PyroGenesis Inc T.PYR

PYR will build all FSR reactors

[Thinkbigsti69]

@Vestor111@MattyH RE: Evonik. Agree big deal take time but recall BT has been in contact with Evonik for a year or more and he has said Evonik is pushing to getter done. So Evonik might be all to willing to cut a deal. They have a lot to lose if they misstep or drag their feet. I have to believe funding the 1000tpy reactor will be a center piece of any deal. $PYR (edited)

from #hpq,  32 minutes ago

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@Vestor111And if you think about that as a critical next step that Evonik would be far too willing to do it. In that regard, since $PYR is the only manu in the world with this tech, that PYR margins will be comfortably profitable.

[GOGREENBABY]

I agree with you one hundred percent. Whatever the deal may look like, we should expect fumed silica reactors to be ordered bumping the backlog of revenue way up. I believe in the HPQ deck on page 7 or 8 it said the payback period for a 1000 TPY reactor is 1.5 years based on a fumed silica selling price of $8 / kg. So thats roughly $8000 per MT x 1000 TPY = $8,000,000 x 1.5 years = $12,000,000

[Mostlyserious]

Quite embarrassing that you have no clue how to calculate a payback (not even "roughly").  I hope you gave yourself the "likes" because it would be even more embarrasing that several of half a dozen reads also don't know how to calculate it.

[GOGREENBABY]

fair enough..... please enlighten me. Even if the profit margin is 75% - 90% doesn't that put the reactor in the $10 million range?

[GOGREENBABY]

Why would you be embarrassed? I'm not embarrassed. If I don't understand something, its a learning opportunity. If we are too embarrassed to learn, then we have a bigger problem. Please explain the payback period to me oh wise one.

[Mostlyserious]

I am never embarrassed.  I pay attention to what I post.  Google payback period.  It is a simple concept and revenues are one of the variables you need to eventually derive net cashflows generated by the system (capital + operating costs).   Those that continously or occassionally refer to things they don't like to hear as FUD are unlikely open to learning.  

[GOGREENBABY]

I see. So is it safe to say that if the 1000 tons of fumed silica sells for $8000 a ton and the profit margin is 75% that would be $6,000,000 in profit from that one reactor? If it were 90% which was the higher side of the profit margin estimate, it would be a profit of $7,200,000 ? So if a year and a half it would be a profit margin of $9,000,000 - $10,800,000? Would that not be a good ballpark

[StairwayTo]

Not profit margin, it's gross margin, big difference when your operating costs are $33M as per 2023 audited year end numbers.

[Mostlyserious]

PYR and HPQ can give ballpark non-competitive information on costs.  Whatever I provide could be spun out of context by those not willing to engage in honest discussions. August 2024 HPQ corporate presentation includes costs of equipment and building for FSR but the notes on assumptions are not entirely clear to me.

[maybe111]

Both PYR and HPQ are quite open on costs, really. It take some understanding on the cost components but, if you have lower CAPEX and material input costs and a better product, it "should" lead to better margins. The dillema is, the big guys want you for nothing and, they have the money. So, your only alternative is to get  them bidding. Not easy. If they bid and it becomes public

[GrahamB]

Except for the facts of your review the financials that: 1.They consistently fail to be profitable and have losses in the millions 2. Don't show any ability to scale revenues, and the costs have increased in lockstep with any increase in revenues-meaning so no profitability-like having a partner who spends any raise you get at work and charges more on the visa 3. Have huge SGAndA which is

[TOCKY8008]

GrahamB, From what I understand,maybe111 is assessing/arguing the fumed silica production with the fumed silica reactor, FSR. Only the financial metrics of that, not PYR's whole financials. TOCKY8008

[Uncleron]

I would think a JV is always the first option... The first reactor will pay for itself and also contribute to financing more reactors... Evonik is more than capable of financing any costs, Especially as it's to their advantage to have the best quality and the greenest material locked-up before their competitors....as they already said...any other of the  NDA's could swoop in and make