Revisiting Chrysalis Projects and Contract Dynamics
ChrysHub is pleased to provide an rehash on Chrysalis Projects, highlighting developments so far announced in 2024 across the diverse portfolio. This edition delves into project overviews, contract dynamics, and strategic insights to revisit what has happened and prepare you for what comes next.
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Project Overviews and Developments
Aluminum Production Project Highlights
Expansion in Commercial Aluminum Production
Our local partner is significantly expanding its role in Ghana's commercial aluminum sector.
Strategic Agreement
A pivotal agreement was signed with Ghana's largest smelter in Q1-2024.
Enhanced Bauxite Processing
Increased capacity for bauxite processing aims to produce more aluminum for the global market.
Tokenomics Support
These advancements are projected to positively impact the Aluminum Production Project's deflationary tokenomics and combustion functions.
Gold Mining Project Highlights
Commencement of Gold Production
Commercial gold production has begun at one of Chrysalis' mining concessions in Ghana.
High Purity Levels
Current production maintains an average purity of 23.36 carats out of 24.00 carats.
Active Mining Concessions
One concession is actively producing. A second concession has broken ground for large-scale production. Third and fourth concessions are pending final agreements.
Support for Tokenomics
These developments are expected to enhance the Gold Mining Project's deflationary tokenomics and burn functions.
Data Center Mining Project Highlights
Land and Partnerships
The Data Center Mining Project has secured a lease for property to host its first two digital mines. Collaboration with a third-party digital mine builder is underway, with further announcements forthcoming. The property is strategically located near natural gas wells controlled by the Natural Gas Project.
Energy and Efficiency
Utilization of natural gas from these wells will power the digital mines at favorable energy rates, enhancing efficiency and creating dual royalty streams for both the Data Center Mining Project and the Natural Gas Project. These initiatives are set to support the deflationary tokenomics and burn functions of both the Data Center Mining Project and the Natural Gas Project.
Natural Gas Project Highlights
Historic Agreement and Licenses
A landmark onshore agreement was signed in Ghana between the Ghanaian government and our local partner, MENXONS Company. Exploration and production licenses have been granted for the next drilling phase of the project.
Major Consortium Agreement
A $12 billion agreement was secured with the Government of Ghana and the TCP-UIC Consortium (comprising Touchstone Capital Group Holdings Ltd, UIC Energy Ghana Ltd, China Wuhan Engineering Co. Ltd., and China Construction Third Engineering Bureau Co. Ltd.) to initiate the first phase of the Petroleum Hub Project in the Jomoro District, Western Region of Ghana.
Projected Investment and Tokenomics
The total investment in oil and gas infrastructure is anticipated to reach $60 billion. These developments are expected to bolster the Natural Gas Project's deflationary tokenomics and burn functions.
Crude Oil Project Highlights
First Onshore Petroleum Contract
The Crude Oil Project has secured the first pure onshore petroleum contract in Ghana's history.
Partnership and Agreements
MENXONS COMPANY is collaborating with the Government of Ghana. A $12 billion agreement with the Government of Ghana and the TCP-UIC Consortium will support the first phase of the Petroleum Hub Project in the Jomoro District.
Production and Infrastructure
Commencement of commercial production is underway, with expectations of increased royalty streams. A projected $60 billion investment in oil and gas infrastructure.
Tokenomics Enhancement
These initiatives are poised to support the Crude Oil Project's deflationary tokenomics and burn functions.
Agriculture Expansion Project Highlights
Expansion into Organic Food Processing
Meant Green Co., our local partner in Ghana, is expanding its operations to include organic food processing, aiming for higher returns from both cash crops and processed agricultural products.
Operational Regions
Current operations are based in the Northern and Upper Eastern Regions of Ghana, with plans to expand into the Eastern Region.
Focus on Organic Cultivation
Meant Green Company cultivates organic soybeans, rice, maize, and cocoa beans. Cocoa beans are being processed into cocoa cake and cocoa powder, products in high global demand for chocolate production.
