ASX-listed Chrysos Corporation has put this month’s share price and trading volume spike down to the arrival on its register of Australia’s biggest superannuation fund and its delivery of solid trading results.
The mineral-assay market disruptor said after last week’s trading halt was lifted the recent surge in its share price from A$4.95 to $6.10 on August 15, and daily trading volumes last week that were 2-3-times higher than this year’s average, followed its advice on August 7 that the circa-A$285 billion AustralianSuper fund had acquired more than 5% of its shares.
The trading also came after Chrysos announced its FY23 prospectus targets for revenue and EBITDA were achieved and it provided positive guidance for FY24.
“The company believes these announcements have resulted in a significant uptick in broker activity which in turn explains the momentum in the company’s share price,” Chrysos said.
The company confirmed it was in “business as usual” discussions with global mineral testing laboratories and gold mining companies to expand adoption of its PhotonAssay units.
“Historically, the company’s units have mainly been deployed to laboratory customers,” it said.
“Recently the company’s focus has shifted towards deployment at mining sites and the company is discussing proposals to this effect. The significance of direct deployment to mining sites is that it demonstrates gold miners’ increasing confidence in the company’s PhotonAssay technology over traditional assay methods such as fire assay.
“Increased engagement with direct to mine site customers has the ability to significantly accelerate the rate of adoption of PhotonAssay.”
Chrysos was quick to reiterate, though, that its current manufacturing and deployment constraints meant even if new sales were locked in they’d be unlikely to impact its FY24 guidance.
Chrysos listed on the Australian Securities Exchanged in May 2022 and is still trading below its $6.50 issue price. At today’s $5.95 the company was worth circa-$382 million.
