Agoracom Blog Home

Archive for the ‘PyroGenesis Canada Inc.’ Category

PyroGenesis $PYR.ca Provides Updated EPS Guidance for Third Quarter and Full Year 2020 $RTN $NOC $UTX $DDD.ca $SSYS $PRLB

Posted by AGORACOM-JC at 9:16 AM on Thursday, August 13th, 2020

Updated Earnings Guidance for Q3 2020 and full year 2020:

  • Management continues to expect significant revenue growth
  • Q3 2020 updated EPS> $0.07
  • Full year 2020 updated EPS > $0.11.

MONTREAL, Aug. 13, 2020 — PyroGenesis Canada Inc. (http://pyrogenesis.com) (TSX-V: PYR) (OTCQB: PYRNF) (FRA: 8PY), a high-tech company, (the “Company”, the “Corporation” or “PyroGenesis”) that designs, develops, manufactures and commercializes plasma atomized metal powder, plasma waste-to-energy systems and plasma torch systems, is pleased to provide today, further to its Q2 2020 financial press release dated July 29th, 2020, updated earnings per share (“EPS”) guidance for Q3 2020, and the full year 2020.

PyroGenesis now expects EPS for Q3 2020 to be in excess of $0.07. On July 29th, 2020, the Company had given prior guidance of $0.06 for the same period. Furthermore, the Company now expects an EPS for the full year 2020 to be conservatively in excess of $0.11.

“We understand the market’s interest in our providing guidance, so we are progressing cautiously and conservatively as we are committed to meet or exceed market expectations,” said P. Peter Pascali, CEO and President of PyroGenesis. “Our confidence, and increased visibility, in our Q3 2020 results has resulted in this update, and we will continue to provide such updates as needed. The Company continues to exceed internal expectations in the execution of all its projects and business lines with little to no impact from the summer holiday period nor the ongoing pandemic.”

Updated Earnings Guidance for Q3 2020 and full year 2020:

  • Management continues to expect significant revenue growth
  • Q3 2020 updated EPS> $0.07
  • Full year 2020 updated EPS > $0.11.

About PyroGenesis Canada Inc.
PyroGenesis Canada Inc., a high-tech company, is the world leader in the design, development, manufacture and commercialization of advanced plasma processes and products. We provide engineering and manufacturing expertise, cutting-edge contract research, as well as turnkey process equipment packages to the defense, metallurgical, mining, advanced materials (including 3D printing), oil & gas, and environmental industries. With a team of experienced engineers, scientists and technicians working out of our Montreal office and our 3,800 m2 manufacturing facility, PyroGenesis maintains its competitive advantage by remaining at the forefront of technology development and commercialization. Our core competencies allow PyroGenesis to lead the way in providing innovative plasma torches, plasma waste processes, high-temperature metallurgical processes, and engineering services to the global marketplace. Our operations are ISO 9001:2015 and AS9100D certified, and have been since 1997. PyroGenesis is a publicly-traded Canadian Corporation on the TSX Venture Exchange (Ticker Symbol: PYR) and on the OTCQB Marketplace. For more information, please visit www.pyrogenesis.com.

This press release contains certain forward-looking statements, including, without limitation, statements containing the words “may”, “plan”, “will”, “estimate”, “continue”, “anticipate”, “intend”, “expect”, “in the process” and other similar expressions which constitute “forward- looking information” within the meaning of applicable securities laws. Forward-looking statements reflect the Corporation’s current expectation and assumptions and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These forward-looking statements involve risks and uncertainties including, but not limited to, our expectations regarding the acceptance of our products by the market, our strategy to develop new products and enhance the capabilities of existing products, our strategy with respect to research and development, the impact of competitive products and pricing, new product development, and uncertainties related to the regulatory approval process. Such statements reflect the current views of the Corporation with respect to future events and are subject to certain risks and uncertainties and other risks detailed from time-to-time in the Corporation’s ongoing filings with the securities regulatory authorities, which filings can be found at www.sedar.com, or at www.otcmarkets.com. Actual results, events, and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements. The Corporation undertakes no obligation to publicly update or revise any forward- looking statements either as a result of new information, future events or otherwise, except as required by applicable securities laws.

Neither the TSX Venture Exchange, its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) nor the OTCQB accepts responsibility for the adequacy or accuracy of this press release.

SOURCE PyroGenesis Canada Inc.

For further information please contact:
Rodayna Kafal, Vice President Investors Relations and Strategic Business Development
Phone: (514) 937-0002, E-mail: [email protected]
RELATED LINK: https://www.pyrogenesis.com/

PyroGenesis $PYR.ca Announces Q2 2020 Results: Net Income $5.2MM; Gross Margin 60%; Earnings per Share $0.04 $RTN $NOC $UTX $DDD.ca $SSYS $PRLB

Posted by AGORACOM-JC at 8:57 AM on Wednesday, July 29th, 2020

Q2 2020 results reflect the following highlights:

  • Revenues of $2,128,454, an increase of 133% from $913,769 posted in Q2 2019
  • Comprehensive income of $5,228,020 an increase of 332% from ($2,253,390) posted in Q2 2020
  • Gross margin of 59.5% an increase of 39.2% over the same period in Q2 2019
  • Cash on hand on June 30, 2020 was $1,567,777 (December 31, 2019: $34,431)
  • Backlog of signed contracts as of the date of this writing is approx. $28MM.
  • Management expects significant revenue growth in 2020

MONTREAL, July 29, 2020 — PyroGenesis Canada Inc. (http://pyrogenesis.com) (TSX-V: PYR) (OTCQB: PYRNF) (FRA: 8PY), a high-tech company, (the “Company”, the “Corporation” or “PyroGenesis”) that designs, develops, manufactures and commercializes plasma atomized metal powder, plasma waste-to-energy systems and plasma torch systems, is pleased to announce today its financial and operational results for the second-quarter ended June 30th, 2020.

“Percent complete revenue recognition in our major projects, which is the revenue recognition method we are mandated to follow by GAAP, is such that it is not linear, but exponential and as such, Q2 is now starting to reflect the results one might expect given recent announcements. It is interesting to note that using this revenue recognition method, only $1.8MM has been recognized under the $22MM+ DROSRITE™ contract for which we have announced receipt of over $7MM, and which will be completed within the next year. Using this same revenue recognition method, we can provide guidance for Q3 2020, and for the year ending December 31st, 2020: At this point, we expect that Q3 2020, and the nine months ending September 30, 2020, will both be profitable as will year end results. We are projecting Q3 2020 EPS (Basic & Diluted) to be conservatively in excess of 6 cents,” said P. Peter Pascali, CEO and President of PyroGenesis. “We are happy to be reporting these results in record time, and are pleased to note that we did so within the time frame set by more demanding exchanges. As such, we have set a goal to report all future financial results within the more stringent requirements set by the TSX as opposed to the TSXV.”

Q2 2020 results reflect the following highlights:

  • Revenues of $2,128,454, an increase of 133% from $913,769 posted in Q2 2019
  • Comprehensive income of $5,228,020 an increase of 332% from ($2,253,390) posted in Q2 2020
  • Gross margin of 59.5% an increase of 39.2% over the same period in Q2 2019
  • Cash on hand on June 30, 2020 was $1,567,777 (December 31, 2019: $34,431)
  • Backlog of signed contracts as of the date of this writing is approx. $28MM.

Management Guidance for Q3 2020

  • Management expects significant revenue growth
  • Management expects that Q3 2020 and the nine months ending September 30, 2020 to be profitable
  • Earnings per Share (EPS) > $0.06.

Management Guidance for full year 2020:

  • Management expects significant revenue growth in 2020
  • Earnings per Share (EPS) > $0.10.

OUTLOOK

Percent complete revenue recognition in our major projects, which is the revenue recognition method we are mandated to follow by GAAP, is such that it is not linear, but exponential and as such, Q2 is now starting to reflect the results one might expect given recent announcements. It is interesting to note that using this revenue recognition method, only $1.8MM has been recognized under the $22MM+ DROSRITE™ contract for which we have announced receipt of over $7MM, and which will be completed within the next year.

Using this same revenue recognition method, we can provide guidance for Q3 2020, and for the year ending December 31st, 2020: At this point we expect that Q3 2020, and the nine months ending September 30, 2020, will both be profitable as will year end results. We are projecting Q3 2020 EPS (Basic & Diluted) to be conservatively in excess of 6 cents and the year to be in excess of 10 cents. 

Any discussion regarding the OUTLOOK of the company would be remiss if it did not address the continued increase in the Company’s market capitalization and the implications that has for the future.

Without a doubt the Company’s market capitalization suffered, as did many other companies, in the general Covid-19 market meltdown at the end of March 2020. However, PyroGenesis soon broke from the pack with the issuance of a material press release on March 24th, 2020.

Management believes that its breaking from the ranks caught the attention of investors, fund managers, and money managers who all now had the time during the COVID-19 lockdown to fully analyze the complicated story that is PyroGenesis. Management does not see any reason why this interest would abate anytime soon. To the contrary, Management has reason to believe that interest in the Company will only increase over the foreseeable future. As such, several strategies (up listings, spinoffs, acquisitions) are now being accelerated/considered.

Having a larger market capitalization has also helped in discussions with potential customers who take comfort from the possibility that a higher market capitalization may translate into easier access to capital. For the record, there is no intention to raise capital for working capital purposes.

If 2018 was the year in which PyroGenesis successfully positioned each of its commercial business lines by strategically partnering with multi-billion-dollar entities, and 2019 was the year that saw the appropriate personnel and infrastructure being put in place while building upon the success of 2018, then 2020 is without a doubt the year that  the long awaited breakout, which began in the second half of 2019, takes place; it is in fact already upon us:

To date during 2020, PyroGenesis has:

  1. received significant payments under the $22MM contract with Drosrite International thereby validating announcements made during 2019,

  2. established a relationship with a US based tunneling company (contracts and payments ongoing),

  3. Established itself in the iron ore pelletization industry as a potential supplier of torches geared to replacing existing burners and thereby reducing GHGs. Interest is also spilling over into other industries with GHG reduction targets,

  4. Established a relationship with an OEM in North America with the intent to eventually supply powders for their 3D printing needs. This augments our relationship with Aubert & Duval, while at the same time de-risking our dependence on them,

  5. retired the $3MM convertible debenture in full,

  6. bought back approximately 1.2 Million shares under the existing Normal Course Issuer Bid,

  7. increased Company’s investment in HPQ, who has subsequently also experienced a significant increase in market capitalization,

  8. further benefited from early conversions of warrants maturing in 2021 of over $3MM. 

The Company has booked a significant backlog of signed contracts (in excess of $28MM; 2019 Revenues approx. $5MM) which, when taking the eagerly awaited US Navy contract into account, will increase to over $38MM. This provides a solid cornerstone upon which PyroGenesis can:

  1. continue to build on the recent successes with the Company’s DROSRITE™ offering,

  2. Leverage off of the recent successes with the Company’s torch offerings to (i) the iron ore pelletization industry, and (ii) a tunneling client,

  3. Accelerate activities with Aubert & Duval in the Additive Manufacturing sector as well as HPQ in the Mining and Metallurgical sector, both of which did not progress as fast as management would have liked in 2019. Significant attention will be placed on both these activities in 2020.

Specifically, with Aubert & Duval the goal will be to complete the integration of the cutting-edge advances PyroGenesis has made to the powder production process.

