Plasma Arc Chemical Warfare Agents Destruction System for the US/UK Special Operations
- Q2-2017 Results: Cash Flow Positive on EBITDA (Modified) Basis; Revenues Increase by 165%
- Gross Margins Increase to 48%
- 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: $7.64MM
- Over $13.5MM in contracts were signed, and work begun on, since June 30, 2016
- Clients include: U.S Air Force, U.S NAVY, Canada Natural Resources
LINES OF BUSINESS
- Announced Completion of Ramp-Up Phase of 1st Plasma Atomization System
- During the ramp-up, the following were also achieved:
- Six NDA's signed with distributors and 3D printer manufacturers
- Three NDAs being negotiated with multinational aircraft engine manufacturers, at their request
- Exclusive distributorship under negotiation in Asia
- Received six sample orders for metal powder, of which five have been delivered to date
- Adjusted process for other metal powders (i.e. Inconel)
- Developed new, potentially game changing, intellectual property; Patent applications progressing as expected
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
- 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
- Announced Commencement of Advanced Second Phase Lab Scale Testing with HPQ Totalling CAN$170,000 which has been Received
- The start of this new metallurgical testing program using the Gen 2 PUREVAP™ represents major de-risking of the Pilot Plant program as the Gen 2 PUREVAP™ will:
- Allow for specific process design improvements and modifications derived from Gen 1 PUREVAP™ test work to be implemented and perfected;
- Produce larger Silicon Metal (Si) samples to test improvements to the purification process;
- Allow an intermediate step in scaling up to the Pilot Plant, thereby mitigating the scaling up risk;
- Allow for the following milestones to be reached sooner than originally planned:
- Producing larger Si samples for testing by potential purchasers;
- Allow HPQ and PyroGenesis to test the electrical parameters of the High Purity Si;
- Produce enough material to send samples to solar industry participants; and
- Provide data to demonstrate the economics of PUREVAP™ technology.
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).
- 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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