Premium zircon producer PYX Resources Limited’s (NSX: PYX) Prospectus has been approved by the UK’s Financial Conduct Authority (FCA).
The Prospectus relates to the admission of the company’s ordinary shares to the standard listing segment of the Official List of the FCA and to trading on the Main Market of the London Stock Exchange (LSE), through a secondary listing, expected on November 15, 2021.
The company is currently listed on the National Stock Exchange of Australia, (NSX), which Chairman and CEO, Oliver B. Hasler, said will remain its primary listing
“The LSE Dual Listing could not come at a better time given the lack of global zircon resources, which is leading to increased demand for premium zircon and dramatically higher prices,” Mr Hasler
“Our focus is now on boosting PYX’s output by developing our newly acquired Tisma project to meet huge market demand and lift our global market share.
“The LSE is a leading destination for natural resources companies and has a strong network of brokers, analysts and institutional investors with a deep knowledge of the global mineral sands market.
“Accordingly, the LSE Dual Listing will provide a platform to broaden our investor base to include institutional and other investors, as well provide as access to a highly liquid market.”
Key Highlights
Corporate
• On commencement of conditional dealings on the LSE, anticipated November 15, under the ticker PYX, the market capitalisation of the Company will be approximately £358.4m .
• According to publicly available information, during the financial year ended 31 December 2020, the Company and its subsidiaries was the second largest publicly producing mineral sands company by zircon resources with a JORC compliant mineral resource of 263.5 Mt .
• The company’s strategy is to become a major and sustainable global producer of premium zircon by acquiring and developing undervalued, world-class mineral assets with significant resources, long mine life and the highest zircon assemblage globally.
• The company produces a premium product boasting superior characteristics and opacifying properties, such as its low AI2O3 of under 0.2%, in comparison to other zircon in the market, which is typically > 0.5%.
In addition, the uranium and thorium content of the company’s zircon is less than 450ppm, making it ideal for producing fused zirconia.
• Strong demand globally for zircon including China with the Company’s two projects in Indonesia ideally placed to supply that market.
• The Company is focused on increasing asset valuations, scaling production of premium grade zircon and reducing operational costs by in-house mining.
• Debt free and strong cash reserves/balance sheet.
Portfolio
• The Company holds contractual rights in, and currently operates two tenements located in the alluviumrich region of Central Kalimantan, Indonesia – the Mandiri mining project and the Tisma mining project.,
• The flagship Mandiri Project is a large-scale near surface open pit operation in production since 2015, located in the alluvium-rich region of Central Kalimantan. It consists of a licensed concession area of 2,032 hectares for mineral sands exploration and premium grade zircon production and export. The Inferred Mineral Resources for the Mandiri Project are defined as 126 Mt containing 7.4% HM including 9% slimes and 16% oversize a lower cut-off grade of 2%.
• The newly acquired Tisma Project is located in the Kitingan district of Central Kalimantan Province along the Katingan river, 110 km from the Mandiri Project. It contains Inferred Mineral Resources of approximately 137Mt, containing 4% HM including an estimated zircon content of 3%. Slimes and oversize are 14% and 25% respectively. The resources are at a 2% HM lower cut-off.
• H1 2021 production increase of 25% and sales volumes up 14%.
• Additional by-products including rutile and ilmenite to be added to sales mix. Zircon Market
• Demand for zircon is growing faster in novel high-tech applications including 3D printing, semiconductors, solar cells, implants, fuel cells and batteries, share memory alloys and coating and catalysts.
• Four increases in zircon prices since January, rising by US$910/tonne to US$2,305/tonne at September 2021.
• Tightening global supply and an acute lack of high-grade mineral sand projects, particularly in high zircon assemblage, and a depletion of existing operations.
• The global zirconium market was estimated at US$1.8b in 2020 with expected CAGR revenue of 5% for the period 2021-2026.
For further information please visit: http://pyxresources.com
