PYX Resources Ltd on Friday reported a sharply lower loss as costs decreased substantially, as the company posted an optimistic outlook focused on ramping up production.
The Indonesia-focused zircon and mineral sands producer said pretax net loss narrowed to $136,124 in the first half of 2024 from $10.0 million a year ago.
Sales revenue declined 11% to $8.8 million from $10.0 million. The company however highlighted that it sold 9,500 kilotonnes of total mineral sands, up 84% from 5,200 a year ago.
The production of mineral sands declined by 16% to 5,700 kilo tonnes from 6,800 kilotonnes.
Notably, cost of sales decreased by 28% to $6.5 million from $9.1 million. Corporate and admin costs came in 31% lower, at $1.1 million from $1.6 million.
Cost regarding share-based payments came down to $4,031 from $7.6 million.
Looking ahead, Chair & Chief Executive Officer Oliver Hasler said: ‘Looking ahead, PYX remains bullish on the prospects for mineral sands, particularly premium zircon. The market dynamics continue to favour strong pricing driven by a supply-demand deficit. With a limited number of mines producing zircon and some of those nearing the end of their life, the pressure on the market to secure alternative supply sources will be intensifying in the future.’
He added: ‘We are optimistic that the operational improvements and efficiencies implemented on-site will begin to yield substantial benefits in the second half of the year. As we ramp up production and increase our sales volumes, we expect these efforts to enhance our financial performance and to strengthen our market position.’
PYX shares were 0.9% higher at 5.62 pence each on Friday morning in London.
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