Dear All,
I am sharing below a question thatt was posted to me privately as I think the answwer could benefit many of you. Here it is (answer in red below):
Hello Peter,
I am a strong investor. I am sure you get that quite a lot and can't be sure if the person truly is. All I can say to prove myself is that as a retail investor, I am probably in your 1% considering the amount of PYR shares I possess, and maybe more if considering HPQ. Having said that, I am puzzled again when I read the timelines with client A.
Certainly, something is going on: The Sweden torch was installed one month after the FAT (18/09/19) according to Pyr press releases (17/10/19). You did further testing (which we don't know about) and finish the whole thing on (04/03/2020). That torch had taken 9 months to be manufactured.
The Client A torch took much longer when it was done in the Montreal Manufacture (from Nov 24th,2020 - date of contract to 27th January 2022 - date of FAT press release). However, you had released that the new facility would speed up manufacturing torches: ''For example, parts that previously took 4 hours to manufacture will now take 15 minutes.''(May 13th, 2021).
Also, you took six months before giving Client A a cost estimates when you state at other times that the client wants the torch yesterday? Can you see how things don't add up?
I am sure I am not the only one wondering why all these delays? Certainly, Covid and chain of supply can't explain it all...I suppose that you had to put processes in place with this new manufacture, maybe that account for something?
Maybe you took the time needed for a good cost estimate only when the torch would be created in this new facility?
And could it be that there are plans to:
A) having medias, pictures and coordination of various partners in place in July for the SAT and announcements and that would explain the delay?
or:
B) Client B made it a point in his contract of the 4 torches to be first with SAT?
Would you find a way to comment and give us more light on these delays?
Please do not take my questioning the wrong way. I am only puzzled
Thank-you for having confidence in us and participating as you have.
Here are a couple of points that could help better understand the complexities of what is going on:
-For Client A, we are supplying more equipment than we did for Sweden (air compressor, nitrogen generator, refractory block for client furnace). For this equipment we are dependent on the delivery time of our suppliers, and it has gone up significantly since the pandemic, which should not be a surprise to anyone.
-The manufacturing of the torch itself is only a part of the overall project. The new facility does help us go faster to make torch parts, but it does not help with the point above when we are depending on sub-suppliers. Plus this really only kicks in when we have a large order and manufacture parts in advance.
-There was a lot of back-and-forth with the client A on the integration of the torch into their furnace since it is a real industrial furnace that runs 24/7. A lot more than Sweden which was, for all sense and purposes, a “look/see” project as opposed to a full out commercial application. Just as an example, we did several rounds of CFD modeling with Client A to ensure the torch would work well, and our designs spent some time waiting on these results.
-The Sweden system was shipped by air, which took about 5 days. The Client A system is being shipped by boat (by the client). The client has planned 100 days of transit, again because of the pandemic shipping issues, so that delays the overall project a lot more than Sweden which was pre-pandemic on all counts.
Hope that Helps
Peter