PyroGenesis Canada Inc. (“PyroGenesis”) (http://pyrogenesis.com)
(TSX:PYR) (OTCQX:PYRGF) (FRA:8PY), a high-tech company that
designs, develops, manufactures and commercializes advanced plasma
processes and sustainable solutions which are geared to reduce
greenhouse gases (GHG) and address environmental pollutants, today
announces its financial and operating results for the third quarter
ended September 30, 2024.
“2024 continues to demonstrate favourable
momentum for PyroGenesis, both for revenue as well as for revenue
backlog from our order book, which surged to a new all-time high at
quarter’s end because of continued confidence by recurring military
and aerospace customers, and sustained interest in waste
remediation – furthering 2023’s resurgence of that business line,”
said P. Peter Pascali, President and CEO of PyroGenesis. “The
sequential revenue progress seen so far in 2024 has resulted in
three consecutive quarters of year-over-year growth, with five of
the last six quarters exceeding the previous quarter. And we’ve
done this while cutting costs significantly.”
“Our third quarter 2024 results, with revenue up
and costs way down, reflect the investments we’ve made in
cost-cutting initiatives, a disciplined focus on operational
efficiency, and of course the execution of our strategy that
deploys our expertise in ultra-high temperature applications to
multiple industries around the world. As we continue to grow
revenue quarter to quarter while simultaneously reducing costs, we
put ourselves in an even better position to expand market share
over the long-term as energy transition and emission reduction
efforts expand,” added Mr. Pascali. “With an escalating demand for
significantly higher plasma torch power levels, as evidenced by our
post-quarter end contract announcement of a $27 million 20MW plasma
torch order, we are entering a new growth phase for plasma
applications, and we will work diligently to ensure that the
appropriate operational stage is set to unlock multi-year growth
trajectories.”
PyroGenesis is also announcing that its name has
changed from PyroGenesis Canada Inc. to PyroGenesis Inc.
Additionally, the Company is pleased to announce that it has moved
its headquarters to a larger office location in downtown Montreal.
More information on the changes to the company name and
headquarters is located further below.
KEY Q3 2024 FINANCIAL
HIGHLIGHTS
- Revenue of $4 million, up
9% vs. Q3 2023, the 3rd straight quarter of year-over-year
growth
- All-time High Revenue
(Order) Backlog of $54.9 million of signed and/or awarded
contracts as at November 6, 2024, reflecting rapid acceleration in
the power needs for military, space exploration, and the heavy
industry sectors undergoing energy transitioning
- Gross margin of
42%, a 13-point improvement from Q2 and 12-point
improvement YOY
- EPS loss of $0.02, net loss
of $3.9 million, an improvement of 38% compared to $6.3
million loss during the same quarter a year ago
SUBSEQUENT EVENTS
- Post quarter end, in
October 2024 [news release dated October 21, 2024], the
Company announced a contract valued at approximately $27 million
for the development of a plasma torch system powered at 20
megawatts, from an existing U.S. client which provides technology
and test services geared to solving critical defense, military,
aeronautics, and space exploration challenges. The client, which
previously ordered a 4.5MW plasma torch system from PyroGenesis in
August 2023 [news release dated August 1, 2023], regularly serves
as a prime contractor for the U.S. government. A plasma torch at
this 20 megawatts power level, based on PyroGenesis’ own research,
represents one of the most powerful (if not the most powerful)
plasma torches ever produced commercially. The project was expected
to start within 30 days of the news release, with an estimated
duration of 3 years.
- Post quarter end, in
October 2024 [news release dated October 31, 2024], the
Company provided an update on the Repriced Warrants. As a result of
the repricing, 1,457,500 of the Repriced Warrants have been
exercised, for total proceeds to the Company of $1,093,125.
Q3 2024 PRODUCTION AND SALES
HIGHLIGHTS
Q3 2024 continued the positive revenue growth
trend that began in Q2 2023. Q3 2024 marks the 6th straight quarter
of revenue improvement compared to the low revenue mark of Q1 2023,
with five of those six quarters – including this Q3 2024 –
surpassing the previous quarter’s revenues:
The Company operates primarily within three
business verticals that align with economic drivers that are key to
global heavy industry:
1. Energy Transition & Emission
Reduction:
- fuel switching, utilizing the
Company’s electric-powered plasma torches and biogas upgrading
technology to help heavy industry reduce fossil fuel use and
greenhouse gas emissions,
2. Commodity Security &
Optimization:
- recovery of viable metals, and
optimization of production methods/processes geared to increase
output, maximize raw material usage, and improve the availability
of critical minerals,
3. Waste Remediation:
- safe destruction of hazardous
materials, and the recovery and valorization of underlying
substances such as chemicals and minerals.
Within each vertical the Company offers a
selection of solutions at different stages of
commercialization:
The information below represents highlights from
the past quarter for each of the Company’s main business
verticals.
Energy Transition & Emission Reduction
- In September, the
Company acknowledged that EarthGrid, a plasma tunnel-boring
technology and infrastructure development company, was its client,
as part of an announcement congratulating EarthGrid on its signing
of a joint venture with Enertech, a Kuwait-based investment entity,
to deploy infrastructure projects in four phases across the
United States, Europe and the Middle East. According
to EarthGrid’s own announcement on September 17, 2024, the first
two phases of the projects consist of an estimated US$18 billion in
US infrastructure projects. Previously, in a press release date
January 16, 2020, PyroGenesis had announced that it had received a
$667,000 non-refundable down payment under a master agreement for
multi-year multi-plasma torch purchases from an undisclosed client,
now revealed as EarthGrid. At the time of this earlier
announcement, EarthGrid’s name was withheld for competitive and
confidentiality reasons.
- Post quarter end, in
October 2024 [news release dated October 21, 2024], the
Company announced a contract valued at approximately $27 million
for the development of a plasma torch system powered at 20
megawatts, from an existing U.S. client which provides technology
and test services geared to solving critical defense, military,
aeronautics, and space exploration challenges. The client, which
previously ordered a 4.5MW plasma torch system from PyroGenesis in
August 2023 [news release dated August 1, 2023], regularly serves
as a prime contractor for the U.S. government. A plasma torch at
this 20 megawatts power level, based on PyroGenesis’ own research,
represents one of the most powerful (if not the most powerful)
plasma torches ever produced commercially. The project was expected
to start within 30 days of the news release, with an estimated
duration of 3 years.
Commodity Security & Optimization
- In July, the
Company announced that HPQ Polvere had signed a letter of intent
with Evonik Corporation, a global specialty chemicals company. HPQ
Polvere’s primary initiative is the Fumed Silica Reactor (FSR)
project that PyroGenesis has been designing, engineering, and
constructing to convert quartz into fumed silica in a single and
eco-friendly step. PyroGenesis previously announced in a press
released dated May 30, 2024, its intent to exercise its right to
convert its annual royalty rights into a 50% ownership stake of HPQ
Polvere pursuant to a design and development agreement. The
objective of HPQ Polvere’s letter of intent with Evonik is to
outline the basis of collaboration during the FSR pilot scale phase
with the goal to validate the ability of the FSR to produce
low-cost, low-carbon material acceptable to Evonik’s
specifications.
