PYX Resources Limited

Earnings Release • Sep 13, 2022

National Storage Mechanism | Additional information

RNS Number : 2393Z

PYX Resources Limited

13 September 2022

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, JAPAN OR THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH THE RELEASE, PUBLICATION OR DISTRIBUTION OF THIS ANNOUNCEMENT WOULD BE UNLAWFUL.  THE COMMUNICATION OF THIS ANNOUNCEMENT IS NOT BEING MADE, AND HAS NOT BEEN APPROVED, BY AN AUTHORISED PERSON FOR THE PURPOSES OF SECTION 21 OF THE UK FINANCIAL SERVICES AND MARKETS ACT 2000.

PYX Resources Limited / EPIC: PYX / Market: Standard / Sector: Mining

13th September 2022

PYX Resources Ltd

("PYX" or the "Company")

Half Year 2022 Results

Positive EBITDA from Operations & 128% Revenue Growth

HIGHLIGHTS

·    128% increase in revenue growth to US$10.6 million

·    92% increase in premium zircon realised prices to US$2,749 per tonne

·    163% uplift in total production after starting production of titanium dioxide minerals

·    19% growth in premium zircon sales volumes and 23% increase in premium zircon production

·    Achieved positive underlying EBITDA with limited negative operating cash flow

·    Maintained debt free status and strengthened cash position to US$7.7 million

·    Continued diversification of sales into different countries and industries including high-tech application

·    Strong industry up-cycle to continue through 2022, representing a great opportunity for PYX to boost capacity and grow market share

PYX Resources Ltd (PYX or the Company) (NSX: PYX | LSE: PYX), the world's second largest publicly listed zircon producer by zircon resources1, is pleased to announce its results for the six months ended 30 June 2022 ("H1 2022").

The Company performed strongly in the first half of the year due to a boost in premium zircon, rutile and ilmenite production, sales volume and ongoing price increases; accordingly, H1 2022 has seen PYX deliver a 128% increase in revenue growth to US$10.6 million.

Furthermore, PYX produced 9.2kt in total and sold 3.9kt of premium zircon, up 163% and 19% year-on-year ('YoY') respectively, and increased its zircon production 23%, with average realised sales price up 92% to US$2,749 per tonne.  The Company also strengthened its finished goods inventories to 5.8kt (2021: 0.3 kt) as a result of the start of rutile and ilmenite production and limited freight availability at the end of June 2022.

With a premium zircon production of 2,623 tonnes and sales of 2,122 tonnes Q2 2022 showed to be the best quarter the company has had so far, resulting in a record revenue for the months of April to June of this year.

In December 2021, PYX announced that it had increased its capacity at its Minerals Separation Plant by 33% to 24ktpa with the additional 6ktpa capacity being utilised to start production of titanium dioxide minerals (rutile and ilmenite) during H1 2022. Tailings accumulated over the years were used to feed the process, which resulted in an ilmenite inventory of 4.6kt tonnes and rutile of 318 tonnes. Moving from sole premium zircon production to include rutile and ilmenite reduced the premium zircon potential output for H1 2022, but PYX believes it will benefit the total operation and margins in the long run.

June 2022 saw industrial metals markets come under pressure and experience the most significant price decline since 20082. The Company believes the trigger was not only the equity markets correction but the uncertainty surrounding the possibility of an upcoming of global recession, high inflation, higher interest rates, and the concern that the war in Ukraine might spread to other countries. In the period from  1 January 2022 to 30 June 2022, copper price as an example, had a -14.9% correction to US$8,245 per tonne and tin price fell sharply by -32.2% to US$26,689 per tonne3. During the same period, zircon prices (as measured by Asian Metal) showed an increase, with South African and Australian zircon increasing from US$1,860 per tonne to US$2,110 per tonne4 and PYX's premium zircon rising from US$2,450 per tonne to US$2,766 per tonne (being the Company's average realised prices for the month of June 2022 compared with the prices for January 2022).  The Directors believe this illustrates that zircon prices are more driven by physical trade, which is impacted by a strong demand/supply imbalance, than by geopolitical concerns.