With respect to HPQ, the goal would be to accelerate the game changing PUREVAP™ family of processes which we are developing for HPQ, namely:

  • The PUREVAP™ “Quartz Reduction Reactors” (QRR), an innovative process (patent pending), which will permit the one step transformation of quartz (SiO2) into high purity silicon (Si) at reduced costs, energy input, and carbon footprint that will propagate its considerable renewable energy potential; and
  • The PUREVAP™ Nano Silicon Reactor (NSiR), a new proprietary process that use PUREVAP™ QRR silicon (Si) as feedstock, to make spherical silicon nano powders and nanowires;

Looking forward, the Company has, as of December 31st, 2019, approximately $10MM of in-the-money warrants and options expiring in 2020 and 2021. The Company also has over $50MM in tax loss carryforwards (roughly evenly distributed between federal and provincial obligations) which is not reflected as an asset on the balance sheet. 

Financial Summary

Revenues

PyroGenesis recorded revenue of $2,128,454 in the second quarter of 2020, representing an increase of 133% compared with $913,769 recorded in the second quarter of 2019.

Revenues recorded in the three and six months ended June 30, 2020 were generated primarily from:

  1. DROSRITE™ related sales of $1,319,904 (3 months) and $1,794,336 (6 months),
  2. PUREVAP™ related sales of $25,093 (3 months) and $43,058 (6 months),
  3. torch related sales of $617,077 (3 months) and $705,022 (6 months),
  4. support services related to PAWDS-Marine systems supplied to the US Navy $37,143 (3 months) and $61,039 (6 months).

Cost of Sales and Services and Gross Margins

Cost of sales and services before amortization of intangible assets was $855,049 in Q2 2020, representing an increase of 18% compared with $723,641 in Q2 2019, primarily due to an increase in subcontracting and direct material expenses offset by a reduction in employee compensation in Q2 2020.

In Q2 2020, employee compensation decreased to 103,957 (Q2 2019 – $414,873) and subcontracting, direct materials and manufacturing overhead increased to $813,201 (Q2 2019 – $335,240). The gross margin for Q2 2020 was $1,268,592 or 59.5% of revenue compared to a gross margin of $185,349 or 20.3% of revenue for Q2 2019. As a result of the type of contracts being executed, the nature of the project activity, as well as the composition of the cost of sales and services, as the mix between labour, materials and subcontracts may be significantly different. Of note, the Company in Q2 2020 applied for an amount of $648,125 in wage subsidy from Revenue Canada under the CEWS program. From this amount, $92,028 was applied to employee compensation under cost of sales and services.

Investment tax credits recorded against cost of sales are related to projects that qualify for tax credits from the provincial government of Quebec. Qualifying tax credits decreased to $18,758 in Q2 2020, compared with $29,061 in Q2 2019. This represents a decrease of 35% year-over-year. In total, the Company earned refundable investment tax credits of $17,332 in Q2 2020. The Company continues to make investments in research and development projects involving strategic partners and government bodies.

The amortization of intangible assets of $6,813 in Q2 2020 and $4,779 for Q2 2019 relates to patents and deferred development costs. Of note, these expenses are non-cash items and will be amortized over the duration of the patent lives.

Selling, General and Administrative Expenses

Included within Selling, General and Administrative expenses (“SG&A”) are costs associated with corporate administration, business development, project proposals, operations administration, investor relations and employee training.

SG&A expenses for Q2 2020 excluding the costs associated with share-based compensation (a non-cash item in which options vest principally over a four-year period), were $1,641,338 representing an increase of 4% compared with $1,583,779 reported for Q2 2019. 

The increase in SG&A expenses in Q2 2020 over the same period in 2019 is mainly attributable to the net effect of:

  • an increase of 34% in employee compensation due primarily to an increase in commission expenses offset by amounts claimed from Revenue Canada under the CEWS wage subsidy program,
  • an increase of 15% for professional fees, primarily due to an increase in legal fees,
  • a decrease of 0.4% in office and general expenses, is due to a decrease in computer and internet expenses,
  • travel costs decreased by 82%, due to a decrease in travel abroad,
  • depreciation on property and equipment decreased by 79% due to lower amounts of property and equipment being depreciated,
  • depreciation on right of use assets decreased by 19% due to lower amounts of right of use assets being depreciated,
  • Investment tax credits increased by 328% due to an additional refund of $24,605 from the 2018 tax return filed,
  • government grants increased by 228% due to higher levels of activities supported by such grants,
  • other expenses decreased by 33%, primarily due to a decrease in cost of freight and shipping.

Separately, share based payments decreased by 14% in Q2 2020 over the same period in 2019 as a result of the vesting structure of the stock option plan including the stock options granted on January 2, 2020.

Research and Development (“R&D”) Costs

The Company incurred ($3,869) of R&D costs, net of government grants, on internal projects in Q2 2020, a decrease of 102% as compared with $212,645 in Q2 2019. The decrease in Q2 2020 is primarily related to an increase in government grants supporting our R&D activities and an amount of $129,201 claimed under the wage subsidy from Revenue Canada under the CEWS program.

In addition to internally funded R&D projects, the Company also incurred R&D expenditures during the execution of client funded projects. These expenses are eligible for Scientific Research and Experimental Development (“SR&ED”) tax credits. SR&ED tax credits on client funded projects are applied against cost of sales and services (see “Cost of Sales” above). 

Net Finance Costs

Finance costs for Q2 2020 totaled $276,928 as compared with $275,418 for Q2 2019, were less than 1%, resulting in a virtually unchanged variance.

Strategic Investments

The adjustment to the fair market value of strategic investments for Q2 2020 resulted in a gain of $5,899,465 compared to a loss in the amount of $339,313 in Q2 2019, representing an increase of 1839% year-over-year. The increase is primarily attributable to the increased market share value in the HPQ Silicon Resources Inc. and Beauce Gold Fields.

Net Comprehensive Loss

The net comprehensive gain for Q2 2020 of $5,228,020 compared to a loss of $2,253,390, in Q2 2019, represents an increase of 332% year-over-year. The increased gain of $7,481,410 in the comprehensive gain in Q2 2020 is primarily attributable to the factors described above, which have been summarized as follows:

  1. an increase in product and service-related revenue of $1,214,685 arising in Q2 2020, an increase in cost of sales and services totaling $133,442, primarily due to an increase in subcontracting, direct materials, manufacturing overhead & other, offset by a decrease in employee compensation,
  2. an increase in SG&A expenses of $53,613 arising primarily due to an increase in employee compensation, professional fees, offset by a decrease in travel, depreciation on property and equipment, depreciation ROU assets, and other expenses,
  3. a decrease in R&D expenses of $216,512 primarily due to an increase in government grants and wage subsidy,
  4. an increase in net finance costs of $1,510 primarily due to interest on higher amounts of debt,
  5. an increase in fair value adjustment of $6,238,778 primarily due to strategic investments.    

EBITDA

The EBITDA gain in Q2 2020 was $5,610,023 compared with an EBITDA loss of $1,814,832 for Q2 2019, representing an increase of 409% year-over-year. The $7,424,855 increase in the EBITDA gain in Q2 2020 compared with Q2 2019 is due to the increase in comprehensive income of $7,418,410, a decrease in depreciation on property and equipment of $38,927, a decrease in depreciation of right of use assets of $21,171, an increase in amortization of intangible assets of $2,034, and an increase in finance charges of $1,511.

Adjusted EBITDA gain in Q2 2020 was $5,633,661 compared with an Adjusted EBITDA loss of $1,787,248 for Q2 2019. The increase of $7,420,909 in the Adjusted EBITDA gain in Q2 2020 is attributable to an increase in EBITDA gain of $7,424,855, offset by a decrease of $3,946 in share-based payments.

The Modified EBITDA loss in Q2 2020 was $265,804 compared with a Modified EBITDA loss of $1,447,935 for Q2 2019, representing a decrease of 82%. The decrease in the Modified EBITDA loss in Q2 2020 is attributable to the increase as mentioned above in the Adjusted EBITDA of $7,357,909 and an increase in the change of fair value of strategic investments of $6,238,778.

Liquidity

The Company has incurred, in the last several years, operating losses and negative cash flows from operations, resulting in an accumulated deficit of $57,304,682 and a negative working capital of $7,463,370 as at Q2 2020, (December 31, 2019 – $60,237,656 and $10,492,102 respectively). Furthermore, as at Q2 2020, the Company’s current liabilities and expected level of expenses for the next twelve months exceed cash on hand of $1,567,777 (December 31, 2019 – $34,431). The Company has relied upon external financings to fund its operations in the past, primarily through the issuance of equity, debt, and convertible debentures, as well as from investment tax credits.

Revenue generated from active projects has begun to produce sufficient positive cash flow to fund operations. The Company has a strong backlog from signed contracts totaling $28MM, and a pipeline of prospective new projects resulting in the Company’s business plan becoming less dependent on raising additional funds to finance operations within and beyond the next 12 months. While the Company has been successful in securing financing in the past, raising additional funds is dependent on a number of factors outside the Company’s control, and as such there is no assurance that it will be able to do so, should it need to, in the future. If the Company is unable to obtain sufficient additional financing when needed, it may have to curtail operations and development activities, any of which could harm the business, financial condition and results of operations.

About PyroGenesis Canada Inc.
PyroGenesis Canada Inc., a high-tech company, is the world leader in the design, development, manufacture and commercialization of advanced plasma processes and products. We provide engineering and manufacturing expertise, cutting-edge contract research, as well as turnkey process equipment packages to the defense, metallurgical, mining, advanced materials (including 3D printing), oil & gas, and environmental industries. With a team of experienced engineers, scientists and technicians working out of our Montreal office and our 3,800 m2 manufacturing facility, PyroGenesis maintains its competitive advantage by remaining at the forefront of technology development and commercialization. Our core competencies allow PyroGenesis to lead the way in providing innovative plasma torches, plasma waste processes, high-temperature metallurgical processes, and engineering services to the global marketplace. Our operations are ISO 9001:2015 and AS9100D certified, and have been since 1997. PyroGenesis is a publicly-traded Canadian Corporation on the TSX Venture Exchange (Ticker Symbol: PYR) and on the OTCQB Marketplace. For more information, please visit www.pyrogenesis.com.

This press release contains certain forward-looking statements, including, without limitation, statements containing the words “may”, “plan”, “will”, “estimate”, “continue”, “anticipate”, “intend”, “expect”, “in the process” and other similar expressions which constitute “forward- looking information” within the meaning of applicable securities laws. Forward-looking statements reflect the Corporation’s current expectation and assumptions and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These forward-looking statements involve risks and uncertainties including, but not limited to, our expectations regarding the acceptance of our products by the market, our strategy to develop new products and enhance the capabilities of existing products, our strategy with respect to research and development, the impact of competitive products and pricing, new product development, and uncertainties related to the regulatory approval process. Such statements reflect the current views of the Corporation with respect to future events and are subject to certain risks and uncertainties and other risks detailed from time-to-time in the Corporation’s ongoing filings with the securities regulatory authorities, which filings can be found at www.sedar.com, or at www.otcmarkets.com. Actual results, events, and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements. The Corporation undertakes no obligation to publicly update or revise any forward-looking statements either as a result of new information, future events or otherwise, except as required by applicable securities laws.

