13th Sep 2023 13:49
(Alliance News) - Pyx Resources PLC on Wednesday reported considerable increases in zircon production and sales, but said its loss widened as some expenses increased.
Shares in Pyx were down 9.7% at 21.22 pence in London on Wednesday afternoon.
The Sydney-based, Indonesia-focused zircon and mineral sands producer said pretax loss widened in the first half of 2023 to USD10.0 million from USD3.6 million the year before.
Revenue decreased 6.3% to USD10.0 million from USD10.6 million, and Pyx made a loss before interest, tax, depreciation and amortisation of USD9.8 million compared with USD3.5 million in the first half of 2022. Underlying Ebitda, however, increased 46% to USD131,356 from USD90,008.
Cash cost of production rose 22% to USD8.9 million from USD7.3 million, and cost of sales increased 22% to USD9.1 million from USD7.4 million. Pyx's loss on fair value change of financial instrument widened by 56% to USD1.2 million from USD795,990.
Zircon production meanwhile increased 33% to 5.7 kilotonnes from 4.3, although total production of mineral sands decreased 26% to 6.8 kilotonnes from 92. The average price of zircon fell 30% to USD1,927 per tonne from USD2,749 per tonne the previous year.
Going forward, Pyx said it is well-positioned for growth. In particular, it said the renewal of its exploration and mining licence for the Tisma project in Borneo, announced in mid-August, was a "significant milestone" which "provides the company with long-term stability and growth opportunities."
By Emma Curzon, Alliance News reporter
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