PYX Resources Reports H1 2025 Losses Amid Indonesian Regulatory Suspension

Indonesia’s regulatory freeze hits PYX hard: what the H1 2025 results are telling us

PYX Resources has posted a painful set of half-year numbers after Indonesia suspended key mining approvals and export licences across the mineral sands sector. The company’s local subsidiaries had their RKAB licences halted along with 13 other zircon producers in Central Kalimantan, while PYX’s export licences for zircon, ilmenite and rutile were also put on ice.

RKAB is Indonesia’s mandatory annual Work Plan and Budget. Without it, miners cannot operate or export. PYX also confirms its IUP (mining licence) for the Mandiri deposit expired on 31 August 2025 and, given the uncertainty, renewal has been postponed – meaning Mandiri is temporarily off-line.

Operational reality: production paused, costs cut, royalties hiked

Management deliberately paused production in the first half of 2025. Three reasons are given: weak mineral sands prices, high third‑party mining costs, and a steep hike in regional royalties from approximately US$19 per tonne to US$59 per tonne (announced on 28 February 2025). On top of that, PYX received tax assessments totalling approximately US$2 million, which are being legally challenged.

The broad picture: operations and exports were suspended, cash preservation became the priority, and cost controls were tightened. Indonesia’s Minister of Energy and Mineral Resources has said the government will return to issuing RKAB from 2026, but the timing for PYX’s own approvals is not disclosed.

H1 2025 financials at a glance

With mining paused, the top line fell sharply. The company’s narrative says it did not generate revenue; however, the financial statements show US$256,094 of revenue, and Note 10 breaks this down as entirely from titanium dioxide, with no zircon revenue recorded.

Metric	HY 2025	HY 2024	% change
Sales revenue	US$256,094	US$8,830,830	-97%
EBITDA	(US$520,560)	US$22,824	-2,381%
Underlying EBITDA	(US$756,115)	US$731,996	-203%
Statutory net loss	(US$732,308)	(US$136,124)	-438%
Total comprehensive loss	(US$625,379)	(US$723,507)	n/a
Total mineral sands sold	1.0 kt	9.5 kt	-89%
Cash	US$5,052,892	US$7,569,323	-33%
Total assets	US$87,729,772	US$98,836,428	-11%
Total liabilities	(US$9,904,830)	(US$15,157,815)	-35%

Production metrics mirror the stoppage: zircon produced and sold were both nil (versus 4.5 kt last year). Total mineral sands sold were 1.0 kt, indicating sales from inventory rather than current production.

Cash, balance sheet and going concern

Cash at 30 June 2025 was US$5,052,892, broadly flat over the half after modest operating outflows of US$174,355 and US$91,512 in shareholder loans. Total liabilities were US$9,904,830, including US$5,656,349 due to shareholders. Notably, Edelweiss Partners Limited has confirmed it will not recall US$3,000,000 in the next 12 months and will continue short‑term support.

The directors prepared cash flow forecasts to September 2026 and state that additional funding is required from shareholder loans for the Group to actively explore and continue mining. In plain English: PYX is a going concern because of shareholder backing, but that support is essential. If support ceased or funding could not be raised, the going concern assumption would be in doubt.

Licences and regulatory timetable: what to watch

• RKAB suspension: Applies to all zircon producers in Central Kalimantan. Government comments suggest RKAB issuance will resume in 2026, but there is no PYX‑specific timeline.
• IUP at Mandiri: Expired on 31 August 2025. Renewal has been postponed due to uncertainty, leading to a temporary suspension of operations at Mandiri.
• Royalties: Increased from approximately US$19 per tonne to approximately US$59 per tonne. That materially alters project economics until prices or costs move the other way.
• Tax assessments: Approximately US$2 million under challenge. Outcome and timing are uncertain.

Why this matters for investors in PYX

PYX remains one of the larger publicly listed zircon resource holders, with two key deposits (Mandiri and Tisma) in Central Kalimantan. But for now the investment case hinges on regulatory clarity and cash preservation rather than volume growth.

On the positive side, liabilities are manageable, cash burn was limited in H1, and shareholder support is explicit. The company has pared back costs and is keeping sites in a state of readiness for when approvals return. Management continues to explore strategic fundraising options, which could bolster liquidity for a restart.

On the negative side, operations are suspended, royalty rates have jumped, zircon prices are weak, and there is an overhang from the tax assessments. The lapse of the Mandiri IUP and the sector‑wide RKAB halt create a hard stop on production and exports. Until those points are resolved, earnings power is largely theoretical.

Catalysts and risks: near-term and medium-term

Potential catalysts

• Progress on RKAB reinstatement and any interim guidance from the Indonesian authorities.
• Mandiri IUP renewal and clarity on timing for operations to resume.
• Resolution – or reduction – of the US$2 million tax assessments.
• Stronger mineral sands pricing, which would help offset the higher royalty burden.

Key risks

• Prolonged regulatory suspension into 2026 and beyond.
• Further cash outflows that necessitate additional funding – potentially dilutive if equity is used.
• Royalties staying elevated at approximately US$59 per tonne, compressing margins on restart.
• Adverse outcomes on the tax disputes.

My take: a reset period, with value tied to approvals

This is a damage‑limitation half for PYX. The numbers reflect a business largely in hibernation: revenue of US$256,094 (entirely titanium dioxide), EBITDA of (US$520,560), and a statutory net loss of (US$732,308). Cash of US$5.1 million gives some runway, helped by shareholder loans and cost control.

If you are following PYX for zircon exposure, the crux is simple: approvals first, economics second. A pathway to RKAB issuance and the Mandiri IUP renewal would be powerful signals, but there is no firm timetable beyond the government’s intention to resume RKAB in 2026. In the meantime, expect the focus to remain on preserving cash, fending off non‑operational headwinds like the tax case, and arranging funding for a restart.

High risk, high sensitivity to policy – but if and when the regulatory logjam clears, PYX’s large resource base gives it real torque to a sector upturn. Until then, position sizing and patience are essential.