Neither the TSX Venture Exchange, its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) nor the OTCQB accepts responsibility for the adequacy or accuracy of this press release.

SOURCE PyroGenesis Canada Inc.

For further information please contact:
Rodayna Kafal, Vice President Investors Relations and Strategic Business Development
Phone: (514) 937-0002, E-mail: [email protected]
RELATED LINK: http://www.pyrogenesis.com/

PyroGenesis $PYR.ca Confirms Total Receipts of over $7.5MM in Payments Under $25M+ DROSRITE Contract $RTN $NOC $UTX $DDD.ca $SSYS $PRLB

Posted by AGORACOM-JC at 3:18 PM on Thursday, July 23rd, 2020
  • Confirmed today that in response to additional inquiries with respect to the subject matter, payments totaling over $7.5MM have been received to date under the exclusive contract with Drosrite International LLC
  • “We decided to, once again, confirm the total payments received to date under the $25MM+ DROSRITE™ contract due to a large number of inquiries received from shareholders and investors,” said Mr. P. Peter Pascali, President and CEO of PyroGenesis.

MONTREAL, July 23, 2020 — PyroGenesis Canada Inc. (http://www.pyrogenesis.com) (TSX-V: PYR) (OTCQB: PYRNF) (FRA: 8PY), a high-tech company, (the “Company”, the “Corporation” or “PyroGenesis”) that designs, develops, manufactures and commercializes plasma atomized metal powder, plasma waste-to-energy systems and plasma torch products, is pleased to confirm today that, in response to additional inquiries with respect to the subject matter, payments totaling over $7.5MM have been received to date under the exclusive contract with Drosrite International LLC (“DI”).

“We decided to, once again, confirm the total payments received to date under the $25MM+ DROSRITE™ contract due to a large number of inquiries received from shareholders and investors,” said Mr. P. Peter Pascali, President and CEO of PyroGenesis. “It should also be noted that an additional payment of over $2.5MM is expected in the next few weeks. All these payments are being made based on previously agreed to milestones and all are being paid on time. In fact, none of our contracts have been materially affected by COVID-19 and are all progressing as expected.”

About Drosrite International LLC

DI is a US based private company duly constituted and existing under the laws of the State of Delaware, providing state-of-the-art waste management technologies to the aluminum industry. DI is duly licensed by PyroGenesis to manufacture, market, sell and distribute DROSRITE™ systems and technology to the Kingdom of Saudi Arabia, and certain other countries in the Middle East, on an exclusive basis. All DROSRITE™ systems supplied by DI are manufactured in the USA.

About PyroGenesis Canada Inc.

PyroGenesis Canada Inc., a high-tech company, is the world leader in the design, development, manufacture and commercialization of advanced plasma processes and products. We provide engineering and manufacturing expertise, cutting-edge contract research, as well as turnkey process equipment packages to the defense, metallurgical, mining, advanced materials (including 3D printing), oil & gas, and environmental industries. With a team of experienced engineers, scientists and technicians working out of our Montreal office and our 3,800 m2 manufacturing facility, PyroGenesis maintains its competitive advantage by remaining at the forefront of technology development and commercialization. Our core competencies allow PyroGenesis to lead the way in providing innovative plasma torches, plasma waste processes, high-temperature metallurgical processes, and engineering services to the global marketplace. Our operations are ISO 9001:2015 and AS9100D certified, and have been since 1997. PyroGenesis is a publicly-traded Canadian Corporation on the TSX Venture Exchange (Ticker Symbol: PYR) and on the OTCQB Marketplace. For more information, please visit www.pyrogenesis.com

This press release contains certain forward-looking statements, including, without limitation, statements containing the words “may”, “plan”, “will”, “estimate”, “continue”, “anticipate”, “intend”, “expect”, “in the process” and other similar expressions which constitute “forward- looking information” within the meaning of applicable securities laws. Forward-looking statements reflect the Corporation’s current expectation and assumptions and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These forward-looking statements involve risks and uncertainties including, but not limited to, our expectations regarding the acceptance of our products by the market, our strategy to develop new products and enhance the capabilities of existing products, our strategy with respect to research and development, the impact of competitive products and pricing, new product development, and uncertainties related to the regulatory approval process. Such statements reflect the current views of the Corporation with respect to future events and are subject to certain risks and uncertainties and other risks detailed from time-to-time in the Corporation’s ongoing filings with the securities regulatory authorities, which filings can be found at www.sedar.com, or at www.otcmarkets.com. Actual results, events, and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements. The Corporation undertakes no obligation to publicly update or revise any forward- looking statements either as a result of new information, future events or otherwise, except as required by applicable securities laws. Neither the TSX Venture Exchange, its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) nor the OTCQB accepts responsibility for the adequacy or accuracy of this press release.

SOURCE PyroGenesis Canada Inc.

For further information please contact:

Rodayna Kafal, Vice President Investors Relations and Strategic Business Development,
Phone: (514) 937-0002, E-mail: [email protected]  

RELATED LINK: http://www.pyrogenesis.com/

PyroGenesis $PYR.ca Announces Q1 2020 Results: Revenues of $736K, Gross Margin of 37%, Current Backlog $30MM, Provides Q2 2020 and Year End Guidance $RTN $NOC $UTX $DDD.ca $SSYS $PRLB

Posted by AGORACOM-JC at 10:43 PM on Tuesday, July 14th, 2020

Q1 2020 results reflect the following highlights: 

  • Revenues of $718,908, a decrease from $736,443 posted in Q1 2019,
  • Gross margin of 37% an increase of 25% over the same period in Q1 2019,
  • Cash on hand on March 31, 2020 was $1,139,416 (December 31, 2019: $34,431),
  • Backlog of signed contracts as of the date of this writing is $30MM.

MONTREAL, July 14, 2020  — PyroGenesis Canada Inc. (http://pyrogenesis.com) (TSX-V: PYR) (OTCQB: PYRNF) (FRA: 8PY), a high-tech company, (the “Company”, the “Corporation” or “PyroGenesis”) that designs, develops, manufactures and commercializes plasma atomized metal powder, plasma waste-to-energy systems and plasma torch systems, is pleased to announce today its financial and operational results for the first quarter ended March 31st, 2020.

“Percent complete revenue recognition in our major projects, which is the revenue recognition method we are mandated to follow by GAAP, is such that it is not linear, but exponential, and as such Q1 2020 may not have reflected the results one might have expected given recent announcements. However, using this same revenue recognition method we can safely provide the following guidance for Q2 2020, and for the year ending December 31st, 2020 as follows: We expect that Q2 2020 and the six months ending June 30, 2020 will be profitable as will year end results. As such, management has modified several notes in the financials, for the first time since inception, to reflect this outlook,” said P. Peter Pascali, CEO and President of PyroGenesis. “To date, in 2020 we have not only received significant payments under existing contracts, but have retired the $3MM convertible debenture in full, bought back approximately 1.2 million shares, increased our investment in HPQ, and further benefited from early conversions of warrants maturing in 2021 of over $3MM. Of note, as of December 31st, 2019 we have approximately $10MM of in-the-money warrants and options expiring in 2020 and 2021 alone. The Company also has over $50MM in tax loss carryforwards (roughly evenly distributed between federal and provincial tax regimes) which is not reflected as an asset on the balance sheet. Given recent events, and the structuring that took place in 2019, the Company is undeniably well positioned to execute on, and build upon, the backlog of signed contracts which currently stands in excess of $30MM. With the eagerly anticipated US Navy contract in hand backlog of signed contracts will be in excess of $40MM. All in all, 2020 can now be described as the year that we have been expecting for some time.”

Q1 2020 results reflect the following highlights: 

  • Revenues of $718,908, a decrease from $736,443 posted in Q1 2019,
  • Gross margin of 37% an increase of 25% over the same period in Q1 2019,
  • Cash on hand on March 31, 2020 was $1,139,416 (December 31, 2019: $34,431),
  • Backlog of signed contracts as of the date of this writing is $30MM.

Management Guidance for Q2 2020 

  • Revenues of $2-2.25MM are expected in Q2 2020,
  • Management expects that Q2 2020 and the six months ending June 30, 2020 will be profitable.

Management Guidance for the remainder of 2020:

  • Overall, Management expects significant revenue growth in 2020,
  • Management expects that the year ending December 31st, 2020 will also be profitable.

OUTLOOK 

Percent complete revenue recognition in our major projects, which is the revenue recognition method we are mandated to follow by GAAP, is such that it is not linear, but exponential, and as such Q1 may not have reflected the results one might have expected given recent announcements. However, using this same revenue recognition method we can safely provide guidance for Q2 2020, and for the year ending December 31st, 2020: We expect that Q2 and the six months ending June 30, 2020 will be profitable as will year end results. As such, management has modified several notes in the financials, for the first time since inception, to reflect this outlook.

Any discussion regarding the OUTLOOK of the company would be remiss if it did not address the continued increase in the Company’s market capitalization and the implications that has for the future.

Without a doubt the Company’s market capitalization suffered, as did many other companies, in the general Covid-19 market meltdown at the end of March 2020. However, PyroGenesis soon broke from the pack with the issuance of a material press release on March 24th, 2020.

Management believes that its breaking from the ranks caught the attention of investors, fund managers, and money managers who all now had the time during the Covid-19 lockdown to fully analyze the complicated story that is PyroGenesis. Management does not see any reason why this interest would abate anytime soon. To the contrary, Management has reason to believe that interest in the Company will only increase over the foreseeable future. As such, Management has decided that several strategies that have been articulated in the past (up listings, spinoffs) can now be accelerated as many of the impediments to moving quickly have been removed and have taken steps to do so.

Having a larger market capitalization has also helped in discussions with potential customers who take comfort from the possibility that a higher market capitalization may translate into easier access to capital. For the record, there is no intention at this time to raise capital for working capital purposes.

If 2018 was the year in which PyroGenesis successfully positioned each of its commercial business lines by strategically partnering with multi-billion-dollar entities, and 2019 was the year that saw the appropriate personnel and infrastructure being put in place while building upon the success of 2018, then 2020 is without a doubt the year that the long awaited breakout, which began in the second half of 2019, takes place; it is in fact already upon us:

To date during 2020 PyroGenesis has:

  1. received significant payments under the $22MM contract with DROSRITE™ International thereby validating announcements made during 2019,
  2. established a relationship with a US based tunneling company (contracts and payments ongoing),
  3. Established itself in the iron ore pelletization industry as a potential supplier of torches geared to replacing existing burners and thereby reducing GHGs. Interest is also spilling over into other industries with GHG reduction targets,
  4. Established a relationship with an OEM in North America with the intent to eventually supply powders for their 3D printing needs. This augments our relationship with Aubert & Duval, while at the same time de-risking our dependence on them,
  5. retired the $3MM convertible debenture in full,
  6. bought back approximately 1.2 Million shares under the existing Normal Course Issuer Bid,
  7. increased Company’s investment in HPQ, who has subsequently also experienced a significant increase in market capitalization,
  8. further benefited from early conversions of warrants maturing in 2021 of over $3MM. 

