Pyrogenesis Canada Inc T.PYR

RE:RE:Client A VALE probability, numbers & economic sense SUMMARY!

[BCONTVentures]

Excellent post developbc, thanks for all your hard work and due diligence.  Exciting times!  Just the Tip of the Iceberg!  Go PyroGenesis Go!!!

developbc wrote: Just combining the two related posts together so makes good sense:

Vale $1.5Billion note maturity/GHG target date are the same!

Thanks for all the kind words guys.  

One thing I forgot to highlight which is quite important:

The Notes maturity is 2030 the exact same target date Vale set for 33% reduction of GHG which is also on 2030:

• (Vale) in a SEC-registered offering of $1.5 billion 3.75% global notes due 2030. The notes were issued by Vale Overseas Limited and are unconditionally and irrevocably guaranteed by Vale. The notes will be listed on the New York Stock Exchange. The offering priced on July 6, 2020, offered July 7,2020 and closed the very next day on July 8, 2020. 

 

• In order to evolve the net zero strategy, the The Low Carbon Forum was created to set and oversee the implementation of the initiatives. The Forum is coordinated by the Sustainability Executive Board with the support of the Executive Officers, as well as the participation of Vale’s CEO. The 33% absolute emissions reduction target by 2030,with 2017 as a baseline, is aligned with the Science Based Target Initiative (SBTI) methodology, as well as the Paris Agreement.

What are the chances that the notes expiring are the exact date of the target date of reducing 33% of Vale's GHG emissions by 2030!?  And the July 8th $1.5Billion cash now available[roughly the cost to retrofit 10 of their plants to PYR plasma torches]  only days after PYR NR July 2 that stated phase discussions extended up to 6 weeks but  torch purchase discussion are expected to be completed by end of August - 6 weeks away!

• July 2, 2020 PYR NR: Equipment purchase discussions are expected to be completed by the end of August, and incorporate the ideal plasma torch configuration identified during the modelling process, with the ultimate goal being to eliminate GHG emissions from all their plants.

I know Vale would be an absolute monster and light up PYR and sounds too good to be true..but any rookie detective could figure out this is way too coincidental and presses forth the highest of probability that PYR and Vale are about to do some serious business. 

SIDE NOTE: Btw....those who claim this is pumping by restating publicly available facts and making deductive reasoning to conclusions...are either not paying attention or lazy in their DD OR have an agenda.    

Pumping would be something misleading or exagerrating...something like: 
Hey maybe Vale will buy these torches under exclusive deal and pay 2x for that right to exclude their competitors.  
Or something like: Vale will just try to buyout PYR for 10-30x their max torch order so they can monopolize the torches worldwide....only  Pete names his price and Vale will pay! 
That folks would be examples of pumping..unsubstantiated information!

TIP OF THE ICEBERG! - PYR CEO

developbc wrote: Hey guys here is some very conclusive findings connecting the dots and put 2 and 2 together with all the information at hand. Sorry it is bit long and we know the bashers are going to hate this.  

Client A probability it is the biggest giant ,VALE, is extremely high and the numbers make huge sense to move asap w PYR! 

VALE Iron Ore Producer / Salient Points:

• $57Billion USD maket cap .
• Biggest iron ore pelletization international producer in the world
• International producer with 19 plants[10 in Brazil, 2 in China, 2 in Oman, 4 JV with BHP Biliton, 1  currently out of operation]
• $2Billion USD earmarked/budgeted specifically to lower Vale's GHG emissions by 33 % in less than 9 years(2030)
• Reduction target of 9.5Million tons of GHG emissions  
• $2B/9.5M = $210.53 USD price per ton allocated..very important facts as you see the correlaton

Pyrogenesis correlation & relevance / Salient Points:

• Vale stated in their sustainability report(p97) to decarbonization of metallurgy and using electric processes to accomplish that...."One of the main curren programs of the company is PowerShift, which seeks to boost innovation and technologies for the effective reduction GHG emissions in operations...."
• Pyrogenesis’ first NR for this client on April 30 stated that the client is an ‘international producer’ of iron-ore pellets with over 10 plants requiring plasma torches
• June 11, 2020 Pyrogenesis NR states the use of PYR's plasma torches could result in at CO2 reduction in excess of 350,000 tons per yer per plant *THIS IS OF HUGE IMPORTANCE*
• Vale's utilizaing PYR's torches per plant: 350,000 tons/year x $210.53USD/plant = $73.7Million USD/year
• Economics effectiveness per torch:  $73.7M USD/50 torches per plant=$1.474M USD is $2M CDN  
• $2CDN is the base minimum Vale can budget for each PYR plasma torch.  Add Gov't grant $, carbon credits and avoiding fines/penalties, appeasing investors etc...we can easily conclude $3M CDN NPV valuation at very base min. per torch as Peter stated. 
• PYR is the ONLY game in town who is the only induration plasma torch application granted patent!
• On July 2, Pyrogenesis announced that the subsequent phases of the benefits of transitioning to plasma torches were extended by 6 weeks in order to incorporate the additional data into an ‘ideal plasma torch configuration’ for this client, with the ultimate goal being to eliminate GHG emissions from all their plants. “Barring any unforeseen events, we believe that it is entirely reasonable that initial torch equipment purchases will be placed in Q3 2020.”
• Only a few days later, July 6, Vale announced plans to offer notes due 2030 and July 7 there is the US $1.5B offering due 2030. The timing of the offering and the dollar value heavily leans towards everything coming together...very strongly!

Reconcilion of facts on hand:

• 18 plants @ 350,000 tons/year reduction of GHG w PYR torches = 6.3Million tons/year of reduced GHG emissions .  Compare that with Tesla 3.6Million tons over 3 years to day. Vale can almost double that inredible feat in the 1st year utilizing PYR's torches
• Highest and best case with full swap out of all of Vale's 18 plants: 18 x 50 torches/plant = 900 torches. 900 torches x $3M/torch =$2.7B torch sale @67% margin = $1.809B profit [ based on Sweden Rise contract of $1M w small profit cab deduce $3M would carry 67% profit margine spread at base min]. 
• Add 5% recurring revenue for maintance 20-30 years useful economic life of torches = $135M/year [very high profit margin as only one service center PYR]. I will let you guys use your own P/E ratios of 20,30 etc....

Client B , C and beyond...till next time bc this is monterous huge enough for today and it would be hard to wrap our heads around this bc it is that huge.  This is only one division in 1 industry...PYR has other massive divisions that can and will morph into greatness you can be sure of that!

TIP OF THE ICEBERG!!!!!!!!!!!!!!! - PYR CEO