C79 - Chrysos Corporation

[Dona Ferentes]

Market Challenge:
Traditional assay techniques are slow, labour intensive, complex, destructive to the assay sample, and involve dangerously high temperatures and toxic chemicals that are hazardous to both operators and the environment.


The Solution: Chrysos PhotonAssayTM
- Provides faster and more accurate assaying
- Allows real-time delivery of information to support agile decision making
- Rapid decision making helps to improve operational efficiency, recovery and profitability
- Removes hazardous chemicals from the assay process protecting operators and reducing emissions
 Is non-destructive allowing for repeat testing and comparative analysis
- The process is largely automated, reducing labourrequirements and the chance of human error.

Currently 20 units operating

• AusSuper now holding > 5%
• Made prospectus
• Presenting around town
• And trading at ATH

 

[Dona Ferentes]

Chrysos Corporation Limited (ASX: C79) requests the immediate implementation of a trading halt of the Company’s securities pending an announcement regarding an ASX price and volume query.


... yup that'll do it.

 

[Country Lad]

Another one that looks very much a break to me

 

[Dona Ferentes]

C79 is back up, quietly. Now a market cap of $300 million

Floated at $ 6.50 .... slowly but surely, now its back to that level.

 

[Dona Ferentes]

TH regarding a capital raising by way of a placement.

... and in a partnership with Barrick for the Lab tech.

 

[Dona Ferentes]

TH regarding a capital raising by way of a placement.

and back trading, at $6.70, after pulling in the money at $6.60. Nothing for the little guy.

Highlights
• Firm commitments received for a $75 million institutional Placement to support the deployment of PhotonAssayTM units and accelerate Chrysos’ growth trajectory
• The Placement follows Chrysos’ new global partnership with Barrick Gold and MSALABS, through which Chrysos has the potential to deploy up to 13 PhotonAssayTM units to Barrick mine sites across four continents by the end of 2025
• Upon settlement, Chrysos will be well capitalised with a pro-forma 30 September 2023 cash balance of ~$108 million (before costs) and $22 million in undrawn debt capacity
• Lenders remain supportive and Chrysos is in advanced discussions to expand its debt facilities
• Funds raised strengthen Chrysos’ capital position to meet its near-term contracted deployment profile and provide optionality to expand annual deployment capacity in context with its growing sales opportunity pipeline

 

[Garpal Gumnut]

Market Challenge:
Traditional assay techniques are slow, labour intensive, complex, destructive to the assay sample, and involve dangerously high temperatures and toxic chemicals that are hazardous to both operators and the environment.


The Solution: Chrysos PhotonAssayTM
- Provides faster and more accurate assaying
- Allows real-time delivery of information to support agile decision making
- Rapid decision making helps to improve operational efficiency, recovery and profitability
- Removes hazardous chemicals from the assay process protecting operators and reducing emissions
 Is non-destructive allowing for repeat testing and comparative analysis
- The process is largely automated, reducing labourrequirements and the chance of human error.

This company off my radar until I saw @Dona Ferentes posts and some mutterings in the AFR.

What a great technology.

A shame the listing was mismanaged.

It reminds me of a funny situation many years ago, a bloke doing an assay at a motel jumped up and shouted he'd inhaled some cyanide, everyone rushing about, shouts of "give him almonds", "don't be so effin stupid". Ambos arrived and joined the panic as well. Bloke falls over. An ambo fainted. It really was the full Benny Hill. It turned out he was a Workers Comp bludger who'd tried it on a few times. Great fun. I guess Chrysos will stop this happening in the future.

gg

 

[Country Lad]

This company off my radar until I saw @Dona Ferentes posts and some mutterings in the AFR.

What a great technology.

gg

I have been on this for a while. Because of my previous life, the science behind it aroused my interest. There was another breakout as per my post above but it now depends on how it settles down following the $75m Institutional Placement.

