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 $10.0 million from $3.6 million the year before.
Revenue decreased 6.3% to $10.0 million from $10.6 million, and Pyx made a loss before interest, tax, depreciation and amortisation of $9.8 million compared with $3.5 million in the first half of 2022. Underlying Ebitda, however, increased 46% to $131,356 from $90,008.
Cash cost of production rose 22% to $8.9 million from $7.3 million, and cost of sales increased 22% to $9.1 million from $7.4 million. Pyx’s loss on fair value change of financial instrument widened by 56% to $1.2 million from $795,990.
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 $1,927 per tonne from $2,749 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.’
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