Thank you for standing by. Welcome to the Chrysos Corporation Q2 FY 2023 quarterly conference call. All participants are in a listen-only mode. There'll be a presentation followed by a question-and-answer session. If you'd like to ask a question, please make sure you're dialed into the conference. You'll need to press the star key followed by the number one on your telephone keypad. I'd now like to hand the conference over to Mr. Dirk Treasure, Managing Director and CEO. Please go ahead.
Once again, we've seen a record quarter for a number of key metrics, including samples processed and our unaudited total revenue. We also continue to gather momentum in our global rollout. As always, I'll keep this fairly brief, running through our activities from the quarter, as well as a view to our financial position. Brett Coventry, our CFO, and I will then be available for a Q&A session. Slide three, please, operator. On the back of further deployments achieved during the quarter and sustained performance of our deployed units, we've increased the company's total revenue to $6.4 million, up 25% quarter-over-quarter or 104% year-over-year. We've processed a little over 795,000 samples during the quarter, which is a 14% increase on the previous quarter and almost 70% year-over-year.
Continued growth of samples processed is a key metric for the company. It's a strong indicator of continued industry adoption of our PhotonAssay technology. Total Contract Value was up slightly during the quarter. Accounting for converted revenue, our TCV has increased to AUD 714 million with the addition of our upcoming ALS deployment to Canada. We're excited by the expansion of our relationship with ALS and look forward to having three different laboratory companies offering PhotonAssay as a service in Canada by the end of this calendar year. We're pleased to see the accelerating adoption of PhotonAssay in North America, which we consider to be one of our key target markets. Chrysos generated AUD 2.7 million in net operating cash flow throughout the quarter.
We continue to invest this in growing our PhotonAssay unit base with an investment of approximately AUD 4.8 million into property, plant, and equipment. This leaves us with a healthy cash balance of AUD 81.1 million at the end of the quarter. We've deployed a further 2 units during the quarter and another during January, bringing our current deployed unit base to 15. This includes 2 laboratory-based units, one in ALS in Perth and the other in MSA in the Ivory Coast. It also includes our recently deployed unit for Kibali, which is Barrick's second operating unit, and we're very excited to see the expanding relationship with Barrick in Africa following success with PhotonAssay at their Bulyanhulu operation. Included in the number of deployed units is MSA's Marilla unit. We've been working with MSA on redeployment of that unit to an alternative project within Mali.
Mali is a very prominent gold region with several major miners with substantial operations. The Mali redeployment really showcases the modular design of our units. We're able to disassemble these units, put them on the back of a truck, drive them to a new location, and reassemble them in relatively short order and at low cost. We're expecting this unit to be redeployed and operational at a new project before the end of FY 2023. Furthermore, we continue to receive revenue from this unit during redeployment. Next slide, please, Operator. As a quick reintroduction to our business model, our customers commit to a take-or-pay arrangement with a minimum monthly assay payment due to Chrysos. For any samples that are processed in addition to the customer's minimum commitment, they pay us on a per sample basis, and this forms our Additional Assay Charges.
The graph on this slide illustrates Chrysos' revenue breakdown, with the yellow section representing the minimum monthly payments, which continue to grow with each unit that we deploy, providing us with a baseline committed revenue for subsequent periods. The gray section above this is our additional assay charges, which is driven by utilization of our deployed units. Both of these segments show further growth over the period, increasing both year-on-year and quarter-on-quarter. MMAP payments were up 32% quarter-on-quarter, and our 15 deployed units now have a combined minimum monthly assay payment of approximately AUD 1.7 million or AUD 20 million annualized. These minimum monthly payments offer reliable forecast for revenue and are a key component in our ongoing discussions with potential financiers. We achieve that revenue irrespective of utilization.
I think this chart is really the easiest way for us to understand the Chrysos business and the strength of our growth. Effectively, for each new unit that we deploy, we're generating an ongoing revenue stream, as well as providing ourselves with substantial upside opportunity when units operate at increased utilization. We do this with very clear visibility on our future deployments, with committed contracts already extending into 2025. Next slide, please, Operator. In the last slide, we discussed the link between additional assay charges and our deployed unit utilization. Shown in yellow on this chart is utilization for the past 18 months, overlaid by the black line, which is the absolute number of samples processed per month. We have sustained utilization throughout the quarter with an average of 58%, which is in comparison to our prospectus forecast of 55% for FY 23.
