Back to the Drawing Board Good Day All,
Another weekend, come and gone. Now just 1 day away from Qtr end and the final phase completion of the iron ore modelling contract. This final phase being a simple, more complete analysis of torch benefits.
Looking @ 2019, the total revenues for PYR were $ 4.8 M.
2020 is going to be very dramatically better. Both in Revenues and Backlog.
IMO, I see the first contract with a pellet ore firm will be massive in # of torches required by this first client. The time frame for approx 550 torches, I would expect to be phased in over a period of three years.
But that is just for a single client. I have the strongest conviction, it will not stop at 1 customer, but will snowball through the iron ore biz, plus spilling over significantly into a multitude of diverse industries. All those industries requiring their fossil fuel burners to be replaced by more effecient/cost saving/ serious GHG reducing, plasma burners.
So, keeping it simple, upon the first 2 torch sales of $ 3M ea., we are @ $ 6M. Far surpassing 2019 revenues of $ 4.8M. Oops, my bad it appears.
A question was raised on Agoracom by Hilbertk ( Thank you ) as follows:
Mr. Pascali, Are you able to advise if the induration torch revenue (~3 mil) was in USD or CAD.
Dear Hilbertk,
I am comfortable confirming that it could be USD.
Hope that helps,
Peter
So it appears that the torch prices may be in USD. Well back to the drawing board. The current USD exchange rate to CDN is 1.37. So the 2 torches are now in CDN @ $ 8.22 M.
Sure beats handily the $ 5- 7 M of recent annual revenues, for just 2 torches !! So if we assume 550 torches over three years ( for just 1 client) it now equals $ 753.5M per year. Oh, also doesn't include annual maintenance upkeep of the plasma torches.
So at this point in time, many of us thought the $ 3M per torch was CDN. So we had done a Risk/Reward analysis on that basis when buying up PYR shares. Shares are still trading in a tight range of $ 2.25 - 2.40. Such a Gift !
It's also the Gift that keeps on giving.
Now with absolutely NO Risk impact, we are now being apparently( strongly) Rewarded with a 37 % increase on expected Revenues/Cash Flows/Net Income. All thanks to the Exchange alone.
Fair to say, it's a Smashing good sp @ $ 2.29 curently. Much trading of shares @ current levels recently are thanks to Shorters who don't know better. But will soon know the meaning ' Boy, did I make a gross error, and How am I going to explain to my Banker that I can't cover !!! ??? '
Best wishes All, good health,
Good Fortune,
Sincerely,
Topseeker