The Company has booked a significant backlog of signed contracts (in excess of $30MM; 2019 Revenues approx. $5MM) which, when taking the eagerly awaited US Navy contract into account, will increase to over $40MM. This provides a solid cornerstone upon which PyroGenesis can:

  1. continue to build on the recent successes with the Company’s DROSRITE™ offering
  2. Leverage off of the recent successes with the Company’s torch offerings to (i) the iron ore pelletization industry, and (ii) a tunneling client.
  3. Accelerate activities with Aubert & Duval in the Additive Manufacturing sector as well as HPQ in the Mining and Metallurgical sector, both of which did not progress as fast as management would have liked in 2019. Significant attention will be placed on both these activities in 2020.

Specifically, with Aubert & Duval the goal will be to complete the integration of the cutting-edge advances PyroGenesis has made to the powder production process.

With respect to HPQ, the goal would be to accelerate the game changing PUREVAP™ family of processes which we are developing for HPQ, namely:

  • The PUREVAP™ “Quartz Reduction Reactors” (QRR), an innovative process (patent pending), which will permit the one step transformation of quartz (SiO2) into high purity silicon (Si) at reduced costs, energy input, and carbon footprint that will propagate its considerable renewable energy potential; and
  • The PUREVAP™ Nano Silicon Reactor (NSiR), a new proprietary process that use PUREVAPTM QRR silicon (Si) as feedstock, to make spherical silicon nanopowders and nanowires;

As at April 1st, 2020, the Company has approximately $10MM of in-the-money warrants and options expiring in 2020 and 2021. The Company also has over $50MM in tax loss carryforwards (roughly evenly distributed between federal and provincial obligations) which is not reflected as an asset on the balance sheet. 

All in all, 2020 can now be described as the year that we have been expecting for some time.

Financial Summary 

Revenues

PyroGenesis recorded revenue of $718,908 in the first quarter of 2020 (“Q1, 2020”), representing a decrease of 2% compared with $736,443 recorded in the first quarter of 2019 (“Q1, 2019”).

Revenues recorded in the first quarter of 2020 were generated primarily from:

  1. DROSRITE™ related sales of $474,432 (2019 Q1 – $58,559)
     
  2. PUREVAP™ related sales of $17,965 (2019 Q1 – $94,077)
     
  3. torch related sales of $87,944 (2019 Q1 – $139,813)
     
  4. support services related to PAWDS-Marine systems supplied to the US Navy $23,896 (2019 Q1 – $210,667)

Cost of Sales and Services and Gross Margins 

Cost of sales and services before amortization of intangible assets was $444,681 in Q1 2020, representing a decrease of 30% compared with $639,506 in Q1 2019, primarily due to lower employee compensation and direct materials in Q1 2020.

In Q1 2020, employee compensation, subcontracting, direct materials and manufacturing overhead decreased to $391,305 (Q1 2019 – $662,379). The gross margin for Q1 2020 was $267,414 or 37.2% of revenue compared to a gross margin of $92,158 or 12.5% of revenue for Q1 2019. As a result of the type of contracts being executed, the nature of the project activity, as well as the composition of the cost of sales and services, as the mix between labor, materials and subcontracts may be significantly different. Of note, the Company received an amount of $127,842 from Revenue Canada under the CWES program. From this amount, $26,388 was applied to employee compensation under cost of sales and services. 

Investment tax credits recorded against cost of sales are related to projects that qualify for tax credits from the provincial government of Quebec. Qualifying tax credits decreased to $20,630 in Q1 2020, compared with $36,071 in Q1 2019. This represents a decrease of 43% year-over-year. In total, the Company earned refundable investment tax credits of $70,313 in Q1 2020. The Company continues to make investments in research and development projects involving strategic partners and government bodies.

The amortization of intangible assets of $6,813 in Q1 2020 and $4,779 for Q1 2019 relates to patents and deferred development costs. Of note, these expenses are non-cash items and will be amortized over the duration of the patent lives.

Selling, General and Administrative Expenses 

Included within Selling, General and Administrative expenses (“SG&A”) are costs associated with corporate administration, business development, project proposals, operations administration, investor relations and employee training.

SG&A expenses for Q1 2020 excluding the costs associated with share-based compensation (a non-cash item in which options vest principally over a four-year period), were $1,205,726 representing a decrease of 7% compared with $1,295,521 reported for Q1 2019. 

The increase in SG&A expenses in Q1 2020 over the same period in 2019 is mainly attributable to the net effect of:

  • an increase of 11% in employee compensation due primarily to additional head count, off set by the government aid received from Revenue Canada under the CEWS program,
  • a decrease of 67% for professional fees, primarily due to a decrease in accounting fees,
  • an increase of 23% in office and general expenses, is due to an increase in insurance and computer software expenses,
  • travel costs decreased by 45%, due to a decrease in travel abroad,
  • depreciation on property and equipment decreased by 79% due to lower amounts of property and equipment being depreciated,
  • depreciation on right of use assets decreased by 19% due to lower amounts of right of use assets being depreciated,
  • Investment tax credits increased by 1% due to an increase in qualifying projects,
  • government grants decreased by 43% due to lower levels of activities supported by such grants,
  • other expenses decreased by 7%, primarily due to a decrease in cost of freight and shipping.

Separately, share based payments increased by 106% in Q1 2020 over the same period in 2019 as a result of the vesting structure of the stock option plan including the stock options granted on January 2nd, 2020.

Research and Development (“R&D”) Costs

The Company incurred $23,088 of R&D costs, net of government grants, on internal projects in Q1 2020, a decrease of 76% as compared with $95,774 in Q1 2019. The decrease in Q1 2020 is primarily related to an increase in government grants recognized.

In addition to internally funded R&D projects, the Company also incurred R&D expenditures during the execution of client funded projects. These expenses are eligible for Scientific Research and Experimental Development (“SR&ED”) tax credits. SR&ED tax credits on client funded projects are applied against cost of sales and services (see “Cost of Sales” above). 

Net Finance Costs 

Finance costs for Q1 2020 totaled $232,736 as compared with $251,498 for Q1 2019, representing a decrease of 7% year-over-year. The decrease in finance costs in Q1 2020, is primarily attributable to interest on lower amounts of debt.

Strategic Investments

 Three months ended Mar 31,% Change
 202020192020vs2019
      
Changes to the fair value of strategic investments$492,024$(706,196)170%

The adjustment to the fair market value of strategic investments for Q1 2020 resulted in a loss of $492,024 compared to a gain in the amount of $706,196 in Q1 2019.

Net Comprehensive Loss 

The net comprehensive loss for Q1 2020 of $1,757,027 compared to a loss of $878,923, in Q1 2019, represents an increase of 100% year-over-year. The increased loss of $878,104 in the comprehensive loss in Q1 2020 is primarily attributable to the factors described above, which have been summarized as follows:

  1. a decrease in product and service-related revenue of $17,535 arising in Q1 2020,
  2. a decrease in cost of sales and services totaling $192,791, primarily due to a decrease in employee compensation, subcontracting, direct materials, manufacturing overhead & other, and an increase in foreign exchange, investment tax credits, and amortization of intangible assets,
  3. a decrease in SG&A expenses of $53,412 arising in Q1 2020 primarily due to a decrease in professional fees, in travel, in depreciation on property and equipment, in depreciation ROU assets, and in other expenses and an increase in employee compensation, in office and general, in government grants and in share based payments,
  4. a decrease in R&D expenses of $72,685 primarily due to an increase in government grants,
  5. a decrease in net finance costs of $18,762 in Q1 2020 primarily due to interest on lower amounts of debt,
  6. a decrease in fair value adjustment of strategic investments of $1,198,220 in Q1 2020.

EBITDA 

The EBITDA loss in Q1 2020 was $1,418,057 compared with an EBITDA loss of $464,825 for Q1 2019, representing an increase of 205% year-over-year. The $953,232 increase in the EBITDA loss in Q1 2020 compared with Q1 2019 is due to the increase in comprehensive loss of $878,104, offset by a decrease in depreciation on property and equipment of $38,093, a decrease in depreciation of right of use assets of $20,307, an increase in amortization of intangible assets of $2,034 and a decrease in finance charges of $18,762.

Adjusted EBITDA loss in Q1 2020 was $1,347,190 compared with an Adjusted EBITDA loss of $430,341 for Q1 2019. The increase of $916,849 in the Adjusted EBITDA loss in Q1 2020 is attributable to an increase in EBITDA loss of $953,232, offset by an increase of $36,383 in share-based payments.

The Modified EBITDA loss in Q1 2020 was $855,166 compared with a Modified EBITDA loss of $1,136,537 for Q1 2019, representing a decrease of 25%. The decrease in the Modified EBITDA loss in Q1 2020 is attributable to the increase as mentioned above in the Adjusted EBITDA of $916,849 and a decrease in the change of fair value of strategic investments of $1,198,222.

Liquidity 

The Company has incurred, in the last several years, operating losses and negative cash flows from operations, resulting in an accumulated deficit of $61,994,683 and a negative working capital of $11,157,110 as at Q1 2020, (December 31, 2019 – $60,237,656 and $10,492,102 respectively). Furthermore, as at Q1 2020, the Company’s current liabilities and expected level of expenses for the next twelve months exceed cash on hand of $1,139,416 (December 31, 2019 – $34,431). The Company has relied upon external financings to fund its operations in the past, primarily through the issuance of equity, debt, and convertible debentures, as well as from investment tax credits.

Separately, PyroGenesis is pleased to announce today that Me Sara-Catherine Tolszczuk has joined the Company as Legal Counsel and Corporate Secretary of the Board of Directors effective July 2nd, 2020. Before joining PyroGenesis, Me Tolszczuk was part of the corporate law group of the leading independent law firm in the province of Québec. Her work was focused on developing strategies for the protection, commercialization and enforcement of intellectual property assets. She also acquired experience in litigation files and participated in the due diligence phase of mergers and acquisitions. She holds a Bachelor’s Degree in Law and a Master’s Degree in Biology. The Company also announces the departure, effective July 2nd, 2020, of Me Ilario Gualtieri. We thank Me Gualtieri for his contributions and wish his well in his future endeavors.

About PyroGenesis Canada Inc.

PyroGenesis Canada Inc., a high-tech company, is the world leader in the design, development, manufacture and commercialization of advanced plasma processes and products. We provide engineering and manufacturing expertise, cutting-edge contract research, as well as turnkey process equipment packages to the defense, metallurgical, mining, advanced materials (including 3D printing), oil & gas, and environmental industries. With a team of experienced engineers, scientists and technicians working out of our Montreal office and our 3,800 m2 manufacturing facility, PyroGenesis maintains its competitive advantage by remaining at the forefront of technology development and commercialization. Our core competencies allow PyroGenesis to lead the way in providing innovative plasma torches, plasma waste processes, high-temperature metallurgical processes, and engineering services to the global marketplace. Our operations are ISO 9001:2015 and AS9100D certified, and have been since 1997. PyroGenesis is a publicly-traded Canadian Corporation on the TSX Venture Exchange (Ticker Symbol: PYR) and on the OTCQB Marketplace. For more information, please visit www.pyrogenesis.com.

