Listed ~18 months ago, Chrysos has developed equipment for miners to assess the gold, silver, copper and other mineral content of their production. Their PhotonAssay product is a safer and more efficient method of determining assay results compared to traditional fire assay methods and their technology has started to see significant adoption in the mining industry. The stock hit new all-time highs yesterday following a global partnership deal with global precious metal giant Barrick Gold (BC US). Barrick is already using a number of PhotonAssay units at their assets, with the new deal covering 3 additional units in the USA with the option to add a further 10 units to the Barrick stable.
The company also announced a 1Q update last week showing 22 units were deployed at the end of the period, up from 12 a year prior, while a further 4 were in transit. The company is targeting at least 38 units to be deployed by the end of FY24. Revenue was up 73%, though the utilization rate was still only at ~60%. The balance sheet is in good shape with $33m in cash, though they are still running negative cashflows (-$21.5m including capex of $20.8m in Q1). Overall, Chrysos looks to have a great product that is set to disrupt the mining services industry. Adoption rates and a trend towards profitability will be key to seeing shares higher from here, but this is a company on our radar.
MM is bullish C79, adding it to the Emerging Companies Hit List
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