This mining tech company is aiming to capitalise on the commodities boom with a potential $200m IPO and ASX float. Here's the lowdown

Is CSIRO-born-and-backed Chrysos Corporation gearing up to list on the ASX in the next month?

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Key points

  • Chrysos Corporation is said to be gearing up to float on the ASX next month, with the details of its IPO reportedly set to be confirmed today
  • The company has commercialised gold assaying technology, spruiked as being faster, safer, more accurate, and more environmentally friendly than traditional analysing methods
  • According to various reports, Chrysos Corporation's IPO is expected to be worth around $200 million and the company is set to float with the market capitalisation of around $600 million

The ASX could be about to welcome a mining technology company amid a major commodities boom.

Chrysos Corporation might be gearing up to list on the market by May. The details of its IPO are expected to be finalised today, according to The Australian.

The company could be floating with a valuation of around $600 million following an initial public offering (IPO) worth approximately $200 million.

Let's take a closer look at the CSIRO-born-and-backed company and its apparently imminent ASX float.

Could this ASX hopeful win out in the commodities boom?

Chrysos Corporation is seemingly gearing up to join its ASX mining clients on the exchange, potentially making the most of the current commodities boom.

According to the CSIRO's Resourceful magazine, the company is "part spin-out, part employee start-up, part investor joint venture". The scientific research agency still holds a significant portion of the company.

Chrysos Corporation's mining technology – PhotonAssay – has been developed by the CSIRO over the last 15 years and commercialised by the company for the last five years.

It's said to be a faster, safer, more accurate, and more environmentally friendly way to analyse gold samples. It could replace the industry standard, fire assay, which employs extreme heat and chemicals.

Chrysos Corporation makes its coin by leasing its equipment, and licensing its technology, to mining companies.

But what kind of cash could the commodities-focused ASX IPO hopeful be bringing in?

It's expecting to report $13.7 million of revenue and $925,000 in earnings before interest, tax, depreciation, and amortisation (EBITDA) for financial year 2022, according to the Australian Financial Review

Those metrics are reportedly expected to increase to $26.6 million and $3.2 million respectively next financial year. And, in following years, they could double.

The CSIRO isn't the only entity with a hold of Chrysos Corporation. Perenti Global Ltd (ASX: PRN) also owns shares in the ASX hopeful.

Perenti has stated it will sell its 7.125 million shares in Chrysos Corporation through its IPO at its offer price. That's if the IPO goes ahead.

The Australian has also recently reported Regal Funds Management, Wilson Asset Management, and Tribeca Investment Partners each own stakes in Chrysos Corporation.

No doubt, all eyes will be on the mining tech company ahead of its potential IPO and ASX float.  

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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