Within the next six weeks expect to see these contractsFrom the recent news releases, within the next six weeks, expect the following contracts:
US Military
- Interest for two (2) US Aircraft Carrier systems received (~$11.5 Million). The formal agreement is expected to be signed within the next 2-3 weeks, and includes a first payment (“Down Payment”) of approx. $4M. This project should be completed within 18 months. With this additional contract in hand, the resulting backlog is expected to be in excess of $40M.
Torch/Equipment Sales:
Client A
On April 30th, 2020, the Company announced the successful completion of the first phase of a torch modeling contract with Client A which successfully demonstrated that replacing fossil fuel burners with PyroGenesis’ proprietary plasma torch (i) had absolutely no ancillary detrimental effects anywhere in the process or with their furnaces, (ii) resulted in significant greenhouse gas reduction while at the same time, (iii) projecting significant additional benefits. The subsequent phases were to be completed by June 30th, 2020 and were geared to further quantify the benefits of transitioning to plasma torches. These phases have been extended for up to six weeks with this additional data being incorporated into an ideal plasma torch configuration for this client.
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.
Client A is a multi-billion-dollar international producer of iron ore pellets, one of the largest in the industry, whose name will remain confidential for competitive reasons. The Client has over 10 plants each requiring approx. 50 plasma torches. Each torch will generate up to $3M of revenue to PyroGenesis.
> 10 plants x 50 torches/plant x $3 million USD/torch = ~ $1.5 Billion USD
Client B
On June 11th, 2020 the Company announced that it had signed a second multi-phase torch modelling contract with Client B, aimed at evaluating the performance of PyroGenesis’ proprietary torches in an existing iron ore industrial furnace with the goal of replacing existing fossil fuel burners with PyroGenesis’ plasma torches. The first phase, as expected, is to be completed by mid-August.
During the first phase, which is progressing as expected, Client B has already entered into active equipment purchase discussions with PyroGenesis.
Client B is another multi-billion-dollar producer of iron ore pellets, whose name will remain confidential for competitive reasons. Client B has over 100 burners in its existing facilities.
> 100 burners (could be more than one torch/burner) x $ 3 Million USD = ~ $300 Million USD
New Development – Client C
A new potential client (“Client C”), who is not only a significant player in the iron ore pelletization industry but is also a major player in the steel industry, has entered into active equipment purchase discussions with the Company. There seems to be a high probability that Client C may bypass the modelling phase altogether, however it is PyroGenesis’ preference to incorporate a modeling phase if at all practical.
“Once again, although there is no certainty that any of these relationships will result in anything substantial, we are extremely pleased with the responses and the speed at which things are moving with this offering,” said Mr. Peter Pascali, CEO and President of PyroGenesis. “As would be prudent under the circumstances, PyroGenesis has taken steps to ensure that any reasonable requests from our clients can be met in a timely fashion, and to their full satisfaction. Barring any unforeseen events, we believe that it is entirely reasonable that initial torch equipment purchases will be placed in Q3 2020.”