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C79 - CHRYSOS CORPORATION LIMITED


nipper
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Chrysos Corporation Limited (C79) is an Australian based provider of novel assay services to the global mining industry through its proprietary Chrysos PhotonAssay™ technology. Assaying involves the analysis of material such as ore to determine the presence, absence or quantity of various elements. While PhotonAssay can be used to detect a wide range of elements, the technology has proven particularly effective for gold and is currently being rolled out across the gold mining industry. Assaying is a non discretionary operating cost in the mining industry and has a wide array of applications across all stages of the value chain, from early stage exploration drilling to later stage production activities.

Chrysos PhotonAssay units are deployed to mine sites and independent laboratories which provide assay services.

Chrysos is headquartered in Adelaide, with operations spanning Perth, Canada and Tanzania.

Listing date 06 May 2022 ; 11:30 AM AEST ##
Contact details https://www.chrysos.com.au/
 
Principal Activities Provision of assay technologies and services
   
Issue Price AUD 6.50
Issue Type Ordinary Fully Paid Shares
Security code C79
Capital to be Raised $183,500,000
Expected offer close date 29 April 2022
Underwriter Barrenjoey Markets Pty Limited (Underwriter & Lead Manager).
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this should be an interesting IPO.

James Tickner is a self confessed lab nerd who made the jump from particle physics research at Oxford University to become one of the key players in a $637 million company due to list on the ASX on Friday.

Dr Tickner is chief technology officer at Chrysos Corporation, which believes it is revolutionising and modernising the way samples are tested in the gold industry with its giant PhotonAssay machines. The company was set up in 2016 to acquire technology developed by the physics expert when he was at the CSIRO.

The
Eureka moment came soon after he arrived from the United Kingdom with his Australian wife more than two decades ago. His team at the CSIRO delved deeply into how high powered Xrays made the nuclei of gold atoms move fast, enabling them to be detected and counted.

After 15 years of further work and serious commercialisation, it evolved into a quick, precise and environmentally friendly way of measuring the amount of gold in gold samples.

The industry had traditionally relied on a fire assay technique for hundreds of years, where samples are sent to a laboratory and heated to 1200 degrees in a much more time consuming and cumbersome method.

A humble Dr Tickner plays down his role, but after prodding, reveals that it is essentially his discovery.

My name is on the patent, he says.


Eight of the PhotonAssay machines, which are the size of about three shipping containers side by side, are already installed in Australia and Africa. A further 25 are contracted out to 2024 for installation and deployment at mine sites or testing laboratories.

The company has pumped 2 million gold samples through its machines, but is still forecast to be making a bottomline loss of $4.7 million in 2022/23, as the rollout starts to gather pace.

The company is also working on a new range of smaller machines known as the
Atom, about one third the size of the originals. It is still big, he says.

The company chief executive, Dirk Treasure, who studied metallurgy at Murdoch University in Perth, says Chrysos is playing the long game, and is in a strong position to potentially convert the entire gold mining industry away from fire assay
.

It is a marathon not a sprint, he says.


Raising $183 million at $6.50 a share, C79 will begin trading on the ASX on Friday. At the issue price it has an indicative sharemarket capitalisation of $637 million.The CSIRO is trimming its stake from 22.6 per cent to 20.4 per cent.

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Interesting, but perhaps hopelessly optimistic? On a day when the ASX is down nearly 200pts, C79 listed well below the raise price, at $4.32 which,  after the initial flurry, was about as good as it got. Now $3.95

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Chief executive Dirk Treasure said the total addressable market for Chrysos around the world is 610 machines. The Chrysos prospectus outlined that the company had total contracted value of $448 million under its 33 existing contracts for machines.

Chrysos is forecasting revenues of $13.6 million in 2021/22, rising to $26.6 million in 2022/23. It is forecasting bottom line losses for both of those years, with the loss expected to be $2.94 million in 2021/22 and $4.74 million the following year.

 

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  • 2 weeks later...

down as low as $3.33 last week, C79 has lifted on news of sales. Was above $5 in the morning, now $4.80

Highlights
• Five new PhotonAssay lease agreements signed, increasing Chrysos Total Contract Value by A$108.6m to A$559.8m
• Total number of deployed or contractually committed PhotonAssay units rises from 33 to 38
• Three new PhotonAssay leases signed with new customers Alfred H Knight and Britannia Life Sciences, and an additional two PhotonAssay leases signed with existing customer, Intertek

• Two new PhotonAssay units deployed with existing customers MSALABS and ALS, taking their deployed unit base to 10

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