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PyroGenesis Inc T.PYR

Alternate Symbol(s):  PYRGF

PyroGenesis Inc., formerly PyroGenesis Canada Inc., is a Canada-based high-tech company. The Company is engaged in the design, development, manufacture and commercialization of advanced plasma processes and sustainable solutions which reduce greenhouse gases (GHG). The Company has created proprietary, patented and advanced plasma technologies that are used in four markets: iron ore palletization, aluminum, waste management, and additive manufacturing. It provides engineering and manufacturing expertise, contract research, as well as turnkey process equipment packages to the defense, metallurgical, mining, additive manufacturing (including 3D printing), oil and gas, and environmental industries. Its products and services include plasma atomized metal powders, aluminum and zinc dross recovery, waste management, plasma torches, and innovation/custom process development. It offers PUREVAP, which is a high purity metallurgical grade silicon and solar grade silicon from quartz.


TSX:PYR - Post by User

Comment by BCONTVentureson Jan 18, 2022 6:46pm
230 Views
Post# 34330789

RE:RE:RE:Past news releases on iron ore torches

RE:RE:RE:Past news releases on iron ore torchesFrom this news release (NR), "PyroGenesis Announces $6 Million Torch Order with Another Major Iron Ore Pelletizer", note that the net present value (NPV) per torch has been increased to $7 million per torch.  This is huge, as the NPV of a torch is $7 million for 20 years.  Each torch is $1.5 million upfront, the remaining $5.5 million per torch is recurring revenue for 20(+) years.  This translates to approximately $275,000 recurring revenue per year, per torch.  For Client B, from this NR, the next order is expected to be 130 torches.  This equates to approximately $195 million upfront ($1.5 million x 130 torches) and approximately $36 million per year in recurring revenue (for maintenance/replacement parts).  And this is just for Client B.
 
There is an expected demand of 1000+ torches in the iron ore pelletizing industry alone, meaning recurring revenue is expected to be $275 million per year for 20(+) years.  And this is just one business line/division within PyroGenesis.  One business line in a single industry (there are also the steel and cement industries for torches).
 
With PyroGenesis, there are multiple business lines/divisions, all being executed upon: torches for iron ore pelletizing/steel/cement, DROSRITE, 3D Printing/Additive Manufacturing, Waste Destruction/Environmental, Pyro Green Gas, plus all the work (and royalties/ownership options) with HPQ Silicon.  Like Peter says "We are Building a Dynasty".  There is so much going on with PyroGenesis. 
 
Long and Strong in PyroGenesis!

developbc wrote:

PyroGenesis Announces $6 Million Torch Order with Another Major Iron Ore Pelletizer

 

| Source: PyroGenesis Canada Inc.

Client expects next orders to be for 130 torches 

PyroGenesis Increases its NPV estimate per torch to $7MM

MONTREAL, Sept. 14, 2021 (GLOBE NEWSWIRE) -- PyroGenesis Canada Inc. (https://pyrogenesis.com) (NASDAQ: PYR) (TSX: PYR) (FRA: 8PY), a high-tech Company (hereinafter referred to as the “Company” or “PyroGenesis”), that designs, develops, manufactures and commercializes advanced plasma processes and sustainable solutions to reduce greenhouse gases, is pleased to announce today, further to its Q2 2021 press release dated August 16th (Outlook section), that it has received an order to supply four (4) high powered plasma torches together with ancillary equipment to a client (“Client B”), for approximately $6MM. This does not include continued after-sale services, which would be part of a separate services agreement. Client B is a multi-billion-dollar international producer of iron ore, whose name will remain confidential for competitive reasons. Client B’s objective is to reduce greenhouse gases (GHGs) by replacing their fossil fuel burners with PyroGenesis’ proprietary plasma torches. Client B has advised PyroGenesis that, upon the successful implementation of the torches announced today, the subsequent orders are expected to be for approximately 130 plasma torches. Notwithstanding this, there is no guarantee that such orders will be placed. The schedule to implement these future orders remains to be determined.“We have achieved another major milestone as this is our second commercial plasma torch order with a major iron ore producer,” said Mr. P. Peter Pascali, CEO and Chair of PyroGenesis. “In addition, Client B has advised that they would likely be ordering approximately 130 torches upon the successful installation of today’s order. This is particularly interesting given that Client B does not have the largest need amongst iron ore pelletizers. For example, we estimate that Client A, who has over ten (10) plants, each possibly requiring up to 50 plasma torches, has a significantly higher need. The iron ore pelletization industry is under extreme pressure to reduce their carbon footprint and GHG emissions. As the industry is expected to grow at 3.0% pa from 2021 to 20271, iron ore pelletizers are looking for technology solutions to help them meet their carbon footprint and GHG targets. PyroGenesis’ proprietary plasma torches which significantly reduce GHG emissions are an attractive solution as an environmentally friendly alternative to fossil fuel burners. As sales of PyroGenesis’ plasma torches increase, PyroGenesis should also benefit from providing proprietary spare parts and services, which would generate significant high-margin, recurring revenue. We cannot overemphasize the opportunity this order presents. Although nothing is certain with respect to success and/or future contracts, and there are always risks as we move forward, we can now say without a doubt that we are on the right path and things are evolving in the right direction.”

