Plasma Arc Chemical Warfare Agents Destruction System for the US/UK Special Operations

US $100 Million of Testing In 2017

Sponsored
PyroGenesis Canada Inc Profile

 

PYR: TSX-V

WHY PYROGENESIS?

  • 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

Powder Production:

  • 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

DROSRITE™:

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.

HPQ:

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:

  • 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)

Clients Include:

12 Month Stock Chart:

 

Last changed at 17-Oct-2017 02:01PM by AGORACOM