Monsters of Rock: 2022's biggest IPO flops hardest on debut

Mining technology stock Chrysos Corporation (ASX:C79) has come to the ASX with big dreams, planning to replace a centuries old process used for assessing the quantity of precious metals in rocks.

But its first day on the market was a horror show, sieving more than a third of its value after its $183.5 million listing at $6.50 a share.

The largest IPO of 2022 so far – both in resources and the broader market – Chrysos’ losses greatly outpaced a dire day for the ASX 200 and the broader materials sector, which tumbled 2.55%.

Chrysos opened at $4.32 and fell as low as $3.90 during the days trade. It was priced at $4.11 at 3.45pm AEST, lopping 37% off its $637 million post IPO market cap.

The float came after a tough day for stocks in the United States and generally poor sentiment across the market.

The company boasts the rights to an X-ray based mineral analysis technology developed by the CSIRO which promises to deliver sample results in just minutes compared to more than 24 hours for the fire assay process.

CEO Dirk Treasure told Stockhead in a recent interview the process is also cleaner for the environment, reducing carbon emissions by 450g and hazardous lead waste by 300g for every sample run through a PhotonAssay machine versus fire assay.

With 33 machines installed or contracted to be installed out to 2024, Chrysos has 5.4% of what it calls a total addressable market share of 610 machines.

Its ultimate plans are to replace fire assay in most of its uses in the sampling process for gold and other metals like silver and copper.

But according to its prospectus accounts, investors, like ex-Northern Star Resources (ASX:NST) boss and DEVELOP Global (ASX:DVP) MD Bill Beament, will be waiting a while to see the profits rolling in.

Chrysos expects revenues to increase from $4.34 million in FY21 to $13.58m in FY22 and $26.62m in FY23, with EBITDA rising from -$692,000 in FY21 to $925,000 in FY22 and $3.18m in FY23.

But Chrysos’ pro forma NPAT is expected to remain negative with negative NPAT of $2.935m in FY22 and $4.743m expected in FY23.

Chrysos Corporation (ASX:C79) share price today:

A new gold miner emerges

WA has a new gold miner in Calidus Resources (ASX:CAI), which announced its first gold pour from the Warrawoona mine in the Pilbara today.

The $120 million Warrawoona is among the first gold mines to come into production in 2022, with Calidus expecting to produce an average of 90,000ozpa over its first seven years, peaking at 105,000oz in year five.

Ramp up to commercial production is now under way, with the potential to expand its production profile to 130,000oz with the development of the nearby Blue Spec deposit.

“Pouring our first gold on time and budget is the culmination of an incredible effort by all employees and contractors involved at Warrawoona,” Calidus boss Dave Reeves said.

“With production underway and revenue being generated, we have begun to lay the foundations for ongoing growth.

“Cashflow from Warrawoona will provide opportunities to increase production via the development of our Blue Spec deposit and help fund our highly promising gold and lithium exploration.”

Calidus is among the handful of gold developers to have defied the negative outlook for ASX-listed gold miners in recent times, with the $370 million company up 125% over the past 12 months and 42.3% year to date.