I've been wanting an update on iron ore torches for a while now. Although I understand based on past releases that such contracts can take longer then we were led to believe.
I would appreciate from management to clarify or rectify this statement, and to elaborate on the progress with Client B quote given last November, and the progress on the modeling for clientC.
It has been said a few times that "all projects are on track" but I think this contradict the 9/11 statement, and should be addressed. At least to provide a new timeline, if no contracts in the coming days
StairwayTo wrote: I decided to look back at these releases in regards to iron ore torches, in order to better understand why it takes time to get these contracts that everyone is expecting now.
I’m posting it here now to help other new investors
1/17/2019 is pleased to announce today that, further to its Press Release dated January 7th, the Company has signed the >$1M contract for a 900 kW plasma torch system sale. This contract was won in a competitive bid announced by RISE Energy Technology Center AB of Sweden. The torch is scheduled to be delivered by Q3 2019.
9/18/2019 further to previous press releases with respect to the Swedish torch contract (January 7 th, January 17th , and February 21st 2019), the Company has successfully completed the Factory Acceptance Testing (“FAT”) witnessed by RISE Energy Technology Center AB (the “Client”) at PyroGenesis’ facility in Montreal, and has received payments totaling €643,196 (approx. Can$936K). This Contract, originally announced last January, is for a 900-kW plasma torch system which was won in a competitive bid announced by the Client.
10/17/2018 further to previous press releases with respect to the Swedish torch contract (January 7th, January 17th, February 21st , and September 18th, 2019), the Company has successfully performed the Site Acceptance Test (“SAT”) at RISE Energy Technology Center AB’s (the “Client”) facility. This Contract, originally announced last January, is for a 900-kW plasma torch system which was won in a competitive bid process.
11/4/2019 further to its previous press release dated October 17th , 2019, the Company has received a milestone payment of approx. $345K from RISE Energy Technology Center AB (the “Client”).
3/4/2020 further to its previous press release dated November 4th , 2019, the Company has completed all torch tests successfully, and has received final payment from RISE Energy Technology Center AB (the “Client”)
4/30/2020 further to its press release dated March 4th, 2020, it has successfully completed the first phase (the “First Phase”) of a multi-phase modeling contract aimed at evaluating the performance of PyroGenesis’ proprietary torches in an existing iron ore industrial furnace with the goal of replacing all existing fossil fuel burners with PyroGenesis’ plasma torches. All phases will be completed by the end of Q2 2020. The client is a multi-billion-dollar international producer of iron ore pellets (the “Client”), 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.
5/19/2020 further to its press releases dated March 4 th and April 30th , 2020, it has now entered into the final stages of negotiation for equipment supply with the major iron ore pelletization client (the “Client”) previously disclosed. The Client 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.
6/11/2020 , further to its press releases dated March 4 th , April 30th and May 19th, 2020, it has signed a second multi-phase torch modelling contract (the “Contract”), 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 is expected to be completed in approx. 8 to 10 weeks. This Contract is with another multibillion-dollar producer of iron ore pellets (“ClientB”), whose name will remain confidential for competitive reasons. ClientB has over 100 burners in its existing facilities.
7/2/2020 further to recent press releases, an update on its iron ore pelletization torch business.
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 B On June 11 th , 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.
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.
8/24/2020 in response to this morning’s trading activity, and the sudden decline in its stock price. The Company wishes to reassure investors that all projects (Military, Tunneling, Drosrite™, Pelletization, PUREVAP™, etc…) are all on track and there are no undisclosed events to warrant this morning’s decline. The Company does not usually opine on stock price and trading activity, however, given the recent decline, and inquiries from investors, the Company confirms the following: Everything material has been disclosed by the Company in either its press releases or financial reports. PyroGenesis further confirms that none of the contracts press released are at risk. Last but not least, the Company wishes to reassure PyroGenesis’ shareholders that we remain on track with our current and prospective projects. “I just wanted to take the time to reassure investors that the precipitous decline in stock price today cannot be explained by any undisclosed developments at the Company,” said Mr. P. Peter Pascali, CEO and President of PyroGenesis. “To the contrary, all of our projects are moving ahead and are closer to completion than before. The potential contracts previously announced are not in jeopardy and are moving ahead. Regretfully, to those looking from the outside, it always seems to take longer than expected, however, nothing can be further from the truth and, in certain instances, are proceeding with lightning speed particularly given the entities we are talking to and the significance of the contracts under discussion.”
9/1/2020 further to its press release dated July 2nd, 2020, is pleased to announce the completion and acceptance of its modeling contract with Client A (the “Client”) which confirmed, amongst other things, that replacing fossil fuel burners with PyroGenesis’ proprietary plasma torches addresses the Client’s greenhouse gas reduction strategy/policy. PyroGenesis is also pleased to confirm receipt of a draft equipment purchase contract (the “Contract”) from Client A. The Client’s name shall remain anonymous for competitive and confidential reasons.