Utilization in excess of minimum commitments continues to drive our additional assay charges, with approximately 18% of our Q2 FY 2023 revenue originating from ACC. The map on the left-hand side shows our global operations, which span our key target markets of North America, Australia, and both East and West Africa. We've sustained concurrent deployments of three units for a while now. Further expansion in our deployment team is allowing us to extend beyond this number as well. This puts us in good stead to manage our expanding manufacturing capability going into FY 2024. Next slide, please. We currently count three of the world's largest laboratory companies and two of the world's largest gold miners as PhotonAssay customers. During the quarter, we've expanded our relationship with ALS into Canada and are looking forward to deploying that unit later this calendar year.
With a solid pipeline of committed units, we're now focusing on strategic opportunities such as those that have the potential to further accelerate our industry uptake across different regions. Our agreement with ALS, for example, sees us partnering with one of the biggest laboratory companies in the world to build our presence in Canada. We have Intertek, another of the big four lab groups, soon deploying PhotonAssay into West Africa. We're supported by our growing relationship with Barrick in East Africa via our deployments with MSALABS, with MSALABS undergoing dramatic global growth. We're also just about to start deploying our first-ever unit to SGS in the coming weeks, bringing another major lab group into those offering PhotonAssay. Hopefully, everyone's familiar by now with our measurement of Total Contract Value.
Just as a refresher, we consider Total Contract Value or TCV to be the sum of the minimum monthly payments due to Chrysos Corporation Limited under our committed contracts, calculated across the expected term of the contract. This value then converts to revenue on a monthly basis and as we invoice the MMAP against those contracts. As you can see here, TCV is up slightly throughout the quarter to a total of AUD 714 million committed across 49 contracts. Next slide, please. We've had another quarter of strong, sustainable growth and importantly, continued to deliver on the milestones that we outlined when we listed in the middle of last year. We continue to enjoy substantial increases in revenue underpinned by our minimum monthly assay payments due from our 15 PhotonAssay units around the world across our key markets.
Upcoming deployments will create clusters in these markets, helping us to reduce unitized operating costs and make use of the local structures that we've implemented from these initial deployments. This supports our expanding deployment capacity as we enter FY 2024, simplifying our installation requirements and our logistics. We've closed the quarter with AUD 81 million in the bank, and our long-term committed revenue from Tier 1 counterparties provides ample opportunity for additional gearing. As we've previously announced, in addition to cash on hand, it's our intention to secure an expanded debt facility before the end of FY 2023 to support future growth. Thank you for attending today, and I'm happy to take questions from the line.
Thank you. If you'd like to ask a question, please press star one on your telephone and wait for your name to be announced. If you'd like to cancel your request, please press star two. If you're on a speakerphone, please pick up the handset to ask your question. Your first question comes from Josh Kannourakis on Barrenjoey. Please go ahead.
Hi, Dirk and Brett. Thanks for taking my call. A couple of questions, if I may. Just firstly, just in terms of the deployment timing, obviously a few just dropping into the second half, slight second half wait. Just wondering if you can still confirm in terms of, you know, I guess, revenue and EBITDA guidance as per prospectus.
Yeah. Look, that's a relatively easy one. I guess we haven't put it specifically in the presentation, but yes, confirming revenue and EBITDA guidance for the prospectus period, and also that we will have the 21 units deployed by the end of FY 2023. As you can sort of see, we've got an ongoing growth in that deployment team and the ability to actually get these units deployed around the world. You'll start to see additional units coming out per quarter on an ongoing basis.
Perfect. That's great. Second question, just in terms of, I guess, the pipeline of opportunities you're seeing. Can we maybe give a little bit more color into, you know, where you're seeing it, what either both regions, or composition in terms of miners versus labs in terms of how we should be thinking of the next wave of, I guess, new contract announcements?
