nil purchase consideration.

** This entity is accounted for as a controlled entity on the basis that control was obtained through the execution of an exclusive operations and management agreement between PT Tisma Investasi Abadi and PT Tisma Global Nusantara and was for nil purchase consideration.

The non-controlling interests in PT Andary Usaha Makmur and PT Tisma Investasi Abadi are not material to the Group.

Subsidiary financial statements used in the preparation of these consolidated financial statements have also been prepared as at the same reporting date as the Group's financial statements.

b. Summarised Financial Information of Subsidiaries with Material Non-controlling Interests

Set out below is the summarised financial information for each subsidiary that has non-controlling interests that are material to the Group, before any intragroup eliminations.

	PT Investasi Mandiri
	2023 US$	2022 US$
Summarised Financial Position Current assets	6,666,649	5,106,190
Non-current assets	4,522,663	2,280,298
Current liabilities	(12,449,443)	(8,865,505)
Non-current liabilities	-	-
NET ASSETS	(1,260,130)	(1,479,017)
Carrying amount of non-controlling interests	(1,260,130)	(1,479,017)
Summarised Financial Performance Revenue	22,671,641	22,703,190
Profit/(Loss) after income tax	182,476	53,431
Other comprehensive income after tax	36,410	(659,903)
Total comprehensive income	218,886	(606,472)
Loss attributable to non-controlling interests	218,886	(606,472)
Distributions paid to non-controlling interests	-	-
Summarised Cash Flow Information Net cash used in operating activities	(1,676,010)	(2,260,338)
Net cash used in investing activities	(1,964,246)	(1,086,625)
Net cash from financing activities	3,583,390	3,510,633
Net (decrease)/increase in cash and cash equivalents	(56,866)	163,670

	PT Tisma Global Nusantura
	2023 US$	2022 US$
Summarised Financial Position Current assets	39,235	122,011
Non-current assets	155,058	74,596
Current liabilities	(380,417)	(332,308)
Non-current liabilities	-	-
NET ASSETS	(186,124)	(135,701)
Carrying amount of non-controlling interests	(186,124)	(135,701)
Summarised Financial Performance Revenue	-	-
Loss after income tax	(49,590)	(14,649)
Other comprehensive income after tax	(833)	12,833
Total comprehensive income	(50,423)	(1,816)
Loss attributable to non-controlling interests	(50,423)	(1,816)
Distributions paid to non-controlling interests	-	-
Summarised Cash Flow Information Net cash used in operating activities	130,467	(82,312)
Net cash used in investing activities	(173,808)	(74,596)
Net cash from financing activities	45,017	188,322
Net decrease in cash and cash equivalents	1,676	31,414

NOTE 14: PROPERTY, PLANT AND EQUIPMENT

	2023	2022
	US$	US$
Land and Buildings
Freehold land at cost	211,603	211,603
Translation	(7,194)	(11,286)
Total land	204,409	200,317
Buildings at cost	1,208,238	1,231,651
Accumulated depreciation	(285,312)	(248,221)
Translation	(31,572)	(53,375)
Total buildings	891,354	930,055
Total land and buildings	1,095,763	1,130,372
Construction in Progress Construction in Progress at cost	4,409,048	2,258,130
Translation	(112,341)	(132,079)
Total Construction in Progress	4,296,707	2,126,051
Plant and Equipment Plant and equipment at cost	1,048,146	1,073,904
Accumulated depreciation	(442,341)	(333,363)
Translation	(32,301)	(53,678)
Total plant and equipment	573,504	686,863
Motor Vehicles Motor vehicles at cost	138,707	138,707
Accumulated depreciation	(77,322)	(42,618)
Translation	(2,774)	(6,254)
Total motor vehicles	58,611	89,835
Furniture and Fittings Furniture and fittings at cost	36,192	31,806
Accumulated depreciation	(18,557)	(13,145)
Translation	(104)	(586)
Total furniture and fittings	17,531	18,075
Total property, plant and equipment	6,042,116	4,051,196

a. Movements in Carrying Amounts

Movements in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year:

