Fumed Silica to be monetized first, PYR participatingAlready posted this message below at PYR forum, but should do so here as well
During the positive update by HPQ CEO Bernard Tourillon on next QRR milestone, a pour this coming week, he once more reiterated Fumed Silica will be monetized first. Why is this financially so important, also (or especially) for PYR ? Rereading 14 September press release on this topic, my eye fell on the 2nd Reference Source, added for the first time in a press release:
To maintain confidentiality for industry competitive reasons, the identity of the LFSM will remain undisclosed. PyroGenesis participation in the NDA agreements is done at HPQ's express request.
Important to know, Fumed Silica resides under HPQ Silica Polvere Inc. and Pyrogenesis has AT ANY TIME the right to convert her 10% royalties for any sales in a 50% ownership of HPQ Polvere.
Based on everything what has been said about their fumed silica activities, I guess HPQ and PYR have an open mind to an attractive bid (especially when it's obscene...). PYR now explicitly invited to the table, further hints IMHO into that direction.
HPQ meanwhile already has 2 NDA's and also a 3rd party seriously interested now. We're talking about the biggest global players here with, undoubtedly, pretty deep pockets.
HPQ also said it will be hard to compete with their FSR technology, producing fumed silica from raw quartz in a single step, also minimizing environmental impact and associated carbon taxes, minimizing energy use (about 85% less). In 2022 this already was a US$ 2.2 bln market and the growth is basically hampered by old inefficient , highly polluting production systems (FSR can almost create its own market).
What would be the value of HPQ / PYR's FSR Technology? Any suggestions are welcomed , but my guess is it will be a pretty impressive amount. Bernard used "ball out of the park", and believes ATH of C$ 1.60 would be fair for this Fumed Silica vertical alone (the other two by the way also having that value, he believes, but once more Fumed Silica to be monetized first).
And Pyrogenesis simply can get 50% of that, plus they also still own about 8% of HPQ !! . So , not just HPQ, but also PYR will be cash rich, and I guess that will happen before long, maybe soon (very soon?).
I hold my shares in both stocks.
One more remark: I appreciate Bernard's transparency, willingness to communicate with investors as much as he can. Great!
Furthermore, I hope they can make the pour somehow a bit of a media event, maybe with some press invited if possible / applicable (but of course, that's HPQ and PYR's call).