Chemical Warfare Agent Contract With US/UK Special Operations
US $100 Million of Testing In 2017
- 2016 Revenues of $5.2M
- Increased Gross margins to 41.6% (2015: 27.1%)
- Traditional lines of business are poised to contribute significantly to bottom line
- Established backlog of signed contracts, majority of which are expected to be completed in 2017
- Clients include: U.S Air Force, U.S NAVY, Canada Natural Resources
LINES OF BUSINESS
- Recently announced that the assembly of the first powder production system was completed and that the first powder run exceeded expectations
- Ramp up under way
- Interest far exceeded Managements' expectations
- Initial contract was signed for a sample amount of powder
- Signed number of agreements with significant and potential players in the AM industry
Market potential for PyroGenesis' DROSRITE™ system, from Aluminium dross alone, exceeds $400MM.
- Furnace System proven out at a North American customer's Mexican facility during the first half of 2016
- Soon thereafter, a successful demonstration of the DROSRITE™ System in the Middle East took place
- Unsolicited request to exclusively market the process in the region was received and is currently being discussed
- Recent flurry of activity and interest for the DROSRITE™ system bodes well for 2017
- Expect to have at least 3 orders placed and delivered
- Company expect the first follow on contracts to be signed in the 2nd half of 2017.
Contracts totalling $8,260,000 signed with HPQ Silicon Resources
- Contracts for the sale of IP and to provide a 200 metric tonne (MT) per year PUREVAP™ pilot system to produce silicon metal directly from quartz
- System to be constructed in 2017
- Advancement of the contract accelerating in the second half of the year
- Majority of these revenues will be recognized in the 2nd half of 2017.
- If successful, PyroGenesis benefits from a 10% royalty on all revenues derived from the use of this system by HPQ, subject to annual minimums
Chemical Warfare Destruction System:
Tests supported the Defense Advanced Research Projects Agency (DARPA) Agnostic Compact Demilitarization of Chemical Agents (ACDC) program
- Successfully completed long-duration performance tests using the Company's tactical Plasma Arc Chemical Warfare Agents Destruction System ("PACWADS") using surrogate chemical warfare agent material
- Far exceeded minimum requirements with over 99.9999% destruction efficiency.
- PACWADS is now scheduled to go through final testing using real chemical warfare agents by the US Military).
- Tests should be completed by the end of Q3 2017
- Bodes well for 2017 as company expects additional contracts resulting from a successful completion of the final testing
- Other contracts being discussed (such as a third order for a PAWDS for a New US Aircraft Carrier which is expected to be ordered sometime towards the end of 2017/beginning of 2018 with an estimated value of approximately $6MM; SPARC system sales, amongst others)
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