Gold miners are currently generating exceptional margins, driven by elevated gold prices and good capital discipline. With balance sheets in good shape, capital is increasingly being redeployed into mine life extensions, infill drilling and the development of assets that were previously marginal or uneconomic. This shift is supportive for service providers leveraged to development intensity rather than production volumes, including Chrysos.
Chrysos provides PhotonAssay™, a high-speed, non-destructive alternative to traditional fire assay. The technology delivers materially faster turnaround times, improved safety outcomes and a lower environmental footprint, making it well suited to modern mining operations focused on efficiency and ESG compliance. As miners increase development and exploration activity, the demand for faster, higher-quality assay data becomes more acute.
Importantly, Chrysos operates a recurring revenue model, combining long-term unit leases with minimum monthly payments and volume-based assay charges. As mining activity increases, utilisation of existing units rises, while higher project intensity improves the economics for additional deployments. This creates meaningful operating leverage, with incremental volumes flowing through at attractive margins once units are installed.
C79 is already embedded across a growing base of tier-one gold miners globally, positioning the business well to benefit from the next phase of the gold cycle. Unlike miners, Chrysos doesn’t need higher gold prices; it needs miners to feel confident enough to spend. Current margin conditions suggest they are.
- As capital flows back into development and previously uneconomic assets, assay intensity rises. That dynamic should support higher utilisation, further unit deployments and improving earnings leverage for C79.
We’ve owned the stock in the past, and it’s resided on the Emerging Companies Hitlist for some time – we now believe the tailwinds are too hard to ignore.
MM is bullish C79 ~$7.60, and likely buyers
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