- The Company continues to expand into new markets and reach full commercialization goals, while maintaining a healthy 37% gross margin.
MONTREAL, Aug. 10, 2023 (GLOBE NEWSWIRE) -- PyroGenesis Canada Inc. (
http://pyrogenesis.com) (TSX: PYR) (NASDAQ: PYR) (FRA: 8PY), a high-tech company (the “Company” or “PyroGenesis”) that designs, develops, manufactures and commercializes advanced plasma processes and sustainable solutions which are geared to reduce greenhouse gases (GHG), is pleased to announce today its financial and operational results for the second quarter ended June 30, 2023.
“Despite a relatively flat quarter and the continued fluctuations in our quarterly revenues that we had previously acknowledged as possible, we remain confident in our long-term strategy. The opportunities for the Company across the large-scale industrial technology and industrial decarbonization landscapes are significant,” said Mr. P. Peter Pascali, CEO and President of PyroGenesis. “The barriers to entry for gaining a foothold in these markets has always been high, from both a technology and resource perspective – particularly in the energy transition segments, where fundamental structural change to long-established underlying energy and fuel systems are conducted with measured and exacting processes, and where delays are common. We firmly believe that this is where our close to thirty years of R&D, and our long-standing industry relationships, provide a long-term advantage, as we persist in-step with these trends which have been exacerbated by the uncertain economic environment that continues to create volatility in the capital markets.”
“Against much larger competitors, and by using our globally recognized expertise in ultra-high temperature processes such as plasma, along with robust client relationship building, we continue to experience successes that have enabled us to push past the barriers to entry in several of our strategic business lines,” continued Mr. Pascali. “Commercialization results in titanium metal powders, and the opening of new markets for higher power plasma torches (such as the contract which we recently announced with a defense and aeronautics contractor for a next tier 4.5MW plasma torch), underscores that the strategy to maintain our focus on developing technologies and solutions that we believe are certain to take hold with leading global industrial companies during a period of major paradigm shift – namely in Energy Transition & Emissions Reduction, Commodity Security & Optimization, and Waste Remediation – is key to securing PyroGenesis’ future.”
“Despite the quarterly ups and downs, our commitment to supporting heavy industry with customer-ready, low carbon-footprint technology solutions, remains steadfast,” Mr. Pascali added. “Our backlog of signed and/or awarded contracts remains strong, at $33.9 million. Our 37% gross margin is fully in line with the industrial machinery and components industry1 and well ahead of the gross margins for the industries we serve, such as aluminum2, iron and steel3, and even aerospace and defense4. We look forward to the remainder of 2023 as our business strategy continues to gain traction.”
The information below represents important highlights from the past quarter, followed by an outline of the company’s strategy and outlook for the next quarter.
Q2 Production Highlights
In Q2 2023, PyroGenesis continued its focus on advancing its updated business strategy that was first outlined in the Company’s 2022 fourth quarter and year-end results.
As noted, as the variety of uses for the Company’s core technologies has expanded, and industry interest has increased, the Company is concentrating its solution ecosystem under three 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 to increase output, to maximize raw materials and improve 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 several solutions at different stages to commercialization.
The information below represents highlights from the past quarter for each of the above verticals, followed by an outline of the Company’s strategy, and key developments that will impact the subsequent quarters.
1. Energy Transition & Emission Reduction
• In May, the Company announced that its subsidiary, Pyro Green-Gas, had successfully completed the integrated cold test (ICT) step under a previously announced $9.3 million project, with a key client – one of the world’s top diversified steel producers.
The ICT completion marks a significant milestone towards the completion of the overall project, where Pyro Green-Gas has been mandated to (i) supply coke oven gas purification solutions and (ii) hydrogen production processes that have combined the potential to allow for the extracting of hydrogen with a 99.999% purity level and improve the client’s environmental outcome. The ICT confirms that all systems, equipment and their components meet and exceed the required operation and safety standards.
With the implementation of Pyro Green-Gas’ hydrogen extraction technology, the client would be able to rely on a cleaner energy source for its annealing, galvanizing and acid recovery processes, furthering its efforts to reduce its carbon footprint.
2. Commodity Security & Optimization
• In May, the Company announced a major corporate breakthrough with its first commercial by-the-tonne order for titanium metal powder for use in industrial 3D printing, commonly known as additive manufacturing. The contracted order for 5 metric tonnes (or 5,000 kg) also had a provisional order for an additional 6 tonnes.
The order is to be completed using PyroGenesis’ NexGen™ plasma atomization system, from the Company’s metal powder production facility in Montreal, Quebec. The client is an advanced materials company in the United States, who has requested anonymity.
As noted at the time by Massimo Dattilo, VP PyroGenesis Additive, this order represents the Company’s “full entrance into the titanium metal powders marketplace”.
• In June, the Company announced an achievement regarding its GEN3 PUREVAP™ Quartz Reduction Reactor (QRR) pilot plant (the “GEN3 PUREVAP ™ Pilot Plant” or the “Pilot Plant”) project, with material produced by the pilot plant receiving successful laboratory validation of quartz to high-purity 3N+ silicon in one step. During test #5, the pilot plant achieved an average silicon purity (%) of 99.92% across two separate tests. This outcome validates the capability of the QRR process to surpass the minimum purity requirement of 3N needed for battery-grade silicon.
The PUREVAP™ process is an innovative patented process that will enable the one-step conversion of quartz (SiO2) into high-purity silicon (Si) at reduced costs, energy input and carbon footprint that will propagate its considerable renewable energy potential.
As noted at the time in the client’s news release, silicon (Si), also known as silicon metal, is a key strategic material needed for the decarbonization of the economy and the Renewable Energy Revolution (“RER”). However, silicon does not exist in its pure state and must be extracted from quartz (SiO 2 ) in what has historically been a capital and energy-intensive process.