Customer demand continued to be strong, with particular interest being shown in PYX's premium zircon due to its low aluminium oxide of under 0.2% and uranium and thorium content of less than 500ppm. PYX has continued to diversify its sales into different countries and industries, adding customers in Spain, the USA, and the UK in the last six months as the Company seeks to limit its exposure to potential customer disruptions amid geopolitical issues.

The Company is also seeing a diversification in end users for its products. Traditionally, zircon and its derivatives, which have remarkable properties including opacity/whiteness, hardness, low thermal expansion, high melting point, low thermal conductivity, chemical inert, and low neutron absorption, were principally used in ceramics manufacturing, but are now being utilised for a wider variety of applications including high tech applications that support the green transition.  These include additive manufacturing, semiconductors, implants, solar cells, fuel cells and batteries, which are growing at circa 10 times faster than traditional uses, as well as electronics, nuclear fuel rods, paper, brake pads, investment casting, and catalysts.  With this background, as the world moves toward decarbonisation, the demand for zircon is expected to continue to increase; notably, the Australian Government classes zircon, rutile, and ilmenite, as crucial minerals vital for the economic wellbeing of the world's major and emerging economies5.

PYX achieved a positive underlying EBITDA of US$90k during H1 2022, compared to a negative EBITDA of US$661k in H1 2021. The Company's net loss after tax for the period totalled US$3.6 million compared to a loss of US$1.2 million in 2021, mainly as a result of share grants with no effect on cash, loss on fair value change of financial instrument, improvements to operations and capex to increase extraction capacity and production and sales volumes; PYX's economics will improve significantly as a result of these investments. 

The resulting cash and cash equivalent balance for the period was US$7.7 million, up from US$6.6 million at the end of December 2021. The increase was due mainly to the March US$4.5 million fundraise from L1 Capital Global Opportunities Master Fund, less the capital expenditures required to produce rutile and ilmenite and the increased working capital requirements resulting from the production and inventory increase. PYX remains debt free, as planned.

US$	H1 2022	H1 2021	% change
Sales revenue	$               10,645,890	$                 4,660,223	128%
Cash cost of production	$               (7,333,047)	$               (4,008,639)	-83%
EBITDA	$               (3,486,822)	$               (1,254,832)	-178%
EBIT	$               (3,598,520)	$               (1,346,969)	-167%
Net loss before tax	$               (3,613,644)	$               (1,352,830)	-167%
Net loss after tax (NLAT)	$               (3,623,751)	$               (1,194,190)	-203%
Underlying EBITDA	$                       90,008	$                  (660,567)	114%
US$	At 30 Jun 2022	At 31 Dec 2021	% change
Cash	$                 7,653,070	$                 6,624,364	15.5%
Total assets	$               87,873,627	$               84,796,550	3.6%
Total liabilities	$               (3,951,428)	$               (1,759,899)	-79.3%

Results Summary

1According to publicly available information during the financial year ended December 2020

2Refer article “Industrial Metals see biggest Q2 drop since 2008 as sentiment collapses – ANZ” by Anna Golubova, Monday July 11, 2022, Kitco News www.kitco.com

3London Metal Exchange – LME Copper Official Prices and LME Tin Official Prices (lme.com)

4Prices sourced from Asian Metal (asianmetal.com)

5Australian Government, Australian Critical Minerals Prospectus 2021 https://bit.ly/3qfYInX

Commenting on the Company's achievements in H1 2022, PYX Resources' Chairman and Chief Executive Officer, Oliver B. Hasler, said:

"The six-month review period has not only seen us lift revenue by 128% to US$10.6 million but also post a material uplift in our underlying EBITDA that moved into positive territory for the first time as planned. Together with the strengthening of zircon prices, the other key catalyst behind the step-up in performance has been the expansion in production capacity at Mandiri from 18ktpa to 24ktpa, which has enabled us to diversify our offering to include rutile and ilmenite; ultimately, this will lift to 48ktpa as of our 5-year plan."

"Looking forward, I believe that the Company is well positioned to enter a period of sustained growth in financial performance. With a strong balance sheet and buoyant market, we anticipate delivering on our objective to develop the Group into one of the most prominent mineral sands producers globally, one which benefits all stakeholders including the local communities around which our business is centred, and I look forward to providing further updates on progress made."      