- In September, the
Company announced the signing of a $1 million first-phase contract
with an entity engaged in the production of graphite, for which
PyroGenesis will design and deliver a customized pilot-scale plasma
reactor and associated testing system. Upon the successful
completion of the first phase, the next step would be negotiation
of a contract for the development of a full-scale graphite
production plant for which PyroGenesis has exclusive rights.
Additionally, PyroGenesis has negotiated a 10% royalty on future
gross revenues generated from an initial commercial graphite
production plant built by the client, and a 5% royalty on any
subsequent plants. Graphite is a critical mineral widely used
across manufacturing.
Waste Remediation
- In July, the
Company announced the signing of a 2-stage contract for a
land-based plasma waste-to-energy system with a European
consortium. The first stage consists of a conceptual and
preliminary design phase for approximately $2 million, which
commenced in Q3 2024 and is scheduled to last no more than one
year. The design phase will determine the order of magnitude cost
estimate of the system construction, expected to range between
$120-160 million depending on the system’s capacity and other
details. The design of the Plasma Waste-to-Energy System is based
on the Company’s Plasma Resource Recovery System (PRRS), a
waste-to-energy technology that eliminates toxic compounds while
transforming waste into reusable products such as syngas and
chemicals such as methanol.
- Post quarter end, in
October 2024 [news release dated October 10, 2024], the
Company announced the receipt of a purchase order of approximately
$1,015,000 for after-sales component production related to the US
Navy aircraft carrier contract. The components are scheduled to be
produced and delivered to the client by March 2025.
Q3 2024 FINANCIAL
HIGHLIGHTS
- Through the quarter and most of
2024, the Company continued to monitor its selling, general and
administrative expenses in order to maximize savings and reduce
expenses. A year-to-date savings of over $3 million was realized
mainly from a change in the directors’ and officers’ insurance, a
reduction in professional fees, consulting and other expenses,
along with adjustments to staffing and optimal use of employees.
These are savings the Company will benefit from every year going
forward.
- In July, the
Company announced a repricing of up to 4,107,850 existing common
share purchase warrants (the “Repriced Warrants”), wherein the
exercise price of those Repriced Warrants was reduced to $0.75 per
share. Of the Repriced Warrants, (i) 697,500 warrants were to
expire on October 19, 2024, (ii) 2,380,350 warrants expire on March
7, 2025, and (iii) 1,030,000 warrants expire on July 21, 2025. The
Repriced Warrants were also amended to provide that if at any time
before their expiry date, the closing price of the Company’s Common
Shares on the Toronto Stock Exchange (“TSX”) is greater than
$0.9375 (such amount being 125% of $0.75) over any 5 consecutive
trading days, the Company will be entitled, within 15 days of the
occurrence of such event, to accelerate the expiry date of the
Repriced Warrants to the date that is 30 days following the date
that notice of such acceleration is provided.
- In July, the
Company announced the closing of a $2.8 million non-brokered
private placement consisting of the issuance and sale of 3,505,750
units at a price of $0.80 per unit. Each unit consists if one
common share of PyroGenesis, and one common share purchase warrant,
entitling the holder to purchase one common share at a price of
$1.20 during the twelve months following the closing date of the
private placement.
- Post quarter end, in
October 2024 [news release dated October 31, 2024], the
Company provided an update on the Repriced Warrants. As a result of
the repricing, 1,457,500 of the Repriced Warrants have been
exercised, for total proceeds to the Company of $1,093,125.
Q3 2024 OPERATIONAL
HIGHLIGHTS
- In July, the
Company announced purchase of 100% control of Drosrite
International, a US-based private company, for $1.00. Drosrite
International had already been, on an accounting basis, a
subsidiary of the Company, but legally a stand-alone entity. An
exclusive agreement was entered into between PyroGenesis and
Drosrite International on August 29, 2019, under which Drosrite
International received the required rights from PyroGenesis to
manufacture, market, sell and distribute Drosrite™ systems and
technology to the Kingdom of Saudi Arabia, and certain other
countries in the Middle East.
- In July, the
Company announced that its subsidiary Drosrite International LLC
was renamed PyroGenesis International LLC.
CORPORATE NAME AND ADDRESS
CHANGE
PyroGenesis’ corporate name has changed from
PyroGenesis Canada Inc. to PyroGenesis Inc. Simultaneously, the
French version of its name has changed from PyroGènese Canada Inc.
to PyroGènese Inc.
“This change to our name is a subtle but
indicative change,” noted Mr. Pascali. “With sales across 21
countries and counting, this name change is part of an initiative
to better express in all areas of communication that we are an
internationally focused company with global reach.”
This name change does not involve any
restructuring, change of control, or other corporate
reorganization. This decision solely pertains to a more inclusive
and internationally resonant brand image. The name change does not
affect trading of the Company’s shares. The shares will continue to
trade on the TSX under the symbol PYR and through the OTCQX under
the symbol PYRGF. It is currently expected that the new corporate
name will be effective on the Canadian and US capital markets as of
November 11, 2024, with no change to the stock symbols.
Additionally, the Company is pleased to announce
that it has recently moved its headquarters to a larger office
location in downtown Montreal. The move comes as a result of the
Company having outgrown its previous headquarters after more than
30 years in Montreal’s historic Griffintown neighbourhood. The new
office location resides in the heart of downtown near Montreal
Central Station, the Queen Elizabeth Hotel, and the Bell Centre
arena (home of the Montreal Canadiens), and provides more modern
amenities and a smarter office layout, while also providing easier
access for employees and customers that use public transit.
PyroGenesis’ new corporate headquarters are
located at 1100 René-Lévesque Boulevard West, Montréal, Québec,
Suite 1825, H3B 4N4. Phone numbers will remain the same, with
514-937-0002 as the main line.
FINANCIAL SUMMARY
1. Revenues
PyroGenesis recorded revenue of $4.0 million in
the third quarter of 2024 (“Q3, 2024”), representing an increase of
$0.3 million compared with $3.7 million recorded in the third
quarter of 2023 (“Q3, 2023”). Revenue for the nine-month period
ended September 30, 2024, was $11.4 million, an increase of $2.1
million over revenue of $9.3 million in the same period of
2023.
Revenues recorded in the three and nine-months
ended September 30, 2024, were generated primarily from:
|
|
Three months ended September 30 |
Variation |
|
Nine months ended September 30 |
Variation |
|
|
2024 |
2023 |
2024 vs 2023 |
|
2024 |
2023 |
2024 vs 2023 |
High purity metallurgical grade silicon & solar grade silicon
from quartz (PUREVAP™) |
|
221,627 |
|
415,415 |
|
(193,788 |
) |
|
717,861 |
|
1,388,854 |
|
(670,993 |
) |
Aluminium and zinc dross recovery (DROSRITE™) |
|
503,230 |
|
118,745 |
|
384,485 |
|
|
1,493,918 |
|
324,296 |
|
1,169,622 |
|
Development and support related to systems supplied to the U.S.
