PYX Resources looking to expand production
Already producing zircon, PYX Resources now has a licence to produce ilmenite from its mineral sands mine in the Kalimantan region of Indonesia. IGTV caught up with the CEO, Oliver Hasler.
They discuss the outlook in the context of the recent share price performance. The company has £8 million on the balance sheet. What will it do with the cash? Listen in to the interview.
(AI Video Summary)
PYX Resources announces new licence to produce ilmenite
PYX Resources is a company that mines and sells valuable minerals called zircon and ilmenite. They have just announced their plan to sell ilmenite after getting a new license, and their revenue has increased by 24% compared to last year. Oliver Hasler, the CEO of PYX Resources, explains that they have a large mine that produces zircon and another one that has a lot of high-quality Zircon but is not yet in operation. Zircon is used in things like tiles, dinnerware, and even artificial teeth. It's also an important mineral for reducing carbon emissions.
PYX Resources chose to work in Indonesia because they have really good mineral sands that don't have a lot of unwanted stuff in them. They have all the necessary permits and have recently made their first export of ilmenite, mainly to China. Ilmenite is used to make paint and also has other uses like in welding rods and making airplanes.
Even though Covid-19 has been difficult for many businesses, PYX Resources has actually done well financially. Their sales volume has gone up by 24% and they keep making money consistently. They also have a good amount of cash on hand, almost $8 million, and no debt.
Plans for the future
PYX Resources plans to keep growing and make things more efficient by doing their own mining instead of hiring other companies. They are also open to buying other mines and expanding in Indonesia. There is a big demand for zircon, especially in China, but India is also becoming an important market for PYX Resources.
Hasler admits that the company's stock market price doesn't always show how well the company is doing. However, investment banks think the company is worth a lot more, so there could be a good opportunity for long-term investors.
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