PYX Cares Programme

PYX continued with its PYX Cares programme based on five pillars: People, Planet, Prosperity, Peace, and Partnership and subscribed to the UN Global Compact. Working with local communities in Kalimantan, to learn what they need to ensure it leaves a lasting legacy to the region and its people, in 2022, PYX realised projects on education, clean water and sanitation, viable employment, and building partnerships to further these goals.

Furthermore, PYX commenced several environmental projects including a collaboration with an off-site Orangutan Sanctuary in Indonesia and a reforestation programme, which will see the Company plant 10,000 trees on its tenement area.

PYX also continued its Covid-19 vaccination programme; as of 31 August, 100% of its employees had received the first two vaccines and 86% had received the third. Additionally, for the second consecutive year, PYX has taken part in National Blood Donor Day, using the banner 'Give Blood, Save Life'.  

2022 Half Year Results Conference Call

A conference call for equity market participants will take place on Tuesday 20 September 2022 at 6pm AEST / 9am BST. All participants wishing to listen in to the call must pre-register before they can receive the dial-in number. Please register here: https://bit.ly/3RDNSmS.  

PYX's Zircon, Rutile, and Ilmenite

*** ENDS ***

For more information:

PYX Resources Limited Oliver B. Hasler, Chairman and Chief Executive Officer	T: +852 3519 2860 E: [email protected]
WH Ireland Limited (Financial Adviser and Joint Broker) Harry Ansell / Katy Mitchell / Megan Liddell	T: +44 (0)20 7220 1666
St Brides Partners Ltd (Financial PR) Ana Ribeiro / Isabel de Salis / Isabelle Morris	E: [email protected]

About PYX Resources

PYX Resources Limited (NSX: PYX | LSE: PYX) is a producer of premium zircon dual listed on the National Stock Exchange of Australia and on the Main Market of the London Stock Exchange. PYX's key deposits, Mandiri and Tisma, are large-scale, near-surface open pit deposits both located in the alluvium-rich region of Central Kalimantan, Indonesia. PYX, whose Mandiri deposit has been in production since 2015, is the 2nd largest publicly traded producing mineral sands company by zircon resources globally. Determined to mine responsibly and invest in the wider communities where we operate, PYX is committed to fully developing its Mandiri and Tisma deposits, with the vision to consolidate the mineral sands resources in Kalimantan and explore and acquire mineral sands assets in Asia and beyond.

CONSOLIDATED STATEMENT of Profit or Loss and Other comprehensive Income

FOR THE HALF-YEAR ENDED 30 JUNE 2022

			Consolidated Group
		Note	Half-year Ended 30 June 2022	Half-year Ended 30 June 2021
---	---	---	---	---
			US$	US$
---	---	---	---	---
Revenue		2	10,645,890	4,660,223
Cost of sales		3	(7,403,682)	(4,059,354)
Selling and distribution expenses			(970,335)	(354,684)
Corporate and administrative expenses			(4,754,501)	(1,488,908)
Foreign exchange loss			(319,902)	(15,781)
Loss on FV change of financial instrument			(795,990)	-
Listing costs			-	(206)
Finance costs			(15,124)	(5,861)
Other expenses			-	(88,259)
Loss before income tax			(3,613,644)	(1,352,830)
Income tax benefit			(10,107)	158,640
Net loss for the period			(3,623,751)	(1,194,190)
Other comprehensive income
Items that will be reclassified subsequently to profit or loss
when specific conditions are met
Exchange differences on translating foreign operations, net
of tax			(55,457)	59,582
Total comprehensive income for the period			(3,679,208)	(1,134,608)
Net loss attributable to:
-	owners of the Parent Entity		(3,729,389)	(637,735)
-	non-controlling interest		105,638	(556,455)
			(3,623,751)	(1,194,190)
Total comprehensive income attributable to:
-	owners of the Parent Entity		51,170	13,791
-	non-controlling interest		(106,627)	45,791
			(55,457)	59,582
Loss per share
	Basic loss per share (US$ cents per share)		(0.84)	(0.20)
	Diluted loss per share (US$ cents per share)		(0.81)	(0.19)
The accompanying notes form part of these financial statements.

