Half Year 2023 Results

PYX Resources Limited

13 September 2023

 

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, JAPAN OR THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH THE RELEASE, PUBLICATION OR DISTRIBUTION OF THIS ANNOUNCEMENT WOULD BE UNLAWFUL.  THE COMMUNICATION OF THIS ANNOUNCEMENT IS NOT BEING MADE, AND HAS NOT BEEN APPROVED, BY AN AUTHORISED PERSON FOR THE PURPOSES OF SECTION 21 OF THE UK FINANCIAL SERVICES AND MARKETS ACT 2000.

PYX Resources Limited / EPIC: LSE/NSX: PYX / Market: Standard / Sector: Mining

13 September 2023

PYX Resources Limited

("PYX" or "the Company")

Half Year 2023 Results

 Positive Underlying EBITDA, Cash Neutral Status, No Debt and Significant Growth in Zircon Sales

FINANCIAL AND OPERATIONAL HIGHLIGHTS

·    Premium Zircon production increased by 33% to 5.7kt

·    Premium Zircon sales up 34% to 5.2kt

·    8% reduction in cash cost of production per tonne of Premium Zircon

·    EBITDA of negative US$9.8 million mainly due to the non-cash share-based payment provision of US$7.6m and the non-cash loss on fair value change of financial instrument of US$1.2m

·    Underlying EBITDA improved by 46% to US$131k

·    US$7.2 million cash on balance sheet with no debt

·    Successful renewal of a 10-year exploration and mining license (maximum term) for the Tisma Mineral Sands project

·    New Indonesian regulation allows export of titanium dioxide with minimum grades of TiO₂ ≥ 45% for Ilmenite and TiO₂ ≥ 90% for Rutile

·    Received the licence to export Rutile and Ilmenite, PYX has accumulated a stockpile of 8.0kt of Titanium Dioxide

·    Sustainability (PYX Cares programme): partnered with the Indonesian Red Cross Society in its annual Blood Donor Day for a third year

·    Awarded with the COVID-19 Prevention and Management and Zero Accident Award 2023, both from the Government authorities in Kalimantan

PYX Resources Ltd (NSX: PYX | LSE: PYX), the world's third largest publicly listed Premium Zircon producer by Zircon resources^[1], is pleased to announce its results for the six months ended 30 June 2023 ("HY 2023").

Financial and Operations Summary

Commenting on the half year results, Chairman and Chief Executive of PYX said:

"In the six months to June 2023, PYX has 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. Today, I am delighted to report several milestones achieved during the period, but I am particularly proud of our operational achievements which resulted in a positive underlying EBITDA in just under two years since our London listing and three years since our Australian listing.

"Looking ahead, PYX remains well positioned for growth with the award of the exploration and mining licence for Tisma and Mandiri's export licence for Rutile and Ilmenite, of which we have 8.5kt stockpiled and are ready to ship at the end of August 2023."

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 reported positive underlying EBITDA and finished with the same cash on the balance sheet as 31 December 2022, with no debt, since its initial public offering in February 2020. The Company's strategy of producing and selling Premium Zircon has resulted in a 33% increase in production, from 4.3kt to 5.7kt, and a 34% increase in Premium Zircon sales, from 3.9kt to 5.2kt, compared to the same period last year, which helped to reduce the cash cost of production in US$ per tonne by 8% compared to the same period last year.

This is a significant achievement for PYX Resources. The increase in production and sales of Premium Zircon is a testament to the Company's commitment to providing high-quality products to its customers. PYX Resources' Premium Zircon is highly sought-after in the market due to its superior quality, and the increase in demand for the product is a clear indication of the market's trust in the company's products.

The negative EBITDA and the resulting Net Loss are the result of the non-cash loss on fair value change of financial instrument of US$1.2m and the cancellation of 20,332,494 performance rights convertible into a maximum of 23,532,494 shares. According to Australian Accounting Standards Board 2, share-based payments should be settled or cancelled as an acceleration of vesting.  All this with no effect on cash.

