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15 November 2021

PYX Resources Limited

First Day Listing and Commencement of Trading on the London Stock Exchange

PYX Resources Limited ("PYX Resources" or the "Company"), a producer of premium zircon, is pleased to announce that at 08:00 GMT today its ordinary shares will commence trading on the Standard Listing segment of the London Stock Exchange's Main Market for listed securities under the ticker PYX.  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 £349.2m[1].   VSA Capital acted as Financial Adviser and Broker on the Dual Listing.

Key Highlights

·      According to publicly available information, during the financial year ended 31 December 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$1.8bn 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.

·      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.

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. 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."

Further Details

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.

Therefore, 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.

Sources:

[1] based on number of Ordinary Shares in issue at Admission at a share price of AU$1.52 and an exchange rate of 1 GBP: 1.82164 AUD, as at 5 November 2021

2 "Zirconium Market - Growth, Trends, Covid-19 Impact, And Forecasts (2021 - 2026)", Mordor Intelligence

*** ENDS ***

This announcement is authorised for release by Oliver B. Hasler, Chairman and Chief Executive Officer.

For more information:

INFORMATION

This announcement is for information purposes only and is not intended to and does not constitute, or form part of, any offer or invitation to purchase, subscribe for or otherwise acquire or dispose of, or any solicitation to purchase or subscribe for or otherwise acquire or dispose of, any securities in the capital of the Company.

The information contained in this announcement is the sole responsibility of the Company, is for background purposes only and does not purport to be full or complete. No reliance may be placed by any person for any purpose on the information contained in this announcement or its accuracy, fairness or completeness.

This announcement may include statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements may be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "plans", "projects", "anticipates", "expects", "intends", "may", "will" or "should" or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. Forward-looking statements may and often do differ materially from actual results. Any forward-looking statements reflect the Group's current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to the Group's business, results of operations, financial position, liquidity, prospects, growth and strategies. Forward-looking statements speak only as of the date they are made.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION

This Announcement contains forward-looking statements and forward-looking information within the meaning of applicable Australian securities laws, which are based on expectations, estimates and projections as of the date of this Announcement.

This forward-looking information includes, or may be based upon, without limitation, estimates, forecasts and statements as to management's expectations with respect to, among other things, the timing and amount of funding required to execute the Company's exploration, development and business plans, capital and exploration expenditures, the effect on the Company of any changes to existing legislation or policy, government regulation of mining operations, the length of time required to obtain permits, certifications and approvals, the success of exploration, development and mining activities, the geology of the Company's properties, environmental risks, the availability of labour, the focus of the Company in the future, demand and market outlook for precious metals and the prices thereof, progress in development of mineral properties, the Company's ability to raise funding privately or on a public market in the future, the Company's future growth, results of operations, performance, and business prospects and opportunities. Wherever possible, words such as "anticipate", "believe", "expect", "intend", "may" and similar expressions have been used to identify such forward-looking information.

Forward-looking information is based on the opinions and estimates of management at the date the information is given, and on information available to management at such time. Forward looking information involves significant risks, uncertainties, assumptions and other factors that could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking information. These factors, including, but not limited to, fluctuations in currency markets, fluctuations in commodity prices, the ability of the Company to access sufficient capital on favourable terms or at all, changes in national and local government legislation, taxation, controls, regulations, political or economic developments in Indonesia and Australia or other countries in which the Company does business or may carry on business in the future, operational or technical difficulties in connection with exploration or development activities, employee relations, the speculative nature of mineral exploration and development, obtaining necessary licenses and permits, diminishing quantities and grades of mineral reserves, contests over title to properties, especially title to undeveloped properties, the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drill results and other geological data, environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins and flooding, limitations of insurance coverage and the possibility of project cost overruns or unanticipated costs and expenses, and should be considered carefully. Many of these uncertainties and contingencies can affect the Company's actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Company. Prospective investors should not place undue reliance on any forward-looking information.

Although the forward-looking information contained in this Announcement is based upon what management believes, or believed at the time, to be reasonable assumptions, the Company cannot assure prospective purchasers that actual results will be consistent with such forward-looking information, as there may be other factors that cause results not to be as anticipated, estimated or intended, and neither the Company nor any other person assumes responsibility for the accuracy and completeness of any such forward-looking information. The Company does not undertake, and assumes no obligation, to update or revise any such forward-looking statements or forward-looking information contained herein to reflect new events or circumstances, except as may be required by law.

No stock exchange, regulation services provider, securities commission or other regulatory authority has approved or disapproved the information contained in this Announcement.

Compliance Statement

The Mandiri mineral sands deposit hosts a 6 Mt Inferred JORC Resource of zircon. The Company originally announced this resource in its Prospectus released on 20 February 2020 and confirms that it is not aware of any new information or data that materially affects the information included in the Prospectus. All material assumptions and technical parameters disclosed in the Prospectus that underpin the estimates continue to apply and have not materially changed. 

The Tisma mineral sands deposit hosts a 4.5 Mt Inferred JORC Resource of zircon. The Company originally announced this resource in its Announcement "PYX Resources Limited Agrees to Acquire Tisma Development (HK) Limited, a World-Class, Fully Licensed Mineral Sands Deposit" on NSX on 13 January 2021 and confirms that it is not aware of any new information or data that materially affects the information included in the Announcement. All material assumptions and technical parameters disclosed in the Announcement that underpin the estimates continue to apply and have not materially changed.

Together the Mandiri mineral sands deposit and Tisma mineral sands deposit total 263.5 Mt of JORC compliant mineral resource.