CONSOLIDATED Statement of Financial Position AS AT 30 JUNE 2022
		Consolidated Group
---	---	---	---	---
	Note	As at 30 June 2022	As at 31 December 2021
---	---	---	---	---
		US$	US$
---	---	---	---	---
ASSETS
CURRENT ASSETS
Cash and cash equivalents		7,653,070	6,624,364
Trade and other receivables		462,440	968,915
Advance to suppliers		753,743	337,214
Prepayments and deposits		93,850	68,484
Prepaid tax		358,336	210,513
Inventories		1,676,936	530,716
TOTAL CURRENT ASSETS		10,998,375	8,740,206
NON-CURRENT ASSETS
Right of use assets		22,982	21,595
Property, plant and equipment	8	3,081,305	2,228,372
Deferred tax assets		445,297	471,811
Intangible assets	9	73,325,668	73,334,566
TOTAL NON-CURRENT ASSETS		76,875,252	76,056,344
TOTAL ASSETS		87,873,627	84,796,550
LIABILITIES
CURRENT LIABILITIES
Trade and other payables		3,951,428	1,758,140
Lease liabilities		-	1,759
TOTAL CURRENT LIABILITIES		3,951,428	1,759,899
TOTAL LIABILITIES		3,951,428	1,759,899
NET ASSETS		83,922,199	83,036,651

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2022

		Consolidated Group
	Note	As at 30 June 2022	As at 31 December 2021
---	---	---	---	---
		US$	US$
---	---	---	---	---
EQUITY
Issued capital	5	100,038,400	96,651,080
Reserves	6	5,111,367	3,882,761
Accumulated losses		(20,285,319)	(16,555,930)
Equity attributable to owners of the Parent Entity		84,864,448	83,977,911
Non-controlling interest		(942,249)	(941,260)
TOTAL EQUITY		83,922,199	83,036,651
The accompanying notes form part of these financial statements.

			CONSOLIDATED STATEMENT OF CHANGES IN EQUITY for the half-year ended 30 JUNE 2022
Consolidated Group				Note			Ordinary Share Capital	Share-based payment reserve	Accumulated losses	Foreign currency translation reserve	Options reserve	Subtotal		Non-controlling Interests	Total
							US$	US$	US$	US$	US$	US$		US$	US$
Balance at 1 January 2021							14,873,158	2,804,535	(12,877,048)	(22,084)	-	4,778,561		(257,712)	4,520,849
Comprehensive income
Loss for the period							-	-	(637,735)	-	-	(637,735)		(556,455)	(1,194,190)
Other comprehensive income for the period							-	-	-	13,791	-	13,791		45,791	59,582
Total comprehensive income for the period							-	-	(637,735)	13,791	-	(623,944)		(510,664)	(1,134,608)
Transactions with owners, in their capacity as owners, and other transfers
Shares issued during the period							81,777,922	-	-	-	-	81,777,922		-	81,777,922
Non-controlling interests on acquisitions							-	-	-	-	-	-		(61,957)	(61,957)
Share based payments							-	566,725	-	-	-	566,725		-	566,725
Issue of shares to employees							-	(959,174)	-	-	-	(959,174)		-	(959,174)
Total transactions with owners and other transfers							81,777,922	(392,449)	-	-	-	81,385,473		(61,957)	81,323,516
Balance at 30 June 2021							96,651,080	2,412,086	(13,514,783)	(8,293)	-	85,540,090		(830,333)	84,709,757
Balance at 1 January 2022							96,651,080	3,906,968	(16,555,930)	(24,207)	-	83,977,911		(941,260)	83,036,651
Comprehensive income
Loss for the period							-	-	(3,729,389)	-	-	(3,729,389)		105,638	(3,623,751)
Other comprehensive income for the period							-	-	-	51,170	-	51,170		(106,627)	(55,457)
Total comprehensive income for the period							-	-	(3,729,389)	51,170	-	(3,678,219)		(989)	(3,679,208)
Transactions with owners, in their capacity as owners, and other transfers
Shares issued during the period							3,387,320	-	-	-	-	3,387,320		-	3,387,320
Options reserve							-	-	-	-	411,732	411,732		-	411,732
Share based payments							-	1,889,090	-	-	-	1,889,090		-	1,889,090
Issue of shares to employees							-	(1,123,386)	-	-	-	(1,123,386)		-	(1,123,386)
Total transactions with owners and other transfers							3,387,320	765,704	-	-	411,732	4,564,756		-	4,564,756
Balance at 30 June 2022							100,038,400	4,672,672	(20,285,319)	26,963	411,732	84,864,448		(942,249)	83,922,199