	Freehold Land	Buildings	Construction in Progress	Plant and Equipment	Motor Vehicles	Furniture and Fittings	Total
	US$	US$	US$	US$	US$	US$	US$
Balance at 1 Jan 2022	196,989	650,394	659,605	634,953	63,981	22,450	2,228,372
Additions	14,614	381,302	1,652,555	227,191	58,949	1,138	2,335,749
Transfer	-	-	(54,030)	-	-	-	(54,030)
Depreciation expense	-	(48,266)	-	(121,603)	(26,841)	(4,927)	(201,637)
Translation	(11,286)	(53,375)	(132,079)	(53,678)	(6,254)	(586)	(257,258)
Balance at 31 Dec 2022	200,317	930,055	2,126,051	686,863	89,835	18,075	4,051,196
Balance at 1 Jan 2023	200,317	930,055	2,126,051	686,863	89,835	18,075	4,051,196
Additions	-	-	2,230,243	2,099	-	4,386	2,236,728
Transfer	-	-	(79,325)	-	-	-	(79,325)
Depreciation expense	-	(60,504)	-	(136,835)	(34,704)	(5,412)	(237,455)
Translation	4,092	21,803	19,738	21,377	3,480	482	70,972
Balance at 31 Dec 2023	204,409	891,354	4,296,707	573,504	58,611	17,531	6,042,116

NOTE 15: INTANGIBLE ASSETS

			2023	2022
			US$	US$
Goodwill:
Cost			7,774	7,774
Accumulated impairment losses			-	-
Net carrying amount			7,774	7,774
Mining License Renewal:
Cost			360,937	88,984
Accumulated amortization			(153,499)	(40,041)
Translation			21,102	(2,531)
Net carrying amount			228,540	46,412
Exploration asset:
Carrying value on acquisition			73,260,053	73,260,053
Net carrying amount			73,260,053	73,260,053
Total intangible assets			73,496,367	73,314,239
		Mining	Exploration
	Goodwill	Licenses	assets	Total
	US$	US$	US$	US$
Year ended 31 December 2022 Balance at the beginning of the year	7,774	66,739	73,260,053	73,334,566
Amortisation	-	(17,796)	-	(17,796)
Translation	-	(2,531)	-	(2,531)
Closing value at 31 December 2022	7,774	46,412	73,260,053	73,314,239
Year ended 31 December 2023 Balance at the beginning of the year	7,774	46,412	73,260,053	73,314,239
Additions	-	271,953	-	271,953
Amortisation	-	(113,458)	-	(113,458)
Translation	-	23,633	-	23,633
Closing value at 31 December 2023	7,774	228,540	73,260,053	73,496,367

NOTE 16: DEFERRED TAX ASSETS (NON-CURRENT)

Non-current assets - deferred tax

	2023	2022
	US$	US$
Deferred tax asset comprises temporary differences attributable to:
Amounts recognised in profit or loss:
Tax losses	11,661	110,811
Property, plant and equipment	(13,570)	(8,131)
Employee benefits	1,748	(11,634)
Deferred tax asset	(161)	91,046
Amount expected to be recovered with 12 months Amount expected to be recovered after more than 12 months	-	91,046
Amount expected to be settled within 12 months	(161)	-
Amount expected to be settled after more than 12 months	-	-
	(161)	91,046
Movements: Opening balance	523,421	471,811
Transferred to profit or loss (Note 5)	(161)	91,046
Foreign exchange	3,366	(39,436)
Closing balance	526,626	523,421

NOTE 17: OTHER LIABILITIES

	2023	2022
	US$	US$
Prepayments from investor*	4,064,122	6,827,322
Allocation of costs	-	(309,154)
Less: fair value of initial shares	-	(3,702,036)
Less: fair value of subscribed shares	(3,400,000)	(1,050,000)
Loss on fair value change	1,667,446	2,297,990
Balance at the end of reporting period	2,331,568	4,064,122

* On 11 March 2022 the Company entered into Share Subscription Agreement ("Subscription Agreement") with L1 Capital Global Opportunities Master Fund ("L1" or "Investor") and received an advance payment amount of US$4,383,822 (net of costs) from L1 as a prepayment for US$5 million worth of PYX shares ("Initial Investment Subscription Amount") via a share placement. The Company has issued initial 3,000,000 shares at zero value and 2,083,431 unlisted options to L1.

The key terms and conditions of the Subscription Agreement are:

• The Investor will immediately prepay a lump sum of US$4,500,000 for Placement Shares worth US$5,000,000 and on mutual consent, up to an additional US$9,000,000.

• The Investor will specify the time(s) of issuance(s) of shares (the "Placement Shares") no later than 24 months following the date of the applicable funding date to offset the Subscription Amount.

