PYX Resources Limited / EPIC: PYX / Market: Standard / Sector: Mining

12 September 2025

Pyx Resources Limited

("PYX" or "the Company")

Half-Year 2025 Results Announcement

PYX Resources Ltd (PYX or the Company) (NSX: PYX | LSE: PYX), one of the largest publicly listed zircon companies based on JORC compliant resources^[1], reports its half-year results for the period ending 30 June 2025. The first half of the year was marked by an unprecedented regulatory shift in Indonesia that temporarily halted production and exports across the mineral sands sector and other industries.

Operational and Regulatory Context

During the first half, PYX's local subsidiaries, PT Investasi Mandiri and Tisma, received formal notification from the Provincial Department of Energy and Mineral Resources that their RKAB[2] (Work Plan and Budget) licenses for production operations have been suspended. This action applies to all zircon producers in Central Kalimantan. Fourteen (14) companies were notified.  As a result, PYX's export licenses for zircon, ilmenite, and rutile have also been suspended. According to government statements, the move is driven by the need to address oversupply, improve market stability, and enhance regulatory oversight across multiple sectors - including coal, bauxite, nickel, and mineral sands, as well as palm oil and other commodities.

In the first half of 2025, PYX did not undertake production activities. This decision was made in response to continued weakness in global mineral sands pricing; elevated operating costs, particularly from third-party contract mining arrangements; and a steep increase in regional royalties from approx. US$19 per tonne to US$59 per tonne, as announced by PYX on 28 February 2025. Compounding the disruption, PYX also received tax assessments totalling approximately US$2 million, which are currently under legal challenge.

The Company confirms that its IUP license for the Mandiri deposit expired on 31 August 2025. Due to the current regulatory uncertainty, PYX has postponed the renewal of its license, resulting in a temporary suspension of operations at Mandiri. This development has had a direct and material impact on the Company's production and commercial activities.

As a result of these external factors, PYX recorded disappointing performance for the period, and management has prioritized cost control and strategic mitigation efforts.

Financial Performance

Due to the suspension of operations and exports, PYX did not generate revenue during the first half of 2025. Nevertheless, the Company maintained its cash reserves and avoided incurring additional debts.

In light of the ongoing regulatory uncertainty and operational suspension in Indonesia, PYX Resources has taken decisive steps to safeguard its financial position. Preserving cash remains paramount, and the Company has implemented strict cost controls while maintaining operational readiness across its sites. Management continues to explore strategic fundraising options to ensure liquidity and support future growth initiatives. These measures are essential to navigating the current environment and positioning PYX for a swift recovery once regulatory clarity is restored.

PYX's Chairman and CEO Oliver Hasler commented: "PYX continues to believe in the long-term potential of the mineral sands sector. However, we are currently facing a number of complex regulatory and administrative challenges in Indonesia, including a steep increase in royalties, that need to be resolved before we can move forward with our project. The short-term market conditions are also affecting the general industry. I am proud about the strong support of the management to drastically adapt our cost structure to the actual difficult conditions."

Indonesia's Minister of Energy and Mineral Resources (ESDM) has announced that the government will return to issuing RKAB starting in 2026.[3]

*** ENDS ***

For more information:

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

About PYX Resources

PYX Resources Limited (NSX: PYX | LSE: PYX) is a producer of premium zircon dual listed on the National Stock Exchange of Australia and on the Main Market of the London Stock Exchange. PYX's key deposits, Mandiri and Tisma, are large-scale, near-surface open pit deposits both located in the alluvium-rich region of Central Kalimantan, Indonesia. PYX, whose Mandiri deposit has been in production since 2015, is the 3^rd largest publicly traded producing mineral sands company by zircon resources globally. Determined to mine responsibly and invest in the wider communities where we operate, PYX is committed to fully developing its Mandiri and Tisma deposits, with the vision to consolidate the mineral sands resources in Kalimantan and explore and acquire mineral sands assets in Asia and beyond.

CONSOLIDATED STATEMENT of Profit or Loss and Other comprehensive Income

FOR THE HALF-YEAR ENDED 30 JUNE 2025

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the half-year ended 30 JUNE 2025

CONSOLIDATED STATEMENT of Cash Flows

FOR THE HALF-YEAR ENDED 30 JUNE 2025

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE HALF-YEAR ENDED 30 JUNE 2025

Note 1: Summary of Significant accounting policies

a.             Basis of Preparation

These general purpose interim financial statements for half-year reporting period ended 30 June 2025 have been prepared in accordance with requirements of the Corporations Act 2001 and Australian Accounting Standard AASB 134: Interim Financial Reporting.  The Group is a for-profit entity for financial reporting purposes under Australian Accounting Standards.

This interim financial report is intended to provide users with an update on the latest annual financial statements of Pyx Resources Limited and its controlled entities (referred to as the "Consolidated Group" or "Group").  As such, it does not contain information that represents relatively insignificant changes occurring during the half-year within the Group. It is therefore recommended that this financial report be read in conjunction with the annual financial statements of the group for the year ended 31 December 2024, together with any public announcements made during the following half-year.

