Chrysos builds contract value

A newcomer and one of the world’s oldest participants in the multi-billion-dollar mineral testing business have added Chrysos Corporation PhotonAssay units, helping ASX-listed Chrysos increase the value of contracts it has signed by 24% to nearly A$560 million (US$387m).

Canada’s Britannia Mining Solutions (BMS) describes PhotonAssay as a “new and disruptive approach to mining assays” that can give the newly created firm “technology-enabled competitive advantage”.

Privately-owned Alfred H Knight Group, established by its founder in 1881, has been providing inspection, analysis and technical services to metals, minerals and solid fuels markets for more than 140 years.

Chrysos, listed on the Australian Securities Exchange earlier this month, said it now had 38 of its proprietary PhotonAssay testing units deployed or contractually-committed. They also include new units supplied to Intertek, while gold major Barrick Gold is deploying a contracted PhotonAssay machine to the Kibali gold mine in the Democratic Republic of Congo.

BMS is part of Toronto-listed Britannia Life Sciences, the regulatory services group also tied up in “cannabinoid formulations”. Backed by Canadian billionaire investor Eric Sprott and mining identity Dr Quinton Henningh, BMS raised C$500,000 in March via an equity raising and has ambitions to grow mineral analysis revenues from zero to circa-C$150 million over the next five years. It plans to locate the Chrysos machines in British Columbia and Nevada, in 2023 and 2024.

It has signed on for five-year leases.

Ditto for AHK’s single-unit order. The family business turned over more than £120m in the 12 months to the end of December, 2020, mainly on the back of traditional mineral sampling and assaying services.

Chrysos said in its IPO prospectus commissioned market research indicated up to 610 gold-sector mine and independent laboratory installations of the chemistry-free PhotonAssay machines could generate nearly A$1 billion (US$720m) of annual revenue.

“With increasing demand, a strong pipeline of blue-chip customers and our global market penetration continuing at pace, we feel the business is well positioned to meet its ongoing strategic and operational objectives,” Chrysos CEO Dirk Treasure said this week.

Chrysos’ public float generated A$183 million (US$131m) via new issued equity and the sale of existing shareholder stakes.

After dipping at listing, Chrysos shares have recovered nearly 30% in the past week to A$4.80, capitalising the company at $470m.


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