Q3 2023 Operational Update

PYX Resources Limited

02 November 2023

 

This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

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

2 November 2023

Pyx Resources Limited

("PYX" or "the Company")

Q3 2023 Operational Update

61% Increase in Premium Zircon Production and 88% Increase in Sales

Q3 HIGHLIGHTS

·    Premium Zircon production increased by 61% to 4.0kt (Q3 2022: 2.5kt), its highest to date

·    Sales of Premium Zircon increased 88% in Q3 2023 to 4.2kt (Q3 2022: 2.3kt) driven by demand from China and India

·    Award of the export licence announced on the 17^th August 2023. The Company had stockpiled 8.2kt of Titanium Dioxide.

·    Successful renewal of 10-year mining and exploration licence for the Tisma Mineral Sands Project

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

PYX Resources Ltd  (NSX: PYX | LSE: PYX), the world's third largest publicly listed zircon producer by zircon resources,[1]  is pleased to announce an Operational Update for the three months ended 30 September 2023 ("Q3 2023").

SUMMARY

	Q3 '23	Q3'22	Var	YTD'23	YTD'22	Var
Zircon Produced	4.0kt	2.5kt	61%	9.7kt	6.8kt	43%
Zircon Sales	4.2kt	2.3kt	88%	9.4kt	6.1kt	54%
Value per tonne (USD)	2,116	2,606	-19%	2,012	2,697	-25%
Total Mineral Sands Produced	4.9kt	3.5kt	39%	11.7kt	12.7kt	-8%
Total Mineral Sands Sold	4.2kt	2.5kt	70%	9.4kt	6.4kt	48%

The Company has reported a significant increase in Premium Zircon production of 4,021t in Q3 2023, which is equivalent to a yearly production rate above 16kt and in line with the PYX's five-year plan.

Premium Zircon sales experienced robust growth during the period with an increase of 88% to a sales volume of 4.2kt, mainly to China and India as the Western economy slows. The Company believes this growth is a result of the Company's customer-centric approach, strong relationships with clients, and the ability to deliver high-quality products that meet their specific needs.

In terms of pricing, Premium Zircon has experienced a remarkable upward trend. Starting from January 2021 at US$1,400/t, international pricing (as reported by Bloomberg) steadily increased throughout the year, reaching US$1,800/t in H2 2021 and US$2,000/t by January 2022.

This positive trajectory continued into Q2 2023, with the price reaching US$2,100/t. Since Q3 2022, the price has remained stable at US$2,200/t, a 64% increase on 2021 prices, defying the volatility of the market. This exceptional outcome underscores the imbalanced supply and demand dynamics, and PYX's ability to capitalize on this favourable market situation.

Commenting on the Company's achievements in Q3 2023, PYX's Chairman and Chief Executive Officer Oliver Hasler, said:

"I am delighted with our achievements in Q3 2023. The Company experienced substantial growth in Premium Zircon sales, with a 54% increase, and a production increase of 43% year-to-date. Our diversified global client base has allowed us to manage and minimise risk. This coupled with the quality of our Premium Zircon has resulted in consistent growth in sales whilst our exceptional team on site have been instrumental in ensuring maximum efficiency.

"I am particularly proud of the two awards given to the Company by the Government authorities in Kalimantan - the Award for the Prevention and Management of COVID-19 in the Workplace and Zero Accident Award 2023 - we are passionate about our people and the safety of our team."

"As we enter the second half of the year, we are optimistic about our strategic plan and the continued rise of Mineral Sands prices. We remain well positioned to deliver on our goals and benefit from the industry's strength."

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 license 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^th August 2023 the Company announced the award of the export licence for Rutile and Ilmenite. PYX started producing rutile in January 2022 and ilmenite in June 2022, and by the end of June 2023 it had stockpiled 8.2kt.  

Awards

Also, during the period, the Company was delighted to be awarded with the COVID-19 Prevention and Management and Zero Accident Award 2023 from the Indonesian Ministry of Manpower.

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

***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]

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

Officer.

About PYX Resources

PYX Resources Limited (NSX: PYX | LSE: PYX) is a producer of premium zircon dual listed on the

National Stock Exchange of Australia and on the Main Market of the London Stock Exchange. PYX's

key deposits, Mandiri and Tisma, are large-scale, near-surface open pit deposits both located in the

alluvium-rich region of Central Kalimantan, Indonesia. PYX, whose Mandiri deposit has been in

production since 2015, is the 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.

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 6 Mt 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.

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END