The cash on our balance sheet at the end of the first half of this year was slightly higher than at the end of last fiscal year with US$7,232k. This is a result of an increase of Operating Working capital of US$1.4m required for the increase of production, US$1.3m investment in capex and a positive US$2.8m of financial activities, mainly showing the strong support of our shareholders.

Moreover, PYX Resources has successfully renewed its exploration and mining licence for the Tisma Mineral Sands project, with a maximum term of 10 years. The Tisma project is focused on exploring mineral sands and producing and exporting premium grade Zircon. The project has significant inferred resources, including approximately 4.5Mt of zircon, along with gold and Titanium minerals (Rutile and Ilmenite).

The renewal of the exploration and mining licence for Tisma Mineral Sands, our second project, is a significant milestone for PYX Resources. The licence renewal provides the Company with long-term stability and growth opportunities.

Post Period

On 17 August 2023, PYX announced the receipt of the licence for the export of Ilmenite and Rutile ores from the Indonesian government, allowing it to extract, produce, and export 24kt of Zircon, 20kt of Rutile and 50kt of Ilmenite, as well as extract and produce other by-products such as SiO₂. This followed the introduction of the new Indonesian regulation which allows the export of Titanium Dioxide with minimum grades of TiO₂ ≥ 45% for Ilmenite and TiO₂ ≥ 90% for Rutile.

The Company has already stockpiled 8.3kt of Titanium Dioxide feedstock and, with the new export licence, PYX Resources can expand its export opportunities and contribute to the global Ilmenite and Rutile market. The Titanium Dioxide feedstock production industry is valued at around US$4.5 billion annually.^[2]

Moreover, PYX received approval for its Tisma Work Plan and Budget for 2023 from the Energy and Resource Service Department of the Government of the Province of Central Kalimantan. This approval allows the Company to extract and process 24kt of zircon from its Tisma asset, which was acquired in January 2021.

The Work Plan and Budget costs cover various areas, including mining operations, processing, marketing, environment, safety, training, and community development.

Sustainability

PYX remains committed to its PYX Cares program in 2023 and submitted its Second Communication on Progress Report to the United Nations Global Compact Organization which focuses on five key pillars: People, Planet, Prosperity, Peace, and Partnership.

PYX Resources emphasises community engagement and environmental stewardship, implementing projects that empower local communities and protect wildlife and the natural environment. These initiatives aim to create sustainable opportunities and improve the quality of life for the community.

The Company partnered with the Indonesian Red Cross Society in its annual Indonesian National Blood Donor Day, received the Award for Prevention and Management of COVID-19 in the Workplace in 2023, and the Zero Accident Award 2023 from the government authorities in Kalimantan.

These recent developments are expected to contribute significantly to the company's long-term stability and growth opportunities, expand its export capabilities, and contribute to the global business community. PYX Resources is well positioned to continue its growth trajectory and establish itself as a leading player in the zircon market.

2023 Half Year Results Conference Call and Investor Meet Company Presentation

A conference call for equity market participants will take place on Monday 18 September 2023 at 4pm AWST / 6pm AEST / 9am BST. All participants wishing to listen in to the call must pre-register here before they can receive the dial-in number.  

The Company is also providing a live presentation via the Investor Meet Company platform on 20 September 2023 at 11am BST / 6pm AWST / 8pm AEST. Current and potential investors can sign up and submit questions here (https://www.investormeetcompany.com/pyx-resources-limited/register-investor).

*** ENDS ***

For more information:

PYX Resources Limited	T: [phone] E: [e-mail]
WH Ireland Limited (Broker) Harry Ansell / Katy Mitchell / Darshan Patel	T: [phone]
St Brides Partners Ltd (Financial PR) Ana Ribeiro / Isabel de Salis / Isabelle Morris	E: [e-mail]

About PYX Resources

PYX Resources Limited (NSX: PYX | LSE: PYX) is a producer of premium zircon dual listed on the National Stock Exchange of Australia and on the Main Market of the London Stock Exchange. PYX's key deposits, Mandiri and Tisma, are large-scale, near-surface open pit deposits both located in the alluvium-rich region of Central Kalimantan, Indonesia. PYX, whose Mandiri deposit has been in production since 2015, is the 3^rd largest publicly traded producing mineral sands company by zircon resources globally. Determined to mine responsibly and invest in the wider communities where we operate, PYX is committed to fully developing its Mandiri and Tisma deposits, with the vision to consolidate the mineral sands resources in Kalimantan and explore and acquire mineral sands assets in Asia and beyond.

