Natural Resources
25 April 2022
Comment
Chrysos (OTCMKTS: LVCA) – Biggest ASX IPO of the year so far
RFC Ambrian has been working with the CSIRO over the past five years to assist with the commercialisation of various technologies with direct application to the sustainability and improved efficiency of the mining industry. Chrysos Corporation* and its PhotonAssay technology was the result of the first partnership between CSIRO and RFC Ambrian.
We are delighted that Chrysos has secured A$183m from institutional investors at A$6.50 a share for its initial public offering. The company aims to start trading on the ASX on 6th May. The deal gives the company an enterprise value of A$535m and implies a market capitalisation of A$637m at issue and marks it out as the largest IPO on the ASX so far this year.
Chrysos’s PhotonAssay technology delivers faster, safer, and more accurate analysis of gold, silver, and complementary elements by non-destructive measurement of larger and more representative samples in as little as two minutes, enabling rapid turnaround of critical operational information that drives optimization throughout the mining value chain.
The system provides an environmentally friendly, chemical-free, more sustainable replacement for traditional fire assay methods. PhotonAssay reduces CO2 emissions by 0.455kg and 0.31kg of hazardous waste per sample when compared to fire assay, treading more lightly on the planet and improving operational health and safety.
Funds raised will be used to support capital expenditure that underpins the company’s growth ambitions which includes the manufacture of additional PhotonAssay units to meet the sales pipeline
Current users of PhotonAssay include Barrick, Agnico Eagle, Intertek, SGS, ALS and MSALABS. Analysis of the total addressable market puts the potential for Chrysos units at over 600. With 33 currently installed or contracted Chrysos has barely scratched the surface so far and we anticipate the exponential growth will continue.
More information can be found at www.chrysos.com.au
It doesn’t stop there…
RFC Ambrian isn’t resting on its laurels, and we continue to be busy commercialising other disruptive technologies pertinent to mining and heavy industry. As well as providing significant operating, and in some cases truly game-changing, efficiencies, they also offer material improvements to the environmental footprint.
As many will already know NextOre* is another of those game-changers. A result of our second partnership, RFC Ambrian were co-founders of the company in 2017 alongside CSIRO and Worley. The culmination of decades of research by CSIRO, NextOre’s Magnetic Resonance Technology is by some margin the best bulk whole of ore sorting technology available.
On-conveyor belt units generate electromagnetic pulses at a frequency tuned to a target mineral that penetrate the whole of ore as it moves through the sensor. The strength of the response indicates the quantity of the mineral present.
Automated digital controls compare the concentration, or grade, of the target mineral to a pre-programmed cut-off grade. If the ore is below that grade it is automatically separated by a down-stream mechanic diversion chute and discarded. Sensing and sorting is carried out in real-time and without the requirement for an operator. Importantly and differentially, it can operate effectively at high ore volumes, in excess of 5,000 tonnes per hour.
Units are already on commercial deployment for junior and major copper miners in several countries globally. In addition to transforming the economics of some operations through effectively improving the grade of ore feed to the plant, NextOre technology can have a hugely positive impact on ESG issues in the copper industry using less water, less power, less reagent and generating fewer tailings.
More information can be found at www.nextore.com.au
It doesn’t stop there either…but we will provide further updates on other technologies we are working with in due course.
Charlie Cryer
Head RFC Ambrian London
+44 (0)20 3440 6834
charlie.cryer@rfcambrian.com
*RFC Ambrian acts as Financial Adviser to this company and holds a significant interest.
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