RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Pyrogenesis Company OverviewFor those looking for more information/research/due diligence on PyroGenesis, MazerRR has done one of the best summaries on PyroGenesis. Many thanks to MazerRR for the summary (see below for the summary).
PyroGenesis is a long-term hold for me (I've been a shareholder since the summer of 2017) and PyroGenesis is just getting started!
Exciting times!
Long and Strong in PyroGenesis!
MazerRR wrote: Thanks for the kind words and I’m glad the summary was helpful.
I purposely tried to avoid discussing the stock price, because that is more speculative and harder to quantify, and I subscribe to the buy and hold philosophy so I’m in it for the long term. There is so much going on at Pyro, so many irons in the fire, that just describing each vertical they are pursuing with Plasma applications is enough to paint a picture of a company that has huge future potential. It’s a complicated company to invest into because you really have to dig deep to try and find and absorb all the information, that’s what I was aiming to help with the summary.
And definitely, things are just getting started at Pyro. It's going to be an exciting growth story to witness!!
BCONTVentures wrote: Yes, big credit to MazerRR for this post/summary on PyroGenesis.
You highlighted a key point Aarman4 in your opening sentence in that this summary does an amazing job in talking about the company PyroGenesis, as opposed to PYR the stock. I've been investing for almost two decades now and I've also learned to
look at a company's fundamentals and focus on the fundamentals/merits of the company/business, not focus on the company's stock price. PyroGenesis is a long-term hold for me and I am focused on PyroGenesis' fundamentals. PyroGenesis is just getting started, exciting times!
Long and strong in PyroGenesis!
Aarman4 wrote: Credit to MAZERR for this post, my apologies for the report, but it does an amazing job at talking about the potentials of Pyrogenesis the Company, as opposed to PYR the stock.
Cheers!
Also, I would ask that you please not re-post this summary elsewhere. ************* [TLDR warning, there’s a lot of content below. Some key bits are bolded/underlined. ************* Before jumping into things, it’s worth a quick look at what Pyrogenesis is all about: Plasma. What is Plasma? Plasma is the 4th state of matter, typically consisting of a mixture of ionized species, electrons and neutral particles. Thermal plasmas can easily reach temperatures in excess of 5500 degrees Celsius, comparable to what can be observed at the surface of the sun. PyroGenesis has been mastering plasma usage in high-technology applications over the last 30 years. They are involved in exploring and growing many new and exciting applications for their plasma torch technology, which is really the at the heart of this Summary, such as: - Metal powders business through their AM division PyrogenesisAdditive - Drosrite tolling and equipment sales - PUREVAPTM reactor design and testing for production of Silicon metal and Silicon nanopowders/nanowires from Quartz - High-powered plasma torches (at the moment mainly for burner replacement) - Tunneling business segments (these may fall into high-powered plasma torches as well but I created a separate section for simplicity). In 2018 and 2019, Pyrogenesis has also worked to develop partnerships with multi-billion-dollar entities who have identified their offerings to be unique, namely Aubert & Duval for Additive Manufacturing (AM) powders & an unnamed Japanese trading house for DROSRITETM Tolling. This post will be going over these technology applications, partnerships, and projects, adding links to material where referenced, to ensure you can easily follow the information, and see how they are working to bring plasma into the future. CONTENTS: Sections in the summary are as listed below: 1 – US NAVY 2 – AUBERT & DUVAL PARTNERSHIP || PYROGENESISADDITIVE (AM POWDERS) 3 – DROSRITE (INCLUDES SAUDI DEAL & JAPANESE TOLLING PARTNERSHIP) 4 – HPQ PUREVAP 5 – HIGH POWERED TORCHES (INCLUDES IRON ORE PELLETIZATION NEWS) 6 – TUNNELING 7 – WASTE MANAGEMENT 8 – SHAREHOLDER VALUE PLANS 9 – ADDITIONAL LINKS 1. US NAVY The US navy is one of the key entities that Pyrogenesis has developed a unique relationship with over the years. For a long time, they have been a reliable source of revenue. I put links to the description of the PAWDS Shipboard units here instead of