CONSOLIDATED STATEMENT of Cash Flows FOR THE HALF-YEAR ENDED 30 JUNE 2022
	Consolidated Group
---	---	---
	Half-year Ended 30 June 2022	Half-year Ended 30 June 2021
---	---	---
	US$	US$
---	---	---
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers	11,050,784	4,614,853
Payments to suppliers and employees	(12,954,223)	(5,205,032)
Other income	-	(88,259)
Interest received	148	96
Finance costs	(15,272)	(5,957)
Income taxes refunded/(paid)	9,674	(55,141)
Net cash used in operating activities	(1,908,889)	(739,440)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment	(943,247)	(568,914)
Payments for acquisitions costs, net of cash acquired	-	(24,275)
Net cash used in investing activities	(943,247)	(593,189)
CASH FLOWS FROM FINANCING ACTIVITIES
Net proceeds from placement funds	4,383,822	8,327,092
Costs associated with shares issues	-	(769,914)
Costs associated with option issues	(250,037)	-
Receipts/(Advances) of employee loans	4,092	(6,376)
Repayment of lease liabilities	(15,631)	(11,415)
Net cash generated by financing activities	4,122,246	7,539,387
Net increase in cash held	1,270,110	6,206,758
Cash and cash equivalents at beginning of period	6,624,364	3,509,395
Effect of foreign exchange rate changes	(241,404)	1,488
Cash and cash equivalents at end of period	7,653,070	9,717,641
The accompanying notes form part of these financial statements.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 30 JUNE 2022
Note 1: Summary of Significant accounting policies
---	---	---	---	---	---
a.	Basis of Preparation
	These general purpose interim financial statements for half-year reporting period ended 30 June 2022 have been prepared in accordance with requirements of the Corporations Act 2001 and Australian Accounting Standard AASB 134: Interim Financial Reporting. The Group is a for-profit entity for financial reporting purposes under Australian Accounting Standards.
	This interim financial report is intended to provide users with an update on the latest annual financial statements of Pyx resources Limited and its controlled entities (referred to as the "Consolidated Group" or "Group"). As such, it does not contain information that represents relatively insignificant changes occurring during the half-year within the Group. It is therefore recommended that this financial report be read in conjunction with the annual financial statements of the Group for the year ended 31 December 2021, together with any public announcements made during the following half-year.
	These interim financial statements were authorised for issue on 12 September 2022.
b.	Accounting Policies
	The same accounting policies and methods of computation have been followed in this interim financial report as were applied in the most recent annual financial statements.
	The Group has considered the implications of new or amended Accounting Standards, but determined that their application to the financial statements is either not relevant or not material.
Note 2: Revenue and Other Income
		The Group has recognised the following amounts relating to revenue in the statement of profit or loss.
				Half-year Ended	Half-year Ended
				30 June 2022 US$	30 June 2021 US$
	Revenue from contracts with customers			10,645,890	4,660,223
	Revenue from contracts with customers
	Revenue from contracts with customers represents the amounts received and receivable for production and distribution of premium Zircon.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE HALF-YEAR ENDED 30 JUNE 2022

NOTE 3: LOSS FOR THE PERIOD	Consolidated Group
	Half-year Ended 30 June 2022	Half-year Ended 30 June 2021
	US$	US$

Loss before income tax from continuing operations includes the following specific expenses:
Expenses
Cost of sales				7,403,682		4,059,354
Interest expense on financial liabilities not classified as at fair value through profit or loss:
-	unrelated parties			15,233		4,676
Finance charges				39		1,281
Less: Interest income				(148)		(96)
Net interest expense				15,124		5,861
Employee benefits expense:
-	Staff salaries and benefits			183,163		163,686
-	Share based payments			1,889,090		566,725
Rental expense on operating leases
	short- term lease expense			2,574		2,421
Depreciation				111,698		92,137

---	---	---

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE HALF-YEAR ENDED 30 JUNE 2022
Note 4: Contingent Liabilities
---	---
	There has been no change in contingent liabilities since the last reporting period.