• The subscription price for the Placement Shares was initially 130% of the average of the 5 daily VWAPs on the applicable exchange (NSX or LSE) preceding the applicable funding date. Commencing 30 days after the funding date, the Investor may elect to subscribe for the Placement Shares at 95% of the average of 3 daily VWAPs over the 15 trading days (on the applicable exchange) prior to the Share Issuance Date.

• The Investor will not sell more than 20% of the monthly trading volume in any month.

• On each of the applicable funding dates, the Company will issue to the Investor a number of Options equal to 40% of the prepayment amount divided by the average of the 5 daily VWAPs preceding the applicable funding date. Each option will have a strike price equal to 130% of the average of the 5 daily VWAPs preceding the applicable funding date and expire 3 years from the applicable funding date.

• To the extent that any Shares remain unissued at the 24-month anniversary of the date of the prepayment, such Shares will be mandatorily issued at that time, based on the Subscription Price applying at the time.

On 5 January 2023, 2,436,438 shares valued at US$850,000 were issued to L1 Capital Global Opportunities Master Fund ("L1").

On 23 February 2023, 2,976,191 shares valued at US$500,000 were issued to L1 Capital Global Opportunities Master Fund ("L1").

On 30 March 2023, 2,732,241 shares valued at US$500,000 were issued to L1 Capital Global Opportunities Master Fund ("L1").

On 16 June 2023, 3,482,172 shares valued at US$700,000 were issued to L1 Capital Global Opportunities Master Fund ("L1").

On 25 August 2023, 2,072,110 shares valued at US$500,000 were issued to L1 Capital Global Opportunities Master Fund ("L1").

On 5 December 2023, 1,982,397 shares valued at US$350,000 were issued to L1 Capital Global Opportunities Master Fund ("L1").

These shares were issued in connection with the funds of US$4,383,822 received from L1 as a prepayment for US$5 million worth of PYX shares.

* On 2 December 2022, L1 has invested an additional US$2,500,000 in the Company in exchange for US$2,777,778 worth of PYX shares. The Company received the additional advance funds of US$2,443,500 (net of costs) from L1 as a prepayment for US$2,777,778 worth of PYX shares. The Company has issued to the Investor 1,700,000 shares ("the Additional Initial Shares") and 2,323,645 unlisted options with an exercise price of GBP 0.45 which will expire three years from the applicable funding date.

The following variations to their agreement have since been made by the Company and the Investor:

• The Company will issue 1,700,000 shares to the Investor at the time of the funding of the Advance Payment of US$2.5m (the Additional Shares).

• The Investor may elect to subscribe for the Placement Shares at 95% of the average of 3 daily VWAPs over the 15 trading days (on the applicable exchange) prior to the Share Issuance Date or 130% of the average of 5 daily VWAPs over the 5 trading days immediately prior to the relevant date of the Advance Payment.

• The Investor will not sell more than 40% of the monthly trading volume in any month, provided that during the term the Investor may not sell more than 30% of the aggregate trading volume during the term.

• The term of the investment has been increased from 24 to 30 months.

The unconverted amounts of the prepayment and additional advance payment are reported net of the fair value of initial shares, additional initial shares and placement shares subscribed as at the reporting date.

NOTE 18: TAX
	2023	2022
	US$	US$
CURRENT Income tax recoverable	847,485	661,130
NOTE 19: AMOUNT DUE TO SHAREHOLDER
	2023	2022
	US$	US$
Cash deposit from an investor	5,100,000	-
Fees payable to share-provider	176,000	-
	5,276,000	-

NOTE 20: ISSUED CAPITAL

	2023	2022
	US$	US$
458,817,161 (2022: 441,349,100) fully paid ordinary shares	105,592,118	102,226,925

		2023		2022
			Contributed		Contributed
		No. of shares	equity	No. of Shares	equity
		No.	US$	No.	US$
a.	Ordinary Shares At the beginning of the reporting period	441,349,100	102,226,925	429,520,222	96,651,080
	Movement:
	Year 2022	-	-	11,828,878	5,575,845
	5 January 2023	2,436,438	850,000	-	-
	23 February 2023	2,976,191	500,000	-	-
	30 March 2023	2,732,241	500,000	-	-
	16 June 2023	3,482,172	700,000	-	-
	25 August 2023	2,072,110	500,000	-	-
	5 December 2023	1,982,397	350,000	-	-
	Share issue costs	1,786,512	(34,807)	-	-
	At the end of the reporting period	458,817,161	105,592,118	441,349,100	102,226,925

On 5 January 2023, 2,436,438 shares valued at US$850,000 were issued to L1 Capital Global Opportunities Master Fund ("L1").