CONSOLIDATED STATEMENT of Profit or Loss and Other comprehensive Income

FOR THE HALF-YEAR ENDED 30 JUNE 2023

		Note	Half-year Ended 30 June 2023		Half-year Ended 30 June 2022
			US$		US$
Revenue		2	9,971,528		10,645,890
Other income		2	100,169		-
Cost of sales		3	(9,067,092)		(7,403,682)
Selling and distribution expenses			(459,926)		(970,335)
Corporate and administrative expenses			(1,631,674)		(2,865,411)
Foreign exchange loss			(58,700)		(319,902)
Share-based payment		3	(7,588,787)		(1,889,090,)
Loss on FV change of financial instrument		3	(1,239,273)		(795,990)
Finance costs			(8,950)		(15,124)
Loss before income tax			(9,982,705)		(3,613,644)
Income tax benefit			148,189		(10,107)
Net loss for the period			(9,834,516)		(3,623,751)
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			292,836		(55,457)
Total comprehensive income for the period			(9,541,680)		(3,679,208)
Net loss attributable to:
-	owners of the Parent Entity		(9,295,815)		(3,729,389)
-	non-controlling interest		(538,701)		105,638
			(9,834,516)		(3,623,751)
Total comprehensive income attributable to:
-	owners of the Parent Entity		910		51,170
-	non-controlling interest		291,926		(106,627)
			292,836		(55,457)
Loss per share
	Basic loss per share (US$ cents per share)		(2.22)		(0.84)
	Diluted loss per share (US$ cents per share)		(2.18)		(0.81)
The accompanying notes form part of these financial statements.

CONSOLIDATED Statement of Financial Position AS AT 30 JUNE 2023
		Note	As at 30 June 2023	As at 31 December 2022
			US$	US$
ASSETS
CURRENT ASSETS
Cash and cash equivalents			7,232,727	7,221,085
Trade and other receivables			987,683	1,396,300
Advance to suppliers			371,690	619,782
Other assets			544,981	517,847
Prepayments and deposits			60,029	102,457
Prepaid tax			757,175	661,130
Inventories			2,058,412	705,776
TOTAL CURRENT ASSETS			12,012,697	11,224,377
NON-CURRENT ASSETS
Right of use assets			5,642	11,332
Property, plant and equipment		8	5,014,757	4,051,196
Deferred tax assets			691,039	523,421
Intangible assets		9	73,522,137	73,314,239
TOTAL NON-CURRENT ASSETS			79,233,575	77,900,188
TOTAL ASSETS			91,246,272	89,124,565
LIABILITIES
CURRENT LIABILITIES
Trade and other payables			872,945	1,505,996
Amount due to shareholder			2,975,550	-
Other liabilities			3,246,224	4,064,122
TOTAL CURRENT LIABILITIES			7,094,719	5,570,118
TOTAL LIABILITIES			7,094,719	5,570,118
NET ASSETS			84,151,553	83,554,447

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2023

	Note	As at 30 June 2023	As at 31 December 2022
		US$	US$
EQUITY
Issued capital	5	104,776,925	102,226,925
Reserves	6	637,902	8,905,334
Accumulated losses		(19,465,808)	(26,027,122)
Equity attributable to owners of the Parent Entity		85,949,019	85,105,137
Non-controlling interest		(1,797,466)	(1,550,690)
TOTAL EQUITY		84,151,553	83,554,447
The accompanying notes form part of these financial statements.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the half-year ended 30 JUNE 2023

