Records Significant Improvement In Customer Diversification
PYX Resources Ltd (NSX: PYX) has reported a steady production ramp-up, strong sales volume growth, increasing workforce productivity and an expanding customer base.
In the 12-month-period ended June 30, 2020, PYX has increased its year-on-year premium zircon production by 34% compared with the previous year (July 1, 2018 to June 30, 2019). In the same period, very strong sales growth has been achieved; with the total premium zircon sold increasing by 39% on a year-on-year basis.
Customer diversification has continued to increase, with the percentage of sales volume to the top three customers of the company declining from 78.6% during the 12-month-period ending June 30, 2019 to 70.2%.
The strong sales and production growth have been achieved on the backdrop of a 2.1% reduction in Full Time Equivalent (FTE) as a result of a significant improvement in overall productivity. At the same time the Company has been very successful in keeping work-related accidents to zero.
On the production front, the capacity in the Mineral Separation Plant (MSU) increased from 12 to 18kt per annum as a result of the capex investments.
Chairman and Chief Executive Officer, Oliver Hasler, said that during the first half of 2020, Pyx recorded robust growth in its orderbook with the company implementing comprehensive preventive COVID-19 measures to ensure robust customer demand can be met, while maintaining a tight finished goods inventory of 10.75 days as of June 30, 2020.
“I’m extremely pleased to share with Pyx’s shareholders the latest achievements for the 12-month-period ending on June 30, 2020,”Mr Hasler said.
“After going through a series of corporate changes, including the successful acquisition of Takmur Pte Ltd and listing on the National Stock Exchange (NSX) of Australia through an initial public offering (IPO) which was strongly supported by global investors, Pyx is now operating a world-class mining operation, with strong global demand for our premium zircon product, ideal for fused zirconia applications and for the ceramic sector.
“With strong operational results including rapid production and sales growth of 38% and 39% respectively, continuous optimisation of the operations, on-track production capacity expansion and a healthy financial position, investors have shown tremendous support for our Company, which is reflected by the strong post-IPO performance with an over 55% increase in our share price from the listing date.
“Following the successful achievement of operation and corporate milestones during the past 12 months, I believe Pyx is well poised to become one of top zircon producers in the world.”