On 23 February 2023, 2,976,191 shares valued at US$500,000 were issued to L1 Capital Global Opportunities Master Fund ("L1").

On 30 March 2023, 2,732,241 shares valued at US$500,000 were issued to L1 Capital Global Opportunities Master Fund ("L1").

On 16 June 2023, 3,482,172 shares valued at US$700,000 were issued to L1 Capital Global Opportunities Master Fund ("L1").

On 25 August 2023, 2,072,110 shares valued at US$500,000 were issued to L1 Capital Global Opportunities Master Fund ("L1").

On 5 December 2023, 1,982,397 shares valued at US$350,000 were issued to L1 Capital Global Opportunities Master Fund ("L1").

These shares were issued in connection with the funds of US$4,383,822 received from L1 as a prepayment for US$5 million worth of PYX shares.

At the shareholders' meetings each ordinary share is entitled to one vote when a poll is called; otherwise, each shareholder has one vote on a show of hands.

b.	Unlisted Options
		2023	2022
		No.	No.
	At the beginning of the reporting period	4,944,576	537,500
	Granted during the period Expired during the period	- (537,500)	4,407,076 -
	At the end of the reporting period	4,407,076	4,944,576

On 2 February 2023, 537,500 unlisted options with exercise price of AU$1 held by Tamarind Classic resources Limited were expired.

c.	Unlisted Warrants
		2023	2022
		No.	No.
	At the beginning of the reporting period Granted during the period	3,000,000 -	- 3,000,000
	At the end of the reporting period	3,000,000	3,000,000

d. Capital Management

Management controls the capital of the Group in order to maintain a sustainable debt to equity ratio, generate long-term shareholder value and ensure that the Group can fund its operations and continue as a going concern.

The Group's debt and capital include ordinary share capital, redeemable preference shares, convertible preference shares and financial liabilities, supported by financial assets.

The Group is not subject to any externally imposed capital requirements.

Management effectively manages the Group's capital by assessing the Group's financial risks and adjusting its capital structure in response to changes in these risks and in the market. These responses include the management of debt levels, distributions to shareholders and share issues.

There have been no changes in the strategy adopted by management to control the capital of the Group since the prior year.

	Note	2023 US$	2022 US$
Total borrowings Less cash and cash equivalents	10	- 7,828,906	- 7,221,085
Net cash/(debt)		7,828,906	7,221,085
Total equity		84,123,089	83,554,447
Total capital		84,123,089	83,554,447
Gearing ratio		0.0%	0.0%

NOTE 21: CASH FLOW INFORMATION

		2023	2022
		US$	US$
a.	Reconciliation of Cash Flows from Operating Activities with Loss after Income Tax
	Loss after income tax	(10,456,356)	(9,433,600)
	Non-cash flows in (loss):
	- depreciation	360,999	242,502
	- share-based payments	7,616,663	5,566,871
	- exchange differences	90,031	(286,642)
	- Fair value change of financial instrument	1,685,242	2,297,990
	Changes in assets and liabilities:
- (increase) in trade and other receivables		(161,130)	(434,478)
- decrease/(increase) in advances to suppliers		187,284	(282,568)
- (increase) in inventories		(1,602,810)	(175,060)
- decrease/(increase) in prepayments and deposits		44,112	(33,974)
- (increase) in deferred tax assets		(3,205)	(51,610)
- increase/(decrease) in trade and other payables		505,024	(886,213)
- (decrease) in current tax liabilities		(186,355)	(450,617)
Net cash (used in) operating activities		(1,920,501)	(3,927,399)
b. Changes in Liabilities arising from Financing Activities
Non-cash changes
1 January Cash flows Acquisition		Re-classification	31 December
2023			2023
US$ US$ US$		US$	US$
Short term borrowings - - -		-	-
Lease liabilities - - -		-	-
Total - - -		-	-

c. Non-Cash Financing and Investing Activities

(i) Share issue:

Refer to note 19 for details of non-cash financing activities arising from shares issued.