	Note	Ordinary Share Capital	Share-based payment reserve	Accumulated losses	Foreign currency translation reserve	Options reserve	Subtotal	Non-controlling Interests	Total
		US$	US$	US$	US$	US$	US$	US$	US$
Balance at 1 January 2022		96,651,080	3,906,968	(16,555,930)	(24,207)	-	83,977,911	(941,260)	83,036,651
Comprehensive income
Loss for the period		-	-	(3,729,389)	-	-	(3,729,389)	105,638	(3,623,751)
Other comprehensive income for the period		-	-	-	51,170	-	51,170	(106,627)	(55,457)
Total comprehensive income for the period		-	-	(3,729,389)	51,170	-	(3,678,219)	(989)	(3,679,208)
Transactions with owners, in their capacity as owners, and other transfers
Shares issued during the period		3,387,320	-	-	-	-	3,387,320	-	3,387,320
Share based payments		-	1,889,090	-	-	-	1,889,090	-	1,889,090
Issue of shares to employees		-	(1,123,386)	-	-	-	(1,123,386)	-	(1,123,386)
Total transactions with owners and other transfers		3,387,320	765,704	-	-	411,732	4,564,756	-	4,564,756
Balance at 30 June 2022		100,038,400	4,672,672	(20,285,319)	26,963	411,732	84,864,448	(942,249)	83,922,199
Balance at 1 January 2023		102,226,925	8,350,453	(26,027,122)	942	553,939	85,105,137	(1,550,690)	83,554,447
Comprehensive income
Loss for the period		-	-	(9,295,815)	-	-	(9,295,815)	(538,701)	(9,834,516)
Other comprehensive income for the period		-	-	-	910	-	910	291,925	292,835
Total comprehensive income for the period		-	-	(9,295,815)	910	-	(9,294,905)	(246,776)	(9,541,681)
Transactions with owners, in their capacity as owners, and other transfers
Shares issued during the period		2,550,000	-	-	-	-	2,550,000	-	2,550,000
Share based payments		-	7,588,787	-	-	-	7,588,787	-	7,588,787
Share based payments cancelled		-	(15,857,129)	15,857,129	-	-	-	-	-
Total transactions with owners and other transfers		2,550,000	(8,268,342)	15,857,129	-	-	10,138,787	-	10,138,787
Balance at 30 June 2023		104,776,925	82,111	(19,465,808)	1,852	553,939	85,949,019	(1,797,466)	84,151,553

CONSOLIDATED STATEMENT of Cash Flows

FOR THE HALF-YEAR ENDED 30 JUNE 2023

	Half-year Ended 30 June 2023	Half-year Ended 30 June 2022
	US$	US$
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers	10,313,889	11,050,784
Payments to suppliers and employees	(11,729,505)	(12,954,223)
Other income	100,169	-
Interest received	1,075	148
Finance costs	(10,025)	(15,272)
Income taxes refunded/(paid)	(120,272)	9,674
Net cash used in operating activities	(1,444,669)	(1,908,889)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment	(1,331,906)	(943,247)
Net cash used in investing activities	(1,331,906)	(943,247)
CASH FLOWS FROM FINANCING ACTIVITIES
Net proceeds from placement funds	-	4,383,822
Deposits from shareholder	2,800,000	-
Costs associated with option issues	-	(250,037)
Receipts/(Advances) of employee loans	(3,335)	4,092
Repayment of lease liabilities	(830)	(15,631)
Net cash generated by financing activities	2,795,835	4,122,246
Net increase in cash held	19,260	1,270,110
Cash and cash equivalents at beginning of period	7,221,085	6,624,364
Effect of foreign exchange rate changes	(7,618)	(241,404)
Cash and cash equivalents at end of period	7,232,727	7,653,070
The accompanying notes form part of these financial statements .

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE HALF-YEAR ENDED 30 JUNE 2023

Note 1: Summary of Significant accounting policies

a.            Basis of Preparation

These general purpose interim financial statements for half-year reporting period ended 30 June 2023 have been prepared in accordance with requirements of the Corporations act 2001 and Australian Accounting Standard AASB 134: Interim Financial Reporting.  The Group is a for-profit entity for financial reporting purposes under Australian Accounting Standards.

