Chrysos Corporation* completes A$50m equity placement ahead of planned ASX IPO in 2022
Chrysos’s successful A$50m fund raising was completed at A$4.50 per share, valuing Chrysos, on a fully diluted post money basis, at A$450m. This raise, which saw strong support from existing and new Australian and international institutional investors, will be the last ahead of a listing on the ASX in 2022.
Chrysos PhotonAssay technology is an environmentally friendly replacement for fire assay, delivering faster, safer and a more accurate gold analysis using high powered x-rays to measure specific elements in a given ore sample in as quickly as two minutes without destruction of the sample or toxic chemical use. Perenti, Intertek, MSALABS (Capital Limited), Barrick Gold, and Kirkland Lake are early adopters.
The funds will be used to meet accelerating demand for Chrysos PhotonAssayTM from miners, explorers, and laboratories across the globe. The sales pipeline is strong with contracts representing 150% growth on its current deployments and locking in its manufacturing capacity for the next 12 months. This will bring the total number of deployed and committed PhotonAssay units to 15. Chrysos anticipates accelerating demand over the coming years in a worldwide market with room for approximately 350 units.
Chrysos CEO Dirk Treasure said; “Our ambitious plan is to deploy 80 PhotonAssay units over the next five years. At that point, with each unit capable of processing up to 480,000 samples per annum, we will be helping our customers reduce CO2 emissions by an estimated 18,000 tonnes and decrease hazardous waste by approximately 12,000 tonnes every year,”
Two for Two….NextOre* wins 2021 Commercialisation Award
NextOre has won the prestigious 2021 KCA (“Knowledge Commercialisation Australia”) Award for “Best Licensing Deal” which follows on from winning the 2020 Australian Technology Competition award and Chrysos’s own success in the KCA awards in 2020.
NextOre is a breakthrough bulk ore sorting technology. It uses magnetic resonance to provide accurate, whole-of-sample grade measurements and is capable of operating at 5,000 tonnes per hour on the conveyor belt, delivering real time data to provide complete transparency for tracking downstream processing and allows the selective rejection of waste material.
The KCA awards celebrate world-class research commercialisation that turns brilliant ideas into products and services to help humanity. “These awards celebrate the dedicated, collaborative efforts of leading technology transfer professionals across the country, who are changing lives through their commercialisation successes,” KCA Chair, Dr Erin Rayment.
COMMENT: RFC Ambrian co-founded Chrysos Corporation* and NextOre* and have been an integral part in the commercialisation of both. We have been working with the CSIRO over the last 5 years to assist with the commercialisation of various technologies with direct application to the sustainability and improved efficiency of the mining industry.
Clearly, we hope that fellow investors are as delighted as we are with the progress the companies have made in bringing world class science, industry knowledge and commercial nous together in such a successful fashion with the economic, operational, and environmental benefits that these technologies bring to the mining industry. We expect they are, as the market-to-market of primary investment in our three technology companies (pre the latest Chrysos issue) sits at around 10 times with investment returns greater than 130%pa.
We have now reached a point where two of our three technologies are through the adoption inflection point and we find ourselves at the forefront of the commercialisation of innovative technology solutions for the natural resources industry.
To scale up our efforts, in conjunction with the CSIRO and National Renewable Energy Laboratory (NREL from the US) we are forming a Science Incubator to get great science ready to push out into industry. The Incubator is modelled on two very successful programs the NREL runs that are funded by Shell and Wells Fargo in the US.
Separately RFC Ambrian has launched a A$75m Basic Industries Venture Fund (an Australian ESVCLP) to invest in first deployment and growth of these technologies.
Both ventures are targeting industrial technologies that can materially reduce the environmental footprint of critical industrial processes and improve worker health and safety across the basic industries. Something we see as vitally important in the sector, as many of the metals and materials critical to green revolution are currently dirty. There is a desperate need to clean up clean tech.
Please contact us if you would like to know more about the Incubator or Fund.
For those who are unaware of either Chrysos Corporation or NextOre we would be happy to discuss them with you or more information can be found on their respective websites www.chrysos.com.au and www.nextore.com.au.
Head RFC Ambrian London
+44 (0)20 3440 6834