These interim financial statements were authorised for issue on 11 September 2025.

b.             Going Concern

The financial report has been prepared on a going concern basis, which assumes that the Group will continue in operation for the foreseeable future.

The Group has recorded a net loss of $732,308 (2024: $136,124), reported cash used in operating activities $174,355 (2024: $1,191,202) and as of 30 June 2025 cash and cash equivalents of $5,052,892 (2024: $5,008,389). The net assets of the Group as at 30 June 2025 were $77,824,942 (2024: $78,463,200) with a net current liability position of $3,443,988 (2024: $3,070,646).  

The directors have prepared a cash flow forecast for the period ending 30 September 2026. It is recognised that additional funding is required from shareholder loans for the Group to continue to actively explore its mineral properties and continue mining operations.  

The directors have reviewed the business outlook and the assets and liabilities of the Group and are of the opinion that the use of the going concern basis of accounting is appropriate. The following factors have been taken into consideration by the directors:

•               The shareholders have continued to provide funding for the daily operations of the Group to the date of these financial statements;

•               The shareholder Edelweiss Partners Limited has indicated that they will not recall the loan amount of $3,000,000 as at the balance date until there is sufficient cash for the Group to pay back its debt; and,

•               The shareholder Edelweiss Partners Limited has also indicated that they will continue to support the Group through short-term cash borrowings whenever required for the period of 12 months from the date of this financial report.

The Group acknowledge that the status of going concern relies on the ongoing support of the shareholder Edelweiss Partners Limited and development of the Group's projects. Should the Group be unable to raise further debt be unable to continue to support the Group, there exists a material uncertainty which may cast significant doubt on the Group's ability to continue as a going concern.

The financial report does not include adjustments relating to the recoverability and classification of recorded asset amounts nor to the amounts and classification of liabilities that might be necessary should the Group not continue as a going concern

c.             Accounting Policies

The same accounting policies and methods of computation have been followed in this interim financial report as were applied in the most recent annual financial statements.

The group has considered the implications of new or amended Accounting Standards, but determined that their application to the financial statements is either not relevant or not material.

i)             Fair Value Measurement

When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure purposes, the fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; and assumes that the transaction will take place either: in the principal market; or in the absence of a principal market, in the most advantageous market.

Fair value is measured using the assumptions that market participants would use when pricing the asset or liability, assuming they act in their economic best interests. For non-financial assets, the fair value measurement is based on its highest and best use. Valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, are used, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

Assets and liabilities measured at fair value are classified into three levels, using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. Classifications are reviewed at each reporting date and transfers between levels are determined based on a reassessment of the lowest level of input that is significant to the fair value measurement.

Note 2: Revenue and Other Income

The group has recognised the following amounts relating to revenue in the statement of profit or loss.

Revenue from contracts with customers

Revenue from contracts with customers represents the amounts received and receivable for production and distribution of premium zircon and concentrates and titanium dioxide.

NOTE 3: TRADE AND OTHER RECEIVABLES

NOTE 4: PROPERTY, PLANT, AND EQUIPMENT

NOTE 5: INTANGIBLE ASSETS

Note 6: AMOUNT DUE TO SHAREHOLDERS

-       The Company received non-interest-bearing deposits of US$5,000,000 from two shareholders in 2024 and interest-bearing deposits of US$91,512 from another shareholder.  Edelweiss Partners Limited has provided a letter of support to confirm they will not recall US$3,000,000 in the next 12 months and continue providing the Group with financial support.

-       On 26 December 2024, 8,333,334 shares valued at US$312,500 were subscribed by L1 Capital Global Opportunities Master Fund ("L1").  Instead of issuing new shares to L1, the Company entered into a share loan agreement with a share-provider on 27 December 2024 with a set-up fee of 5,000,000 shares of the Company and an interest rate of 8.5% per annum (payment in shares). 

-       US$252,237 represents the total amount of share loan set up fees and interest payable to share-provider as of the 30 Jun 2025.

Note 7: ISSUED CAPITAL

At the shareholders' meetings, each ordinary share gives entitlement of one vote.

NOTE 8: RESERVES

Analysis of Reserves

NOTE 9: SHARE-BASED PAYMENT PLANS

No performance rights were granted to staff during the period.

Note 10: SEGMENT INFORMATION

The Group has recognised the following amounts relating to revenue in the statement of profit or loss.

Note 11: Contingent Liabilities

PT Investasi Mandiri has received tax assessments amounting to over USD1 million, which are being challenged through appropriate legal channels, with grounds of appeal already submitted to the court.  Tax consultant is in an opinion that the potential outflow of resources and its timing are uncertain as tax cases might take a few years to a final assessment.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION

This Announcement contains forward-looking statements and forward-looking information within the meaning of applicable Australian and UK 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.