Mining Industry Parts Manufacturer Decarbonization From the latest outlook
As noted above, in April 2024 the Company announced the signing of a contract with a client to assess the applicability and examine the use of plasma as a heat source in the client’s cast furnaces. The client, a billion-dollar entity with facilities on five continents, is one of the world’s largest manufacturers of products that serve the mining and defense industries, amongst others.
The tests noted as targeted for completion by the end of the Q2 were conducted and have concluded, successfully.
Negotiations are now underway for the sale of initial plasma torch system(s) as well as the accompanying manipulation/handling components, as a per unit price of between US$500,000-$1,000,000 in revenues to PyroGenesis per torch.
And from the NR in April
The test contemplated by this initial engagement should be completed within the next 10 weeks. Should the test prove successful, it is expected that the Client will move to step 2, which envisions producing a complete plasma torch-based system on-site to replace an existing fossil fuel burner. Such a system would include a PyroGenesis plasma torch as well as the accompanying manipulation/handling components. Step 2 would take approximately 6 months depending on the delivery time of a specific long lead item (the power supply) and generate approximately US$500,000-$1,000,000 in revenues to PyroGenesis.
It is estimated that the industry has thousands of such burners in operation world-wide.
We should hear sth about the step 2 neartime.
And when they communicate the NR in a good manner ( above they say the industry (not the client) has thousends of burners) not only the sale but the expectations will drive the SP up as well.