Half Year Results Show Increased Sales Volumes And Price
PYX Resources Ltd (NSX: PYX) has unveiled strong Half Year Results for the six months ending 30 June 2021.
Just over one year after listing on the National Stock Exchange of Australia, PYX has revealed solid financial and operational results on the back of strong business fundamentals. Customer demand continues to increase to pre-pandemic levels, with particular interest in PYX’s zircon due to its superior quality that makes it ideal for producing fused zirconia used for different high-tech applications such as electric vehicle batteries, solar cells, semiconductors, and technical ceramics.
Chairman and CEO, Oliver B. Hasler, said thaty notably, the company implemented three price increases for its premium zircon during the half- year, resulting in a US$355 per tonne increase during 2021 to date. The price increases reflect the expected general lack of premium zircon supply globally and the very strong increase in demand, particularly from China.
During the half-year, PYX sold 3,250 tonnes and produced 3,501 tonnes of premium zircon, resulting in a year-on-year revenue increase of 21%, while production grew by 25%. Sales volume has shown a strong year-on-year growth of 14%, while maintaining a tight finished goods inventory.
“As these results highlight, the company’s performance during the six months has exceeded our objectives and demonstrate our commitment towards advancing our mining development plan, supporting our global customers and delivering value to our shareholders,” Mr Hasler said.
“The continuous price increase of premium zircon comes as no surprise as economies worldwide bounce back to pre-pandemic levels. With a significantly enlarged resource profile following the acquisition of the advanced Tisma deposit, we are positioned to boost capacity in order to meet this demand.”
The underlying EBITDA for the Company was reduced to only a negative US$661k, a significant achievement compared to last year. The Company reported a negative EBITDA of US$1,255k against a negative EBITDA of U$10,606k in H1 2020; this is as a result of continuous tight cost controls as well as the absence of listing costs during the period.
In the first half of 2021, PYX recorded a net loss after tax of US$1,194k against a loss of US$10,589k from the previous corresponding period. The improvements are due to the increased revenue resulting from higher sales volumes and average prices despite the COVID-19 pandemic.
PYX Resources remains debt free, with a net cash at the end period of US$9.7m, up US$6.2m from the previous period, mainly contributed by the private placement of US$8.4m.
In February this year, PYX completed its acquisition of the entire capital of Tisma Development (HK) Limited, which made it into the second-largest producing mining company in the world in terms of JORC-compliant zircon resources. PYX now controls 263MM tonnes of JORC-compliant resources, with 10.5M tonnes of contained zircon.
The company raised US$8.4m (before administrative, legal and placement fees) in June 2021 to principally accelerate the development of this exciting new zircon-rich tenement. Activities include investment in its in-house mining at the Tisma deposit, together with the installation of a Mineral Separation Plant and the required investments in logistics.
On a corporate level, in May 2021, PYX Resources announced that it was exploring a possible dual listing of the Company’s ordinary shares on the Standard Segment of the Official List of the Financial Conduct Authority (FCA) and to trading on the Main Market of the London Stock Exchange (LSE) to enhance its international profile and increase share liquidity. This is ongoing.
For further information please visit: https://pyxresources.com
