PyroGenesis Canada (TSX: V.PYR, Stock Forum) furthered its market footprint when the company announced today that it had received a purchase order to supply its first commercial DROSRITE™ Furnace System from a North American automobile parts manufacturer for delivery by year’s end.
According to the news release, the $600,000 sale calls for 50% down payment and a 10% holdback from the client who has been left unnamed for competitive reasons.
The DROSRITE™ technology is a salt-free, cost-effective, sustainable process for optimizing metal recovery from dross, a waste material by-product created by the automotive industry.
DROSRITE™, which the company filed a patent for in 2012, reduces the carbon footprint of a smelter as well as its energy consumption while mitigating the costly loss of metal thus creating an optimal ROI for the customer.
Earlier in the year, the customer had contracted the company to perform a 2-week demonstration of the DROSRITE™ system and based on the success of the pilot program, a purchase order was given. Once the system is operational, the client is expected to purchase two more just like it for its other facilities.
PyroGenesis Director of Engineering, Pierre Carabin, commented on the innovate metal recovery process, “With over 53 million metric tonnes of aluminum produced in 2014 by primary smelters alone, and recognizing that dross is being produced at all steps of aluminum production/transformation, the opportunity to deploy our DROSRITE™ technology is vast.”
He went on, “When one factors in rising electrical costs, the DROSRITE™ process provides a quick return on investment while ensuring no hazardous residue legacies which have plagued this industry for years.”
Tom Whitton, PyroGenesis Business Development Leader, commented on the transformative transaction, “This contract provides PyroGenesis with the crucial reference plant it has been seeking. We have a long list of potential customers who were waiting for such a reference plant before placing an order with PyroGenesis. Primary and secondary aluminum smelters, as well as parts manufacturers, can now all benefit from this environmentally-sound, cost effective solution.”
Company President and CEO, P. Peter Pascali, added, “DROSRITE™ successfully addresses a serious need within the aluminum industry, and underscores the success of our strategic plan to target high value niche problems.”
Then he concluded, “The market for our patented DROSRITE™ process is in the hundreds of units, representing over $300 Million in potential demand from primary aluminum plants alone. This does not include any revenues arising from secondary and tertiary markets which could easily double this number.”
PyroGenesis Canada was in the news recently when
the Montreal, Quebec-based company announced being contracted for a feasibility study using plasma to generate metal directly from ore.
Shares climbed 13.79% on the news to $0.33 per share.
Currently there are 84.8m outstanding shares with a market cap of $28.0 million.
FULL DISCLOSURE: PyroGenesis Canada is a Stockhouse Publishing client.