NOTE 22: RELATED PARTY TRANSACTIONS

Phoenician Management Services Limited, a related party of Mr. Hasler, provided management support, general administration and IT services to PT Investasi Mandiri. For the year ended 31 December 2023, Phoenician Management Services Limited was paid $1,263,694 (2022: $1,292,188) and expenses recognised during the year totaled

$1,369,702 (2022: $1,287,784).

NOTE 23: FINANCIAL RISK MANAGEMENT

The Group's financial instruments consist mainly of deposits with banks, accounts receivable and payable, loan and leases.

The totals for each category of financial instruments, measured in accordance with AASB 9: Financial Instruments as detailed in the accounting policies to these financial statements, are as follows:

	Note	2023	2023
		US$	US$
Financial assets
Financial assets at amortised cost
- cash and cash equivalents	10	7,828,906	7,221,085
- trade and other receivables	11	1,557,570	1,396,300
Total financial assets		9,386,476	8,617,385

Financial liabilities
Financial liabilities at amortised cost
- trade and other payables	17	1,370,005	1,505,996
Financial liabilities at fair value
- other liabilities		2,331,568	4,064,122
Total financial liabilities		3,701,573	5,570,118

Financial Risk Management Policies

The Finance and Operations Committee (FOC) has been delegated responsibility by the Board of Directors for, among other issues, managing financial risk exposures of the Group. The FOC monitors the Group's financial risk management policies and exposures and approves financial transactions within the scope of its authority. It also reviews the effectiveness of internal controls relating to commodity price risk, counterparty credit risk, foreign currency risk, liquidity risk, and interest rate risk.

The FOC meets on a bi-monthly basis and minutes of the FOC are reviewed by the Board.

The FOC's overall risk management strategy seeks to assist the Consolidated Group in meeting its financial targets, while minimising potential adverse effects on financial performance. Its functions include the review of the use of hedging derivative instruments, credit risk policies and future cash flow requirements.

The main risks the Group is exposed to through its financial instruments are credit risk, liquidity risk, and market risk consisting of interest rate risk, foreign currency risk and other price risk (commodity and equity price risk). There have been no substantive changes in the types of risks the Group is exposed to, how these risks arise, or the Board's objectives, policies and processes for managing or measuring the risks from the previous period.

a. Credit risk

Exposure to credit risk relating to financial assets arises from the potential non-performance by counterparties of contract obligations that could lead to a financial loss to the Group.

Credit risk is managed through the maintenance of procedures (such as the utilisation of systems for the approval, granting and renewal of credit limits, regular monitoring of exposures against such limits and monitoring of the financial stability of significant customers and counterparties), ensuring to the extent possible that customers and counterparties to transactions are of sound credit worthiness. Such monitoring is used in assessing receivables for impairment.

Depending on the division within the Group, credit terms are generally 14 to 30 days from the invoice date.

Trade and other receivables that are neither past due nor impaired are considered to be of high credit quality. Aggregates of such amounts are detailed in Note 10.

b. Liquidity risk

Liquidity risk arises from the possibility that the Group might encounter difficulty in settling its debts or otherwise meeting its obligations related to financial liabilities. The Group manages this risk through the following mechanisms:

- preparing forward-looking cash flow analyses in relation to its operating, investing and financing activities;

- obtaining funding from a Parent Group;

- maintaining a reputable credit profile;

- managing credit risk related to financial assets; and

- comparing the maturity profile of financial liabilities with the realisation profile of financial assets.

c. Other price risk

Other price risk relates to the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices for zircon largely due to demand and supply factors (other than those arising from interest rate risk or foreign currency risk) for sand minerals.

The Group is exposed to commodity price risk through the operations of its zircon Product Contracts for the sale and physical delivery of zircons are executed whenever possible on a pricing basis intended to achieve a relevant index target. Where pricing terms deviate from the index, derivative commodity contracts may be used when available to return realised prices to the index. Contracts for the physical delivery of zircon are generally not financial instruments and are carried in the statement of financial position at cost (typically at nil). There were no hedges in place at the end of the reporting period.

d. Foreign currency risk

Exposure to foreign currency risk may result in the fair value or future cash flows of a financial instrument fluctuating due to movement in foreign exchange rates of currencies in which the Group holds financial instruments which are other than the USD functional and presentation currency of the Group.

With instruments being held by overseas operations, fluctuations in the IDR and AUD may impact on the Group's financial results unless those exposures are appropriately hedged.