This press release contains certain forward-looking statements, including, without limitation, statements containing the words “may”, “plan”, “will”, “estimate”, “continue”, “anticipate”, “intend”, “expect”, “in the process” and other similar expressions which constitute “forward- looking information” within the meaning of applicable securities laws. Forward-looking statements reflect the Corporation’s current expectation and assumptions and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These forward-looking statements involve risks and uncertainties including, but not limited to, our expectations regarding the acceptance of our products by the market, our strategy to develop new products and enhance the capabilities of existing products, our strategy with respect to research and development, the impact of competitive products and pricing, new product development, and uncertainties related to the regulatory approval process. Such statements reflect the current views of the Corporation with respect to future events and are subject to certain risks and uncertainties and other risks detailed from time-to-time in the Corporation’s ongoing filings with the securities regulatory authorities, which filings can be found at www.sedar.com, or at www.otcmarkets.com. Actual results, events, and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements. The Corporation undertakes no obligation to publicly update or revise any forward- looking statements either as a result of new information, future events or otherwise, except as required by applicable securities laws.

Neither the TSX Venture Exchange, its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) nor the OTCQB accepts responsibility for the adequacy or accuracy of this press release.

SOURCE PyroGenesis Canada Inc.

For further information please contact: 
Rodayna Kafal, Vice President Investors Relations and Strategic Business Development
Phone: (514) 937-0002, E-mail: [email protected] 

PyroGenesis $PYR.ca Provides Update on its Iron Ore Pelletization Torch Business $RTN $NOC $UTX $DDD.ca $SSYS $PRLB

Posted by AGORACOM-JC at 2:42 PM on Thursday, July 2nd, 2020
  • Pelletization is the process in which iron ore is concentrated before shipment, thus significantly reducing the cost of transportation
  • In conventional technologies, the process heat is provided by fuel oil or natural gas burners (both environmentally damaging)
  • The combustion, in the burners, of fossil fuels results in the production of greenhouse gases, mainly CO2
  • Plasma torches, by contrast, utilize renewable electricity and as such offer an environmentally attractive alternative to fossil fuel burners

MONTREAL, July 02, 2020 — PyroGenesis Canada Inc. (http://pyrogenesis.com) (TSX-V: PYR) (OTCQB: PYRNF) (FRA: 8PY), a high-tech company, (the “Company”, the “Corporation” or “PyroGenesis”) that designs, develops, manufactures and commercializes plasma atomized metal powder, plasma waste-to-energy systems and plasma torch systems, is pleased to provide today, further to  recent  press releases, an update on its iron ore pelletization torch business.  

Client A
On April 30th, 2020, the Company announced the successful completion of the first phase of a torch modeling contract with Client A which successfully demonstrated that replacing fossil fuel burners with PyroGenesis’ proprietary plasma torch (i) had absolutely no ancillary detrimental effects anywhere in the process or with their furnaces, (ii) resulted in significant greenhouse gas reduction while at the same time, (iii) projecting significant additional benefits. The subsequent phases were to be completed by June 30th, 2020 and were geared to further quantify the benefits of transitioning to plasma torches. These phases have been extended for up to six weeks with this additional data being incorporated into an ideal plasma torch configuration for this client. 

Equipment purchase discussions are expected to be completed by the end of August, and incorporate the ideal plasma torch configuration identified during the modelling process, with the ultimate goal being to eliminate GHG emissions from all their plants.

Client B
On June 11th, 2020 the Company announced that it had signed a second multi-phase torch modelling contract with Client B, aimed at evaluating the performance of PyroGenesis’ proprietary torches in an existing iron ore industrial furnace with the goal of replacing existing fossil fuel burners with PyroGenesis’ plasma torches.  The first phase, as expected, is to be completed by mid-August.

During the first phase, which is progressing as expected, Client B has already entered into active equipment purchase discussions with PyroGenesis.

New Development – Client C
A new potential client (“Client C”), who is not only a significant player in the iron ore pelletization industry but is also a major player in the steel industry, has entered into active equipment purchase discussions with the Company. There seems to be a high probability that Client C may bypass the modelling phase altogether, however it is PyroGenesis’ preference to incorporate a modeling phase if at all practical. 

“Once again, although there is no certainty that any of these relationships will result in anything substantial, we are extremely pleased with the responses and the speed at which things are moving with this offering,” said Mr. Peter Pascali, CEO and President of PyroGenesis. “As would be prudent under the circumstances, PyroGenesis has taken steps to ensure that any reasonable requests from our clients can be met in a timely fashion, and to their full satisfaction. Barring any unforeseen events, we believe that it is entirely reasonable that initial torch equipment purchases will be placed in Q3 2020.”

Pelletization is the process in which iron ore is concentrated before shipment, thus significantly reducing the cost of transportation. In conventional technologies, the process heat is provided by fuel oil or natural gas burners (both environmentally damaging). The combustion, in the burners, of fossil fuels results in the production of greenhouse gases, mainly CO2. Plasma torches, by contrast, utilize renewable electricity and as such offer an environmentally attractive alternative to fossil fuel burners.

About PyroGenesis Canada Inc.
PyroGenesis Canada Inc., a high-tech company, is the world leader in the design, development, manufacture and commercialization of advanced plasma processes and products. We provide engineering and manufacturing expertise, cutting-edge contract research, as well as turnkey process equipment packages to the defense, metallurgical, mining, advanced materials (including 3D printing), oil & gas, and environmental industries. With a team of experienced engineers, scientists and technicians working out of our Montreal office and our 3,800 m2 manufacturing facility, PyroGenesis maintains its competitive advantage by remaining at the forefront of technology development and commercialization. Our core competencies allow PyroGenesis to lead the way in providing innovative plasma torches, plasma waste processes, high-temperature metallurgical processes, and engineering services to the global marketplace. Our operations are ISO 9001:2015 and AS9100D certified, and have been since 1997. PyroGenesis is a publicly-traded Canadian Corporation on the TSX Venture Exchange (Ticker Symbol: PYR) and on the OTCQB Marketplace. For more information, please visit www.pyrogenesis.com.

This press release contains certain forward-looking statements, including, without limitation, statements containing the words “may”, “plan”, “will”, “estimate”, “continue”, “anticipate”, “intend”, “expect”, “in the process” and other similar expressions which constitute “forward- looking information” within the meaning of applicable securities laws. Forward-looking statements reflect the Corporation’s current expectation and assumptions and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These forward-looking statements involve risks and uncertainties including, but not limited to, our expectations regarding the acceptance of our products by the market, our strategy to develop new products and enhance the capabilities of existing products, our strategy with respect to research and development, the impact of competitive products and pricing, new product development, and uncertainties related to the regulatory approval process. Such statements reflect the current views of the Corporation with respect to future events and are subject to certain risks and uncertainties and other risks detailed from time-to-time in the Corporation’s ongoing filings with the securities regulatory authorities, which filings can be found at www.sedar.com, or at www.otcmarkets.com. Actual results, events, and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements. The Corporation undertakes no obligation to publicly update or revise any forward- looking statements either as a result of new information, future events or otherwise, except as required by applicable securities laws. Neither the TSX Venture Exchange, its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) nor the OTCQB accepts responsibility for the adequacy or accuracy of this press release.

SOURCE PyroGenesis Canada Inc.

For further information please contact:
Rodayna Kafal, Vice President Investors Relations and Strategic Business Development
Phone: (514) 937-0002, E-mail: [email protected]
RELATED LINK: http://www.pyrogenesis.com/

PyroGenesis $PYR.ca Announces 2019 Results: Revenues of $4.8MM; Gross Margin of 27%; Current Backlog $30.27MM $RTN $NOC $UTX $DDD.ca $SSYS $PRLB

Posted by AGORACOM-JC at 10:45 PM on Monday, June 15th, 2020
  • Backlog of signed contracts as of the date of this writing is $30.27MM;
  • Revenues of $4,813,978, a decrease of 4% from $5,030,116 year over year;
  • Gross margin of 27% an increase of 5% from 22.1% year over year;Increase of $197,157 in capitalized patents;
  • An Adjusted EBITDA loss of $4.5MM compared to an adjusted EBITDA loss of $6.2MM year over year;
  • Cash on hand on December 31, 2019 was $34K (December 31, 2018: $645K);

MONTREAL, June 15, 2020 — PyroGenesis Canada Inc. (http://pyrogenesis.com) (TSX-V: PYR) (OTCQB: PYRNF) (FRA: 8PY), a high-tech company, (the “Company”, the “Corporation” or “PyroGenesis”) that designs, develops, manufactures and commercializes plasma atomized metal powder, plasma waste-to-energy systems and plasma torch systems, is pleased to announce today its financial and operational results for the fourth quarter and the fiscal year ended December 31, 2019.

“The irony of issuing these 2019 financials knowing full well what has transpired since December 31st, 2019 has not been lost on the writer, as I hope it will not be lost on the reader as well.  These statements definitely do not represent the current state of affairs at the Company, specifics of which can be gleamed from press releases issued by the Company in 2020.” said P. Peter Pascali, CEO of PyroGenesis Canada Inc. “To date, in 2020 we have not only received significant payments under existing contracts, but have retired the $3MM convertible debenture in full, bought back approximately 1.2 million shares, increased our investment in HPQ, and further benefited from early conversions of warrants maturing in 2021 of over $2MM.  Of note, as of December 31st, 2019 we have approximately $10MM of in-the-money warrants and options expiring in 2020 and 2021 alone. The Company also has over $50MM in tax loss carryforwards (roughly evenly distributed between federal and provincial tax regimes) which is not reflected as an asset on the balance sheet. Given recent events, and the structuring that took place in 2019, the Company is undeniably well positioned to execute on, and build upon, the backlog of signed contracts which currently stands in excess of $30MM.  With the eagerly anticipated US Navy contract in hand backlog of signed contracts will be in excess of $40MM.  2020 has the potential to be a barn burner by almost any yardstick.”

2019 was a year in which PyroGenesis posted:

  • Backlog of signed contracts as of the date of this writing is $30.27MM;
  • Revenues of $4,813,978, a decrease of 4% from $5,030,116 year over year;
  • Gross margin of 27% an increase of 5% from 22.1% year over year;
  • Increase of $197,157 in capitalized patents;
  • An Adjusted EBITDA loss of $4.5MM compared to an adjusted EBITDA loss of $6.2MM year over year;
  • Cash on hand on December 31, 2019 was $34K (December 31, 2018: $645K);

Financial Summary

Revenues

PyroGenesis recorded revenues of $4,813,978 for the year ended December 31, 2019, representing a decrease of 4% compared to $5,030,116 recorded in 2018.

Revenues recorded in fiscal 2019 were generated primarily from:

  1. PUREVAP™ related sales of $525,556 (2018 – $1,781,009)
  2. DROSRITE™ related sales of $560,916 (2018 – $1,237,740)
  3. support services related to systems supplied to the US Military $637,841
    (2018 – $1,451,998)
  4. torch related sales of $2,323,351 (2018 – $Nil)
  5. other sales and services $766,314 (2018 – $559,369)

Cost of Sales and Services and Gross Margins

Cost of sales and services before amortization of intangible assets was $3,459,753 in 2019, representing a decrease of 9% compared to $3,860,493 in 2018, primarily due to a decrease in employee compensation, a decrease in subcontracting expenses and a decrease in manufacturing overhead and other.