later on in the ‘Waste Management’ section as the Navy is their main client for this application: PAWDS stands for ‘Plasma Arc Waste Disposal System’ and is a waste destruction system which uses a plasma arc’s high temperature to destroy combustible wastes like 'paper, plastics, food and oily rags'. For more detail on how the PAWDS shipboard system works, see the following link from their website: https://www.pyrogenesis.com/products-services/waste-management/pawds-onboard/ The US Navy intends to spend $11.5M for PAWDS for 2 aircraft carriers, as has been confirmed in a recent news release by Pyrogenesis. The news release below from 2020-07-09 indicates Pyrogenesis and the US Navy have agreed to all terms and conditions for two Pyrogenesis waste destruction systems, and to expect news of the formal agreement signing within 2-3 weeks of the NR release, which includes a down payment of approx. $4M. Project completion is expected within 18 months. https://www.pyrogenesis.com/wp-content/uploads/2020/04/2020-07-09-PyroGenesis-Comments-on-Recent-Trading-Activity-Provides-Military-Update.pdf The navy have also purchased Hazardous Waste Destruction equipment and may do so in the future. 2. Aubert & Duval partnership (Europe) || PyroGenesisAdditive (AM powders) Aubert & Duval partnership (EU) PyroGenesis has excellent Additive Manufacturing (AM) (this term is used interchangeably with 3D printing) powder producing tech in Plasma Atomization. Their production costs are also among the cheapest in the industry, due to their NexGen Plasma Atomization System. Aubert & Duval (A&D) is a multi-billion-dollar world leader in industrializing high-performance steel, super alloy, aluminum, and titanium alloys for over a century, and a recognized supplier of metal powders of the AM industry. In 2019, the two parties signed a mutually exclusive partnership for A&D to supply PyroGenesis’ Titanium (Ti) powders to the European Union (EU) market. Since this announcement, we have not heard much, and as Mr. Pascali has recently stated on Agoracom, “the companies they deal with like to play their cards closer to their chest.” France has been hit hard by COVID, but things are starting to settle down, so let us hope to hear further from A&D soon. https://www.Pyrogenesis.com/wp-content/uploads/2019/03/PyroGenesis-Signs-Mutually-Exclusive-Partnership-Agreement-with-Aubert-and-Duval-to-Supply-Plasma-Atomized-Titanium-Powder.pdf PyroGenesisAdditive (AM division) PyroGenesisAdditive is PyroGenesis’ AM division, which now has its own website. They currently indicate that they sell both Ti and Inconel powders for the AM and Metal Injection Molding (MIM) industries, produced using Plasma Atomization technology. https://Pyrogenesisadditive.com/ According to the PyrogenesisAdditive website, Plasma Atomization produces “spherical metallic powders with some of the most spherical, pure, dense, and highly flowable properties, which are highly sought after in the Additive Manufacturing (“AM”)”. Pyrogenesis had a metal powders unit in the past, the ‘Plasma Atomization Production Unit’, which exclusively produced Titanium powders, so this is not a new field for them. They have proven expertise, having invented the Plasma Atomization metal powder producing process. Pyrogenesis was previously partnered with Raymor (AP&C’s parent company – now owned by GE) until 2004; AP&C was working together with Pyro to provide powders for the biomedical industry. In 2006, Pyrogenesis sold Raymor (AP&C) their Plasma Atomization technology platform and moved out of the powder producing business. Fast-forward to 2017, Pyrogenesis has jumped back into metal powders. They updated their previous technology, which is now called the ‘NexGen Plasma Automization System,’ and can even more cost-effectively create Ti powder, thanks to a production rate in excess of 25kg/h. Unveiled in 2019, this system and its advancement represents a significant achievement for the industry as a whole. For more details on what AM Ti powder can be used for, see the following link (you’ll notice there is a reference to Pyrogenesis in the article!): https://amfg.ai/2019/06/18/titanium-3d-printing-guide/ More recently, a premier non-European Aerospace company has approved of the NextGen system’s Quality Management System (QMS). https://www.pyrogenesis.com/wp-content/uploads/2020/04/2020-06-04-PyroGenesis%E2%80%99-Additive-Manufacturing-Quality-Management-System-is-Approved-by-Major-Aerospace-Company-Complements-NexGen-Technology-Final.pdf