Operations Update
Sydney, July 30, 2020 AEST (ABN Newswire) - PYX Resources Ltd (
NSX:PYX) is pleased to provide the following operations update for the period from July 1, 2019 to June 30, 2020.
The Company continues to record 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.
In FY2020, PYX has continued to diversify its customer base, with its sales now reaching buyers in most major economies in Europe and Asia, including the UK, France, Germany, Spain, China, India and Indonesia - with a 33% increase in the number of active customers. The premium zircon product has proven to be ideal for fused zirconia applications and for the ceramic sector.
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% in the current period.
The strong sales and production growth have been achieved on the backdrop of a 2.1% reduction in Full Time Equivalent (FTE) personnel 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 with lost time to zero.
On the production front, the capacity in the Mineral Separation Plant (MSU) increased from 12kt to 18kt per annum as a result of the implementation of the capex investment programme.
During the first half of 2020, PYX has continued to record 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 11 days as of June 30, 2020.
To improve the quality of PYX's financial reporting while adopting first class corporate governance practices, a new financial and reporting system was implemented as of July 2019. The solid financial position ensures the Company is able to implement all necessary measures and react to any market or industry changes as a result of the COVID-19 pandemic, while undertaking a growth plan aimed at increasing its production capacity.
In June 2020, PYX received notification from the Central Kalimantan Provincial Government - that, after approval from the Energy and Mineral Resources Department of Central Kalimantan, an application for the extension of the Production Operation Mining Activities IUP license lodged by PT Investasi Mandiri (PTIM), the Company's Indonesian subsidiary and project company, has been granted for the maximum authorised period of 5 years. After this period the license can be further renewed for an additional 5 years. The Production and Operation IUP license allows PTIM to carry out production operations including construction, mining, processing and refining, transportation and sales activities.
Commenting on the Company's operation status and achievements in FY19-20, PYX Resources' Chairman and Chief Executive Officer, Oliver Hasler, said: "I'm extremely pleased to share with PYX's shareholders the latest achievements for the 12-monthperiod ending on June 30, 2020. PYX is now operating a world-class mining operation, with strong global demand for our premium zircon product. Investors have shown tremendous support for our Company, which is reflected by the strong post-IPO performance with a 71.3% increase in our share price from the listing date to July 29th."
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.
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