PYX Resources Ltd (LSE:PYX, NSX:PYX) said it has increased production volumes and started producing rutile and ilmenite by-products at its Mandiri mine in Indonesia.
Prices for the company’s premium zircon have further increased to US$2,749 per tonne over the first half of 2022, a 92% increase on the previous year.
The London and Sydney-listed company said it boosted mineral sands production 163% to 9.2kt after starting production of titanium dioxide (TiO2) feedstocks.
Overall sales volume grew 19% to 3.9kt amid logistics delays, it added.
Premium zircon production increased 23% and the company increased its finished goods inventories to 5.8kt as a result of the start of rutile and ilmenite production and limited freight availability at the end of June.
Oliver Hasler, the company’s chairman and chief executive, said he was "I am very pleased with our achievements during HY 2022.
“We have increased our production volumes and started producing rutile and ilmenite by-products at our mine.
“The mineral sands industry is experiencing a strong upcycle with prices driven by supply-demand fundamentals. This was particularly evident, during last month's metals price crash, where mineral sand prices remained unaffected, despite a significant crash in most other metals.
“We are optimistic about the second half of the year and remain well placed to deliver on our strategic plan and benefit from the strength and continued rise of the mineral sands prices.”
PYX said demand for its products continued to be strong, PYX said, adding that it continued to diversify its sales into different countries and industries, including adding customers in Spain, USA and UK in the last six months as it seeks to limit its exposure to potential customer disruptions amid geopolitical issues.
Zircon is required in various energy transition, including solar cells, nuclear energy, and catalysis.