PyroGenesis management has indicated plans to spin-off PyroGenesisAdditive, which is aimed at benefiting both the PyroGenesis parent company and its shareholders, while providing for an investor base uniquely interested in the AM space. From the NR link below: “The reason to spin-off PyroGenesis Additive is primarily to attract an investor base best suited to their unique value proposition, particular business operations, and financial characteristics, thereby maximizing shareholders’ value and placing it in a better position to generate revenues and develop strategic relationships than had it remained part of the PyroGenesis stable of technologies.” https://www.pyrogenesis.com/wp-content/uploads/2019/05/PyroGenesis-Board-Approves-PyroGenesis-Additive-Spin-Off.pdf For information on the AM market, here is an infographic from ‘Additive Manufacturing Target Guide 2019’, for an idea on AM powders demand outlook: https://www.aerospacemanufacturinganddesign.com/article/additive-manufacturing-metal-powder/ 3. DROSRITETM (Saudi deal + Japanese tolling partnership + Equipment sales) DROSRITE™ https://www.pyrogenesis.com/products-services/maximizing-aluminum-recovery/ The following is from the above link: PyroGenesis’ DROSRITE™ system is a “proven, salt-free, cost-effective, sustainable process for maximizing metal recovery from dross, a waste generated in the metallurgical industry”. Their website also shows that the process "reduces a smelter's carbon footprint and energy consumption," which is key given the increasing focus on climate awareness and making industry more responsible. The DROSRITE™ system can be applied to dross from Aluminum, Zinc, and Copper. https://www.Pyrogenesis.com/wp-content/uploads/2019/09/2012-09-Drosrite-Plus-COM-2012-Paper.pdf The above is a paper describing PyroGenesis’ patented DROSRITETM process, in which the savings of using their system over presently used industrial treatment processes are indicated to be about $191 and $418 per MT of aluminum and zinc dross, respectively. DROSRITE™ system explained in this video from PyroGenesis: https://youtu.be/72dPyULE3wc DROSRITE™ deal with Drosrite International and partner Radian Oil & Gas The biggest reason for PyroGenesis’ financial turnaround, which should be seen starting from Q3 of this year, is that they received a DROSRITE™ contract with a total value (estimated based on exchange rates at the time of the NR) of $55 million [$25M over first 12 months + $35M distributed over subsequent years]. The deal was signed with Drosrite International, who are partnered with Radian Oil & Gas Services in Saudi Arabia to provide dross treatment. With this deal, DROSRITE™ has proven itself in the eyes of some big aluminum producers in Saudi Arabia. From the Pyrogenesis NR on June 3, 2019: https://www.PyroGenesis.com/wp-content/uploads/2020/01/2020-03-24-PyroGenesis-Announces-Receipt-of-First-Payment-Towards-25M-DROSRITETM-Contract.pdf “This is indeed a watershed moment in PyroGenesis’ history. It is the single largest contract that the Company has been awarded,” commented Mr. P. Peter Pascali, President and CEO of PyroGenesis. “With the revenues from this Contract, we do not foresee raising capital for working capital purposes in the foreseeable future as the Company, with this Contract, which is cash flow positive from the start, will be profitable.” …Further to this, in the Q1 2020 report released July 14, 2020, Pyrogenesis has indicated they expect that Q2 and the six months ending June 30, 2020 as well as the year end results will be profitable. PyroGenesis provides the option to clients to either buy their DROSITE™ equipment or pay for dross tolling services. A tolling service arrangement is one in which a smelter provides dross to PyroGenesis to be processed for a fee either on or off site – a turnkey solution for smelters. Japanese Trading House – Tolling partnership Aside from the DROSRITE™ deal in Saudi, there is a potential Joint-Venture partnership with a multi-Billion-dollar Japanese international trading house, which opens a recurring revenue market of > $1B in tolling of Aluminum/Zinc/Copper smelter dross (see link below). https://www.PyroGenesis.com/wp-content/uploads/2018/11/PyroGenesis-Announces-Signing-with-Japanese-Multi-Billion-Dollar-Corporation-to-Jointly-Toll-with-DROSRITE%E2%84%A2-1.pdf There are 7 multi-billion-dollar Japanese trading houses in Japan, each having thousands/tens of thousands