9/11/2020 , issues this press release in response to a sudden decline in its stock price this afternoon. Given the recent decline, and inquiries from investors, the Company confirms the following: Everything material has been disclosed by the Company in either its press releases or financial reports. PyroGenesis further confirms that none of the contracts press released are at risk. Last but not least, the Company wishes to reassure PyroGenesis’ shareholders that we remain on track with our current and prospective projects. “There seems to be an indication that certain comments made by a fund manager in the course of an interview lead to this decline. In the interview it appears that one could conclude that he suggested that he did not expect more than 1 to 2 torches to be sold by PyroGenesis within the next 3-6 months,” said Mr. P. Peter Pascali, CEO and President of PyroGenesis. “Although I respect analysis done by third parties, I am also aware of the challenges that this presents to these same very same analysts who, by the very nature of the job, are always on the outside looking in. This is also exasperated by the pressure they have of providing insight within sound bites. Having said that I can confirm that the Company has visibility on more torch orders than that alluded to in the interview. In fact, I can confirm that the current status of torch negotiations with various clients anticipate closing more than 1-2 torch deals in well under 3 months, let alone 3-6 months
11/12/2020 is pleased to provide an update on the Company’s iron ore pelletization plasma torch business.
In January 2019, PyroGenesis was contracted for a 900kW plasma torch with a client which we later disclosed to be RISE Energy Technology Center AB (“RISE”) of Sweden. RISE was engaged in addressing the Swedish government’s commitment to zero carbon emissions1 ; namely that within the iron ore pelletization industry. The ultimate objective was to determine the benefits, if any, of replacing traditional fossil fuel burners used in iron ore pelletization with plasma torches. We delivered the plasma torch and completed testing in 9 months.
Q3. The RISE contract went well. What happened next? A. Our original goal was simply to have our torches be a contender in Sweden’s strategy to reduce GHG emissions in the iron ore pelletization industry. What we did not realize at the time, was the impact this would have on the industry as a whole. As noted above, we successfully completed the RISE contract in 9 months, which once made public, had a resounding effect as we apparently were addressing a significant concern in the industry with respect to GHG emissions reduction. Given this interest, we were approached by several companies in the industry which we have come to term Client A, B and C. Two of the three wanted to immediately engage in a modelling contract, and the third is in the process of considering such. We prefer to engage in a modelling-first-step as it helps quantify parameters that may be specific to the client.
Q7. In closing, can you give us a status/update on the existing agreements/contracts under discussion? A. Certainly. All of our projects are on track and progressing nicely. As previously disclosed on September 1st, 2020, we have received a draft contract from Client A, which is still in the final stages of completion. The fact that we received this contract from Client A, on the heels of a successful modelling contract, who is a significant player in the industry, clearly demonstrates the impact that PyroGenesis’ proprietary plasma torches are having on iron ore pelletization GHG reduction strategies. If signed, and successfully deployed, one might expect they would start a program to replace their fossil fuel burners with PyroGenesis’ plasma torches. Although nothing is certain, we are definitely on the right track with Client A.
11/24/2020 , is pleased to announce today that it has signed an initial plasma torch contract (the “Contract”) to provide one high powered (approx. 1MW) plasma torch with ancillary equipment (the “Torch”), with Client A (the “Client”), a major iron ore producer, for approx. $1.8MM. This does not include continued after-sale services, which was not the subject of these initial negotiations. It is expected that future sales with this Client will include a separate continued after-sale services agreement. The Client 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, which has committed to reduce its greenhouse gas (“GHG”) emissions, has over ten (10) plants, each possibly requiring up to 50 plasma torches.
2/23/2021 issues this press release in response to this morning’s trading activity, and the sudden decline in its stock price. The Company wishes to reassure investors that all projects, including the NASDAQ listing, are all on track and there are no undisclosed events to warrant this morning’s decline. The Company prefers not to opine on stock price and trading activity, however, given the recent decline, and inquiries from investors, the Company confirms the following: Everything material has been disclosed by the Company in either its press releases or financial reports. PyroGenesis further confirms that none of the contracts previously disclosed, nor the NASDAQ listing, are at risk. Last, but not least, the Company wishes to reassure PyroGenesis’ investors that the Company remains on track with current and prospective projects, as well as with the NASDAQ listing. “I just wanted to take the time to reassure investors that the decline in stock price this morning cannot be explained by any undisclosed developments at the Company, as all material events have been disclosed,” said Mr. P. Peter Pascali, CEO and Chair of PyroGenesis. “The Board believes the Company is in the strongest position it has ever been with (i) a backlog at historical levels, (ii) a pipeline that is growing exponentially, and (iii) a clean balance sheet which, as of today, posts cash-on-hand in excess of $27.5M.”
I can’t find the release where PYR quoted client B with 4 torches.
This is only sorting out NR about iron ore torches, if someone would do the same with the other division, that would be great . MidtownGuy?? LOL