The mining sector is booming right now and one ASX technology stock stands to benefit greatly.
That stock is Chrysos Corporation Ltd (ASX: C79), which provides novel assay services to the global mining industry through its proprietary PhotonAssay technology.
PhotonAssay can be used to detect a wide range of elements, but the technology has been particularly effective for assaying gold and is currently being rolled‑out across the gold mining industry.
Bell Potter is a big fan of the company and is recommending the stock to clients following its half-year results release this month.
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What is the broker saying?
The broker notes that the ASX mining technology stock delivered a half-year result that was ahead of expectations thanks to higher PhotonAssay fleet utilisation. It said:
Total revenue was $43.3m (BPe $41.7m), up 49% YoY, with MMAP of $31.5m (BPe $32.6m), up 22% YoY, and AAC of $11.7m (BPe $9.1m), up 261% YoY. MMAP growth was driven by an expansion in the installed base. The significant uptick in AAC was due to higher PhotonAssay fleet utilisation as rising global exploration activity drove greater samples processed. Four additional units were deployed during the half, taking total units installed and operational to 43. GM was 76.3% (BPe 78.0%), up from 72.9% in the PcP.
EBITDA of $14.4m (BPe $13.2m) was up 152%, with margins improving to 33.1% (BPe 31.6%), up from 19.5% in the PcP, reflecting operating leverage and greater AAC. Underlying NPAT was $0.7m (BPe $1.8m), up from a $2.6m loss in the PcP.
Guidance upgrade
Bell Potter was also pleased to see that management has upgraded its guidance for the full year. It adds:
A soft upgrade was delivered: Revenue is now tracking towards the top-end of the $80-90m range (BPe $90.8m old); and EBITDA is now tracking towards the top-end of the $20-27m range (BPe $29.6m old). We see guidance as conservative due to: 1) an acceleration in deployment cadence in 2H FY26 given the significant expansion in the backlog following the 14 new lease agreements secured in FY26TD; and 2) strong ongoing momentum in exploration activity enhancing the outlook for AAC generation.
Strong potential returns
According to the note, the broker has retained its buy rating and $9.40 price target on the ASX mining technology stock.
Based on its current share price of $7.93, this implies potential upside of 19% for investors over the next 12 months.
Commenting on its buy recommendation, the broker concludes:
We are encouraged by the 14 lease agreements signed in FY26TD, expanding on existing relationships and securing contracts with new prospective clients. Together, with the landmark Newmont MSA, the increased contract award momentum signals an acceleration in PhotonAssay adoption, which is a key tenet to our Buy thesis.