In 2019, employee compensation, subcontracting, manufacturing overhead and other decreased to $2,397,743 (2018 – $2,829,198) while direct materials increased to $1,303,844 (2018- $1,125,645). The gross margin for 2019 was $1,298,092 or 27% of revenue compared to a gross margin of $1,109,297 or 22.1% of revenue for 2018. As a result of the type of contracts being executed, the nature of the project activity had a significant impact on the gross margin and the overall level of cost of sales and services reported in a period, as well as the composition of the cost of sales and services, as the mix between labor, materials and subcontracts may be significantly different. The cost of sales and services for 2019 and 2018 are in line with management’s expectations

Investment tax credits recorded against cost of sales are related to projects that qualify for tax credits from the provincial government of Quebec. Qualifying tax credits increased to $179,670 in 2019, compared to $158,948 in 2018. This represents an increase of 13% year-over-year. The Company continues to make investments in research and development projects involving strategic partners and government bodies.  In total, the Company earned investment tax credits of $354,241 in 2019.

The amortization of intangible assets of $20,133 in 2019 and $60,326 for 2018 relates to patents and deferred development costs. Of note, these expenses are non-cash items and will be amortized over the duration of the patent lives.

Selling, General and Administrative Expenses

Included within Selling, General and Administrative expenses (“SG&A”) are costs associated with corporate administration, business development, project proposals, operations administration, investor relations and employee training.

SG&A expenses for 2019 excluding the costs associated with share-based compensation (a non-cash item in which options vest principally over a four-year period), were $6,017,091, representing an increase of 3% compared to $5,864,528 reported for 2018. 

The increase in SG&A expenses in 2019 over the same period in 2018 is mainly attributable to the net effect of:

  1. a decrease of 0.1% in employee compensation due to changes in staffing,
  2. a decrease of 10% for professional fees, primarily due to a decrease in consulting fees, legal fees and investor relation expenses,
  3. a decrease of 42% in office and general expenses, is primarily due to the adoption of IFRS 16 using the modified retrospective method on January 1, 2019. In 2019 rent included in office and general expenses was $Nil compared to $278,458 in 2018,
  4. travel costs increased by 12%, due to an increase in travel abroad,
  5. depreciation on property and equipment decreased by 21% due to lower amounts of property and equipment being depreciated. In 2019, depreciation was not taken on the Plasma atomization system (previously asset under development) as it was written off,
  6. investment tax credits decreased by 3%, due to a decrease in qualifying projects,
  7. government grants increased by 23%, due to a non-refundable government grant contribution for a maximum amount of $350,000 for the period 2018-2020,
  8. other expenses decreased by 25%, primarily due to a decrease in subcontracting and advertising expenses,
  9. tax assessment represents the amount due from a taxation audit for the period of 2008 to 2011. The Company paid royalties for the use of intangible property prior to the purchase of the asset. The royalties were subject to a 25% withholding tax that was not deducted or withheld by the Company at that time.

Separately, share based payments decreased by 74% in 2019 over the same period in 2018 as a result of the vesting structure of the stock option plan including the stock options granted in 2019.

Research and Development (“R&D”) Costs

The Company incurred $851,512 of R&D costs, net of government grants, on internal projects in 2019, a decrease of 5% compared to $892,045 in 2018. The decrease in 2019 is primarily related to an increase in investment tax credits and government grants recognized.

In addition to internally funded R&D projects, the Company also incurred R&D expenditures during the execution of client funded projects. These expenses are eligible for Scientific Research and Experimental Development (“SR&ED”) tax credits. SR&ED tax credits on client funded projects are applied against cost of sales and services (see “Cost of Sales” above).

Net Finance Costs

Finance costs for 2019 totaled $1,061,267 as compared with $1,525,275 for 2018, representing a decrease of 30% year-over-year. The decrease in finance costs in 2019, is primarily attributable to the adjustment in fair value of investments resulting in a gain of $176,237 compared to a loss in the amount of $919,463 in 2018, offset by an amount of $275,183 in 2019 for the interest and penalty amount due related to the tax assessment from a taxation audit for the period of 2008 to 2011 and further to the adoption of IFRS 16, as mentioned above, the finance costs increased by $258,288 related to the interest calculated on the lease liabilities during the year 2019.

Impairment and Write Offs

In 2019 the Company commenced construction on a new and improved Plasma Powder Production equipment with advanced technological improvements with regards to production output and operating costs. As a result, the existing powder production, Plasma atomization system, was no longer deemed to have any future benefit and was written down by $1,981,410, to the net recoverable amount of nil. The powders and raw materials inventory related to the old Plasma atomization system were no longer deemed to have any future value and were written down by $386,121 to their net recoverable amounts of nil.

Net Comprehensive Loss

The net comprehensive loss for 2019 of $9,171,116 compared to a loss of $7,845,800, in 2018, represents an increase of 17% year-over-year. The increase of $1,325,316 in the comprehensive loss in 2019 is primarily attributable to the factors described above, which have been summarized as follows:

  1. a decrease in product and service-related revenue of $216,138 arising in 2019,
  2. a decrease in cost of sales and services totaling $18,811, primarily due to lower subcontract costs, and lower manufacturing overhead as a result of lower revenues in 2019,
  3. a decrease in SG&A expenses of $348,879 arising in 2019 primarily due a decrease in share-based payments over the same period in 2018 as a result of the vesting structure of the stock option plan including the stock options granted in 2019,
  4. a decrease in R&D expenses of $40,533 primarily related to an increase in investment tax credits and government grants recognized,
  5. a decrease in net finance costs of $464,008 in 2019 primarily attributable to the adjustment in fair value of investments,
  6. an increase of $1,981,410 in 2019 due to impairment of a Plasma Atomization 2019. The Company commenced construction on a new and improved Plasma Powder Production equipment,
  7. an increase of $386,121 in 2019 due to the write off, of powders and raw materials inventory.

EBITDA

The adoption of IFRS 16 had a favorable impact of $618,071 on the calculation of EBITDA, Adjusted EBITDA and Modified in EBITDA in 2019 compared 2018. The reconciliation above includes add-backs for depreciation of the right-of-use asset of $359,783 and finance charges of interest on lease liabilities of $258,288 in 2019, compared to nil for 2018 as a result of the use of the modified retrospective method used at date of transition.

The EBITDA loss in 2019 was $7,384,862 compared to an EBITDA loss of $6,864,461 for 2018, representing an increase of 8% year-over-year. The increase in the EBITDA loss in 2019 compared to 2018 is due to the increase in comprehensive loss of $1,325,316, offset by a decrease in depreciation on property and equipment of $43,787, an increase in depreciation on right-of-use assets of $359,783, a decrease in amortization of intangible assets of $40,193, and an increase in finance charges of $529,112.

Adjusted EBITDA loss in 2019 was $4,567,724 compared to an Adjusted EBITDA loss of $6,191,212 for 2018. The decrease of $1,623,488 in the Adjusted EBITDA loss in 2019 is attributable to an increase in EBITDA loss of $520,401, a decrease of $501,442 in share-based payments, an increase in tax assessment of $277,800, an increase in inventory write-off of $386,121, and an increase in equipment write-off of $1,981,410.

The Modified EBITDA loss in 2019 was $4,743,961 compared to a Modified EBITDA loss of $5,271,749 for 2018, representing a decrease of 10%. The decrease in the Modified EBITDA loss in 2019 is attributable to the decrease as mentioned above in the Adjusted EBITDA of $1,623,490 and a decrease in change of fair value of investments of $1,095,700.

Liquidity

The Company has incurred, in the last several years, operating losses and negative cash flows from operations, resulting in an accumulated deficit of $60,237,656 and a negative working capital of $10,492,102 as at December 31, 2019 (December 31, 2018 – $51,066,540 and $4,101,428 respectively). Furthermore, as at December 31, 2019, the Company’s current liabilities and expected level of expenses for the next twelve months exceed cash on hand of $34,431 (December 31, 2018 – $644,981). The Company has relied upon external financings to fund its operations in the past, primarily through the issuance of equity, debt, and convertible debentures, as well as from investment tax credits.

OUTLOOK 

Any discussion regarding the OUTLOOK of the company would be remiss if it did not address the recent increase in the Company’s market capitalization and the implications that has for the future.

Without a doubt the Company’s market capitalization suffered, as did many other companies, in the general Covid-19 market meltdown at the end of March 2020. However, PyroGenesis soon broke from the pack with the issuance of a material press release on March 24th, 2020.

Management believes that its breaking from the ranks caught the attention of investors, fund managers, and money managers who all now had the time during the Covid-19 lockdown to fully analyze the complicated story that is PyroGenesis.  Management does not see any reason why this interest would abate anytime soon. To the contrary, Management has reason to believe that interest in the Company will only increase over the foreseeable future. As such, Management has decided that several strategies that have been articulated in the past (up listings, spinoffs) can now be accelerated as some of the impediments to moving quickly have been removed or may be very shortly. 

Having a larger market capitalization has also helped in discussions with potential customers who take comfort from the possibility that a higher market capitalization may translate into easier access to capital.  For the record, there is no intention at this time to raise capital for working capital purposes.

If 2018 was the year in which PyroGenesis successfully positioned each of its commercial business lines by strategically partnering with multi-billion-dollar entities, and 2019 was the year that saw the appropriate personnel and infrastructure being put in place while building upon the success of 2018, then 2020 is without a doubt the year that  the long awaited breakout, which began in the second half of 2019, takes place; it is in fact already upon us:

To date during 2020 PyroGenesis has:

  1. received significant payments under the multi-million dollar contract with DROSRITE™ International thereby validating announcements made during 2019,
  2. established a relationship with a US based tunneling company (contracts and payments ongoing),
  3. Established itself in the iron ore pelletization industry as a potential supplier of torches geared to replacing existing burners and thereby reducing GHGs. Interest is also spilling over into other industries with GHG reduction targets,
  4. Established a relationship with an OEM in North America with the intent to eventually supply powders for their 3D printing needs.  This augments our relationship with Aubert & Duval, while at the same time de-risking our dependence on them,
  5. retired the $3MM convertible debenture in full,
  6. bought back approximately 1.2 Million shares under the existing Normal Course Issuer Bid,
  7. increased Company’s investment in HPQ, who has subsequently also experienced a significant increase in market capitalization,
  8. further benefited from early conversions of warrants maturing in 2021 of over $2MM. 

The Company has booked a significant backlog of signed contracts (in excess of $30MM; 2019 Revenues approx. $5MM) which, when taking the eagerly awaited US Navy contract into account, will increase to over $40MM.  This provides a solid cornerstone upon which PyroGenesis can:

  1. continue to build on the recent successes with the Company’s DROSRITE™ offering

  2. leverage off of the recent successes with the Company’s torch offerings to (i) the iron ore pelletization industry, and (ii) a tunneling client.

  3. accelerate activities with Aubert & Duval in the Additive Manufacturing sector as well as HPQ in the Mining and Metallurgical sector, both of which did not progress as fast as management would have liked in 2019. Significant attention will be placed on both these activities in 2020.

Specifically, with Aubert & Duval the goal will be to complete the integration of the cutting-edge advances PyroGenesis has made to the powder production process.

With respect to HPQ, the goal would be to accelerate the game changing PUREVAPTM family of processes which we are developing for HPQ, namely:

  • The PUREVAPTM â€œQuartz Reduction Reactors” (QRR), an innovative process (patent pending), which will permit the one step transformation of quartz (SiO2) into high purity silicon (Si) at reduced costs, energy input, and carbon footprint that will propagate its considerable renewable energy potential; and
  • The PUREVAPTM Nano Silicon Reactor (NSiR), a new proprietary process that use PUREVAPTM QRR silicon (Si) as feedstock, to make spherical silicon nano powders and nanowires;

Looking forward, the Company has, as of December 31st, 2019, approximately $10MM of in-the-money warrants and options expiring in 2020 and 2021. The Company also has over $50MM in tax loss carryforwards (roughly evenly distributed between federal and provincial obligations) which is not reflected as an asset on the balance sheet. 

