PYX Resources Ltd (LSE:PYX, NSX:PYX) posted half-year results showing a 46% increase in underlying earnings as the cash cost of production per sales was reduced.
Premium zircon sales rose 34% to 5,200 tonnes on zircon production up 33% to 5,700 tonnes in the six months ended 30 June.
This, said chairman and chief executive Oliver B. Hasler, helped reduce the cash cost of production in US$ per tonne by 8% compared to the same period last year.
A 30% fall in the yearly average zircon price to US$1,927 per tonne meant sales revenue fell 6% to US$10 million.
Underlying profit (EBITDA) was negative at US$9.8 million and a net loss of US$9.98 million was recorded mainly due to a non-cash share-based payment provision of US$7.6 million and the non-cash loss on fair value change of financial instrument of US$1.2 million.
This had no effect on cash. The cash balance remained flat at US$7.3 million.
Excluding these movements, underlying EBITDA improved 46% to US$131,000.
Hasler hailed several milestones that were achieved during the period, being particularly proud of the operational achievements that resulted in a positive underlying EBITDA in less than two years since the company’s London listing and three years since the IPO in Australia.
"Looking ahead, PYX remains well positioned for growth with the award of the exploration and mining licence for Tisma and Mandiri's export licence for Rutile and Ilmenite, of which we have 8.5kt stockpiled and are ready to ship at the end of August 2023," he said.