Support for Tokenomics
These developments are expected to enhance the Agriculture Expansion Project's deflationary tokenomics and burn functions.
Exploration and Monitoring Project Highlights
Confirmed Royalties and Earnings
Confirmed Royalty Receivables: Royalty receivables have been confirmed from exploration activities on Chrysalis-supported physical projects, contingent upon project production commencement.
Substantial Royalties Earned: Significant royalties have been earned from exploration work on the Chrysalis-backed oil and gas field project in the Jomoro Municipality, Western Region of Ghana.
Contracts and Opportunities
Satellite Monitoring Contract: The Exploration and Monitoring Project has been awarded the satellite monitoring and reporting contract from the Earth Exchange for global carbon initiatives.
Ongoing Contract Pursuits: Several pending contracts are actively being pursued.
Tokenomics Impact
Tokenomics Contribution: These developments are expected to support the Exploration and Monitoring Project's deflationary tokenomics and combustion functions.
Understanding Contract Lengths in Resource Projects
1
Mining Projects
Typically range from 10 to 20 years or more.
2
Oil and Gas Projects
Generally span 25 to 30 years, often with extension options.
3
Large-Scale Agriculture Projects
Vary widely, commonly between 1 to 20 years for extensive projects.
While specific contract lengths are confidential, understanding typical durations in these industries provides valuable insight:
Factors Influencing Long-Term Contracts
Capital Investment Requirements
Significant upfront investments necessitate long-term commitments.
Project Development Timelines
Extended periods are often required for project development and execution.
Natural Resource Life Cycle
The sustainability and longevity of natural resources influence contract durations.
Governmental Economic Interests
Governments seek long-term economic benefits from resource projects.
Royalty Stream Stability
Predictable and stable royalty streams are essential for maintaining positive deflationary token economics.
Implications for the Chrysalis Community
Focus on Project Timelines and Strategy
Embrace a long-term perspective, such as a 10-year buy-and-hold approach.
Stable Royalty Streams
Recognize that long-term contracts facilitate consistent and ongoing royalty streams.
Stay Informed on Milestones
Monitor updates on project milestones, production statuses, and burn notices.
Value from Operations
Understand that value is derived from sustained operations rather than specific contract end dates.
Token Economics Impact
Pay close attention to how developments affect token economics rather than contractual details.
Why Contract Lengths Are Often Not Disclosed
Confidentiality and Competition
In the natural resources industry, companies typically refrain from disclosing specific contract lengths to maintain competitive advantages and confidentiality. Key reasons include:
- Confidentiality Agreements: Legal agreements often restrict detailed disclosures.
- Competitive Information: Contract specifics may be deemed competitive or insider information.
- High-Level Information Sharing: Public disclosures usually involve only overarching contract information.
Stakeholder Considerations
Companies consider various factors when deciding on contract disclosure:
- Relevance to Stakeholders: Exact terms may not significantly impact most NFT stakeholders or token holders.
- Flexibility of Terms: Contracts often include flexible terms that can evolve over time.
- Industry Standards: Long-term operations are generally assumed without the need for precise timeframes.
- Managing Expectations: Companies prefer to provide general statements regarding their commitments.
Conclusion
- Chrysalis' projects across Africa and North America signify substantial advancements in multiple resource sectors.
- Despite the confidentiality surrounding specific contract lengths, the inherent nature of these projects suggests enduring commitments.
- This aligns seamlessly with Chrysalis' strategy to cultivate lasting value within its ecosystem.
- Community members are encouraged to focus on project progress, burn notice increments, and the overall ecosystem health rather than the minutiae of contract specifics.
Thank You
Thank you for your continued support and trust in ChrysHub.
Commitment to Transparency
ChrysHub is committed to maintaining transparency and providing timely updates on all Chrysalis Projects. This newsletter serves as an informative resource for our valued community members. Not affiliated with Promax Digital or its subsidiaries.