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Chrysos Corporation (ASX:C79) was up 19.4% in the second hour of trade to $4.93 as its ‘PhotonAssay’ geology lab tech is snapped up by Newmont Corporation for use on the latter’s projects.
It’s a big win for the Adelaide-headquartered company – Newmont (ASX:NEM), for the few who may reminding, is one of the world’s largest gold miners with a market cap of around US$60B.
In turn, the price movement underpinning Chrysos on Friday is obvious. It was, by far, the top gainer heading into lunchtime trades.
So what is PhotonAssay? In short, it’s just another way of assaying ore for gold. Advertised on its website as “the mining industry’s most innovative and valuable” solution.
The first big story here is that Chrysos says its tech can allow “enhanced analysis” of gold, silver and copper in “as little as two minutes.” So that value prop is clear.
The second story here is that it doesn’t involve a fire assay which Chrysos bills as evidence of the process being environmentally friendly. PhotonAssay uses X-Rays instead, which may or may not seem safer, probably depending on how you feel about radiation.
At any rate, none of that really matters. What matters is Newmont’s apparent interest in and enthusiasm for the technology, exemplified by the execution of a master services agreement – and initial lease contract.
However: the company did not cite a dollar figure for the contract on Friday. Another consideration – Newmont will deploy PhotonAssay at a mine in Ghana in 1HFY26.
That said, there will be a “fee per sample.” What that fee is wasn’t stated.
“We are continuing our strategy of converting the world’s biggest gold miners to PhotonAssay,” Chrysos CEO DIrk Treasure said.
“We are pleased to see top- and mid-tier producers adopting our technology at their projects, a trend that will only accelerate as we continue to penetrate the global mining market.”
C79 last traded at $4.93/sh.
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