Navy |
|
344,540 |
|
1,003,592 |
|
(659,052 |
) |
|
1,626,149 |
|
2,168,820 |
|
(542,671 |
) |
Torch-related products and services |
|
1,310,709 |
|
950,290 |
|
360,419 |
|
|
4,979,766 |
|
2,682,979 |
|
2,296,787 |
|
Refrigerant destruction (SPARC™) |
|
705,027 |
|
104,784 |
|
600,243 |
|
|
956,918 |
|
360,075 |
|
596,843 |
|
Biogas upgrading and pollution controls |
|
691,941 |
|
768,396 |
|
(76,455 |
) |
|
899,950 |
|
1,419,362 |
|
(519,412 |
) |
Other sales and services |
|
225,615 |
|
324,503 |
|
(98,888 |
) |
|
753,621 |
|
972,440 |
|
(218,819 |
) |
Revenue |
|
4,002,689 |
|
3,685,725 |
|
316,964 |
|
|
11,428,183 |
|
9,316,826 |
|
2,111,357 |
|
Q3, 2024 revenues increased by $0.3 million,
mainly as a result of:
- PUREVAP™ related sales generated
revenue of $0.2 million, a decrease of $0.2 million compared to Q3,
2023 due to the completion of the project and with the successful
silicon “pour” previously announced by the Company. As a result,
minimal revenue was forecasted and realized in the current
quarter,
- DROSRITE™ related sales increased
by $0.4 million due to the rise in active client site trials across
Europe, increased spare parts orders from existing clients, and
higher revenue from storage and other ancillary revenue and
transportation related to the DROSRITE units, at the request of the
client,
- Development and support related to
systems supplied to the U.S Navy decreased by $0.7 million compared
to Q3, 2023, due to the current stage of the project, whereas, in
the comparable period, significant advancement was made related to
inspection, packaging and shipment of the equipment to our customer
in order to move forward with installation and commissioning,
- Torch-related products and services
increased by $0.4 million, due to the continued progress on the
significant projects related to our 4.5MW and 1MW torch systems,
and additional recurring monthly 24/7 onsite support,
- SPARC™ related sales increased by
$0.6 million, due to substantial advancements in fabrication,
assembly, and delivery preparation, installation and commissioning
scheduled for early 2025.
- Biogas upgrading and pollution
controls generated revenue of $0.7 million, a decrease of $0.1
million compared to Q3, 2023, due to the nature and status of the
projects.
During the nine-month period ended September 30,
2024, revenues varied by $2.1 million, mainly as a result of:
- PUREVAP™ related sales decreased to
$0.7 million due to the completion of the project and current
project phase, whereby lower revenue was expected,
- DROSRITE™ related sales increased
to $1.2 million due to additional site trials for customers and the
increase in spare parts orders from existing clients and the
increase in storage revenue, other ancillary revenue and
transportation related to the DROSRITE units,
- Development and support related to
systems supplied to the U.S Navy decreased by $0.5 million due to
the current stage of the project, with the advancements contingent
upon the client’s inspections scheduled for Q4, 2024, partially
offset, by the increase in awarded contracts for spare parts and
engineering services from clients that are third-party suppliers of
the US Navy,
- Torch-related products and services
increased by $2.3 million, due to the Company providing continuous
24/7 onsite support and the significant progress related to the
current ongoing torch systems projects,
- SPARC™ related sales increased by
$0.6 million, due to significant advancements, particularly the
completion of long-lead major equipment, with focus now on
preparing for installation and commissioning at the client’s
facility,
- Biogas upgrading and pollution
controls related sales decreased by $0.5 million due to a decrease
in project volume,
As of November 6, 2024, revenue expected to be
recognized in the future related to backlog of signed and/or
awarded contracts is $54.9 million. Revenue will be recognized as
the Company satisfies its performance obligations under long-term
contracts, which is expected to occur over a maximum period of
approximately 3 years.
2. Cost of Sales and Services and Gross
Margins
Cost of sales and services were $2.3 million in
Q3, 2024, representing a decrease of $0.3 million compared to $2.6
million in Q3, 2023, primarily attributable to a $0.6 million
reduction in direct materials, totaling $0.9 million, and a $0.2
million decrease in amortization of intangible assets, compared to
$1.5 million and $0.2 million, respectively for the three-month
period ended September 30, 2023. The decrease in direct materials
is related to the decrease in recognition of costs related to the
Company’s DROSRITE™, PUREVAP™, and Biogas upgrading and pollution
controls product lines, offset by the recognition of costs from the
completion of the power supplies required for the Company’s
high-powered torch systems. However, the decrease was offset by the
increase in employee compensation of $0.1 million increasing to
$0.9 million (three-month period ended September 30, 2023 - $0.8
million), an increase of $0.2 million in subcontracting
(three-month period ended September 30, 2023 - $0.1 million),
attributed to additional work being subcontracted and the product
mix related to the cost of sales and the increase in manufacturing
overhead and other of $0.2 million, to $0.4 million (three-month
period ended September 30, 2023 - $0.2 million).
The gross profit for Q3, 2024 was $1.7 million
or 42% of revenue compared to a gross profit of $1.1 million for
Q3, 2023, representing 30% of revenue. The increase in gross margin
percentage was mainly due to the decrease on direct materials
costs, and amortization of intangible assets.
During the nine-month period ended September 30,
2024, cost of sales and services were $7.9 million, an increase
from $6.6 million for the same period in the prior year. The $1.3
million increase is primarily driven by a $1.4 million rise in
direct materials related to the recognized costs of substantial
items, namely power supplies. Employee compensation and
manufacturing overhead and other increased by $0.2 million and $0.1
million, to $2.8 million and $0.9 million, respectively (nine-month
period ended September 30, 2023 - $2.6 million and $0.8 million).
This increase was partially offset by the decrease in amortization
of intangible assets of $0.5 million to $0.1 million compared to
$0.7 million for the same period in the prior year.
The amortization of intangible assets for Q3,
2024 was $0.02 million compared to $0.2 million for Q3, 2023, and
during the nine-month period ended September 30, 2024, was $0.1
million compared to $0.7 million for the same period in the prior
year. This expense variation relates mainly to the intangible
assets in connection with the Pyro Green-Gas acquisition, which
have been fully amortized by January 2024. These expenses were
non-cash items, and the remaining intangible assets are composed of
patents, and deferred development costs that will be amortized over
the expected useful lives.
As a result of the type of contracts being
executed, the nature of the project activity, as well as the
composition of the cost of sales and services, the mix between
labour, materials and subcontracts may be significantly different.
In addition, due to the nature of these long-term contracts, the
Company has not necessarily passed on to the customer, the
increased cost of sales which was attributable to inflation, if
any. The costs of sales and services are in line with management’s
expectations and with the nature of the revenue.
