RE:RE:PyroGenesis – a not so brief summary!
I'm new to this company, this post was a great resource. At the moment, it sounds like the largest source of value for PYR are the potential contracts with 3 new clients which are looking to replace more than 600 burners with torches at $3m a pop, potentially adding $1.5b to the backlog. Assuming a 10 to 30% fcf yield that would provide $150 to 450m in cash. At an $800m market cap, it sounds like most investors think these are done deals. What is the likelyhood the scope of the contracts come in lower than the implied 600 torches, or the revenue per torch is less than the $3m being discussed in the news releases? The summary from the post suggests that PYR won't need further capital raises, but Does the company really have the operating leverage required to service the more than 10X increase in incremental revenue implied by the potential torch contracts...this isn't a software company. How much capex will they need to invest in their production capabilities to deliver on these contracts...and how do they intend to raise the capital needed for the capex and working capital? ...they already have 150m shares outstanding...so Im afraid I may already know the answer to that one. Are they looking at monetizing the spin offs of other divisions? Seems like an interesting company, just trying to wrap my head around the $800m market cap. Any good info would be appreciated.