 

[Dona Ferentes]

.. it now depends on how it settles down following the $75m Institutional Placement.

good buying of late with ATH of 7.34 yesterday, now at $7.30

 

[Dona Ferentes]

good buying of late with ATH of 7.34 yesterday, now at $7.30

down a percent or 2 today ... $6.70

Highlights
▪ Total Unaudited Revenue1 of $19m, +64% growth Year-on-Year (1H FY23: $11.5m)
▪ EBITDA of $2.3m; +262% growth on 1H FY23 ($0.63m) highlighting improved margin conversion
▪ Global partnership with Barrick Gold and MSALABS to deploy up to 13 PhotonAssayTM units, showcasing continuing adoption by one of the world’s largest gold miners
▪ Strong cash position of $85m as of 31 December 2023, including proceeds from $75m Institutional Placement, and supported by an increased Commonwealth Bank of Australia debt facility providing a total of $180m available for growth
▪ FY24 financial guidance unchanged from Q2 FY24 Announcement and 4C

Chrysos Managing Director and CEO Dirk Treasure, commented:
"Chrysos achieved +64% year-on-year growth in revenue during the reporting period, with a strong +262% growth in EBITDA. Our EBITDA margin improved, driven by our strategy to scale efficiently in key mining hubs. The company is well positioned for further growth supported by a strong cash balance, and boosted by our successful $75m Institutional Placement and increased funding facility from the CBA.”

“A key achievement during the half-year was our new global partnership with Barrick Gold and MSALABS to deploy up to 13 PhotonAssay units to Barrick mine sites across four continents by the end of 2025. This partnership is a watershed moment for the business and is validation, by one of the world’s largest miners, of PhotonAssay’s superiority in the gold analysis space.”

 

[peter2]

Market didn't like C79's latest quarterly update, slashed 10%. I haven't noticed anything bad in the report.

Bottom line is that they're still losing money each qtr.

 

[galumay]

Yup, funny that @peter2. I hadn't come across it before yesterdays 4C & i spent a bit of time having a look at it. My conclusion was that its a bit early stage for me, pre-profit, pre FCF, but put it on the watchlist as I can see the potential. Also couldn't see much reason for the drop in price.

 

[peter2]

@galumay thanks, I'm learning slowly. Noticed mention of the dreaded EBITA but no mention of profit or loss. Had to look at the 4C myself to see that it's still losing money.

I won't be buying this dip but will monitor it for regular chart reversal setup.

 

[galumay]

Its such a classic tell, the more they use Bullsh*t earnings, the more sure you can be there is no profit and no positive cash flow.

 

[peter2]

A speculative reversal trade has formed and triggered for me in C79. I must admit to pre-empting this trigger. (I hold)

The rising gold price should underpin demand for C79's gold analysis systems. Gold testing is not limited to drill assays. Large gold producers are using the C79 systems on site (quick turnaround of results) to improve performance of their ore grinding and milling processes. I would consider this as a must have for all major gold producers. Edit: The ore samples used in the testing process are not destroyed in the analysis unlike in most conventional lab tests.

 

[Country Lad]

@peter2 Have you considered the possibility of a head and shoulders pattern? I have been keen on this since early on and keep watching it for a re-entry but now concerned with the lack of a profit trajectory.

 

[Dona Ferentes]

up 7 per cent today...
.
financial results for the year ended 30 June 2024 and confirms its guidance for FY25 (consistent with its ASX announcement on 25 July 2024).

- Total Revenue of $45.4m; +69% growth on FY23 ($26.8m)
- EBITDA of $9.0m; +156% growth on FY23 ($3.5m)*
- 29 PhotonAssayTM units currently deployed and a strong pipeline of committed units
- 54 deployed or contractually-committed units, with one lease signed during FY24 and four further leases signed post-period
- Well positioned for ongoing global growth with $61.1m cash in bank and access to $95m of undrawn capital from Chrysos’ debt facility with the Commonwealth Bank of Australia

FY25 Guidance
- Total Revenue range of $60m to $70m
- EBITDA range of $9m to $19m
.
pedestrian... time to step up.

since listing

.
* I thought (brackets) meant a loss, not pcp (2023)

 

[galumay]

4C out today, its still bleeding cash at a prodigious rate. I love the narrative, but the business looks like it sucks. Its not scaling at all, revenue growth has been consistently strong, but PP&E just eats it all and more. Most of that is the deployed units, I guess if they last long enough, at some point that will drop. Hard to see it being profitable in the next few years, so its not for me at this point still. Will leave it on the watchlist.