Financial Liability and Financial Asset Maturity Analysis

The following table reflects an undiscounted contractual maturity analysis for financial assets and financial liabilities.

Cash flows realised from financial assets reflect management's expectation as to the timing of realisation. Actual timing may therefore differ from that disclosed. The timing of cash flows presented in the table to settle financial liabilities reflects the earliest contractual settlement dates and does not reflect management's expectations that banking facilities will be rolled forward.

	Within 1 Year		1 to 5 Years		Total
	2023	2022	2023	2022	2023	2022
	US$	US$	US$	US$	US$	US$
Financial liabilities due for payment
Trade and other payables	1,370,005	1,505,996	-	-	1,370,005	1,505,996
Total expected outflows	1,370,005	1,505,996	-	-	1,370,005	1,505,996
Financial assets - cash flows realizable
Cash and cash equivalents	7,828,906	7,221,085	-	-	7,828,906	7,221,085
Trade and other receivables	1,557,570	1,396,300	-	-	1,557,570	1,396,300
Total anticipated inflows	9,386,476	8,617,385	-	-	9,386,47	8,617,385
Net inflow/(outflow) on financial instruments	8,016,471	7,111,389	-	-	8,016,471	7,111,389

The following table shows foreign currency risk on the financial assets and liabilities of the Group's operations denominated in currencies other than the functional currency of the Group's operations. The foreign currency risk in the books of the Parent Entity is considered immaterial and is therefore not shown.

2023 Net Financial Assets/(Liabilities) in USD
	USD	GBP	AUD	Total USD
Functional currency of entity: US dollar	-	(86,535)	1,994,028	1,907,493
Indonesian Rupiah	720,571	-	-	720,571
Statement of financial position exposure	720,571	(86,535)	1,994,028	2,628,064
2022 Net Financial Assets/(Liabilities) in USD
	USD	GBP	AUD	Total USD
Functional currency of entity: US Dollar	-	(3,213,877)	3,541,491	327,614
Indonesian Rupiah	1,595,683	-	-	1,595,683
Statement of financial position exposure	1,595,683	(3,213,877)	3,541,491	1,923,297
Fair Values

Fair value estimation

The fair values of financial assets and financial liabilities are presented in the following table and can be compared to their carrying amounts as presented in the statement of financial position.

Differences between fair values and carrying amounts of financial instruments with fixed interest rates are due to the change in discount rates being applied by the market since their initial recognition by the Group.

	Note	2023 Carrying Amount US$	Fair Value US$	2022 Carrying Amount US$	Fair Value US$
Financial assets Financial assets at amortised cost:
Cash and cash equivalents(i)	10	7,828,906	7,828,906	7,221,085	7,221,085
Trade and other receivables(i)	11	1,557,570	1,557,570	1,396,300	1,396,300
Total financial assets		9,386,476	9,386,476	8,617,385	8,617,385
Financial liabilities Financial liabilities at amortised costs
Trade and other payables(i)		1,370,005	1,370,005	1,505,996	1,505,996
Lease liabilities(i)		-	-	-	-
Financial liabilities at fair value
Other liabilities(i)	17	2,331,568	2,331,568	4,064,122	4,064,122
Total financial liabilities		3,701,573	3,701,573	5,570,118	5,570,118

(i) The carrying amounts of cash and cash equivalents, trade and other receivables, trade and other payables and lease liabilities are equivalent to their fair values.

NOTE 24: RESERVES

a. Share-Based Payment Reserve

The share-based payment reserve records items recognised as expenses on valuation of share-based payments.

b. Options Reserve

The options reserve records costs associated with the option issue.

c. Foreign Currency Translation Reserve

The foreign currency translation reserve records exchange differences arising on translation of the foreign controlled subsidiaries.

NOTE 25: CAPITAL COMMITMENTS

The Company had no capital commitments at the balance sheet date.

NOTE 26: EVENTS AFTER THE REPORTING PERIOD

On 5 January 2024, the Company advised that a change introduced in December 2023 by the Indonesian Industrial and Trade Department for Export Tax Billing, requires the exporter to use two types of Port, Loading Port and Export Port. The licence, which the government originally issued to the Company only stated the loading port in Banjarmasin. A request to modify the licence has been made to the Trade Department.

On 17 January 2024 the Company announced a change of auditor to Pitcher Partners BA&A Pty Ltd commencing the financial year ended 31 December 2023.

No other significant events are noted by management since the end of the reporting period.

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