Chrysos Corporation (ASX: C79) supplies PhotonAssay testing units to miners and minerals testing businesses for analysis of gold, silver, and copper ore. Chrysos is currently focused on establishing a presence in the gold industry. Since the H1 FY 2026 Chrysos results were released in February, the Chrysos share price has been on a wild ride; first up, then down, as you can see below.
The Chrysos Corporation half year results to December 2025 revealed impressive half on half revenue growth of 49%, as the company continues to lease out more and more PhotonAssay gold testing units. That system growth, coupled with higher gold prices, led to higher Additional Assay Charges (AAC), reflecting higher usage.
Since the Chrysos FY 2025 full year results, the company has continued to sign new leases and deploy more units at a steady rate.
New developments include deploying the new and improved XN machine, new units deployed into new far-flung territories, and the significant rise in the gold price, boosting usage by some customers.
Chrysos Corporation (ASX: C79) half year results show continued adoption by global giants
Revenue increased to $43.3 million, up 49% on the first half of FY2026, driven by a combination of higher gold prices and new units deployed. Of the $43.3 million in revenue, $31.5 million was from Minimum Monthly Assay Payments (MMAP) paid by miners and minerals testing companies to use the machines. $11.7 million was from Additional Assay Charges (ACC) generated when customers exceed a minimum sample amount per month. ACC was up 261% from the prior period of $3.3 million on strong gold exploration, and now makes up 27% of revenue. ACC are leveraged to higher samples tested from increased mining activity. 72% of revenue is from recurring monthly subscriptions, somewhat negating any slowdown in mining exploration and providing steady, predictable income.
From the chart below you can see Minimum Monthly Assay Payments have risen steadily over recent years. Additional Assay Charges for FY25 and the first half of FY26 have significantly lifted with more units deployed, and a surging gold price.
EBITDA margin over the half was 33%, compared to 20% in 1H FY25. With additional units being deployed to existing global clients, margins should increase once initial setup costs have been borne. With the units now being set up all over the world, the PhotonAssay technology will be exposed to potential clients in those countries, which could decrease sales and marketing costs. On the other hand, more maintenance staff and spare parts will be required. Overall operating costs are increasing, but at a slower rate than revenue.
Free Cash Flow (FCF) was negative $20.1 million, taking operating income of $10.24 million minus spending on Property, Plant and Equipment (PPE) of $30.34 million. Chrysos leases the PhotonAssay units, thus retaining ownership and counting the units as Equipment. The FCF is an improvement on the pcp, mainly due to higher operating income from the ACC charges.
Over the half, eight new leases were signed and a further six post 31 December 2025. Of the eight new leases signed during the half, six were by existing customer global minerals testing business ALS Ltd (ASX: ALQ). ALS will deploy some of the units to the Nordics, and Kazakhstan which is a major gold mining country and a new market for Chrysos.
Since my last update, Chrysos has deployed its first “XN” generation unit to testing business, SGS in Perth. The new model enables simplified operation and has higher output capacity.
PhotonAssay is already a new technology in gold testing, but it is encouraging to see Chrysos still working on improving their PhotonAssay machines.
Outlook for Chrysos Shares
With a solid first half, and more leases signed post 31 Decmber 2025, management expects revenue and EBITDA to be at the upper end of FY26 guidance. Revenue is expected to be in the upper range of $80 million to $90 million, and EBITDA within the upper end of between $20 million to $27 million.
My view from my previous Chrysos article has not changed:
‘The FY25 results show Chrysos is on-track, and while I would be cautious of buying at the current share price… the long-term thematic is still intact and this stock is worth watching, whether for a more attractive price, or for improved performance.’
Since I wrote the previous article in September 2025, the share price is now more attractive, and the performance is roughly on the same trajectory. A May 2026 trading update reported over 1 million samples were processed in March and over 1 million in April also. Management also confirmed FY2026 revenue guidance is still on-track to be near the top of the range. The share price has tracked downwards with the declining gold price though, and investors are likely locking in gains of this still unprofitable company, after a strong run in the share price.
Based on guidance for FY2026, using $85 million in revenue, the Price to Sales (P/S) ratio is about ~8 times, which is still quite high.
While the Price to Sales (P/S) ratio is high and I don’t like to overpay even for growth companies, I bought Chrysos shares in July 2025 at $5.09 (currently around $5.89) because I see PhotonAssay replacing fire Assay technology. Chrysos is selling PhotonAssay machines to the very minerals testing companies that use fire assay like ALS Ltd (ASX: ALQ), SGS, and Bureau Veritas. Minerals testing equipment has high barriers to entry, and Chrysos has minimal competition.
ASX listed minerals testing equipment provider XRF Scientific (ASX:XRF) is focused on sample testing preperation, and covers construction and industrials, in addition to metals, so while not strictly a competitor with Chrysos, XRF Scientific could be used as a valuation point of reference for potential investors in Chrysos. XRF Scientific trades on a current Price to Sales (P/S) ratio of around 4 (based on FY25 revenue, as no guidance for FY26 has been given).
For Chrysos to trade on the same P/S ratio, the share price would have to be around $3 based on FY26 revenue guidance of $85 million. Not impossible, as lows of around $3.70 were seen in only April 2025 (although this was just before Newmont signed on), and mining is a cyclical industry. Should the gold price keep declining, coupled with Chrysos being unprofitable and with a high valuation, any negative news could see the share price fall further. One could make an argument for Chrysos shares being resonable value at around $4 per share, all else being equal.
I (Chris Coe) continue to hold my shares as the the long-term thesis is unchanged. Chrysos currently focuses on gold, as the PhotonAssay technology is more efficient at detecting the nuggetty composition of gold, and the gold industry is booming at present. The technology can and is being used to detect copper and silver, and the company is still working to improve the effectiveness of testing for these two metals. Copper and silver have tailwinds behind them that will be crucial to renewables and data-centre growth, coupled with underinvestment in recent years leading to supply constraints.
Despite the recent share price decline, I don’t currently intend to add to my position as the P/S ratio is still high, and I don’t like to add to a company that is not yet profitable. A continued decline in the gold price or reduced gold mining capex spending due to higher diesel costs from the supply disruptions through the Strait of Hormuz could see speculators continue to sell shares, and provide an entry point for those looking long-term.
Disclosure: The author of this article, Chris Coe owns shares in C79. The editor of this article Claude Walker does not own shares in C79. Neither the author nor the editor will trade C79 shares for at least 48 hours following the publication of this article. This article is not intended to form the basis of an investment decision and is not a recommendation. Any statements that are advice under the law are general advice only. The author has not considered your investment objectives or personal situation. Any advice is authorised by Claude Walker (AR 1297632), Authorised Representative of Ethical Investment Advisers Pty Ltd (ABN 26108175819) (AFSL 276544).
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