Note 5: ISSUED CAPITAL

							Consolidated Group
								Half-year Ended			Year Ended
								30 June 2022 US$			31 December 2021 US$
		436,699,484 (2021: 429,520,222) fully paid ordinary shares						100,038,400			96,651,080
								100,038,400			96,651,080
						Consolidated Group
				2022				2021
				No. of shares		Contributed equity		No. of Shares		Contributed equity
						US$				US$
a.	Ordinary Shares
	At the beginning of the reporting period			429,520,222		96,651,080		267,777,037		14,873,158
	Movement :
			Year 2021	-		-		161,743,185		81,777,922
			17 January 2022	2,182,894		586,762		-		-
			21 March 2022	3,000,000		2,513,971		-		-
			21 March 2022	1,996,368		536,624		-		-
			Share issue costs	-		(250,037)				-
	At the end of the reporting period			436,699,484		100,038,400		429,520,222		96,651,080

	On 17 January 2022, 2,182,894 shares were issued on conversion of 2,182,894 Performance Rights to Shares on achievement of milestones.
	On 21 March 2022, the Company issued initial 3,000,000 shares valued at US$2,513,971, net of costs and 2,083,431 unlisted options to L1 Capital Global Opportunities Master Fund ("L1"). These initial shares and unlisted options were issued in connection with the advance funds of US$4,383,822 received from L1 as a prepayment for US$5 million worth of PYX shares. These advance funds will be converted to ordinary shares of the Company within 24 months after the funding date. The unconverted amount of the advance funds is reported net of the value of initial shares and included in trade and other payables in the consolidated statement of financial position. On 21 March 2022, 1,996,368 shares were issued on conversion of 2,675,943 Performance Rights to Shares on achievement of milestones. At the shareholders' meetings each ordinary share is entitled to one vote when a poll is called; otherwise, each shareholder has one vote on a show of hands.
	NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 30 JUNE 2022
			30 June 2022		31 December 2021
			No.		No.
b.	Unlisted options
	At the beginning of the reporting period		-		-
	21 March 2022		2,083,431		-
			2,083,431		-
	During the period, 2,083,431 unlisted options were issued to L1 Capital Global Opportunities Master Fund, pursuant to the Share Placement Agreement. Options are exercisable at any time prior to their expiration, being 21 March 2025. These options are valued at US$1.32.
c.	Capital Management
	Management controls the capital of the Group in order to maintain a sustainable debt to equity ratio, generate long-term shareholder value and ensure that the Group can fund its operations and continue as a going concern.
	Management effectively manages the Group's capital by assessing the Group's financial risks and adjusting its capital structure in response to changes in these risks and in the market. These responses include the management of debt levels, distributions to shareholders and share issues.
					Consolidated Group
					Half-year Ended	Year Ended
					30 June 2022 US$	31 December 2021 US$
	Total borrowings				-	1,759
	Less cash and cash equivalents				7,653,070	6,624,364
	Net cash/(debt)				7,653,070	6,622,605
	Total equity				83,922,199	83,036,651
	Total capital				83,922,199	83,036,651
	Gearing ratio				0.000%	0.002%

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE HALF-YEAR ENDED 30 JUNE 2022