of employees, and the ability to mobilize an international sales force that a small company like PyroGenesis could only dream of. https://www.pyrogenesis.com/wp-content/uploads/2019/03/PyroGenesis-Signs-Pre-Tolling-Agreement-with-Major-Aluminum-Smelter-in-the-Middle-East.pdf In the same March 2019 NR (linked above) discussing the Agreement with then un-named Drosrite International & Radian, Pyrogenesis stated: “In addition to this latest Agreement, we are actively pursuing other tolling arrangements through our new, multi-billion-dollar global partner headquartered in Japan, which we announced in November, 2018. Our business development team, together with our Japanese partner’s upper management, recently returned from our first series of on-site customer visits, all of whom requested moving forward to the next step. This contract, along with other discussions we are having with various players worldwide, should enable us, together with our Japanese partner, to provide a cookie-cutter offering, and rapidly roll out our on-site tolling business worldwide.” There is no material news since then on this front. I believe that the next big step, if all goes forth as planned, would be for Pyrogenesis and the Japanese tolling company to announce the official formation of a Joint-Venture partnership. 4. PUREVAPTM I could describe the PUREVAPTM process here, but Pyrogenesis does a good job of it on their website. For a description of how the PUREVAPTM works: https://www.pyrogenesis.com/products-services/innovation-custom-process-development/purevap/ While the technology for the PUREVAPTM application specific to Silicon may belong to HPQ, all other PUREVAPTM uses are owned by Pyrogenesis. As they said in their first News Release on the technology, from 10/2018, “PyroGenesis’ PUREVAPTM is a disruptive process that has the ability to revolutionize the way the mining & metallurgy industry produces metals.” https://www.pyrogenesis.com/wp-content/uploads/2018/10/PR-PYROGENESIS-ANNOUNCES-PUREVAP%E2%84%A2-PROCESS-BREAKTHROUGH.pdf. HPQ PUREVAPTM for Silicon production This section is quite long, however I felt it is appropriate as Pyrogenesis and HPQ are tied quite closely and the efforts in advancing this technology are from Pyrogenesis. It all started in 2016, when Pyrogenesis received an $8.26M contract to provide HPQ Silicon Resources (Ticker: HPQ.V) with a PUREVAPTM Quartz Reduction Reactor (QRR) pilot system, aimed at producing Silicon metal directly from Quartz. This is a new process that allows a One-Step production of High Purity Silicon Metal of 4N+ (3N is 99.9% and 4N is 99.99% Si), the key to a green and low-cost metallurgical production of Solar Grade Silicon Metal (SoG-Si), which is necessary for the conversion of the sun’s energy into electricity via solar cell. Since then, Pyrogenesis has helped build Gen 2 of the PUREVAPTM QRR, and is currently working on the PUREVAPTM NSiR (Nano Silicon Reactor), a modification to their PUREVAP QRR which allows it to produce nano size silicon for Lithium-ion batteries. HPQ’s website states: “In collaboration with world-class technology partners, HPQ is working towards demonstrating its unique capacity to be the lowest-cost producer of the advanced Silicon Metal (Si) materials needed for the next generations of Lithium-ion batteries, silicones, and aluminum alloys.” [Update: the near-term priority of the company has shifted to focus on silicon nanomaterials for the battery space; it appears this is due to the value proposition from the nano silicon market being greater than from the Solar market & them wanting to develop their technology for this without delay. HPQ mentioned in the AGM June 2020 presentation below that perhaps further down the line they would go back to address SoG Si UMG (upgraded metallurgical grade) for the Solar industry. Mr. Tourillon mentioned in the AGM presentation Q&A session (at Timestamp 19:30-20:05): [06-30-2020]: VIDEO: HPQ AGM 2020 Question & Answer session: https://youtu.be/TlkcRcyedBs “Expansion of the solar business is going to be limited by the problem related to the energy storage space, so it’s not really a high priority at this moment. The QRR gives us an ace in the hole in the battery space […] the potential for the market in what we are doing in nano far outweighs whatever we dreamt of at the beginning in the solar part of the business” The following corporate presentation clarifies the current plans from HPQ: