Chrysos Corporation Limited

ASX:C79

Chrysos Corporation Limited

ASX:C79
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$4.90 (+3.2%)
Last close price
#107
Rank
12
Held by
29
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Reports (1) My Report Forum Investors
Forum Topics C79 C79 Contract, New Lease Model

Pinned straw:
jcmleng
Added a month ago

C79 signed a new customer contract with OceanaGold Corporation (TSX:OGC) for a PhotonAssayTM unit installation at OceanaGold’s Macraes Operation in New Zealand. OceanaGold has a portfolio of four operating mines: the Haile Gold Mine in the USA, the Didipio Mine in the Philippines, and the Macraes and Waihi operations in New Zealand. The Macraes Operation on New Zealand’s South Island is the country’s largest active gold producing mine, having produced over five million ounces of gold since 1990.

The Macraes unit will be operated by existing Chrysos customer SGS; signifying the first PhotonAssayTM unit to be leased by a miner and operated onsite by a laboratory.

Expected to be deployed in the second half of FY25

Grows PhotonAssay’s footprint in the Asia-Pacific region, but increases relationship with one of the world’s leading laboratory companies

What is pleasing:

  • Adds a new C79 customer operating model where the miner leases the PA unit, but a Lab operates the unit on its behalf, onsite
  • OceanaGold looks to be a mid-tier gold miner - that it has sufficient volume to make the economics of an onsite unit to work in this new operating model augurs well for C79’s penetration of the mid-tier of Gold miners.
  • Adds to steady new unit sale momentum, expands customer base
  • C79 has sufficient inventory to immediately deploy units to new customers who are site-ready vs being held “deployment hostage” by existing contract commitments by customers who are not site ready


Discl: Held IRL and in SM
Solvetheriddle
Added a month ago

@jcmleng Yes the CEO flagged the new model in the last quarterly update. It is interesting that they decided to release a new ct announcement. my assumptions are 10 this year. so see how it goes.

maybe because the SP is lowish, and they want to generate some interest. the bear case is the rollout is slow if they are releasing every ct (like its a big deal). on the flip side, getting a mid-tier gold miner is positive, maybe that is the story, that the ability to get SGS on site opens the market up to mid tiers with no excess expertise to run the onsite unts-- i hope so

held

7
jcmleng
Added a month ago

@Solvetheriddle agreed. I did think the onsite-at-a-mid-tier-miner-with-lab dimension, to follow up on the new business operating model, was reason enough to release the announcement.

The price in the last 6M does tend to drift in the $4.30 to ~$6.06 range on little/no news.

8