Proven plasma torch processes for US military, 3D powders for aircraft engines and solar grade silicon metal for solar industry

Message: Re: Can you elaborate?
Jan 11, 2019 01:35AM

Hi Tom,

Thanks for posting here.

Please excxuse me for taking the quick approach to answering your questions (It is a bit crazy here these days), and allowing me to so so below in red.

I hope this works and answers your questions.

Please feel free to post anytime wityh any questions you may have.



Mr. Pascali,

First, let me say thank you for your reply to my previous question about the tolling service fee. Your time and dedication to PyroGenesis shareholders is really appreciated.

I like a lot the business model you built for Drosrite : model scaling, metals diversification, JV with a multinational, the pricing structure. I am eager to learn more and excited to be part of that disruptive innovation.

So much happened this week. Do you have a minute or two to answer some questions?

U.S. Navy contract :

  1. The contract is for the construction of the plasma-based waste destruction systems. What is the maintenance or engineering service agreement for such a contract? There is no formal maintenance/engineering agreement per se.  They just go to the supplier (us) when things need to get done. I guess it is the same service agreement as the current PAWDS. When there will be 4 operationals Marine PAWDS, what recurrent revenue can we expect year to year from servicing them? Regretfully we are not at liberty to answer that question.
  2. Aircraft carriers are huge ship with nuclear reactors, always at sea. For smaller U.S. Navy ships, is there interest for the PAWDS? We believe there is but we are not actively pursing this opportunity in favour of lower hanging fruit.  Developing a similar system for smaller vessels would require an R&D effort  for sure

Aubert & Duval exclusive partnership :

  1. In their version of the news release, Eramet states that it will allow them to reach a significant 15% market share of titanium powders in Europe by 2022. What is Eramet evaluation of that total market in 2022? Do you know their target in Euro? Again, regretfully, we cannot comment on these two questions.  Suffice it to say that, from PyroGenesis’ perspective, it is much higher than what we projected doing on our own.
  2. PyroGenesis stated that the agreement envisions establishing production capability in the market. So, PyroGenesis will construct a production facility in Europe. Is it mandatory to the agreement or will it come later after the expected market share of titanium powders is on track? Although Europe seems to be a logical choice the decision is not set in stone.  What is set in stone is that, when the time comes, we will decide together where it makes the most sense for the business.  In my opinion, and it is just my opinion, Europe makes abundant sense.

Seems the market is lazy and awaits hard data and contract finalization. (the contract with Aubert & Duval final btw) I guess we cannot all be visionaries. ;-) I think it will take time as any  new “eyeballs” on the stock will take their time to figure out who PyroGenesis is before they invest.

Best regards,


Jan 16, 2019 09:33PM
New Message
Please login to post a reply