All in all, 2020 is shaping up to be the year that we have been expecting for some time.

About PyroGenesis Canada Inc.

PyroGenesis Canada Inc., a high-tech company, is the world leader in the design, development, manufacture and commercialization of advanced plasma processes and products. We provide engineering and manufacturing expertise, cutting-edge contract research, as well as turnkey process equipment packages to the defense, metallurgical, mining, advanced materials (including 3D printing), oil & gas, and environmental industries. With a team of experienced engineers, scientists and technicians working out of our Montreal office and our 3,800 m2 manufacturing facility, PyroGenesis maintains its competitive advantage by remaining at the forefront of technology development and commercialization. Our core competencies allow PyroGenesis to lead the way in providing innovative plasma torches, plasma waste processes, high-temperature metallurgical processes, and engineering services to the global marketplace. Our operations are ISO 9001:2015 and AS9100D certified, and have been since 1997. PyroGenesis is a publicly-traded Canadian Corporation on the TSX Venture Exchange (Ticker Symbol: PYR) and on the OTCQB Marketplace. For more information, please visit www.pyrogenesis.com.

This press release contains certain forward-looking statements, including, without limitation, statements containing the words “may”, “plan”, “will”, “estimate”, “continue”, “anticipate”, “intend”, “expect”, “in the process” and other similar expressions which constitute “forward- looking information” within the meaning of applicable securities laws. Forward-looking statements reflect the Corporation’s current expectation and assumptions and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These forward-looking statements involve risks and uncertainties including, but not limited to, our expectations regarding the acceptance of our products by the market, our strategy to develop new products and enhance the capabilities of existing products, our strategy with respect to research and development, the impact of competitive products and pricing, new product development, and uncertainties related to the regulatory approval process. Such statements reflect the current views of the Corporation with respect to future events and are subject to certain risks and uncertainties and other risks detailed from time-to-time in the Corporation’s ongoing filings with the securities regulatory authorities, which filings can be found at www.sedar.com, or at www.otcmarkets.com. Actual results, events, and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements. The Corporation undertakes no obligation to publicly update or revise any forward- looking statements either as a result of new information, future events or otherwise, except as required by applicable securities laws. Neither the TSX Venture Exchange, its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) nor the OTCQB accepts responsibility for the adequacy or accuracy of this press release.

SOURCE PyroGenesis Canada Inc.

For further information please contact:
Rodayna Kafal, Vice President Investors Relations and Strategic Business Development
Phone: (514) 937-0002, E-mail: [email protected] 

RELATED LINK: http://www.pyrogenesis.com/

PyroGenesis $PYR.ca Signs Second Modelling Contract with New Iron Ore Pelletization Client $RTN $NOC $UTX $DDD.ca $SSYS $PRLB

Posted by AGORACOM-JC at 1:17 PM on Thursday, June 11th, 2020
  • Signed a second multi-phase torch modelling contract aimed at evaluating the performance of PyroGenesis’ proprietary torches in an existing iron ore industrial furnace with the goal of replacing existing fossil fuel burners with PyroGenesis’ plasma torches
  • The first phase is expected to be completed in approx. 8 to 10 weeks
  • This Contract is with another multi-billion-dollar producer of iron ore pellets (“ClientB”), whose name will remain confidential for competitive reasons
  • ClientB has over 100 burners in its existing facilities

MONTREAL, June 11, 2020 – PyroGenesis Canada Inc. (http://pyrogenesis.com) (TSX-V: PYR) (OTCQB: PYRNF) (FRA: 8PY), a high-tech company, (the “Company”, the “Corporation” or “PyroGenesis”) that designs, develops, manufactures and commercializes plasma atomized metal powder, plasma waste-to-energy systems and plasma torch systems, is pleased to announce today that, further to its press releases dated March 4th, April 30th and May 19th, 2020, it has signed a second multi-phase torch modelling contract (the “Contract”), aimed at evaluating the performance of PyroGenesis’ proprietary torches in an existing iron ore industrial furnace with the goal of replacing existing fossil fuel burners with PyroGenesis’ plasma torches. The first phase is expected to be completed in approx. 8 to 10 weeks. This Contract is with another multi-billion-dollar producer of iron ore pellets (“ClientB”), whose name will remain confidential for competitive reasons. ClientB has over 100 burners in its existing facilities.

“This is the second press release announcing that a significant player in the iron ore pelletization industry has entered into a modeling contract with us, in the past few months,” said Mr. Peter Pascali, CEO and President of PyroGenesis. “This just underscores the tremendous impact our proprietary torch is having on the industry and, as we said in the past, this interest is spilling over into other industries as well (such as mining, metallurgy and cement industries). We continue to find that the proposition of reducing greenhouse gases emissions, and avoiding carbon taxes, with a simple bolt-on replacement of their current environmentally damaging fossil fuel burners, is too compelling to resist.  That, combined with the environmental pressure these industries are currently under (only recently a new trend has emerged where financial institutions are tying credit facilities and debt issuances to carbon reduction targets for multi-national industrial and mining conglomerates), has contributed significantly to this wave of interest and proposals.”

“In fact, it goes beyond avoiding carbon taxes,” said Mr. Pierre Carabin, CTO of PyroGenesis. “We see a global trend towards a zero-carbon economy, with the push coming not only from regulators but also from shareholders, investment funds and the general population.  As such, all the industry players we are talking to have aggressive internally set carbon reduction targets and are actively seeking commercially ready technical solutions that will have a minimal impact on their operations.  As such, we believe that PyroGenesis’ proprietary torches offer a relatively easy upgrade to existing industrial processes, such as with pelletizing furnaces, while offering major greenhouse gas reductions.  This is in addition to (i) the reduction in pollution from sulfur compounds and heavy metals resulting from heavy fuel oil burners, and (ii) a cost advantage to those companies that have access to affordable hydro power as a replacement to expensive bunker fuel.”

This modelling contract, once again, is geared to demonstrating that replacing fossil fuel burners with PyroGenesis’ proprietary plasma torches will not have any detrimental effects on ClientB’s process or their furnaces. Both ClientB and the Company do not anticipate any detrimental effects. As previously disclosed,  for a separate iron ore pelletization Client (“ClientA”), replacing fossil fuel burners with  PyroGenesis’ proprietary plasma torches could theoretically result in a CO2 reduction in excess of 350,000 tons per year per plant (which is equivalent to removing 76,000 cars1 from the road), while at the same time projecting significant cost savings. In the case of ClientB, the switch to plasma torches will also result in the additional benefit of significantly reducing the emission of another pollutant; sulfur dioxide (SO2).

“Although, there is no guarantee of successful conclusion, nor of the timeframe in which this might occur, given our significant plasma expertise, our specific knowledge of the application, and the challenges in these industries, we are highly confident that there will be a positive outcome as a result of these modeling contracts in the very near future,” noted Mr. Pascali. “If and when this outcome is eventualized, PyroGenesis will execute it in a very conservative, strategic and determined manner, with the primary goal being to maximize customer satisfaction and shareholder value. Everything will be geared to securing success, market penetration, and ensuring PyroGenesis’ long-term viability as the preeminent supplier of torches to the industry. Our proprietary position, built upon a strong process patent, provides us with a significant advantage in pursuing this goal.”

Although there is no guarantee of future contracts, PyroGenesis has already not only contacted its existing suppliers in anticipation of any orders of size, but is also actively expanding their supplier base to mitigate any supply chain risk of significant orders. PyroGenesis’ management is confident that the Company is now well positioned to address any anticipated demand.

Pelletization is the process in which iron ore is concentrated before shipment, thus significantly reducing the cost of transportation. In conventional technologies, the process heat is provided by fuel oil or natural gas burners (both environmentally damaging). The combustion, in the burners, of fossil fuels results in the production of greenhouse gases, mainly CO2. Plasma torches, by contrast, utilize renewable electricity and as such offer an environmentally attractive alternative to fossil fuel burners.

About PyroGenesis Canada Inc.

PyroGenesis Canada Inc., a high-tech company, is the world leader in the design, development, manufacture and commercialization of advanced plasma processes and products. We provide engineering and manufacturing expertise, cutting-edge contract research, as well as turnkey process equipment packages to the defense, metallurgical, mining, advanced materials (including 3D printing), oil & gas, and environmental industries. With a team of experienced engineers, scientists and technicians working out of our Montreal office and our 3,800 m2 manufacturing facility, PyroGenesis maintains its competitive advantage by remaining at the forefront of technology development and commercialization. Our core competencies allow PyroGenesis to lead the way in providing innovative plasma torches, plasma waste processes, high-temperature metallurgical processes, and engineering services to the global marketplace. Our operations are ISO 9001:2015 and AS9100D certified, and have been since 1997. PyroGenesis is a publicly-traded Canadian Corporation on the TSX Venture Exchange (Ticker Symbol: PYR) and on the OTCQB Marketplace. For more information, please visit www.pyrogenesis.com.

This press release contains certain forward-looking statements, including, without limitation, statements containing the words “may”, “plan”, “will”, “estimate”, “continue”, “anticipate”, “intend”, “expect”, “in the process” and other similar expressions which constitute “forward- looking information” within the meaning of applicable securities laws. Forward-looking statements reflect the Corporation’s current expectation and assumptions and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These forward-looking statements involve risks and uncertainties including, but not limited to, our expectations regarding the acceptance of our products by the market, our strategy to develop new products and enhance the capabilities of existing products, our strategy with respect to research and development, the impact of competitive products and pricing, new product development, and uncertainties related to the regulatory approval process. Such statements reflect the current views of the Corporation with respect to future events and are subject to certain risks and uncertainties and other risks detailed from time-to-time in the Corporation’s ongoing filings with the securities regulatory authorities, which filings can be found at www.sedar.com, or at www.otcmarkets.com. Actual results, events, and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements. The Corporation undertakes no obligation to publicly update or revise any forward- looking statements either as a result of new information, future events or otherwise, except as required by applicable securities laws. Neither the TSX Venture Exchange, its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) nor the OTCQB accepts responsibility for the adequacy or accuracy of this press release.

SOURCE PyroGenesis Canada Inc.

For further information please contact:
Rodayna Kafal, Vice President Investors Relations and Strategic Business Development
Phone: (514) 937-0002, E-mail: [email protected]

PyroGenesis’ $PYR.ca Additive Manufacturing Quality Management System is Approved by Major Aerospace Company; Complements NexGen Technology $RTN $NOC $UTX $DDD.ca $SSYS $PRLB

Posted by AGORACOM-JC at 9:24 AM on Thursday, June 4th, 2020
  • Announced today that PyroGenesis’ quality management system for the production of metal powders for the Additive Manufacturing (3D Printing) industry, has been approved by one of the premier non-European aerospace companies
  • “Although this does not guarantee any future orders and, on the face of it, may seem to be a minor and expected development, it is in reality very significant as it complements the cutting-edge improvements we have made with our NexGen™ technology which we have announced in previous press releases, and is a key and fundamental step forward,” said Mr. Peter Pascali, CEO and President of PyroGenesis.

