Came across some pretty positive information about C79 from RFC...

Came across some pretty positive information about C79 from RFC Ambrian when doing some research this weekend and was excited to have a look. But then noticing the price sliding again today... any thoughts from those already following here? Are we looking at a beautiful dime or a dud? With the most recent Ann pushing the TCV to $705M and the MC currently sitting at less than half that... this seems like a bit of a no-brainer to me...

OF particular note in the RFC Ambrian comment is the last paragraph, considering the current TCV is for only 48 units:
"At the time of the IPO, Chrysos suggested the total addressable market was around 610 units, which could represent annual revenue of almost a billion dollars Australian. At this rate Chrysos may get there quicker than they planned."

‘Steady as She Grows’

Last week the company updated the market on new contracts for its ground-breaking, and industry disrupting PhotonAssay machines. Chrysos announced ten new PhotonAssay^TMlease agreements had been signed, increasing Chrysos’ Total Contract Value by A$149m to A$705m – a whopping 26% increase - and the new contracts take the total number of deployed or contractually committed units to 48.

Source: Chrysos Corporation

The 10 new agreements that have been signed with existing Chrysos customer Britannia Mining Solutions are in addition to their two existing leases only announced last quarter.

Each new Britannia Mining Solutions lease runs for an initial five-year period and contains a five-year renewal option. Britannia is backed perhaps most notably by Eric Sprott, who knows a thing or two about the gold market.

The five-times expansion in Britannia’s fleet of units this new contract represents surely goes to underline the increasing “must have” nature of Chrysos’s PhotonAssay machines and its rapid acceptance in the industry.

Doing a little maths on the new contract shows that average annual revenue per new unit comes in at just under A$3m, almost double the A$1.6m put forward as the “baseline” revenue in the original Chrysos prospectus and 50% more than the “Upside” scenario. That’s committed, visible revenue over the life of the contract.

If you assume ~50% Ebitda margin (put forward as a sustainable margin in Barrenjoey’s initiation research) , and apply an average ASX market forward EV/EBITDA forward multiple of 10x , (clearly it should be a lot higher given Chrysos’ very strong growth), that equates to a theoretical market value of an additional A$159m on these contracts alone.

At the time of the IPO, Chrysos suggested the total addressable market was around 610 units, which could represent annual revenue of almost a billion dollars Australian. At this rate Chrysos may get there quicker than they planned.

Cheers!