Premium zircon producer PYX Resources Limited has commenced trading its ordinary shares on the Standard Listing segment of the London Stock Exchange’s Main Market for listed securities under the ticker PYX.
The company stated what while its primary listing will remain the National Stock Exchange of Australia (NSX) (ticker: NSX: PYX), today’s Dual Listing on the London Stock Exchange will enable the company to progress its development strategy. On Admission, the market capitalisation of the Company will be approximately £349.2million.
VSA Capital acted as Financial Adviser and Broker on the Dual Listing.
Key Highlights
· According to publicly available information, during the financial year ended December 31, 2020, PYX was the world’s second largest publicly traded zircon producer by JORC approved resources of 263.5Mt.
· The global zirconium market was estimated to be worth US$1.8 billion in 2020 with an expected CAGR for the period 2021-2026 of over 5%2.
· Driven by strong demand and a constrained supply, PYX has announced four price increases since January 2021 – rising by US$910 per tonne to US$2,305/t in September 2021.
· High grade zircon is used in electronics, semiconductors, solar and fuel cells, ceramics, fibre optics and energy power generation.
Chairman and CEO, Oliver B. Hasler, said PYX has a unique, high quality premium product, which boasts whiteness, low radioactivity, and low alumina content – this could help play a role in the transition to net zero.
Chairman and CEO, Oliver B. Hasler, Chairman & CEO of PYX Resources commented:
“Our Dual Listing on the London Stock Exchange today marks a very exciting milestone for PYX, in both our development as well as our future plans as we focus on building a position as a key supplier of premium zircon to support world demand, which remains significant due to constrained supply and increasing applications for its use,” Mr Hasler said.
“The Dual Listing will give investors, existing shareholders, and the public a global access to participate in the growth and future potential of PYX Resources. We look forward to proactively engaging with the London market.”
PYX background
The company is a producer of premium zircon, which operates the Mandiri Project, a 2,032 hectares licensed concession near Kuala Kurun City in the Gunung Mas Regency of Central Kalimantan, Indonesia devoted, to the exploration of mineral sands products and the production and export of premium zircon, and the Tisma Project, a fully licensed mineral sands asset consisting of a concession area of 1,500 hectares, also located in Central Kalimantan Province, Indonesia.
The company’s short-term objectives focus is on enhancing and maintaining its assets value, while generating significant synergies and economies of scale, and increasing and accelerating comprehensive exploration opportunities at the Mandiri and Tisma deposits. This will allow for increasing reserves to expand mining, processing, and sales of Valuable Heavy Mineral resources to a well-diversified customer mix world-wide.
The Tisma Project requires a low-cost investment to adapt to the demands of the company’s mining operations while at the same time allowing the Group to take advantage of the cost reduction opportunities arising from the Tisma Project’s location.
The company’s core strategy is to create long term value for its Shareholders by increasing asset valuations, scaling production of premium grade zircon, and drastically reducing the costs by in-house mining.
Strategically, the company aims to become the consolidator of the mineral sands mining industry in the Central Kalimantan region.
The principal objectives of the company are to:
1. start in-house mining at both Projects to achieve significant cost reduction: The Board hired Resindo Resources and Energy, a Jakarta-based engineering consulting company, to aid in the acquisition of the Mining Field Unit for the Mandiri Project, which was completed in March 2021. The cost for the Mining Field Unit acquisition was US$1.1m. The Mining Field Unit will be utilised as the first in-house mining unit, resulting in expanding the extraction capacity, decreasing mining costs and providing successful high-concentration extraction of heavy mineral sands. The Mining Field Unit is currently undergoing trials to determine its exact extraction and technical specifications;
2. increase extraction and production volume: Upon completion of the Mining Field Unit trials, the Company is planning to upgrade its capacity to reach an HMC output of 40,000 tonnes per year. The Mineral Separation Plant at the Mandiri Project currently has a capacity of 18kt per year. The Group has acquired new equipment in order to increase production capacity up to 24kt per year, the installation of which is expected to complete in the fourth quarter of 2021;
3. add to its sales mix rutile and ilmenite sales: The company received approval for its 2021 working plan and budget on 1 December 2020. The working plan included the extraction, production and addition to Company’s sale mix of rutile and ilmenite. The upgrade of the Company’s sales mix is expected to start during the year, upon receiving an IUP extension for rutile and ilmenite from the Central Government of Indonesia;
4. develop the Group into one of the most prominent mineral sands producers globally: The Mandiri Project (already in production) produced 7kt of zircon in 2020, while the Tisma Project is expected to produce an equal amount of zircon per annum upon start of production in 2022. The Company is planning to start working towards the Tisma investment plan upon completion of the LSE listing and expects all works to be completed in 18 months’ time. During that period, the company will also acquire all necessary logistical equipment for the mine, such as excavators, bulldozers and trucks and create the required infrastructure (roads) within the tenement to access the in-house Mining Field Unit;
5. strengthen its position as the industry consolidator of zircon rich deposits within Kalimantan;
6. further explore and acquire mineral sand assets in Asia and beyond; and
7. employ the most effective methods in its mining process by empowering local communities, safeguard the environment and support diversity.
For further information please visit: http://pyxresources.com/