This interim financial report is intended to provide users with an update on the latest annual financial statements of Pyx Resources Limited and its controlled entities (referred to as the "Consolidated Group" or "Group").  As such, it does not contain information that represents relatively insignificant changes occurring during the half-year within the Group. It is therefore recommended that this financial report be read in conjunction with the annual financial statements of the group for the year ended 31 December 2022, together with any public announcements made during the following half-year.

These interim financial statements were authorised for issue on 12 September 2023.

b.            Accounting Policies

The same accounting policies and methods of computation have been followed in this interim financial report as were applied in the most recent annual financial statements.

The group has considered the implications of new or amended Accounting Standards, but determined that their application to the financial statements is either not relevant or not material.

Note 2: Revenue and Other Income

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

		Half-year Ended 30 June 2023	Half-year Ended 30 June 2022
		US$	US$
Revenue from contracts with customers		9,971,528	10,645,890
Other income		100,169	-

Revenue from contracts with customers

Revenue from contracts with customers represents the amounts received and receivable for production and distribution of premium Zircon.

NOTE 3: LOSS FOR THE PERIOD

	Half-year Ended 30 June 2023	Half-year Ended 30 June 2022
	US$	US$
Loss before income tax from continuing operations includes the following specific expenses:
Expenses
Cost of sales	9,067,092	7,403,682
Interest expense on financial liabilities not classified as at fair value through profit or loss:
-      unrelated parties	10,025	15,233
Finance charges	-	39
Less: Interest income	(1,075)	(148)
Net interest expense	8,950	15,124
Employee benefits expense:
-      Staff salaries and benefits	173,878	183,163
-      Share based payments (non-cash)	7,588,787	1,889,090
Rental expense on operating leases
-      short- term lease expense	997	2,574
Depreciation	166,967	111,698

Note 4: Contingent Liabilities

There has been no change in contingent liabilities since the last reporting period.

Note 5: ISSUED CAPITAL

		Half-year Ended	Year Ended
		30 June 2023 US$	31 December 2022 US$
452,976,142 (2022: 441,349,100) fully paid ordinary shares		104,776,925	102,226,925

		2023		2022
		No. of shares	Contributed equity	No. of Shares	Contributed equity
			US$		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	-	-
	At the end of the reporting period	452,976,142	104,776,925	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").

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 in financial year 2022.

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.

		30 June 2023	31 December 2022
		No.	No.
b.	Unlisted options
	At the beginning of the reporting period	4,944,576	537,500
	Year 2022	-	4,407,076
	Expired during the period	(537,500)	-
		4,407,076	4,944,576

During the period, 537,500 unlisted options held by Tamarind Classic resources Limited were expired.

c.         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.

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.

	Half-year Ended	Year Ended
	30 June 2023	31 December 2022
	US$	US$
Total borrowings	-	-
Less cash and cash equivalents	7,232,727	7,221,085
Net cash/(debt)	7,232,727	7,221,085
Total equity	84,151,553	83,554,447
Total capital	84,151,553	83,554,447
Gearing ratio	0.00%	0.00%

NOTE 6: RESERVES

a.    Share-based Payment Reserve

The share-based payment reserve records items recognized 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.

d.    Analysis of Reserves

		Half-year Ended	Year Ended
		30 June 2023	31 December 2022
		US$	US$
Share-Based Payment Reserve
At the beginning of the reporting period		8,350,453	3,906,968
Share-based payments expense		7,588,787	5,566,871
Share-based payments cancelled		(15,857,129)	-
Issue of shares to employees		-	(1,123,386)
Closing balance in share-based payment reserve		82,111	8,350,453
Options Reserve
At the beginning of the reporting period		553,939	-
Options reserve		-	553,939
Closing balance in options reserve		553,939	553,939
Foreign Currency Translation Reserve
At the beginning of the reporting period		942	(24,207)
Exchange differences on translation of foreign operations		910	25,149
Closing balance in foreign currency translation reserve		1,852	942
Total		637,902	8,905,334

NOTE 7: SHARE-BASED PAYMENT PLANS

Performance Rights

The following performance rights were granted to staff during the period.