NOTE 6: RESERVES
a.	Share-based Payment Reserve The share-based payment reserve records items recognized as expenses on valuation of share-based payments.
b.	Options Reserve The options reserve records costs associated with the option issue.
c.	Foreign Currency Translation Reserve
	The foreign currency translation reserve records exchange differences arising on translation of the foreign controlled subsidiaries.
d.	Analysis of Reserves
						Consolidated Group
						Half-year Ended		Year Ended
						30 June 2022		31 December 2021
						US$		US$
		Share-Based Payment Reserve
		At the beginning of the reporting period				3,906,968		2,804,535
		Share-based payments				1,889,090		2,061,607
		Issue of shares to employees				(1,123,386)		(959,174)
		Closing balance in share-based payment reserve				4,672,672		3,906,968
		Options Reserve
		At the beginning of the reporting period				-		-
		Options reserve				411,732		-
		Closing balance in options reserve				411,732		-
		Foreign Currency Translation Reserve
		At the beginning of the reporting period				(24,207)		(22,084)
		Exchange differences on translation of foreign operations				51,170		(2,123)
		Closing balance in foreign currency translation reserve				26,963		(24,207)
		Total				5,111,367		3,882,761

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE HALF-YEAR ENDED  30 JUNE 2022

NOTE 7: SHARE-BASED PAYMENT PLANS

Performance Rights

The following performance rights were granted to Director and staff during the period.

Number	Grant date	Expiry date	Share price at grant date
3,500,000	18/05/2022	31/12/2024	A$1.15
3,500,000	18/05/2022	31/12/2024	A$1.15
3,500,000	18/05/2022	31/12/2024	A$1.15

During the half year, 4,858,837 performance rights were exercised and converted into 4,179,262 shares

NOTE 8: PROPERTY, PLANT, AND EQUIPMENT

Consolidated Group

Half-year Ended

Year Ended

30 June 2022

31 December 2021

US$

US$

Land and Buildings

Freehold land at cost

211,839

196,989

Total land

211,839

196,989

Buildings at cost

878,333

826,936

Accumulated depreciation

(197,584)

(176,542)

Total buildings

680,749

650,394

Total land and buildings

892,588

847,383

Construction in Progress

Construction in progress at cost

1,406,813

659,605

Total Construction in Progress

1,406,813

659,605

Plant and Equipment

Plant and equipment at cost

946,109

818,856

Accumulated depreciation

(240,453)

(183,903)

Total plant and equipment

705,656

634,953

Motor Vehicles

Motor vehicles at cost

81,161

79,758

Accumulated depreciation

(26,465)

(15,777)

Total motor vehicles

54,696

63,981

Furniture and Fittings

Furniture and fittings at cost

31,805

30,668

Accumulated depreciation

(10,253)

(8,218)

Total furniture and fittings

21,552

22,450

Total property, plant and equipment

3,081,305

2,228,372

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE HALF-YEAR ENDED 30 JUNE 2022

NOTE 9: INTANGIBLE ASSETS
			Consolidated Group
			Half-year Ended	Year Ended
			30 June 2022	31 December 2021
			US$	US$
	Goodwill:
	Cost		7,774	7,774
	Accumulated impairment losses		-	-
	Net carrying amount		7,774	7,774

	Mining License Renewal:
	Cost		88,984	88,984
	Accumulated amortization		(31,143)	(22,245)
	Net carrying amount		57,841	66,739
	Exploration asset
	Cost		73,260,053	73,260,053
	Net carrying amount		73,260,053	73,260,053
	Total intangible assets		73,325,668	73,334,566

		Goodwill	Mining License	Exploration asset	Total
		US$	US$	US$	US$
	Consolidated Group:
	Half-year ended 30 June 2022
	Balance at the beginning of the year	7,774	66,739	73,260,053	73,334,566
	Amortisation	-	(8,898)	-	(8,898)
	Closing value at 30 June 2022	7,774	57,841	73,260,053	73,325,668

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE HALF-YEAR ENDED  30 JUNE 2022

Note 10: INTERESTS IN SUBSIDIARIES

Name of Entity		Equity Interest				Proportion of Non-Controlling Interest				Contribution to Net Profit/(Loss) before taxation
2022 %		2021 %		2022 %		2021 %		2022 US$		2021 US$
Takmur Pte Ltd.		100		100		-		-		(11,702)		(22,250)
PT Andary Usaha Makmur		99.5		99		0.5		1		(142,681)		(94,016)
PT Investasi Mandiri*		-		-		100		100		128,139		(692,421)
Tisma Development (HK) Ltd.		100		100		-		-		8,214		4,392
PT Tisma Investasi Abadi		99		99		1		1		(1,719)		(524)
PT Tisma Global Nusantara**		-		-		100		100		(11,663)		3,664

* This entity is accounted for as a controlled entity on the basis that control was obtained through the

execution of an exclusive operations and management agreement between PT Andary Usaha Makmur and

PT Investasi Mandiri and was for nil purchase consideration.

