RE:Time to average down Why ?Did you miss the part when Peter stated a first order is expected by the end of august ? Market seems to have noticed... Next swing will be multiple dollard increase and a new bunch of millionnaires ( those old long who stayed invested even with hundreds of K$ in profit) News are coming sooner than later Let the ball roll
ElanS2 wrote: This is, without a doubt, an opportunity to invest in a firm with a fantastic future ahead of it. However IMHO the market is running a little too fast.
from the April NR :
"it has successfully completed the first phase (the “First Phase”) of a multi-phase modeling contract aimed at evaluating the performance of PyroGenesis’ proprietary torches in an existing iron ore industrial furnace with the goal of replacing all existing fossil fuel burners with PyroGenesis’ plasma torches."
A modeling contract is not a physical, on-site operational demonstration of this new application of a high power plasma torch. The NR also states:
"This all important First Phase demonstrated that replacing fossil fuel burners with PyroGenesis’ proprietary plasma torch (i) has absolutely no ancillary detrimental effects anywhere in the process or with the furnaces, (ii) results in significant greenhouse gas reduction while at the same time, (iii) projecting significant cost savings."
The next phase/objective will be to prove the above on-site under real operating conditions. Engineers have been known to make mistakes and misculations due to bad assumptions and "unkowns". The life of a torch under operating conditions could vary from the assumptions. It may be necessary to revise the materials used to build the torch and maximise it's life. These things are details, yes, but essential.
Building a proof of concept torch(s) will be the simple part as will be bolting it ( them) in place. Do not ignore the supply of electricity and all that that implies: is it available?, how far away?, switchgear, transformers, wiring to say the least. Wiring will be easy, not so for transfos and switchgear. That stuff can require many months to build and deliver after the project manager has accepted the design. Big stuff is made to measure and not on the shelf waiting for an order. It could very well be on the critical path to operation.
I am taking the time to average down as I am sure there will be more opportunities to watch the markets emotional response to future NRs
There will be many more phases before the need to demonstrate this tech is done with.
The market is known for over reacting. Fiture clients will not be making investment commitments on emotion. The clients will be putting their personal careers on the line when selling the job to owners. They will be conservative.
They will be replacing something that works with something that has no track record in their business. That could be personally dangerous.