Number	Grant date	Expiry date	Share price at grant date
20,000	01/04/2023	30/9/2026	A$0.33
20,000	01/04/2023	30/9/2026	A$0.33
20,000	01/04/2023	30/9/2027	A$0.33
20,000	01/04/2023	30/9/2027	A$0.33

During the half year, 16,900,000 performance rights were cancelled.

NOTE 8: PROPERTY, PLANT, AND EQUIPMENT

		Half-year Ended	Year Ended
		30 June 2023	31 December 2022
		US$	US$
Land and Buildings
Freehold land at cost		211,603	211,603
Translation		(1,888)	(11,286)
Total land		209,715	200,317
Buildings at cost		1,208,238	1,231,651
Accumulated depreciation		(255,060)	(248,221)
Translation		(9,087)	(53,375)
Total buildings		944,091	930,055
Total land and buildings		1,153,806	1,130,372
Construction in Progress
Construction in progress at cost		3,144,223	2,258,130
Translation		(34,134)	(132,079)
Total Construction in Progress		3,110,089	2,126,051
Plant and Equipment
Plant and equipment at cost		1,046,390	1,073,904
Accumulated depreciation		(373,498)	(333,363)
Translation		(20,395)	(53,678)
Total plant and equipment		652,497	686,863
Motor Vehicles
Motor vehicles at cost		138,707	138,707
Accumulated depreciation		(59,970)	(42,618)
Translation		(1,646)	(6,254)
Total motor vehicles		77,091	89,835

Furniture and Fittings
Furniture and fittings at cost		36,192	31,806
Accumulated depreciation		(16,214)	(13,145)
Translation		1,296	(586)
Total furniture and fittings		21,274	18,075
Total property, plant and equipment		5,014,757	4,051,196

NOTE 9: INTANGIBLE ASSETS

				Half-year Ended	Year Ended
				30 June 2023	31 December 2022
				US$	US$
Goodwill:
Cost			7,774			7,774
Accumulated impairment losses			-			-
Net carrying amount			7,774			7,774

Mining License Renewal:
Cost		332,346	88,984
Accumulated amortization		(81,823)	(40,041)
Translation		3,787	(2,531)
Net carrying amount		254,310	46,412
Exploration asset
Cost		73,260,053	73,260,053
Net carrying amount		73,260,053	73,260,053
Total intangible assets		73,522,137	73,314,239

	Goodwill	Mining License	Exploration asset	Total
	US$	US$	US$	US$
Half-year ended 30 June 2023
Balance at the beginning of the year	7,774	46,412	73,260,053	73,314,239
Addition	-	243,362	-	243,362
Amortisation	-	(41,782)	-	(41,782)
Translation	-	6,318	-	6,318
Closing value at 30 June 2023	7,774	254,310	73,260,053	73,522,137

Note 10: INTERESTS IN SUBSIDIARIES

Name of Entity	Equity Interest		Proportion of Non-Controlling Interest		Contribution to Net Profit/(Loss) before taxation
	2023 %	2022 %	2023 %	2022 %	2023 US$	2022 US$
Takmur Pte Ltd.	100	100	-	-	(17,038)	(11,702)
PT Andary Usaha Makmur	99.5	99.5	0.5	0.5	(68,552)	(142,681)
PT Investasi Mandiri*	-	-	100	100	(667,870)	128,139
Tisma Development (HK) Ltd.	100	100	-	-	(9,017)	8,214
PT Tisma Investasi Abadi	99	99	1	1	(1,667)	(1,719)
PT Tisma Global Nusantara**	-	-	100	100	(15,039)	(11,663)

* 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 Global Nusantara 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.

DIRECTORS' DECLARATION

In accordance with a resolution of the directors of Pyx resources Limited, the directors of the Entity declare that:

1.    The financial statements and notes, as set out on pages 8 to 20, are in accordance with the Corporations Act 2001, including:

a.    complying with Accounting Standard AASB 134: Interim Financial Reporting; and

b.    giving a true and fair view of the Consolidated Group's financial position as at 30 June 2023 and of its performance for the half-year ended on that date.

