RE:Pyr CEO response to question regarding client B 4 torches good morning,
It is a dissapointing answer to the questions but understandable. Maybe he can't answer in specifics or chooses not to.
Lets all agree - the quote for 4 torches - that is a low number. I was surprised when i saw it in the press release. So i am trying to justify it. Why 4 ?
If it is testing and that is the minimum they need to test a furnace that makes sense - but that question was not acknowledged ( that is why they did modeling phases ).
If it has nothing to do with testing then it is price. For Client "B", at this time, if the ask is 3M per torch it is too high. Peters suggestion that i look more at PYR and not Client B for why only 4 torches would lead me to believe he is still not willing to lower price substantially and is OK with first orders in the single digits. Even with lease options floated they still want quote for 4.
The 1st order sets the bar for other orders to come both with this client and others. If you want the best price long term you have to play hard ball now and NOT lower price too much. Peter is in a tough spot right now. He is staying firm on price and - so far - no contracts.
I am now thinking the Client A will be a lower initial number - which is OK - any actual contract with an iron ore client is huge news.... quotes or even draft contracts are not the same. The true value will be in the follow up contracts of course.
Client A has 500 burners ( 5x Client B ) and right now - for the short term - Client A the big question .....
Lets pull back the "Vale" off the face of this princess .....
cheers.