https://hpqsilicon.com/presentation/innovative-silicon-solutions-june-2020/ ] From this partnership, PYR will receive royalties representing 10% of HPQ’s revenues, should the commercialization of the PUREVAPTM process with Silicon prove successful. They also currently own more than 10% of HPQ’s shares (~14% fully diluted as of 07/03/2020). There is lots of interest in industry and academia for the next generation of Li-ion batteries, and especially high-capacity Silicon anode material that can replace graphite. Enter the PUREVAPTM NSiR (Nano Silicon Reactor) PUREVAPTM Nano Silicon Reactor (NSiR) HPQ and Pyrogenesis are working on the PUREVAPTM NSiR, an upgraded version of the PUREVAPTM QRR Gen 2 reactor, that can transform melted Si metal into spherical Si Nano-powders and Nanowires. They have updated their milestones and by Q4 2020 are expecting to start to produce the nanopowders and nanowire samples for delivery to some battery manufacturers and research institutions, targeting delivery for this year. These key materials are what is needed to produce silicon anodes for the next generation of Li-ion batteries. Impressively, these anodes induce a 20-40% gain in the energy density of Li-ion batteries when using graphite anodes, resulting in a much higher storage capacity! This allows for smaller size batteries for electronic devices and electric cars. https://hpqsilicon.com/wp-content/uploads/2020/02/HPQ-NSIR-PUREVAP-RELEASE-FEBRUARY-11-2020-FINAL-VERS-1.pdf https://hpqsilicon.com/wp-content/uploads/2020/04/HPQ-PR-PUREVAP-Battery-Material-VERS_CL7.pdf The PUREVAPTM Gen 1 NSiR assembly and testing is going on in the next few months, with process validation & optimization expected in Q4 2020. In parallel with this, from Q2 to Q4 2020, engineering design of semi-continuous PUREVAPTM Gen 2 NSiR is expected from Q2 to Q4 2020, with assembly and operation in Q4 2020. For all the timeline details of HPQ’s plans with the PUREVAPTM, see their 2020 corporate presentation: https://hpqsilicon.com/presentation/innovative-silicon-solutions-june-2020/ There are two difficulties that has made using silicon as anode material such a difficult process. 1) Resolving silicon swelling and cracking during the lithiation phase represents a significant challenge in order to achieve a comparable cyclage stability to graphite, the reference anode material of Li-ion batteries [see link of 2020-04 NR above]. According to HPQ’s AGM 2020 corporate presentation, one effective strategy is, if they can get the nanoparticles < 150nm, the particles can accommodate significant stress without cracking (see the HPQ 2020 AGM video linked earlier @ Timestamp 29:10-29:50). The next challenge then becomes how to store these small nanoparticles, which Mr. Tourillon has mentioned Pyrogenesis’ team are working to address. Silicon anode manufacturers also have their own special recipes using silicon nanomaterials that are larger than this, to mitigate swelling, so I believe that reducing silicon to this size (< 150 nm) is not an absolute necessity, but would indeed be a great benefit. 2) Commercial-scale production of silicon anode materials is prohibitively expensive at the moment, cost reductions are needed to make them viable in the market. The issues above are being addressed by HPQ in order to ensure their nano silicon succeeds commercially. HPQ has stated that they are aiming to be the biggest producer of silicon nano materials for industry and not necessarily a producer of silicon anodes; this is their main focus at the moment. With regards to commercializing silicon nano materials, current manufacturing methods used by industry to produce these Si nanopowders are expensive, at US $30,000/kg selling prices, while manufacturing nanowires is so prohibitive that only government funded special projects can afford them. (These statistics cited by HPQ might be slightly out of date, as Mr. Tourillon did mention $2000-$30000/kg in a later interview, but what comes next is what is key). HPQ is working to reduce this down to $30-100/kg at commercial scale. They are looking to supply silicon nanomaterials tailored to the energy storage industry’s requests, with the goal of become the supplier of choice. [The above paragraph’s information is pulled from the following source: the 2020/02/11 HPQ NR (link is a few paragraphs above) for the current manufacturing costs, 2020 AGM Q&A video below (@Timestamp 11:05-13:20) for their vision with nano silicon production, and the Agoracom 2020/04/15 