Absolutely. There's a couple of nuances here. With the contracts that we have in place and the fact that we've now got the 49 contracts, we've got 15 deployed. You've got a very long pipeline here of deployment opportunity or deployments to come. What we're doing from a sales perspective then is not necessarily just filling that pipeline further. It's looking at what are the best opportunities for the company. Where do we see either strategic opportunity like having these big labs providing that offering in our key markets and assisting in that industry adoption. Keeping in mind here that because our customers are the laboratories, their customers are the miners, they're effectively incentivized to do a lot of our marketing on the ground for us.
They're looking to drive that miner adoption at the same time as we're looking to drive that miner adoption. You've got a real alignment in the incentives there. When it comes to composition, we've been quite clear over time that, you know, our long-term focus here is the miners. Laboratories are very good for us, particularly on early entry, because you get multiple miners sending samples through labs, and we're really building that industry acceptance, credibility on the ground in the places in which we operate. Certainly long term here is we'd like to have a larger proportion of miners. That's, that's illustrated in our Total Addressable Market as well, where you've got a skew of about 2 to 1 miners to laboratories.
What we would be liking to see going forward from here is converting some of those more strategic opportunities rather than just building the number of units that are in that pipeline.
Got it. Just as a follow-up to that, I guess for investors, you know, obviously you've got a high level of visibility into the 2023 year, as you mentioned. As we look into, you know, 2023, into 2024 and beyond. What are the sort of, I guess, key milestones or the, I guess, the cadence of, you know, new contract announcements or signings that we should be looking for that sort of underpins, I guess, ramping up to that, you know, 18 a year?
We're very interested in keeping 2 things. One is a pipeline of deployments that we can map our deployment teams against, looking at in the order of 15-18 months. Having an immediate delivery filled pipeline of that sort of 15-18 months. We also wanna keep enough units at the end of that sort of 15-18 months that we have the opportunity to deploy units to exciting opportunities for the company. As you'll see, you know, we've got the ALS unit that was converted or the ALS contract that was converted during the quarter, and we're saying that we're able to deploy that by the end of this calendar year.
These big strategic opportunities for us, we wanna be able to deploy in a timely fashion while still sustaining long-term, our general deployment pipeline that allows us to control our manufacturing rate and deployment rate in a steady and stable manner.
Great. I'll give, someone else a turn. Thanks, Dirk.
No worries. Sorry, just to finish that train of thought. When you talk then about cadence of sales, what we wanna do is to maintain that pipeline. You can basically look at the manufacturing capacity and the number of units that we're deploying on an annual basis. That maps directly back to maintaining that immediate pipeline. At the point that we're deploying 18 units per year, we would need to be filling that pipeline with an additional 18 units.
Right. Thanks, guys.
Thank you. Your next question comes from Jules Cooper, from Shaw and Partners. Please go ahead.
Thank you, Dirk and Brett for taking my question. Just one from me. Just looking through the cash flow statement, the expenditure on PP&E looked a little light in the quarter. Just wondered if you could provide some color maybe around that. Looks to be timing, but just, yeah, if you could just sort of, talk to that and what we should expect as we look forward into the next couple of quarters.
Thanks, Jules. Yes, that's very much a timing-based transaction. Certainly as we get through into this quarter, we would expect that to come back up to the levels we saw in Q1 and into, you know, that will then flow into Q4 as well. Which is purely timing around the end of the calendar year with some of our suppliers, but also our deployment schedule. It's very much a timing factor. We would expect that cadence to pick up through the end of the six months at the end of the financial year.
Excellent. Very clear. Thank you.
Thank you.
Once again, if you'd like to ask a question, please press star one on your telephone and wait for your name to be announced. We'll now pause a moment for callers to join the queue. As there are no further questions at this time, I'd now like to hand the call back to Mr. Treasure for any closing remarks.
Thanks, Austin. Look, we're really pleased with Chrysos's ongoing performance and global uptake of the PhotonAssay technology. It just keeps running ahead of expectations. I look forward to providing our next update, which will be the half yearly at the end of February. Brett Coventry, our CFO, and I will be undertaking a roadshow to Sydney and to Melbourne as part of that process. Please let us know directly if you'd like to meet in person in either of those locations, toward the end of February, start of March. Thanks, everyone for coming along today.
Thank you. That does conclude our conference for today. Thank you for participating. You may now.