** This entity is accounted for as a controlled entity on the basis that control was obtained through the

execution of an exclusive operations and management agreement between PT Tisma Investasi Abadi and

PT Tisma Global Nusantara and was for nil purchase consideration.

The non-controlling interests in PT Andary Usaha Makmur and PT Tisma Global Nusantara are not material to the Group.

Subsidiary financial statements used in the preparation of these consolidated financial statements have

also been prepared as at the same reporting date as the Group's financial statements.

DIRECTORS' DECLARATION
In accordance with a resolution of the directors of Pyx resources Limited, the directors of the Entity declare that:
1.	The financial statements and notes, as set out on pages 8 to 20, are in accordance with the Corporations Act 2001, including:
	a.	complying with Accounting Standard AASB 134: Interim Financial Reporting; and
	b.	giving a true and fair view of the Consolidated Group's financial position as at 30 June 2022 and of its performance for the half-year ended on that date.
2.	In the directors' opinion there are reasonable grounds to believe that the Entity will be able to pay its debts as and when they become due and payable.
Oliver B. Hasler Chairman and Chief Executive Officer
Hong Kong
Date: 12 September 2022

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION

This Announcement contains forward-looking statements and forward-looking information within the meaning of applicable Australian and UK securities laws, which are based on expectations, estimates and projections as of the date of this Announcement.

This forward-looking information includes, or may be based upon, without limitation, estimates, forecasts and statements as to management's expectations with respect to, among other things, the timing and amount of funding required to execute the Company's exploration, development and business plans, capital and exploration expenditures, the effect on the Company of any changes to existing legislation or policy, government regulation of mining operations, the length of time required to obtain permits, certifications and approvals, the success of exploration, development and mining activities, the geology of the Company's properties, environmental risks, the availability of labour, the focus of the Company in the future, demand and market outlook for precious metals and the prices thereof, progress in development of mineral properties, the Company's ability to raise funding privately or on a public market in the future, the Company's future growth, results of operations, performance, and business prospects and opportunities. Wherever possible, words such as "anticipate", "believe", "expect", "intend", "may" and similar expressions have been used to identify such forward-looking information.

Forward-looking information is based on the opinions and estimates of management at the date the information is given, and on information available to management at such time. Forward looking information involves significant risks, uncertainties, assumptions, and other factors that could cause actual results, performance, or achievements to differ materially from the results discussed or implied in the forward-looking information. These factors, including, but not limited to, fluctuations in currency markets, fluctuations in commodity prices, the ability of the Company to access sufficient capital on favourable terms or at all, changes in national and local government legislation, taxation, controls, regulations, political or economic developments in Indonesia and Australia or other countries in which the Company does business or may carry on business in the future, operational or technical difficulties in connection with exploration or development activities, employee relations, the speculative nature of mineral exploration and development, obtaining necessary licenses and permits, diminishing quantities and grades of mineral reserves, contests over title to properties, especially title to undeveloped properties, the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drill results and other geological data, environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins and flooding, limitations of insurance coverage and the possibility of project cost overruns or unanticipated costs and expenses, and should be considered carefully. Many of these uncertainties and contingencies can affect the Company's actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Company. Prospective investors should not place undue reliance on any forward-looking information.

Although the forward-looking information contained in this Announcement is based upon what management believes, or believed at the time, to be reasonable assumptions, the Company cannot assure prospective purchasers that actual results will be consistent with such forward-looking information, as there may be other factors that cause results not to be as anticipated, estimated or intended, and neither the Company nor any other person assumes responsibility for the accuracy and completeness of any such forward-looking information. The Company does not undertake, and assumes no obligation, to update or revise any such forward-looking statements or forward-looking information contained herein to reflect new events or circumstances, except as may be required by law.

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