Management has previously estimated internally that a typical pellet plant producing 10 million metric tonnes of pellets annually emits approximately one million metric tonnes of CO22. The total world pellet production of 400 million metric tonnes of pellets represents a potential market for torch sales in excess of $10B worldwide. The world pellet industry generates about 40 million metric tonnes of CO2 every year. The use of plasma torches running off a clean electrical grid would reduce these emissions significantly. For reference, 40 million tonnes of CO2 represent the combined yearly emissions of 8.7 million US passenger vehicles3.

Given recent sales, and the fact that the torches are expected to last 25-30 years, PyroGenesis has revised the estimated net present value (NPV) of each torch sale to be approx. $7MM (calculated based on 20-year life). This is an increase from previous disclosures wherein the Company estimated that each torch sale could represent a $3MM NPV to the Company. The original figure was based on very conservative estimates which projected the initial torch sale to be between $1-1.3MM with subsequent maintenance and spare parts contracts limited to 5 years.


FULL NEWS RELEASE

Long and strong PYR!

 

StairwayTo wrote: March 2021 I posted the following for all new investors
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.

 

 

StairwayTo wrote: I decided to look back at these releases in regards to iron ore torches, in order to better understand why it takes time to get these contracts that everyone is expecting now.
I’m posting it here now to help other new investors 

 
1/17/2019   is pleased to announce today that, further to its Press Release dated January 7th, the Company has signed the >$1M contract for a 900 kW plasma torch system sale. This contract was won in a competitive bid announced by RISE Energy Technology Center AB of Sweden. The torch is scheduled to be delivered by Q3 2019.
 
9/18/2019  further to previous press releases with respect to the Swedish torch contract (January 7 th, January 17th , and February 21st 2019), the Company has successfully completed the Factory Acceptance Testing (“FAT”) witnessed by RISE Energy Technology Center AB (the “Client”) at PyroGenesis’ facility in Montreal, and has received payments totaling €643,196 (approx. Can$936K). This Contract, originally announced last January, is for a 900-kW plasma torch system which was won in a competitive bid announced by the Client.
 
10/17/2018  further to previous press releases with respect to the Swedish torch contract (January 7th, January 17th, February 21st , and September 18th, 2019), the Company has successfully performed the Site Acceptance Test (“SAT”) at RISE Energy Technology Center AB’s (the “Client”) facility. This Contract, originally announced last January, is for a 900-kW plasma torch system which was won in a competitive bid process.
 
11/4/2019  further to its previous press release dated October 17th , 2019, the Company has received a milestone payment of approx. $345K from RISE Energy Technology Center AB (the “Client”).
 
3/4/2020  further to its previous press release dated November 4th , 2019, the Company has completed all torch tests successfully, and has received final payment from RISE Energy Technology Center AB (the “Client”)
 
4/30/2020  further to its press release dated March 4th, 2020, 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. All phases will be completed by the end of Q2 2020. The client is a multi-billion-dollar international producer of iron ore pellets (the “Client”), one of the largest in the industry, whose name will remain confidential for competitive reasons. The Client has over 10 plants each requiring approx. 50 plasma torches.
 
5/19/2020  further to its press releases dated March 4 th and April 30th , 2020, it has now entered into the final stages of negotiation for equipment supply with the major iron ore pelletization client (the “Client”) previously disclosed. The Client is a multi-billion-dollar international producer of iron ore pellets, one of the largest in the industry, whose name will remain confidential for competitive reasons. The Client has over 10 plants each requiring approx. 50 plasma torches.
 
