C79 reported preliminary results yesterday (i.e. unaudited) that were very strong and point to accelerating momentum in the business. As a refresher, C79 has proprietary technology called PhotonAssay™, developed originally by the CSIRO, which Chrysos now exclusively commercialises. The technology leverages high-energy X-rays (photons) to induce nuclear excitation in mineral samples, enabling the fast and accurate analysis of gold, silver, copper, and other elements, typically within 2 minutes. The units are generally deployed on mine sites, compared to traditional methods like fire (furnace) assay, which requires samples (assays) to be sent to a lab for testing, dramatically delaying the process. In short, what they have is a significantly faster, safer, more accurate, and more environmentally friendly alternative.
Having gone public in May of 2022, it’s been a rocky road in parts, with deployment and therefore revenue from units failing to live up to expectations. However, yesterday’s result confirmed that contracting momentum has improved with +11 units added in FY25 and a further +4 post-period end, including a partnership with Bureau Veritas (a top 4 lab company) and a second unit for Newmont. Barrick (B US), a company we own in our International Equities Portfolio, has adopted PhotonAssay globally, with potential installation of up to 13 units across four continents by the end of 2025.
FY25 revenue of $66.1m grew +46% YoY while they delivered earnings (Ebitda) of $16.1m relative to guidance of $9-19m range. C79 closed FY25 with net cash of ~$4m, representing cash of $21.7m less drawn debt of $17.6m. Total liquidity stands at $99.1m, including $77m undrawn and remaining from a $95m CBA debt facility.
- We’ve owned C79 in the past, losing ~15% when we sold out around a year ago; however, the company now looks to be executing well. We are adding it to the Hitlist.
MM is now bullish C79
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