3. Selling, General and Administrative
Expenses
Included within Selling, General and
Administrative expenses (“SG&A”) are costs associated with
corporate administration, business development, project proposals,
operations administration, investor relations and employee
training.
SG&A expenses for the third quarter of 2024
amounted to $5.0 million, reflecting a decrease of $2.6 million
from Q3, 2023. This reduction is primarily attributed to several
key factors. The expected credit loss and bad debt experienced a
decrease of $2.0 million, primarily due a reduction in provisioned
outstanding receivable. Additionally, professional fees were
reduced by $0.3 million from the three-month period ended September
30, 2023, due to decreased reliance on external consultants, legal
services, and other professional services. Other expenses showed a
favorable variance of $0.3 million, driven by reductions in
insurance expenses and marketing costs and an increase of $0.2
million in government grants due to higher levels of activities
supported by such grants. The decreases were partially offset by
the negative impact of $0.3 million due to changes in the foreign
exchange charge on materials due to the variation of the U.S.
dollar and the increase of employee compensation of $0.3 million
from $2.1 million to $2.4 million for the three-month period ended
September 30, 2024.
During the nine-month period ended September 30,
2024, SG&A expenses totaled $9.7 million, a significant
decrease of $11.8 million from $21.6 million for the same period in
the prior year. The key factors contributing to this decrease
include the expected credit loss and bad debt provision, which
varied favourably by $8.2 million. This was caused by the payment
received from a customer whose balance was provisioned, and to
higher credit loss expense recognized in Q3, 2023. Professional
fees saw a significant reduction of $1.2 million due to less
reliance on external consultants, legal services, and other
professional services. Other expenses decreased by $1.0 million, as
well, due to a favorable impact of $0.3 million on the foreign
exchange charge on materials due to the variation of the U.S.
dollar.
Share-based compensation expense for the three
and nine-month periods ended September 30, 2024, was $0.2 million
and $1.0 million, respectively (three and nine-month periods ended
September 30, 2023 - $0.7 million and $2.4 million, respectively),
a decrease of $0.5 million and $1.4 million respectively, which is
a non-cash item and relates mainly to 2022, and 2023 grants not
repeated in 2024.
Share-based payments expenses as explained
above, are non-cash expenses and are directly impacted by the
vesting structure of the stock option plan whereby options vest
between 10% and up to 100% on the grant date and may require an
immediate recognition of that cost.
4. Depreciation on Property and
Equipment
The depreciation on property and equipment for
the three and nine-month periods ended September 30, 2024,
decreased to $0.09 million and $0.3 million, respectively, compared
with $0.2 million and $0.5 million for the same periods in the
prior year. The expense is comparable to the same quarters last
year and the decrease is primarily due to the nature and useful
lives of the property and equipment being depreciated.
5. Research and Development (“R&D”)
Costs, net
During the three-months ended September 30,
2024, the Company incurred $0.2 million of R&D costs on
internal projects, a decrease of $0.5 million when compared to Q3,
2023. The decrease in Q3, 2024 is primarily related to a decrease
in employee compensation and in materials and equipment due to a
reduction in R&D activities.
During the nine-months ended September 30, 2024,
the Company incurred $0.7 million of R&D costs on internal
projects, a decrease of $1.0 million when compared to the same
period in the prior year. The decrease is mainly due to lower
levels of R&D activities in the 2024 period.
In addition to internally funded R&D
projects, the Company also incurred R&D expenditures during the
execution of client funded projects. These expenses are eligible
for Scientific Research and Experimental Development (“SR&ED”)
tax credits. SR&ED tax credits on client funded projects are
applied against cost of sales and services (see “Cost of Sales”
above).
6. Finance Expenses (income),
net
Finance expenses for Q3, 2024 totaled $0.3
million as compared with to $0.2 million for Q3, 2023, representing
a variation of $0.1 million year-over-year. The increase in finance
expenses in Q3, 2024 is mainly due to the increase in interest
accretion on the balance due on the business combination of $0.1
million and the increase in interest and accretion related to the
convertible loan, whereby this loan was only issued in December
2023.
During the nine-month period ended September 30,
2024, the finance expenses totaled $0.9 million as compared with an
income of $1.6 million for the 2023 comparable period, representing
a variation of $2.5 million year-over-year. This is caused by the
2023 favourable revaluation of the balance due on business
combination due to two milestones that would not be achieved, thus
a reversal of the liabilities was recorded. In addition, greater
financial expenses were due to the interest and accretion for the
convertible debenture and convertible loan, which were only
outstanding for portion of 2023.
7. Strategic Investments
During the three-months ended September 30,
2024, the adjustment to fair market value of strategic investments
for Q3, 2024 resulted in a gain of $0.04 million compared to a gain
in the amount of $1.2 million in Q3, 2023, a favorable variation of
$1.2 million. During the nine-months ended September 30, 2024, the
adjustment to fair market value of strategic investments resulted
in a loss of $0.2 million compared to a gain in the amount of $0.2
million for the same period in the prior year, a variation of $0.4
million. The decrease in variations for the three and nine-month
periods ended September 30, 2024, is attributable to the variation
of the market value of the common shares owned by the Company of
HPQ Silicon Inc.
8. Other Income
During the nine-months ended September 30, 2024,
Other Income includes a gain on settlement of legal proceedings
with a third party which was also a customer of the Company’s
subsidiary, Pyro Green-Gas. As a result, the Company received a
settlement of $1.5 million and recognized a gain of $1,180,335,
included in Other Income, and the remainder as a reduction of
accounts receivable.
9. Comprehensive loss
The comprehensive loss for Q3, 2024 of $3.9
million compared to a loss of $6.3 million, in Q3, 2023, represents
a favourable variation of $2.3 million, and is primarily
attributable to the factors described above, which have been
summarized as follows:
- an increase in product and
service-related revenue of $0.3 million arising in Q3, 2024, which
generated a 42% gross margin, compared to 30% in Q3, 2023. As a
result, gross profit is $1.7 million compared to $1.1 million for
the same three-month period ended September 30, 2024,
- a decrease in SG&A expenses of
$2.6 million arising in Q3, 2024, was primarily due to the expected
credit loss and bad debt decrease, and also to lower professional
fees, other expenses and increase in government grants. This was
offset by increases in employee compensation, depreciation of
right-of-use assets, and an unfavourable impact due to changes in
the foreign exchange charge on materials,
- a decrease in share-based expenses
of $0.5 million,
- a decrease in R&D expenses of
$0.5 million due to a reduction of R&D activities,
- an increase in net finance expenses
primarily due the interest and accretion on the convertible
debentures, convertible loan and balance due on the business
combination,
- a variation in the fair market
value of strategic investments of $1.2 million.
