Teeoff01 wrote: GoldenValley,
A lot of the recent NRs would also be very helpful, perhaps starting from around late March / early April of this year and sifting through them accordingly up to present day, should also paint a very clear picture.
Either searchable on Sedar or PyroGenesis website. I have also posted the Outlook from the year end 2019 financial report from June 15th below as another good starting point. All the best!
OUTLOOK
Any discussion regarding the OUTLOOK of the company would be remiss if it did not address the recent increase in the Company’s market capitalization and the implications that has for the future.
Without a doubt the Company’s market capitalization suffered, as did many other companies, in the general Covid-19 market meltdown at the end of March 2020. However, PyroGenesis soon broke from the pack with the issuance of a material press release on March 24th, 2020.
Management believes that its breaking from the ranks caught the attention of investors, fund managers, and money managers who all now had the time during the Covid-19 lockdown to fully analyze the complicated story that is PyroGenesis. Management does not see any reason why this interest would abate anytime soon. To the contrary, Management has reason to believe that interest in the Company will only increase over the foreseeable future. As such, Management has decided that several strategies that have been articulated in the past (up listings, spinoffs) can now be accelerated as some of the impediments to moving quickly have been removed or may be very shortly.
Having a larger market capitalization has also helped in discussions with potential customers who take comfort from the possibility that a higher market capitalization may translate into easier access to capital. For the record, there is no intention at this time to raise capital for working capital purposes.
If 2018 was the year in which PyroGenesis successfully positioned each of its commercial business lines by strategically partnering with multi-billion-dollar entities, and 2019 was the year that saw the appropriate personnel and infrastructure being put in place while building upon the success of 2018, then 2020 is without a doubt the year that the long awaited breakout, which began in the second half of 2019, takes place; it is in fact already upon us:
To date during 2020 PyroGenesis has:
- received significant payments under the multi-million dollar contract with DROSRITE™ International thereby validating announcements made during 2019,
- established a relationship with a US based tunneling company (contracts and payments ongoing),
- Established itself in the iron ore pelletization industry as a potential supplier of torches geared to replacing existing burners and thereby reducing GHGs. Interest is also spilling over into other industries with GHG reduction targets,
- Established a relationship with an OEM in North America with the intent to eventually supply powders for their 3D printing needs. This augments our relationship with Aubert & Duval, while at the same time de-risking our dependence on them,
- retired the $3MM convertible debenture in full,
- bought back approximately 1.2 Million shares under the existing Normal Course Issuer Bid,
- increased Company’s investment in HPQ, who has subsequently also experienced a significant increase in market capitalization,
- further benefited from early conversions of warrants maturing in 2021 of over $2MM.
The Company has booked a significant backlog of signed contracts (in excess of $30MM; 2019 Revenues approx. $5MM) which, when taking the eagerly awaited US Navy contract into account, will increase to over $40MM. This provides a solid cornerstone upon which PyroGenesis can:
- continue to build on the recent successes with the Company’s DROSRITE™ offering
- leverage off of the recent successes with the Company’s torch offerings to (i) the iron ore pelletization industry, and (ii) a tunneling client.
- accelerate activities with Aubert & Duval in the Additive Manufacturing sector as well as HPQ in the Mining and Metallurgical sector, both of which did not progress as fast as management would have liked in 2019. Significant attention will be placed on both these activities in 2020.
Specifically, with Aubert & Duval the goal will be to complete the integration of the cutting-edge advances PyroGenesis has made to the powder production process.
With respect to HPQ, the goal would be to accelerate the game changing PUREVAPTM family of processes which we are developing for HPQ, namely:
- The PUREVAPTM “Quartz Reduction Reactors” (QRR), an innovative process (patent pending), which will permit the one step transformation of quartz (SiO2) into high purity silicon (Si) at reduced costs, energy input, and carbon footprint that will propagate its considerable renewable energy potential; and
- The PUREVAPTM Nano Silicon Reactor (NSiR), a new proprietary process that use PUREVAPTM QRR silicon (Si) as feedstock, to make spherical silicon nano powders and nanowires;
Looking forward, the Company has, as of December 31st, 2019, approximately $10MM of in-the-money warrants and options expiring in 2020 and 2021. The Company also has over $50MM in tax loss carryforwards (roughly evenly distributed between federal and provincial obligations) which is not reflected as an asset on the balance sheet.
All in all, 2020 is shaping up to be the year that we have been expecting for some time.
GoldenValley wrote: Make sure that seeing the potential of this Co, I do the most DD I can...!
thanks !