interview for the $30-$100/kg selling price target (video link is below with the HPQ Agoracom interviews, see timestamp @6:14-8:35)] [06-30-2020]: VIDEO: HPQ AGM 2020 Question & Answer session: https://youtu.be/TlkcRcyedBs Demand for silicon (Si) based nano powders, in the present state, is estimated to represent an addressable market of US $ 1B by 2022, expanding at a CAGR of 38.9% between 2019 – 2024 (See 2020-04 link above). BloombergNEF indicates that by 2040, energy storage could translate into a demand for 920,000 MT of nano silicon (These statistics are from p.17 of the 2020 Corporate presentation: https://hpqsilicon.com/presentation/innovative-silicon-solutions-june-2020/). PUREVAP & Apollon Solar HPQ is working with Apollon to develop a manufacturing capability that uses the High Purity Silicon (Si) made with the PUREVAP™ to make Porous silicon wafers and powders needed for solid-state Li-ion batteries & Li-ion batteries. HPQ stated the first Silicon wafer should be ready to be ship for testing to a battery manufacturer (under NDA) later this year. For those who are interested, the following are recent interviews by Agoracom with Bernard Tourillon, HPQ CEO: [06-14-2020]: VIDEO: HPQ Silicon Signs 2nd NDA For Its Silicon To Be Used In Energy Storage Application [04-15-2020]: VIDEO: HPQ Silicon Launches Missile At Graphite, With Potential To Replace Graphite In Lithium-Ion Batteries 02-11-2020]: INTERVIEW: HPQ Game Changing Silicon Process For Lithium-Ion Battery Market Is Just Months Away [01-30-2020]: INTERVIEW: HPQ Porous Silicon Attracts Lithium-Ion Battery Manufacturer 5. HIGH-POWERED TORCHES (~1 MW+) (Iron pellet/Steel/Metallurgy/Cement industry/etc.) PyroGenesis has traditionally been a manufacturer of plasma torches between 10-550 kW, to suit the needs of their main lines of business. Within the last few years, they have developed the capacity in-house to design and manufacture ~1 MW range plasma torches, and early in 2019 they announced their intention to address this market. The recent news discussing a modeling contract to evaluate the performance of Pyrogenesis’ proprietary torches in an existing Iron Pelletization induration furnace, with the final goal of replacing all of this Client’s fossil fuel burners with PyroGenesis plasma torches, is the first attempted leap into this market. ($10B+ for torches in the Iron Pellet market alone – with >10 plants this particular client is one of the bigger names in the industry. Vale is a name that has been thoroughly speculated on the Stockhouse board). The iron pelletization industry (and heavy industry in general) is looking to reduce GHG emissions (primarily CO2) from their heavy polluting fossil-fuel burners, and Pyrogenesis' torches are a clean technology: they use electricity to provide energy to generate a high temperature plasma plume from a working gas. Keep in mind, there is no guarantee of success at this point, nor of the volume of potential orders. Discussions are ongoing. If all succeeds as planned and Pyrogenesis receives contract(s) for torch supply, the high-powered torches (~1 MW) for this application will potentially generate up to $3M-4M (potentially in $USD) in revenue for PyroGenesis. In the case of this Iron pellet producer, who needs ~50 torches per plant x $3M+ per torch, this adds up to $150M+ ($USD) in potential revenue per plant. The Client has > 10 plants. Total value of potential contract(s) with this one Client could line be up to $1.5B+ ($USD) in the long run. [this information is taken from the following NR]: https://www.pyrogenesis.com/wp-content/uploads/2020/04/2020-04-30-PyroGenesis-Successfully-Completes-First-Phase-of-Torch-Modelling-Geared-to-Reducing-Greenhouse-Gases-for-Major-Iron-Ore-Pelletization-Client.pdf Another interesting tidbit here, regarding potential torch competition for the Iron Pelletization industry, from Mr. Pascali on Agoracom: “[Plasma torch competitors] would need to obtain a license from us as our patent has pretty much prevented anyone from using torches in induration furnaces.” https://agoracom.com/ir/PyroGenesisCanada/forums/discussion/topics/740540-torch-competition/messages/2267431#message Induration is the name of the thermal treatment process, occurring in either straight grate or grate kilns, whereby iron pellets are heated up through a set of burners, and results in the magnetite in iron pellets oxidizing into hematite, creating a strong pellet that is easy to transport to be used