The milestones being achieved in 2024 continue for PYX Resources (LSE: PYX | NSX: PYX) as the developer of the world's third largest publicly listed zircon producer by resource, announces its Mineral Separation Plant has now been connected to the local electricity grid, drastically reducing energy costs and significantly expanding operating margins.
The connection in Central Kalimantan also reduces the Company’s Carbon footprint, significantly contributing to a more sustainable operation.
Chairman and chief executive, Oliver Hasler outlined the capex to connect the plant to the grid was less than $130k to deliver monthly energy savings estimated to be in the region of a whopping 80%, with payback expected within just six months.
However, it took a year for PYX’s plant to be connected to the grid as the plant is rather remote and this was the first connection of its kind for the State Electricity company, which is now promising a 99% uptime guarantee.
Furthermore, less downtime means an increase in volumes at the plant and looking ahead, Hasler says this will assist the next tranche of milestones and commented; “Over the next two months we should show that we have a drastic increase of our volumes and with the increase of volume comes all the good things such as an increase of profitability. So, we expect to have a turning stone not only to have a positive underlying EBITDA but soon to be able to announce a true increase of our EBITDA.”
PYX Resources (PYX)