8th Apr 2025 12:53
(Alliance News) - PYX Resources Ltd on Tuesday said it narrowed its annual loss in 2024 despite a sharp drop in revenue, as higher sales volumes partly offset a weak second half, disrupted operations and lower mineral prices.
Shares in PYX Resources were down 7.2% at 1.62 pence in London on Tuesday afternoon.
The Indonesia-focused zircon and mineral sands producer reported a pretax loss of USD5.8 million for the year ended December 31, narrowed from USD10.5 million a year before. The improvement was driven by a 57% reduction in production costs to USD8.3 million from USD19.6 million, as the company sold down inventories and implemented tighter cost controls.
Revenue, however, fell 59% to USD9.3 million from USD22.7 million, reflecting a sharp drop in average selling prices and a shift in product mix. The average value per tonne fell 72% to USD561, as PYX expanded into lower-priced titanium dioxide minerals following new export licences for ilmenite and rutile.
Sales volumes increased 46% to 16,560 tonnes, supported by strong demand in China and India. However, zircon production dropped to 4.9 kilotonnes from 11.8kt, and zircon sales fell 70% to 3.4kt. PYX sold 12.4kt of titanium dioxide minerals, having secured first-time export permits for rutile and ilmenite during the year.
PYX said production was hit by heavy rainfall, weaker demand, and the collapse of a bridge giving access to the Mandiri deposit, cutting total output by 55%.
The second half of the year was described as "rather disappointing" by Chair & Chief Executive Officer Oliver Hasler, after a "very strong first half".
Despite macroeconomic challenges and global price pressures, CEO Hasler said the company remains well-positioned for long-term growth. "Demand for our critical minerals… is expected to remain robust in the long term, driven by the global transition to clean energy technologies," he said.
The company also highlighted a number of operational achievements, including connecting its Central Kalimantan operations to the local electric grid, reducing fuel costs and emissions, and receiving a Gold ESG excellence award from the Zircon Industry Association.
By Eva Castanedo, Alliance News reporter
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