PYX Resources Ltd (LSE:PYX, NSX:PYX) said the current surging price of zircon had set the base for strong growth in business for years to come.
Prices for the industrial metal have more than doubled over the past 12 months and revenues at the UK-standard listed miner jumped 39% to US$12.4mln in the year to end-December 2021.
"I am very pleased with the strong progress made in such a challenging year as 2021, setting the base for strong growth in the coming years,” said Oliver B Hasler, the miner’s chairman and chief executive.
Full-year 2021 sales of zircon increased 2% to 6,855 tonnes with production volumes up by 10% to 7,233 tonnes.
Zircon is traditionally the highest priced of the mineral sands and has risen by more than US$1,000 per tonne over the past 12 months.
PYX added that “triggered by increased demand, lack of supply and low inventories, PYX delivered four premium zircon price rises during 2021, with the latest pricing exceeding US$2,800 per tonne”.
The fourth quarter was especially strong, said the group, which has its assets on the island of Kalimantan in Indonesia, with production up by 33% and tonnes sold rising by 13%.
Orders are also running at the highest levels since production started in 2015, said the statement, as a result of "PYX's superior quality, the unique whiteness of Kalimantan zircon and rapid growth in the Chinese market".
Losses for the year dropped to US$4.3mln from US$13.8mln due to the improvement in trading.