as feed for the blast furnace. The article below discusses the iron ore pelletizing process: https://feeco.com/a-look-at-the-process-of-pelletizing-iron-ore-for-steel-production/ For simple schematics of how iron ore is turned into steel, see the link below: https://edge.alluremedia.com.au/uploads/businessinsider/2017/11/iron-ore-steel.jpg From PyroGenesis’ April 30 2020 NR, on modeling results for a large Iron Ore pelletization company (underligning added for emphasis): “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. All this interest is from producers that use natural gas and heavy fuel oil burners and want alternatives to help them meet greenhouse gas reduction targets/policies. We find that the proposition to reduce greenhouse gases emissions, and avoid carbon taxes, with a simple bolt-on replacement of their current environmentally damaging fossil fuel burners, is too compelling to resist. That, combined with the environmental pressure these industries are currently under (only recently a new trend has emerged where financial institutions are tying credit facilities and debt issuances to carbon reduction targets for multi-national industrial and mining conglomerates), has generated a wave of interest and proposals.” All modeling phases for this Client are expected to be completed by end of Q2. ****************** UPDATES: [Update]: Since then, there have been two new news releases regarding their high powered torches for burner replacement in Iron-Ore Pelletization and potentially Steel production. They are now being referred to as Clients ‘A’, ‘B’, ‘C’. [Update]: the final modeling phases have been extended by up to 6 weeks past the end of Q2, with the additional data from work done being incorporated into an ideal torch configuration for Client ‘A’. [Update]: The 2020-06-11 NR below indicates that there is interest in Pyrogenesis’ torches from not only the Iron Pelletization producers, but also from the Steel, Metallurgical and Cement industries. https://www.pyrogenesis.com/wp-content/uploads/2020/06/2020-06-11-PyroGenesis-Signs-Second-Modelling-Contract-with-Another-Iron-Ore-Pelletization-Client.pdf https://www.pyrogenesis.com/wp-content/uploads/2020/04/2020-07-02-PyroGenesis-Provides-Updates-on-its-Iron-Ore-Pelletization-Torch-Business-1.pdf ****************** Here are links to other news/Interviews on the Iron Ore Pelletizing deal: -Recent NR confirming final stages of negotiation over supply of Torches to Iron Ore Pelletizing company: https://www.globenewswire.com/news-release/2020/05/19/2035937/0/en/PyroGenesis-Enters-Negotiations-for-Supply-of-Equipment-with-Iron-Ore-Pelletization-Modeling-Client.html -Recent NR where first phase of Torch modeling for the Iron Ore Pelletizing company was confirmed, along with a statement of potential Torch numbers and revenue: https://www.PyroGenesis.com/wp-content/uploads/2020/04/2020-04-30-PyroGenesis-Successfully-Completes-First-Phase-of-Torch-Modelling-Geared-to-Reducing-Greenhouse-Gases-for-Major-Iron-Ore-Pelletization-Client.pdf -Agoracom Q&A with Pyrogenesis CEO: MUST WATCH: PyroGenesis Q&A Session – June 18, 2020 (I included the above interview here as much of it relates to the Iron Ore Pelletization discussions. If you haven't watched it I highly recommend it!) -Proactive Video interview with Peter Pascali discussing this topic: https://youtu.be/fb7iYkZHQBs 6. TUNNELING TORCHES In early April, PYR signed an exclusivity agreement (hinging upon success of the project) with a mysterious US tunneling company, and they have received $1M since then. I posted my initial thoughts on this recently, discussing potential clients (including Elon Musk’s ‘The Boring Company’): https://stockhouse.com/companies/bullboard/v.pyr/pyrogenesis-canada-inc?postid=31043504 The major innovation from this project is of course the replacement of the standard tunneling drill bit and cutting discs with Plasma torches. The Wikipedia article below describes how TBMs work and the cutter tools typically used: https://en.wikipedia.org/wiki/Tunnel_boring_machine#Description There is another company, a start-up, working on tunneling machines with torches, that has drawn interest in the Stockhouse forums (ArcByt). However, I will neglect to speculate further about this here (other than to say that their tunneling idea is quite interesting), as nothing has been announced officially, and this company is not well known yet. Under the Agreement with the tunneling company, PyroGenesis