WH Ireland has set PYX Resources PLC’s target price at 129p, with the broker believing it is entering a “significant growth stage.”
With its two projects in Indonesia - Mandiri and Tisma - PYX has the second-largest zircon resource of any producer in the world.
At the Madiri site, the dual-listed listed company has a high-margin operation, producing more than 65.5% premium zircon, which it “successfully markets and sells to high-tech buyers.”
The analysts noted that the company has increased the price of its premium Zircon by 135% in the last 14 months up to US$3,100/t.
Given the robust market, the broker forecasts the firm to deliver on its goal of increasing premium zircon production by 7,000t per year to 200,000t per year by the end of the decade.
Shares are currently trading at 69.2p.