After going over various publications and simple common sense. One does not need to be an expert in predictive analytics to analyze current and historical facts to make predictions about the future for PYR torch profit margins. 

It is self evident to conclude that each of the $3M torches have a very high margin of profitability.  

Looking at the recent Rise Energy of Sweden 900kw PYR plasma torch sale last year which sold for little over $1M for the same  industry and purpose - replacing fossil fuel burners in the  iron ore pelletization process w PYR torches w roughly the same spec.  It was a competive bid process in which PYR bid their price w profit built in NOT for charity!

So let's say it was low margin of 10-20% based on a $1M contract order/torch. Even IF added costs to custom spec out for Client A and the second Client B  were increased by 10-20%...deductive reasoning can conclude that $3M torch sale carries  approx 67% net profit margin at base minimum. 

Client A 500 torches x $3M = $1.5Billion sales. Most likely in stages/methodically  but w the 1st set torch sale will certainly solidfy the entire swap out contract. 

Client B 100 torches x $3M = $300Million 
 
NEW Clients C, D and so on etc... is almost certain as it was stated that demand for PYR torches will " grow exponentially "

Maintenance/Service contract estimated at 5% equtes to $75Million recurring revenue/year shoul be even higher margins. Think of it as your new car dealership where they make most of their $ via after sales sevice...where only the authorized dealer(PYR in this case) can service and repair! 

The margins very well might be much higher as PYR is the ONLY GAME in town w NO COMPETITION! Their 30+ years of R&D along w propiertiery tech AND  lock on patents ...they will completely dominate this industry. Let that sink in for a moment. 


The recent  NR was absolutely huge as this happened prior to the first one being fully completed! The probability of these torch contracts happening is of the highest level!! PYR is also covid resistant as most of the staff can work remotely or in social distant manner. 

Very important point is Peter stated they have shored up their supply lines to meet any size order.  

Here is PYR CEO's comment in reference to the closest/nearest competition in this field..which is virutally zero:

Dear HK,

ESAB and Komatsu make torches for plasma cutting that have nothing to do with our torches: not the same type of technology (transferred arc vs. non transferred arc, much lower power than our torches.)

In my opinion they would have significant barriers to entry: they would need to develop technology development from scratch and they would need to obtain a license from us as our patent has pretty much prevented anyone from using torches in induration furnaces.

I am not concerned about them.

Of course, we do not rest on our laurels, and as such our goal is to leverage our first mover advantage into market share and increasing competitive advantage through continuous improvement (and of course: cross selling)

Hope that helps,

 

Peter




For those who want to read up more in this 1 division of PYR(Keep in mind there are 5-6 other massive divisions that will morph into huge entities within PYR):

Here are PyroGenesis offersings of torches within 4 main groups, which can be used alone or integrated into a customized system for various applications.

Air Plasma Torch (APT) APT can be used with other gases such as argon, oxygen, and nitrogen. Applications: • Waste to energy • Process heating • Gasification • Vitrification

Reverse Polarity Torch (RPT) RPT delivers sufficient energy for systems with high enthalpy requirements. Applications: • High purity materials • Metal production • Nanomaterial production

Steam Plasma Torch (SPT) SPT is used in our SPARC system to destroy refrigerents with a removal efficiency of 99.9999%. Applications: • Destruction of hazardous substances, specially refrigerants

MINIGUN is the smallest, most compact plasma torch. Applications: • Thermal spray: spray coating, etc. • R&D projects

https://www.pyrogenesis.com/products-services/plasma-torches/