will not only develop and supply high-powered plasma torches, specifically designed for tunneling applications, but will also be intimately involved in all aspects of design and development for the entire project. There will be much engineering and testing needed, likely both modeling and physical torch testing in different types of soil/rock combinations, as plasma torches have not been extensively studied for this purpose to my knowledge. This work will be key in determining the project’s viability. Whether this agreement is with Elon Musk’s ‘The Boring Company’, ArcByt, Robbins, Akkerman or another US company that deals with Tunnel Boring Machines (TBMs)… it is an interesting and unique project for Pyrogenesis. 7. WASTE MANAGEMENT Last but not least, Waste management has been PyroGenesis’ main plasma application throughout the company’s history. I have briefly described this system in the US Navy section. The Plasma Arc Waste Disposal System (PAWDS) is what PyroGenesis typically sells to the U.S Navy and has sold to many other clients. They make them for both land-based and sea-based applications. Other Waste Management equipment/services (with links to PyroGenesis’ website): Waste Destruction (PAWDS mobile): https://www.pyrogenesis.com/products-services/waste-management/pawds-land/ Waste-to-Energy (PRRS): https://www.pyrogenesis.com/products-services/waste-management/prrs-2/ Refrigerant Destruction (SPARC): https://www.PyroGenesis.com/products-services/waste management/sparc/ Hazardous Waste Destruction (PACWADS) : https://www.PyroGenesis.com/products-services/waste-management/pacwads/ Vitrification (PAGV): https://www.PyroGenesis.com/products-services/waste-management/pagv/ ************* 8. SHAREHOLDER VALUE PLANS For those interested in plans the company has mentioned for creating shareholder value moving forward: https://www.PyroGenesis.com/wp-content/uploads/2019/05/PR-PyroGenesis-Board-Approves-PyroGenesis-Additives-Spin-Off-Uplisting-Stock-to-More-Senior-Exchange_final.pdf -Uplisting to a more senior exchange (e.g. TSX or Nasdaq vs TSX-V (venture)) -PyroGenesisAdditive Spinoff -Share buybacks 9. ADDITIONAL LINKS I tried to pack as much relevant detail as I could on all facets of the company’s technology offerings and on project updates, but for those who want to delve further, there is plenty of interesting material in the posts and links that many have brought up on the Stockhouse board, as well as in the ‘News Releases’ section of PyroGenesis and HPQ’s websites: https://www.PyroGenesis.com/releases/ https://hpqsilicon.com/press-releases/press-releases-2019/ https://hpqsilicon.com/wp-content/uploads/2019/03/HPQ-JAN-24-2019-Corporate-Update-Release-Ver_CL6F.pdf BNN Bloomberg call with Robert McWhirter
[05-20-2020] where he discusses the potential business opportunities for Pyrogenesis, including potential Iron Ore pelletization torch sales.
https://www.bnnbloomberg.ca/video/robert-mcwhirter-discusses-pyrogenesis-canada~1968082 (Nice sumnmary of benefits of using Torches Iron ore pelletization by developbc): https://stockhouse.com/companies/bullboard/v.pyr/PyroGenesis-canada-inc?postid=30991925 (Nice summary of 2019 HPQ developments by Topseeker): https://stockhouse.com/companies/bullboard/v.pyr/PyroGenesis-canada-inc?postid=31014837 https://technologymarketwatch.com/pyr.htm [Nice summary of Pyrogenesis that covers March 2018 and earlier] Mr. Pascali has been generous enough to provide investors with his time on the PyroGenesis forum on Agoracom, both replying to questions from investors and doing interviews with the Agoracom staff. The interview videos are available on Youtube/Agoracom for those who are interested. ************* I hope this summary was an interesting read and helped you navigate the many exciting developments going on at Pyrogenesis :) (also, once again sorry for making it so long!) MazerRR [Full disclosure: I am long Pyrogenesis and HPQ. I am not being compensated to write this post, nor do I have any business relationship with any company mentioned, nor should this summary be considered a recommendation for any security mentioned herein. I enjoy doing Due Diligence work and put this summary together with the notes I had taken while looking into Pyrogenesis/HPQ; it expresses my own opinions drawn from my research. There are always risks to investing, so please always do your own DD, and also read the Disclaimer in any official news release, document or video that has been linked.]