Operational Update FY 2022
Sydney, Feb 8, 2023 AEST (ABN Newswire) - PYX Resources Ltd (NSX:PYX) (LON:PYX), the world's second largest publicly listed zircon producer by zircon resources, is pleased to provide an operational update for the Full Year 2022 ended 31 December 2022 ("FY 2022" or "the Period").
- Strong increase in premium Zircon production and sale volumes with year-on-year ("YoY") production increasing to 9.1kt, a 25% increase as compared to FY 2021, and YoY sales increasing to 9.1kt, a 33% increase as compared to FY 2021.
- The Company commenced its production of rutile in January 2022 and ilmenite in June 2022 (together "Titanium Dioxide Minerals") with joint production volumes of 7.5kt and sales volumes of 0.3kt.
- Premium Zircon prices continue to increase with a YoY price increase of 36% as compared to FY 2021.
- Commenced warehouse operations at Kuala Lumpur's Port Klang to reduce shipping times and costs to end-users.
- Appointed highly regarded Geologist and Indonesian Executive Dr. Raden Sukhyar to its Board as a Non-executive Director
During the Period, the Company performed strongly with a significant increase in mineral sands production including the commencement of rutile and ilmenite production, sales volume growth and robust sales prices. Included below is a summary view of the Company's operational performance.
In the 12 months ended 31 December 2022, PYX produced 16.6kt and sold 9.5kt of premium zircon, rutile, and ilmenite, resulting in a YoY production increase of 129% and an overall 38% rise in sales volume. Premium zircon production increased 25% YoY to 9.1kt and sales grew 33% to 9.1kt. The Company expanded its finished goods inventories to 7.3kt; this growth is mainly attributable to the commencement of rutile and ilmenite production, which the Company plans to export upon the granting of its export licence.
A number of key announcements were made by the Company during the final quarter of 2022, including securing GBP20 million investment commitment to accelerate its growth plans, which added two notable US investors to its share register. Additionally, PYX appointed highly regarded Geologist and Indonesian Executive Dr. Raden Sukhyar to its Board as a Non-executive Director, and commenced operations at Kuala Lumpur's Port Klang to reduce shipping time and costs to end-users.
Commenting on the Company's achievements in 2022, PYX Resources' Chairman and Chief Executive Officer, Oliver B. Hasler, said:
"2022 was a highly successful year for PYX as we continued to set the foundation for long term growth across several reporting areas. The 129% increase in year-on-year ("YoY") production and 38% rise in sales volume is a remarkable achievement and a testament to the quality of our assets, system and team. We are also pleased to have commenced production of titanium dioxide by-products, diversifying our offering and providing an additional revenue stream. With strong global demand forecast for our products and aggressive growth plans, we are well positioned to deliver shareholder value and I look forward to an exciting 2023."
Zircon, which has been in use for thousands of years but is labelled as one of the most important metals you have never heard of, is making a resurgence as a critical material used across a wide range of high-tech applications including nuclear power, aerospace and catalytic converters. Notably, zirconium is considered a crucial mineral by the Australian Government.
Over the medium term, the major factors driving zircon market's growth are its increased use in foundries and refractories, the increasing number of nuclear power stations in the Asia-Pacific, and the accelerating usage of surface coatings. The most significant increase in nuclear generation in AsiaPacific is expected in China (11 stations are under construction and 43 are being planned) and India (7 stations are under construction, and 21 reactors are expected to be brought online by 2031).
Accordingly, the global zirconium market is projected to register a CAGR of over 5% in terms of volume during 2022-2027.
China dominated the markets studied, accounting for about 50% of the total revenue, and it is expected to witness the fastest CAGR over the forecast period.
Growth in PYX's by-products, titanium dioxide minerals, is equally robust with the titanium market expected to grow at a rate of 6.4% between 2021 to 2028.
The use of titanium as pigments in paints and coatings formulation is one of the major factors driving this growth as well as its utilisation in the aerospace, aviation, shipping, offshore mining, and petrochemicals industries owing to its durability, strength and exceptional chemical resistance abilities.
'PYX Cares' Programme
Sustainability is a critical pillar for PYX in its daily operations. The Company continued to prioritise environmental sustainability alongside partnerships with the local communities pursuing similar goals.
Looking ahead, PYX pledges to promote economic growth through meaningful investments to continue the positive economic and industrial development in Kalimantan.
During 2022, PYX was involved in several major community programmes: it successfully vaccinated 100% of its employees against Covid-19; it is planting 10,000 Bengkirai trees at the Mandiri mining tenement; it oversaw blood donation efforts in Kalimantan; and it supported both the local school and the Borneo Orangutans Survival Foundation.
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About Pyx Resources Limited
PYX Resources Limited (NSX:PYX) (LON:PYX) is a global producer of premium zircon listed on the National Stock Exchange of Australia and the London Stock Exchange. The Company's flagship asset is the Mandiri mineral sands deposit, located in the alluvium sediment rich region of Central Kalimantan, Indonesia. Boasting the world's 5th largest producing deposit of zircon, PYX is a large-scale, near-surface open pit operation in production since 2015 and with exploration to date validating the presence of additional Valuable Heavy Minerals such as rutile, ilmenite among others within its mineral sands.
Pyx Resources Limited