2.    In the directors' opinion there are reasonable grounds to believe that the Entity will be able to pay its debts as and when they become due and payable.

Oliver B. Hasler

Chairman and Chief Executive Officer

Hong Kong

Date: 12 September 2023

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION

This Announcement contains forward-looking statements and forward-looking information within the meaning of applicable Australian and UK securities laws, which are based on expectations, estimates and projections as of the date of this Announcement.

This forward-looking information includes, or may be based upon, without limitation, estimates, forecasts and statements as to management's expectations with respect to, among other things, the timing and amount of funding required to execute the Company's exploration, development and business plans, capital and exploration expenditures, the effect on the Company of any changes to existing legislation or policy, government regulation of mining operations, the length of time required to obtain permits, certifications and approvals, the success of exploration, development and mining activities, the geology of the Company's properties, environmental risks, the availability of labour, the focus of the Company in the future, demand and market outlook for precious metals and the prices thereof, progress in development of mineral properties, the Company's ability to raise funding privately or on a public market in the future, the Company's future growth, results of operations, performance, and business prospects and opportunities. Wherever possible, words such as "anticipate", "believe", "expect", "intend", "may" and similar expressions have been used to identify such forward-looking information.

Forward-looking information is based on the opinions and estimates of management at the date the information is given, and on information available to management at such time. Forward looking information involves significant risks, uncertainties, assumptions, and other factors that could cause actual results, performance, or achievements to differ materially from the results discussed or implied in the forward-looking information. These factors, including, but not limited to, fluctuations in currency markets, fluctuations in commodity prices, the ability of the Company to access sufficient capital on favourable terms or at all, changes in national and local government legislation, taxation, controls, regulations, political or economic developments in Indonesia and Australia or other countries in which the Company does business or may carry on business in the future, operational or technical difficulties in connection with exploration or development activities, employee relations, the speculative nature of mineral exploration and development, obtaining necessary licenses and permits, diminishing quantities and grades of mineral reserves, contests over title to properties, especially title to undeveloped properties, the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drill results and other geological data, environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins and flooding, limitations of insurance coverage and the possibility of project cost overruns or unanticipated costs and expenses, and should be considered carefully. Many of these uncertainties and contingencies can affect the Company's actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Company. Prospective investors should not place undue reliance on any forward-looking information.

Although the forward-looking information contained in this Announcement is based upon what management believes, or believed at the time, to be reasonable assumptions, the Company cannot assure prospective purchasers that actual results will be consistent with such forward-looking information, as there may be other factors that cause results not to be as anticipated, estimated or intended, and neither the Company nor any other person assumes responsibility for the accuracy and completeness of any such forward-looking information. The Company does not undertake, and assumes no obligation, to update or revise any such forward-looking statements or forward-looking information contained herein to reflect new events or circumstances, except as may be required by law.

No stock exchange, regulation services provider, securities commission or other regulatory authority has approved or disapproved the information contained in this Announcement.

Compliance Statement

The Mandiri mineral sands deposit hosts a 6Mt Inferred JORC Resource of zircon. The Company originally announced this resource in its Prospectus released on 20 February 2020 and confirms that it is not aware of any new information or data that materially affects the information included in the Prospectus. All material assumptions and technical parameters disclosed in the Prospectus that underpin the estimates continue to apply and have not materially changed.

The Tisma mineral sands deposit hosts a 4.5 Mt Inferred JORC Resource of zircon. The Company originally announced this resource in its Announcement "PYX Resources Limited Agrees to Acquire Tisma Development (HK) Limited, a World-Class, Fully Licensed Mineral Sands Deposit" on NSX on 13 January 2021 and confirms that it is not aware of any new information or data that materially affects the information included in the Announcement. All material assumptions and technical parameters disclosed in the Announcement that underpin the estimates continue to apply and have not materially changed.

Together the Mandiri and Tisma mineral sand deposits total 10.5 Mt of contained zircon within a total of 263.5 Mt of heavy mineral sands.

---

[1] according to publicly available information as of 30 June 2023

[2] https://www.kenmareresources.com/en/our-products/titanium-feedstocks

 

END