6/11/2020  , further to its press releases dated March 4 th , April 30th and May 19th, 2020, it has signed a second multi-phase torch modelling contract (the “Contract”), aimed at evaluating the performance of PyroGenesis’ proprietary torches in an existing iron ore industrial furnace with the goal of replacing existing fossil fuel burners with PyroGenesis’ plasma torches. The first phase is expected to be completed in approx. 8 to 10 weeks. This Contract is with another multibillion-dollar producer of iron ore pellets (“ClientB”), whose name will remain confidential for competitive reasons. ClientB has over 100 burners in its existing facilities.
 
7/2/2020  further to recent press releases, an update on its iron ore pelletization torch business.
Client A On April 30th, 2020, the Company announced the successful completion of the first phase of a torch modeling contract with Client A which successfully demonstrated that replacing fossil fuel burners with PyroGenesis’ proprietary plasma torch (i) had absolutely no ancillary detrimental effects anywhere in the process or with their furnaces, (ii) resulted in significant greenhouse gas reduction while at the same time, (iii) projecting significant additional benefits. The subsequent phases were to be completed by June 30th, 2020 and were geared to further quantify the benefits of transitioning to plasma torches. These phases have been extended for up to six weeks with this additional data being incorporated into an ideal plasma torch configuration for this client. Equipment purchase discussions are expected to be completed by the end of August, and incorporate the ideal plasma torch configuration identified during the modelling process, with the ultimate goal being to eliminate GHG emissions from all their plants.
Client B On June 11 th , 2020 the Company announced that it had signed a second multi-phase torch modelling contract with Client B, aimed at evaluating the performance of PyroGenesis’ proprietary torches in an existing iron ore industrial furnace with the goal of replacing existing fossil fuel burners with PyroGenesis’ plasma torches. The first phase, as expected, is to be completed by mid-August. During the first phase, which is progressing as expected, Client B has already entered into active equipment purchase discussions with PyroGenesis.
New Development – Client C A new potential client (“Client C”), who is not only a significant player in the iron ore pelletization industry but is also a major player in the steel industry, has entered into active equipment purchase discussions with the Company. There seems to be a high probability that Client C may bypass the modelling phase altogether, however it is PyroGenesis’ preference to incorporate a modeling phase if at all practical.
 
8/24/2020  in response to this morning’s trading activity, and the sudden decline in its stock price. The Company wishes to reassure investors that all projects (Military, Tunneling, Drosrite™, Pelletization, PUREVAP™, etc…) are all on track and there are no undisclosed events to warrant this morning’s decline. The Company does not usually opine on stock price and trading activity, however, given the recent decline, and inquiries from investors, the Company confirms the following: Everything material has been disclosed by the Company in either its press releases or financial reports. PyroGenesis further confirms that none of the contracts press released are at risk. Last but not least, the Company wishes to reassure PyroGenesis’ shareholders that we remain on track with our current and prospective projects. “I just wanted to take the time to reassure investors that the precipitous decline in stock price today cannot be explained by any undisclosed developments at the Company,” said Mr. P. Peter Pascali, CEO and President of PyroGenesis. “To the contrary, all of our projects are moving ahead and are closer to completion than before. The potential contracts previously announced are not in jeopardy and are moving ahead. Regretfully, to those looking from the outside, it always seems to take longer than expected, however, nothing can be further from the truth and, in certain instances, are proceeding with lightning speed particularly given the entities we are talking to and the significance of the contracts under discussion.”
 
9/1/2020  further to its press release dated July 2nd, 2020, is pleased to announce the completion and acceptance of its modeling contract with Client A (the “Client”) which confirmed, amongst other things, that replacing fossil fuel burners with PyroGenesis’ proprietary plasma torches addresses the Client’s greenhouse gas reduction strategy/policy. PyroGenesis is also pleased to confirm receipt of a draft equipment purchase contract (the “Contract”) from Client A. The Client’s name shall remain anonymous for competitive and confidential reasons.
 