The comprehensive loss for the nine-month period
ended September 30, 2024, of $6.9 million compared to a loss of
$18.7 million, for the same period in the prior year, represents a
significant reduction of $11.9 million, and is primarily
attributable to the factors described above, which have been
summarized as follows:
- an increase in product and
service-related revenue of $2.1 million, which generated a 31%
gross margin, compared to 29% in 2023. As a result, gross profit is
$3.6 million compared to $2.7 million for the same nine-month
period of 2023,
- a decrease in SG&A expenses of
$11.8 million was primarily due to the favourable impact of the
expected credit loss and bad debt decrease and also to the decrease
in professional fees, travel, depreciation of property, other
expenses and foreign exchange,
- a decrease in share-based expenses
of $1.4 million
- a decrease in R&D expenses of
$1.0 million primarily due to decreased R&D activities,
- an increase in net finance expenses
primarily due to the revaluation of balance due on business
combination of $2.1 million in 2023 not repeated in 2024 and in the
increase of accretion and interest on the convertible debentures
and convertible loan,
- a variation in the fair market
value of strategic investments of $0.4 million.
10. Liquidity and Capital
Resources
As at September 30, 2024, the Company had cash
of $0.04 million, included in the net working capital deficiency of
$10.4 million. Certain working capital items such as billings in
excess of costs and profits on uncompleted contracts do not
represent a direct outflow of cash. The Company expects that with
its liquidity position and its access to capital markets it will be
able to finance its operations for the foreseeable future.
The Company’s term loan balance at September 30,
2024 was $303,127 and decreased by $100,952 since December 31,
2023, due mainly to the complete reimbursement of a loan. The
decrease from January 1, 2023, to December 31, 2023 was mainly
attributable to the accretion on the Economic Development Agency of
Canada loan, which is interest free and will remain so, until the
balance is paid over the 60-month period ending March 2029. In July
2023, the Company closed a brokered private placement for
$3,030,000, bearing interest at 10%. On December 20, 2023, the
Company closed a non-brokered private placement of a convertible
loan for gross proceeds of $1,250,000 and bears interest at 3%. The
average interest expense on the other term loans and convertible
debenture is approximately 10%. The Company does not expect changes
to the structure of term loans and convertible debentures and loans
in the next twelve-month period. The Company maintained one credit
facility which bears interest at a variable rate of prime plus 2%,
therefore 8.45% at September 30, 2024. The Company will continue to
reimburse the existing credit facility in 2024.
OUTLOOK
Consistent with the Company’s past practice, and
in view of the early stage of market adoption of our core lines of
business, the Company is not providing specific revenue or net
income (loss) guidance for 2024.
The following is an outline of the many factors
that impact the Company’s strategy and future success, plus key
developments that are expected to impact subsequent quarters.
Overall Strategy
PyroGenesis provides technology solutions to
heavy industry that leverage the Company’s expertise in ultra-high
temperature processes. The Company has evolved from its early
beginnings as a specialty-engineering firm to being a provider of a
robust technology eco-system for heavy industry that helps address
key strategic goals.
The Company believes its strategy to be timely,
as multiple heavy industries are committing to major carbon and
waste reduction programs at the same time as many governments are
increasingly supportive – from both a policy and financial
perspective – of environmental technologies and infrastructure
projects. Additionally, both industry and government are developing
strategies to ensure the availability of critical minerals during
the coming decades ofincreased output demand.
While there can be no guarantees, the Company
believes the evolution of its strategy beyond greenhouse gas
emission reduction, to an expanded focus that encapsulates the key
verticals listed in the section “Q3 2024 Production and Sales
Highlights”, both (i) improves the Company’s chances for success
while (ii) also providing a clearer picture of how the Company’s
wide array of offerings work in tandem to support heavy industry
goals.
PyroGenesis’ market opportunity is significant,
as major industries such as aluminum, steelmaking, manufacturing,
cement, chemicals, defense, aeronautics, and government seek
factory-ready, technology-based solutions to help steer through the
challenging landscape of increasing demand, tightening regulations,
and material availability.
As more of the Company’s offerings reach full
commercialization, PyroGenesis will remain focused on attracting
influential customers in broad markets while at the same time
ensuring that operating expenses are controlled to achieve
profitable growth.
Key Performance Indicators
The Company uses key performance indicators
(KPIs) to monitor, analyze, and optimize organizational output and
performance, with KPIs specific to different parts of its
production and manufacturing (such as cycle time, capacity
utilization, yield, changeover time, and scrap), plus a different
set of KPIs designed to evaluate the broader corporate results and
uptake, identify trends affecting the business, and make strategic
decisions. This latter category of KPIs includes:
Industry Depth: number of customers within an
industry and/or amount and % of revenue from that industry. To
date, the Company’s greatest depth has been with the aluminum,
military, and government industries.
New Industry Engagement: as the energy
transition and carbon/GHG-reduction trends grow, more industries
are realizing the benefit of using PyroGenesis’ technology. Over
the past five years the Company has begun to penetrate the mining
and metal, iron ore, aerospace, automotive, general parts
manufacturing, steel, materials (especially silica and silicon),
chemical, and cement industries, among others.
Customer Depth: the number of projects with a
single customer and/or amount of revenue from that customer. The
Company treats most customer identities as confidential unless
otherwise approved or suggested by the customer.
New Customer Engagement: as a relatively small
company with technology that is potentially of interest across
thousands of companies in many different industries, the Company
takes a cautious approach when engaging with new customers.
Primarily, the Company evaluates the potential customer’s access to
capital, operational history, and reputation when weighing
engagement. With regard to net new technology ideas or start-up
customers, PyroGenesis considers the long-term commercialization
potential of the idea, the possibility of revenue sharing or
royalties, and access to capital. Aligning to the Company’s three
tier business model is imperative, though exceptions can be
made.
Studies Undertaken: scientific and engineering
studies have been a key part of new customer acquisition for much
of the Company’s history. A study such as a computational fluid
dynamics (CFD) study is often the first phase requirement for a
potential customer in investigating the potential future use of the
Company’s technology. Since transitioning from a legacy fossil
fuel-based system to the Company’s all-electric plasma can be a
transformative and often expensive proposition, a study allows a
potential new client to better understand the future technological
fit and prospective budgetary requirements, while also gaining an
understanding of the high-quality working relationship with the
Company. The wide array of different specs, uses, industries, and
in-factory customization of furnace, heating, and melting
machinery, mandates ground-up studies for most new initiatives. The
Company’s experience conducting studies and its exposure to more
and different types of systems, especially over the last 5 years,
has allowed the Company to further streamline and perfect its study
process as a route to new business. The number, type, and duration
of studies undertaken during each quarter varies.
Monthly Recurring Revenue: ongoing, repeating
revenue is a major goal for the Company. To date, after-sale parts
and components (such as those related to consumable aspects of
plasma torches) have represented the largest revenue and growth
potential on a recurring basis. As the energy transition trend
grows and more plasma systems are sold, recurring revenue is
expected to represent a much larger percentage of overall revenue.
