Plasma Torch - Client A (Vale?)Based on all the news release in 2020, the Torch contract and modelling was for 1 MW torch and cost $1.8 million for Client A.
Last week news release for FAT testing from Feb 2nd to Feb 14th, the Torch testing is 3 MW. Also the quotation for 36 torchs is about $105 million ($2.92 million/each torch) for 3 MW torch rating.
So, if the Client A changed their mind to upgrade the torch rating to 3 MW. Therefore, we must be getting more money $2.92 million - $1.8 million = $1.12 million extra in revenue.
We know that 1 MW works for sure and FAT done in Sweden to confirmed. Now, 3 MW torch should pass the FAT testing as well, but we need confirmaiton. We are waiting for the FAT testing results.
As indicated by Peter on his news release, that he will be in the FAT testing process and attend with Client A. I am getting the feeling that Peter will the first $100 million contract with Vale for Pyro afte the FAT testing completed. Generally, the CEO does not attend these testing process, unless some thing is big announcement.
Now the share price closed on Friday $3.33 CDN. With $100 million signing, it could be back to $12 to $15 range. Other mining company like Client B and C will follow Client A, and also sign $100 million contract with Pyro. Dross contract $80 million (2*$40million), plus PFAS $20 million (2*10 million). With existing back log, we can potential upto $450 million in signed contract with in next few months.