9/11/2020  , issues this press release in response to a sudden decline in its stock price this afternoon. Given the recent decline, and inquiries from investors, the Company confirms the following: Everything material has been disclosed by the Company in either its press releases or financial reports. PyroGenesis further confirms that none of the contracts press released are at risk. Last but not least, the Company wishes to reassure PyroGenesis’ shareholders that we remain on track with our current and prospective projects. “There seems to be an indication that certain comments made by a fund manager in the course of an interview lead to this decline. In the interview it appears that one could conclude that he suggested that he did not expect more than 1 to 2 torches to be sold by PyroGenesis within the next 3-6 months,” said Mr. P. Peter Pascali, CEO and President of PyroGenesis. “Although I respect analysis done by third parties, I am also aware of the challenges that this presents to these same very same analysts who, by the very nature of the job, are always on the outside looking in. This is also exasperated by the pressure they have of providing insight within sound bites. Having said that I can confirm that the Company has visibility on more torch orders than that alluded to in the interview. In fact, I can confirm that the current status of torch negotiations with various clients anticipate closing more than 1-2 torch deals in well under 3 months, let alone 3-6 months
 
11/12/2020  is pleased to provide an update on the Company’s iron ore pelletization plasma torch business.
In January 2019, PyroGenesis was contracted for a 900kW plasma torch with a client which we later disclosed to be RISE Energy Technology Center AB (“RISE”) of Sweden. RISE was engaged in addressing the Swedish government’s commitment to zero carbon emissions1 ; namely that within the iron ore pelletization industry. The ultimate objective was to determine the benefits, if any, of replacing traditional fossil fuel burners used in iron ore pelletization with plasma torches. We delivered the plasma torch and completed testing in 9 months.
Q3. The RISE contract went well. What happened next? A. Our original goal was simply to have our torches be a contender in Sweden’s strategy to reduce GHG emissions in the iron ore pelletization industry. What we did not realize at the time, was the impact this would have on the industry as a whole. As noted above, we successfully completed the RISE contract in 9 months, which once made public, had a resounding effect as we apparently were addressing a significant concern in the industry with respect to GHG emissions reduction. Given this interest, we were approached by several companies in the industry which we have come to term Client A, B and C. Two of the three wanted to immediately engage in a modelling contract, and the third is in the process of considering such. We prefer to engage in a modelling-first-step as it helps quantify parameters that may be specific to the client.
Q7. In closing, can you give us a status/update on the existing agreements/contracts under discussion? A. Certainly. All of our projects are on track and progressing nicely. As previously disclosed on September 1st, 2020, we have received a draft contract from Client A, which is still in the final stages of completion. The fact that we received this contract from Client A, on the heels of a successful modelling contract, who is a significant player in the industry, clearly demonstrates the impact that PyroGenesis’ proprietary plasma torches are having on iron ore pelletization GHG reduction strategies. If signed, and successfully deployed, one might expect they would start a program to replace their fossil fuel burners with PyroGenesis’ plasma torches. Although nothing is certain, we are definitely on the right track with Client A.
 
11/24/2020  , is pleased to announce today that it has signed an initial plasma torch contract (the “Contract”) to provide one high powered (approx. 1MW) plasma torch with ancillary equipment (the “Torch”), with Client A (the “Client”), a major iron ore producer, for approx. $1.8MM. This does not include continued after-sale services, which was not the subject of these initial negotiations. It is expected that future sales with this Client will include a separate continued after-sale services agreement. The Client is a multi-billion-dollar international producer of iron ore pellets, one of the largest in the industry, whose name will remain confidential for competitive reasons. The Client, which has committed to reduce its greenhouse gas (“GHG”) emissions, has over ten (10) plants, each possibly requiring up to 50 plasma torches.
 
2/23/2021  issues this press release in response to this morning’s trading activity, and the sudden decline in its stock price. The Company wishes to reassure investors that all projects, including the NASDAQ listing, are all on track and there are no undisclosed events to warrant this morning’s decline. The Company prefers not to opine on stock price and trading activity, however, given the recent decline, and inquiries from investors, the Company confirms the following: Everything material has been disclosed by the Company in either its press releases or financial reports. PyroGenesis further confirms that none of the contracts previously disclosed, nor the NASDAQ listing, are at risk. Last, but not least, the Company wishes to reassure PyroGenesis’ investors that the Company remains on track with current and prospective projects, as well as with the NASDAQ listing. “I just wanted to take the time to reassure investors that the decline in stock price this morning cannot be explained by any undisclosed developments at the Company, as all material events have been disclosed,” said Mr. P. Peter Pascali, CEO and Chair of PyroGenesis. “The Board believes the Company is in the strongest position it has ever been with (i) a backlog at historical levels, (ii) a pipeline that is growing exponentially, and (iii) a clean balance sheet which, as of today, posts cash-on-hand in excess of $27.5M.”
 
 
I can’t find the release where PYR quoted client B with 4 torches.

This is only sorting out NR about iron ore torches, if someone would do the same with the other division, that would be great .  MidtownGuy??   LOL
 

 




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