Other areas targeted for recurring revenue include sales of
titanium metal powders, revenue from tolling contracts in areas
such as aluminum dross treatment and metal recovery, and
co-venture/royalty agreements such as those related to waste
remediation.
Revenue Mix: PyroGenesis has established a
technology eco-system comprised of a number of inter-related
solutions, often referred to in previous Company communications as
a “multi-legged stool”. This type of diversification offers a
measure of protection to the Company in both difficult and rapidly
changing economic environments. As such, the Company targets a wide
versus a narrow mix of revenue sources.
Growth Mix: new revenue is currently driven by
existing customers. A key goal for the Company is to develop an
optimal mix of existing and new customers.
Cost Controls and
Efficiencies
PyroGenesis has been, and continues to,
scrutinize both potential and existing projects to ensure that the
utilization of labour and financial resources are optimized. The
Company continues to only engage in projects that reflect
significant benefits to PyroGenesis and the risks of which are
defined. The Company intends to intensify its focus on project and
budgetary clarity during this period of elevated inflationary
pressures, by identifying alternative suppliers while constantly
adjusting project resources. The early-stage project assessment
process has also been refined to allow for faster “go / no-go”
decisions on project viability.
Enhanced Sales and
Marketing
Against the backdrop of its 3-tiered strategy,
the Company continues to increase sales, marketing, and R&D
efforts in-line with – and in some cases ahead of – the growth
curve for industrial change related to greenhouse gas reduction
efforts.
Macroeconomic Conditions
With some continued uncertainty in the
macroeconomic environment, including ambiguity in the banking
sector with regard to interest rate adjustments, and the continued
inflationary pressures causing shifting demand dynamics across
various industries at different times, it may be difficult to
assess the future impact these events and conditions will have on
our customer base, the end markets we serve, and the resulting
effect on our business and operations, both in the short term and
in the long term.
Despite these uncertainties, we continue to
believe there is an accelerated need for PyroGenesis’ solutions in
the industries we serve as heavy industry continues to decarbonize
/ transition their energy sources, manufacture utilizing both
lighter metals (such as aluminum) and additive manufacturing, and
deal with tighter hazardous waste regulations.
While we expect these uncertainties and other
macroeconomic conditions to continue to impact the variability in
our quarter-to-quarter revenue, we believe our diversity in both
customer base and solution set will continue to be a strong
mitigating factor to these challenges. Additionally, the Company’s
ongoing efforts to reduce costs through various measures including
the sourcing of more high quality, cost-competitive suppliers,
further bolsters the Company against cost fluctuations.
The various military conflicts in the Middle
East and Eastern Europe continue to create some level of global
economic uncertainty, as well as supply chain disruptions that can
change at any time. However, it’s important to note that the
Company does not have any operations, customers or supplier
relationships in Russia, Belarus or Ukraine, and as such are not
directly impacted at a customer level in these countries. The
Company does have customer relationships and projects in Poland and
will continue to monitor the situation in the region regarding
challenges to the completion of current projects, which at this
time are not inhibited.
As always, the Company monitors the potential
impact macroeconomic events and conditions could have on the
business, operations, and financial health of the Company.
Generally, the Company believes that broad-based
threats to global supply chains increase awareness and interest in
the many solutions the Company offers. This is particularly true
within the minerals and metals industries, as manufacturers seek
alternatives to off-shore suppliers as well as technologies that
could optimize output or recycle critical material from byproducts
or waste – solutions that the Company currently offers.
Business Line Developments
The upcoming milestones which are expected to
confirm the validity of our strategies are outlined below. Please
note that these timelines are estimates based on information
provided to us by the clients/potential clients, and while we do
our best to be accurate, timelines can and will shift, due to
protracted negotiations, client technical and resource challenges,
or other unexpected situations beyond our or the clients’
control:
Business Line Developments: Near Term (0
– 3 months)
Financial
- Payments for
Outstanding Major Receivables:Regarding the outstanding receivable
under the Company’s existing $25 million+ Drosrite™ contract: and
as previously announced, PyroGenesis had agreed to a strategic
extension of the payment plan, by the customer and its
end-customer, geared to better align the pressures on the
end-user’s operating cash flows created by increased business
opportunities.
Energy Transition & Emission Reduction
- Plasma Torches
for Metal Manufacturing:The Company is in advanced discussions with
one of the world’s largest producers of metal products to design
and develop a plasma-based solution for use in improving precision
in the manufacturing process.
- Aluminum
Remelting Furnaces: The Company has been working on aluminum
remelting furnace solutions using plasma for use by secondary
aluminum producers or any manufacturer of aluminum components that
uses recycled or scrap aluminum. With gas-fired furnaces
responsible for much of the scope 1 emissions of secondary aluminum
production, aluminum companies have been searching for solutions
that can help in the decarbonization efforts of aluminum remelting
and cast houses.The Company has two potential solutions: the
retro-fitting of plasma torches in existing remelting and cast
house furnaces that currently use other forms of heating, such as
natural gas; and the manufacturing and sale of a PyroGenesis
produced furnace based off the Company’s existing Drosrite metal
recovery furnace design, which has been in use commercially for
several years.As mentioned in previous Outlooks, the Company has
been working with different companies over the past few years
towards these goals. During Q2 2024, the Company announced a signed
letter of intent with global aluminum product manufacturer
Constellium for large-scale plasma remelting furnaces, and a
contract with a global mining supply company, with the agreement
related to the client’s intention to examine the use of plasma in
decarbonizing its cast houses. Discussions remain underway with
other clients for similar contracts.
- Aluminum Furnace
Tests: The Company has started, and will continue in the near term,
live furnace tests of plasma as a process heat source in melting
and holding furnaces with major aluminum companies and is in
advanced discussions with other companies for similar live furnace
tests of plasma as a process heat source in melting and holding
furnaces. Due to the nature of these tests and the increasing
number of similar tests, the Company may choose not to announce
every test session it engages in.
- Plasma Torches
for Tunnel Boring: As noted above, the Company is a party to a
framework master agreement with EarthGrid, which included the
payment to the Company of a non-refundable downpayment for
$667,000.Negotiations of a first substantial statement of work are
ongoing and remain positive, but depend in large part on the
client’s ability to secure funding in a timely manner. The client
now anticipates proceeding with the purchase of a single plasma
torch system in the near to mid term, followed by one or more
larger orders in subsequent quarters, dependent upon the client’s
financing. While there is no guarantee this statement of work or
additional ones will be completed, if successful the Company
foresees the potential for a multi-phase, multi-year partnership
with the client that may result in materially significant
additional plasma torch orders over the next few years.
