PyroGenesis Inc T.PYR

Understanding the torch contract news

[MidtownGuy]

So, having fun yet?

Here's how it looks like this will work:

The NR today said the client bought one torch. There's no way -- NO WAY -- that all these months of negotiation were about that one sale.

So why did they buy one torch?

1/ Not for modelling. They've already spent money on that. If the client just wanted to test it live, I'm sure PYR would have loaned them one, or at least leased it to them. Buying is permanent.

2/ It's perhaps likely that that torch was so highly customized/modified/specific for that client, they had to agreed to buy that one outright. I don't think it's a test sale. It's just they messed around with that one torch so much they agreed to buy it outright.
 
Then why announce just one torch sale? Is that it?

The NR of the sale was done so Peter could show the general price of a torch to the market. Given that the client is still under NDA for this sale news, it makes sense. He can show sale price to the market without associating client to their overall contract, because it's just one torch. He was announcing to the world the general price of a torch for a big company.

And this is likely the only torch they will buy.

Why?

Because the actual big contract is for leasing.

Remember the leasign strategy news of a couple weeks back? Peter would not have even mentioned the recent leasing strategy if that wasn't about to occur. There would be no point to mention it. It would be like buying a dog leash, telling people you did, yet with no immediate plans to buy a dog.

So today's release was "Hey market, lookee here, a mega client approves our tech and has bought this for X$. If you're interested, that's kinda the starting price point AND big mega company has done the DD and bought one, so now can you."

Next?

The sale price of one torch has nothing to do with the lease price. The next release is likely for the actualy big leasing contract plus service and support, which can be shown in the aggregate AND with by naming the client.

So next stop on the train is a very large leasing contract plus after sales, that reveals total $ amount and client name, but perhaps no specific torch numbers so a to protect client's per torch deal discount.

[Thinkbigsti69]

If this turns out like you seem to think it will-- This will be HUGE

[developbc]

Awesome Midtown.  Glad we have smart investors like you and others that GET IT! Pete knows exactly what he is doing. Keep in mind this NR referring ONLY to the INITIAL torch order.... the objective is to maximize and negotiate best deal for Pyrogenesis. Remember the Saudi sale of Drosite seven systems for $25M netted far more than the initial one system for only $600k then to the same

[canyousayiii]

Sorry MDG, you seem to have an explanation for everything they do now. You lost your objectivity. This sucked and you know it. Dont tell me it is going to be followed by another "we thought people would know how great this news is". If you guys are all right, tomorrow we go up. If we don't then the story here is of a pumped up stock that was several steps ahead of it. Credibility is

[MidtownGuy]

No comment on how they communicate the news. The market will do what the market does when people do the usual quick scan of the news -- and yup, likely a selloff in the morning, followed by an afternoon rally. It's a forum for discussion and I offered up my opinion, which makes sense to me given the recent focus on leasing plus the three months of negotiating a draft contract. Any price

[canyousayiii]

Go ahead, say it, there are a lot of things they should not have said the way they did starting months ago. If this sells off and Peter does not learn anything from it, this is not going to be the ride everyone expected. Yes, 4 business lines, but so far the ones with commercial sales are not firing it up. No disrespect to anyone, but I can read and I feel that the communication has not been clear

[Gottofly]

Definitely the communication end of this could have been handled better, the technology still is there, just will take longer for the lofty SP predictions of people on this board who were 'flying to the moon'

[LastZaz]

I agree... far too many on the board pumping and providing pie in the sky share price figures out of their asses. With that said, there is definitely reason to be optimistic for PYR.

[developbc]

Midtown please ignore the nonsense. You add great insight for many here.   Side note: I truly believe as Midtown dug digger in DD in PYR tech, patents and markets etc... the more he came to understand how incredible AND how Pete knows exactly what he is doing.  Ok now about to type away on my quick commentary.  LONG AND STRONG PYR!!! 

[MazerRR]

Interesting take Midtownguy. I also agree that behind the negotiations all these months is far more than just discussions about a 1 torch initial order, and it’s likely both companies have together worked out many of the details that needed to be understood before any potential large future torch rollouts. Pyro didn’t physically test a torch for the purpose of selling to Client A, so the torch

[Welderkev1]

I think you nailed it MazerRR, Pete laid out the path for us in that interview. The goal was to get behind the fence, now they@re there. Admittedly I didn@t think he@d be able to talk them into only one torch I thought 1 plant, but this NR proves these negotiations are going to go how he wants them to. Excellent news

[developbc]

2 great posters in 1.  Btw MazerRR is a mechanical engineer so it definitely gets it and why the methodology preferred by Pete will unlock better $ for PYR.  LONG AND STRONG PYR!

[96KLITE]

Make that 3 "Great" posters in 1. Appreciate all that you have done to educate us.

[BCONTVentures]

Here's 2 other great posts on the torch contract/yesterday's NR. Exciting times! Long and Strong in PyroGenesis!

[BCONTVentures]

Fantastic post MidtownGuy, thanks for this.  Folks, read over today’s NR carefully, this NR only refers to the initial torch order.  Peter Pascali, PyroGenesis’ President and CEO, knows what he is doing.  Keep in mind today’s NR with how he structured the DROSRITE sale/deal to Saudi Arabia.  Also remember that Peter has been with PyroGenesis since 1992 and owns approximately 50