- Iron Ore
Pelletization Torch Trials:CLIENT BAs mentioned in previous
Outlooks, the commissioning of the plasma torch systems – for use
in the pelletization furnaces of a client previously identified as
Client B – was underway, with the Company’s engineers onsite at
Client B’s iron ore facility. The commissioning process includes
installation, start-up, and site acceptance testing (SAT). The
Company previously announced that it had shipped four 1 MW plasma
torch systems for use in Client B’s iron ore pelletization
furnaces, for trials toward potentially replacing fossil-fuel
burners with plasma torches in Client B’s furnaces.As also
mentioned in previous Outlooks, this project continues to move
forward after the commissioning suffered a series of unforeseeable
delays and infrastructure challenges caused by, among other things,
damaging torrential rainstorms that flooded and damaged the
facility’s electrical system and furnace components, and
intermittent power outages that led to damage of the plasma burners
cooling system.However, Client B remains committed and trials are
ongoing, and will remain as such until the customer determines they
have sufficient performance data. The latest information provided
to the Company suggests a late Q1 2025 timeline for the completion
of this performance testing and data gathering phase, though this
is an estimate.CLIENT ASustained weakness in global steel demand
due to the combination of a supply glut plus significantly reduced
steel production particularly in China, has reduced demand and spot
prices for steel and iron ore – both of which have seen declines as
high as 25% in 2024, with iron ore exhibiting a three-year price
low. With some suggestions that the steel and ore industries are in
the midst of an adjustment period, ore producers are exhibiting
caution, especially around the production of lower quality ore used
in coal-consuming blast furnaces. Eventually, as steelmakers and
ore producers begin to retool for more low-carbon iron and steel
making, and the overall steel demand rebound that is expected to
occur in 2025 takes hold, the outlook for both the higher-grade ore
suitable for use in low-carbon steel and the lower grade ore for
traditional blast furnaces improves.Industry-wide, with this
current unstable demand environment for ore, ore producers are
taking an added measure of caution around large infrastructure
decision-making. Most notably, the client previously identified as
Client A, a large international mining company which has also
previously purchased a full plasma torch system for use in trials
in its pelletization furnaces, has paused its trials for the
foreseeable future. Whether Client A resumes plasma investigation
in their pelletization furnaces in the future is largely dependent
on internal confidence around ore price future, resumption of ore
demand, strategic priorities of specific pelletization locations,
and other various aspects unknown to the Company. The Company
continues to present new ideas to Client A for use of plasma in
additional applications and locations.CLIENT CClient C, a third
global market-leading client who the Company previously identified
as one "who is not only a significant player in the iron ore
pelletization industry but is also a major player in the steel
industry", has been working with PyroGenesis over the past few
years on various potential initiatives related to using plasma
for decarbonization. Recently, PyroGenesis was awarded
official supplier status to Client C, as part of an impending
initiative. The Company will have more information on this in the
upcoming weeks.With live pelletization furnace plasma trials (with
Client B) continuing, as the latest development with Client C
renews their commitment to investigating plasma, and as new
interest from other entities appears, the Company believes its
position relative to both the steelmaking and iron ore industries
remains very strong. The early publicity and research results
surrounding plasma's potential for use in iron ore pelletization
opened the doors to these and multiple other industries for
furnaces and high heat applications that the Company believes will
ultimately far surpass the specific pelletization
application.
- Aluminum Cast
House Decarbonization: The Company is part of a tendered bid
process for the testing of plasma within an aluminum cast house of
a leading global aluminum company. This is unrelated to the project
announcement made in conjunction with Constellium. During the
quarter, the Company was advanced past the preliminary tender phase
to the full tender proposal phase.The Company submitted its full
proposal in August 2024, with the final client decision expected in
the near- to mid-term.
Commodity Security & Optimization
- Drosrite Factory
Trials: The Company is conducting on-site trials of the Company’s
Drosrite furnace system for the processing of aluminum dross, with
multiple aluminum manufacturers, as a first step towards potential
purchase of Drosrite systems. These particular potential clients
are located across Europe and the United States. The first trial,
for a manufacturer in France, was recently completed, and data is
now being examined.Titanium Metal Powder:In June, the Company
announced [press release dated June 5, 2024] that it had cleared
the final requirement to becoming an approved supplier of its
titanium metal powder to a global aerospace original equipment
manufacturer.The formal process for adding the Company to the
approved supplier list has begun and is expected to be complete in
the near term.
Waste Remediation
- SPARC Refrigerant
Waste Destruction System: The Company is in negotiations with a
Middle Eastern customer for the construction of the Company’s SPARC
(Steam Plasma Refrigerant Cracking) system, for the safe
destruction of hazardous end-of-life refrigerants, such as CFCs,
HCFCs, and HFCs. The customer has access to a very large existing
stockpile of these hazardous materials. This project is under
discussion as a co-venture, whereby PyroGenesis would receive
revenue on a profit-sharing basis.
- Plasma-Based
Glass Valorization: The Company is in final negotiations with
an entity in Canada, for a plasma-based furnace for use in the
melting and valorization of recycled glass, with an estimated
contract value of $2 million.
- Plasma Resource
Recovery System (PRRS): The Company is in discussions with a
European company for the Company’s Plasma Resource Recovery System,
for use in the pyrolysis of plastics.
Business Line Developments: Mid Term
(3-6 months)
Energy Transition & Emission Reduction
- Mining Industry
Parts Manufacturer Decarbonization: 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.
Commodity Security & Optimization
- “FSR” Project: In
September, the Company’s client, HPQ Silicon Inc., announced [news
release dated September 27th] the successful completion of
commissioning of the Fumed Silica Reactor (FSR) pilot plant that
PyroGenesis has been designing, engineering, and constructing to
convert quartz into fumed silica in a single and eco-friendly step.
The pilot plant has commenced pre-commercial production tests of
fumed silica, with commercial samples scheduled to be sent to key
parties such as Evonik and others under NDA in the near to
mid-term.
- Drosrite Systems:
The Company is in various stages of discussions with aluminum
manufacturers to purchase Drosrite aluminum dross processing
systems, including with two Middle Eastern aluminum companies for
the purchase of multiple 5,000+ tonnes per year Drosrite furnaces.
In addition, multiple European and American aluminum manufacturers
are considering systems of various capacities.
- Critical Mineral
Production: The Company is in discussion with a producer of
critical minerals used in electronics, renewable energy, and EV
manufacturing, to use plasma during the production process of these
minerals.
- Titanium Metal
Powder: The Company is in discussions several companies in both
North America and Europe regarding the potential sale of multiple
tonnes of titanium metal powder, across both “coarse” and “fine”
powder cuts.
Waste Remediation
- SPARC Refrigerant
Waste Destruction System: The Company is in negotiations with a
large US-based distributor of refrigerants and specialty gases for
the construction of the Company’s SPARC (Steam Plasma Refrigerant
Cracking) system, for the safe destruction of hazardous end-of-life
refrigerants, such as CFCs, HCFCs, and HFCs, for a contract amount
of approximately $2-3 million.
- e-Waste Recycling
and Valorization: The Company is in negotiations with a potential
customer to develop a scalable system for recycling decommissioned
equipment used in the energy industry, for the purpose of
recovering valuable materials like silicon, silver, and other
metals from e-waste.
Business Line Developments: Long Term
(> 6 months)
Energy Transition & Emission Reduction
- Plasma-Based
Glass Recycling: The Company is in advanced negotiations with
a global leader in glass recycling, to investigate plasma as part
of the customer’s energy transition initiatives.
- Furnace
Electrification Co-Venture: The Company is in negotiations with a
large global manufacturer of energy equipment to co-venture with
PyroGenesis on the electrification of third-party furnaces.
Commodity Security & Optimization
- Silicon,
Nano-Silicon, and Silica Production: The Company is in discussions
at quotation stage with several different potential customers who
have expressed interest in PyroGenesis’ advances methods for
producing silicon, nano-silicon, and silica. The customers include
a major global automaker (whose interest lies primarily in
nano-silicon for EV batteries), a US battery manufacturer, and a
raw material supplier to the construction materials industry.
Waste Remediation
- Plasma
Waste-to-Energy System / Resource Recovery System (PRRS):In
July [press release dated July 29, 2024], the Company
announced the signing of a 2-stage contract for a land-based plasma
waste-to-energy system with a European consortium. The first stage
consists of a conceptual and preliminary design phase for
approximately $2 million, which commenced in Q3 and is scheduled to
last no more than one year. The design of the Plasma
Waste-to-Energy System is based on the Company’s Plasma Resource
Recovery System (PRRS), a waste-to-energy technology that
eliminates toxic compounds while transforming waste into reusable
products such as syngas and chemicals such as methanol.The design
phase, which is scheduled to end by Q3 2025, will determine the
order of magnitude cost estimate of the system construction,
expected to range between $120-160 million depending on the
system’s capacity and other details. The customer may then engage
with PyroGenesis for the design and development of a large
waste-to-energy system.
- Plasma Torches:
The Company has been in discussions over several years with a
European entity, to act as a potential supplier of plasma torches
for the entity’s waste-to-energy initiative; the entity has at
times, listed PyroGenesis as their torch supplier in various
publications online. This entity has recently announced having
entered into an agreement with a German multi-Billion-dollar
leading technology company to accelerate green energy transition
through waste-to-energy technology. The entity announced that it
aims to establish 300 plants producing 1 million tons of hydrogen
over the next several years.
** Please note that projects or
potential projects previously announced that do not appear in the
above summary updates should not be considered as at risk.
Noteworthy developments can occur at any time based on project
stages, and the information presented above reflects information on
hand. Projects not mentioned may have simply not concluded or not
presented milestones or client updates worthy of discussion or
update.
FURTHER INFORMATION
Additional information relating to Company and
its business, including the 2023 consolidated financial statements,
the Annual Information Form and other filings that the Company has
made and may make in the future with applicable securities
authorities, may be found on or through SEDAR+ at www.sedarplus.ca,
or the Company’s website at www.pyrogenesis.com.
Additional information, including directors’ and
officers’ remuneration and indebtedness, principal holders of the
Company’s securities and securities authorized for issuance under
equity compensation plans, is also contained in the Company’s most
recent management information circular for the most recent annual
meeting of shareholders of the Company.
About PyroGenesis
PyroGenesis, a high-tech company, is a proud
leader in the design, development, manufacture and
commercialization of advanced plasma processes and sustainable
solutions which reduce greenhouse gases (GHG) and are economically
attractive alternatives to conventional “dirty” processes.
PyroGenesis has created proprietary, patented and advanced plasma
technologies that are being vetted and adopted by multiple
multibillion dollar industry leaders in four massive markets: iron
ore pelletization, aluminum, waste management, and additive
manufacturing. With a team of experienced engineers, scientists and
technicians working out of its Montreal office, and its 3,800 m2
and 2,940 m2 manufacturing facilities, PyroGenesis maintains its
competitive advantage by remaining at the forefront of technology
development and commercialization. The operations are ISO 9001:2015
and AS9100D certified, having been ISO certified since 1997.
PyroGenesis’ shares are publicly traded on the TSX in Canada (TSX:
PYR), the OTCQX in the US (OTCQX: PYRGF), and the Frankfurt Stock
Exchange in Germany (FRA: 8PY). For more information, please visit:
www.pyrogenesis.com.
Cautionary and Forward-Looking
Statements
This press release contains “forward-looking
information” and “forward-looking statements” (collectively,
“forward-looking statements”) within the meaning of applicable
securities laws. In some cases, but not necessarily in all cases,
forward-looking statements can be identified by the use of
forward-looking terminology such as “plans”, “targets”, “expects”
or “does not expect”, “is expected”, “an opportunity exists”, “is
positioned”, “estimates”, “intends”, “assumes”, “anticipates” or
“does not anticipate” or “believes”, or variations of such words
and phrases or state that certain actions, events or results “may”,
“could”, “would”, “might”, “will” or “will be taken”, “occur” or
“be achieved”. In addition, any statements that refer to
expectations, projections or other characterizations of future
events or circumstances contain forward-looking statements.
Forward-looking statements are not historical facts, nor guarantees
or assurances of future performance but instead represent
management’s current beliefs, expectations, estimates and
projections regarding future events and operating performance.
Forward-looking statements are necessarily based
on a number of opinions, assumptions and estimates that, while
considered reasonable by PyroGenesis as of the date of this
release, are subject to inherent uncertainties, risks and changes
in circumstances that may differ materially from those contemplated
by the forward-looking statements. Important factors that could
cause actual results to differ, possibly materially, from those
indicated by the forward-looking statements include, but are not
limited to, the risk factors identified under “Risk Factors” in
PyroGenesis’ latest annual information form, and in other periodic
filings that it has made and may make in the future with the
securities commissions or similar regulatory authorities, all of
which are available under PyroGenesis’ profile on SEDAR+ at
www.sedarplus.ca. These factors are not intended to represent a
complete list of the factors that could affect PyroGenesis.
However, such risk factors should be considered carefully. There
can be no assurance that such estimates and assumptions will prove
to be correct. You should not place undue reliance on
forward-looking statements, which speak only as of the date of this
release. PyroGenesis undertakes no obligation to publicly update or
revise any forward-looking statement, except as required by
applicable securities laws.
Neither the Toronto Stock Exchange, its
Regulation Services Provider (as that term is defined in the
policies of the Toronto Stock Exchange) nor the OTCQX Best Market
accepts responsibility for the adequacy or accuracy of this press
release.
For further information please contact: Rodayna
Kafal, Vice President, IR/Comms. and Strategic BDE-mail:
ir@pyrogenesis.com RELATED LINK: http://www.pyrogenesis.com/
Photos accompanying this announcement are available
athttps://www.globenewswire.com/NewsRoom/AttachmentNg/8fca981f-a1b4-496b-ad48-413d8f8282b8https://www.globenewswire.com/NewsRoom/AttachmentNg/830cf8f8-7db5-427f-a81a-a95789f55c79https://www.globenewswire.com/NewsRoom/AttachmentNg/5e76fbfd-99e0-4343-bb4e-4a237046ab13
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