MONTREAL, June 04, 2020 — PyroGenesis Canada Inc. (http://pyrogenesis.com) (TSX-V: PYR) (OTCQB: PYRNF) (FRA: 8PY), a high-tech company, (the “Company”, the “Corporation” or “PyroGenesis”) that designs, develops, manufactures and commercializes plasma atomized metal powder, plasma waste-to-energy systems and plasma torch systems, is pleased to announce today that PyroGenesis’ quality management system for the production of metal powders for the Additive Manufacturing (3D Printing) industry (“AM Industry”), has been approved by one of the premier non-European aerospace companies. The aerospace company’s name will be withheld for confidentiality and competitive reasons.

“Although this does not guarantee any future orders and, on the face of it, may seem to be a minor and expected development, it is in reality very significant as it complements the cutting-edge improvements we have made with our NexGen™ technology which we have announced in previous press releases, and is a key and fundamental step forward,” said Mr. Peter Pascali, CEO and President of PyroGenesis.

PyroGenesis’ game-changing NexGen™ Plasma Atomization System, which produces metal powder at over 25 kg/h, shattering any published plasma-atomized production rates for titanium known to management, was unveiled in 2019 after having fulfilled a specialty metal powder order for a non-aerospace client, while maintaining all the characteristics demanded by the AM Industry (ie. oxygen content, flowability, density, etc.). Of note, this increased production rate was achieved at lower OPEX per hour, which translated into significant cost per kilogram savings.

At the time, Mr. Massimo Dattilo, Vice President of PyroGenesis Additive noted that, “…a limiting factor in titanium adoption in the marketplace has been its cost. By lowering the cost of a typically expensive product, NexGen™ has opened the door to other opportunities (both markets and applications) which, until now, found titanium to be too expensive to adopt. We expect that price reductions now permitted by the NexGen™ technology will drive an increased adoption of PyroGenesis’ powders by new markets and applications where the higher cost of plasma atomized powders was typically prohibitive.”

“This relationship outside of Europe expands, builds upon and complements that which we have developed with Aubert & Duval in Europe,” added Mr. Pascali. “It has taken a bit more time than expected, but we now have in place one of the best quality systems which, combined with our game-changing NexGen™ technology, positions us well to service the AM Industry. PyroGenesis can now boast of at least two significant relationships with internationally recognized entities, one of them being a premier tier aerospace company, and both of which are spending considerable time, energy, and money to develop a business relationship with PyroGenesis.”

About PyroGenesis Canada Inc.

PyroGenesis Canada Inc., a high-tech company, is the world leader in the design, development, manufacture and commercialization of advanced plasma processes and products. We provide engineering and manufacturing expertise, cutting-edge contract research, as well as turnkey process equipment packages to the defense, metallurgical, mining, advanced materials (including 3D printing), oil & gas, and environmental industries. With a team of experienced engineers, scientists and technicians working out of our Montreal office and our 3,800 m2 manufacturing facility, PyroGenesis maintains its competitive advantage by remaining at the forefront of technology development and commercialization. Our core competencies allow PyroGenesis to lead the way in providing innovative plasma torches, plasma waste processes, high-temperature metallurgical processes, and engineering services to the global marketplace. Our operations are ISO 9001:2015 and AS9100D certified, and have been since 1997. PyroGenesis is a publicly-traded Canadian Corporation on the TSX Venture Exchange (Ticker Symbol: PYR) and on the OTCQB Marketplace. For more information, please visit www.pyrogenesis.com.

This press release contains certain forward-looking statements, including, without limitation, statements containing the words “may”, “plan”, “will”, “estimate”, “continue”, “anticipate”, “intend”, “expect”, “in the process” and other similar expressions which constitute “forward- looking information” within the meaning of applicable securities laws. Forward-looking statements reflect the Corporation’s current expectation and assumptions and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These forward-looking statements involve risks and uncertainties including, but not limited to, our expectations regarding the acceptance of our products by the market, our strategy to develop new products and enhance the capabilities of existing products, our strategy with respect to research and development, the impact of competitive products and pricing, new product development, and uncertainties related to the regulatory approval process. Such statements reflect the current views of the Corporation with respect to future events and are subject to certain risks and uncertainties and other risks detailed from time-to-time in the Corporation’s ongoing filings with the securities regulatory authorities, which filings can be found at www.sedar.com, or at www.otcmarkets.com. Actual results, events, and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements. The Corporation undertakes no obligation to publicly update or revise any forward- looking statements either as a result of new information, future events or otherwise, except as required by applicable securities laws. Neither the TSX Venture Exchange, its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) nor the OTCQB accepts responsibility for the adequacy or accuracy of this press release.

SOURCE PyroGenesis Canada Inc.

For further information please contact:
Rodayna Kafal, Vice President Investors Relations and Strategic Business Development
Phone: (514) 937-0002, E-mail: [email protected]
RELATED LINK: http://www.pyrogenesis.com/

1 https://www.pyrogenesis.com/wp-content/uploads/2019/05/Titanium-Powder-Produced-with-the-NexGen%E2%84%A2-Plasma-Atomization-System-Significant-CAPEX-and-OPEX-Reductions.pdf

PyroGenesis $PYR.ca Increases Stake in HPQ Silicon $HPQ.ca $FSLR $SPWR $CSIQ $XMG.ca

Posted by AGORACOM-JC at 11:07 AM on Tuesday, May 26th, 2020

– Directors of the Corporation have agreed to settle an outstanding debt for services rendered by PyroGenesis Canada Inc, (TSX-V: PYR) in connection with works relating to leasehold improvements done in the dedicated PUREVAPTM Quartz Reduction Reactor (“QRR”) premises within PyroGenesis production plant.

MONTREAL, May 26, 2020 — HPQ Silicon Resources Inc.  (“HPQ” or the “Company”) TSX-V: HPQ; FWB: UGE; Other OTC : URAGF; would like inform shareholders that the Directors of the Corporation have agreed to settle an outstanding debt for services rendered by PyroGenesis Canada Inc, (TSX-V: PYR) in connection with works relating to leasehold improvements done in the dedicated PUREVAPTM Quartz Reduction Reactor (“QRR”) premises within PyroGenesis production plant.

The outstanding debt of $395,514, will be settled by issuing 4,394,600 Units at a price of $0.09 per unit. Each unit is comprised of one common share and one common share purchase warrant.  Each warrant will allow its holder to subscribe to one common share at the price of $0.10 for a period of 36 months from the date of closing.  Each share issued pursuant to the debt settlement will have a mandatory four (4) month and one (1) day holding period from the date of closing.  This settlement is subject to the approval of the TSX Venture Exchange.

“This transaction is a demonstration of the strong cooperation HPQ and PyroGenesis are implementing as we develop both the PUREVAPTM Quartz Reduction Reactor (QRR) and the PUREVAPTM Silicon Nano Reactor (SiNR) processes,” said Bernard Tourillon, President & CEO of HPQ Silicon.  “Our PUREVAPTM processes opens up unique multibillion-dollar business opportunity for HPQ and PyroGenesis, as we strive to deliver the critical Silicon nano- materials required by the surging Li-ion battery market.”

About Silicon

Silicon (Si), also known as silicon metal, is one of today’s strategic materials needed to fulfil the Renewable Energy Revolution (“RER”) presently under way. Silicon does not exist in its pure state; it must be extracted from quartz (SiO2), in what has historically been a capital and energy intensive process.

About HPQ Silicon

HPQ Silicon Resources Inc. (TSX-V: HPQ) is a producer of Silicon Innovation that is building a portfolio of unique high value silicon products needed for the RER.

Working with PyroGenesis Canada Inc. (TSX-V: PYR), a high-tech company that designs, develops, manufactures and commercializes plasma – based processes, HPQ is developing:

  • The PUREVAPTM “Quartz Reduction Reactors” (QRR), an innovative process (patent pending), which will permit the one step transformation of quartz (SiO2) into high purity silicon (Si) at reduced costs, energy input, and carbon footprint that will propagate its considerable renewable energy potential;
    • HPQ is in the process of becoming the lowest cost (Capex and Opex) producer of silicon (Si) and high purity silicon (3N – 4N Si);
  • The PUREVAPTM Silicon Nano Reactor (SiNR), a new proprietary process that can use different purities of silicon (Si) as feedstock, to make spherical silicon nanopowders and nanowires;
    • HPQ objective is to become the lowest cost manufacturer of spherical Si nanopowders and silicon-based composites needed by manufacturers of next-generation lithium-ion batteries;
    • During the coming months, spherical Si nanopowders and nanowires silicon-based composite samples requested by industry participants and research institutions’ will be produced using the newly develop PUREVAPTM SiNR process.

HPQ is also working with industry leader Apollon Solar of France to:

  • Use their patented process and develop a capability to produce commercially porous silicon (Si) wafers and porous silicon (Si) powders;
    • The collaboration will allow HPQ to become the lowest cost producer of porous silicon wafers for all-solid -state batteries and porous silicon powders for Li-ion batteries.
    • The plan is to deliver porous Si wafer to a battery manufacturer (under NDA) for testing in 2020.

This News Release is available on the company’s CEO Verified Discussion Forum, a moderated social media platform that enables civilized discussion and Q&A between Management and Shareholders. 

Disclaimers:

This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or the securities laws of any state of the United States and may not be offered or sold within the United States or to, or for the account or the benefit of, U.S. persons (as defined in Regulation S under the U.S.  Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to an exemption from such registration requirements.

The Corporation’s interest in developing the PUREVAP™ QRR and any projected capital or operating cost savings associated with its development should not be construed as being related to the establishing the economic viability or technical feasibility of any of the Company’s Quartz Projects.

This press release contains certain forward-looking statements, including, without limitation, statements containing the words “may”, “plan”, “will”, “estimate”, “continue”, “anticipate”, “intend”, “expect”, “in the process” and other similar expressions which constitute “forward-looking information” within the meaning of applicable securities laws. Forward-looking statements reflect the Company’s current expectation and assumptions and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These forward-looking statements involve risks and uncertainties including, but not limited to, our expectations regarding the acceptance of our products by the market, our strategy to develop new products and enhance the capabilities of existing products, our strategy with respect to research and development, the impact of competitive products and pricing, new product development, and uncertainties related to the regulatory approval process. Such statements reflect the current views of the Company with respect to future events and are subject to certain risks and uncertainties and other risks detailed from time-to-time in the Company’s on-going filings with the security’s regulatory authorities, which filings can be found at www.sedar.com. Actual results, events, and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements either as a result of new information, future events or otherwise, except as required by applicable securities laws.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information contact

Bernard J. Tourillon, Chairman, President and CEO Tel (514) 907-1011
Patrick Levasseur, Vice-President and COO Tel: (514) 262-9239
http://www.hpqsilicon.com Email: [email protected] 

PyroGenesis $PYR.ca Enters Negotiations for Supply of Equipment with Iron Ore Pelletization Modeling Client $RTN $NOC $UTX $DDD.ca $SSYS $PRLB

Posted by AGORACOM-JC at 2:58 PM on Tuesday, May 19th, 2020
  • Entered into the final stages of negotiation for equipment supply with the major iron ore pelletization client previously disclosed
  • The Client is a multi-billion-dollar international producer of iron ore pellets, one of the largest in the industry, whose name will remain confidential for competitive reasons
  • The Client has over 10 plants each requiring approx. 50 plasma torches

MONTREAL, May 19, 2020 – PyroGenesis Canada Inc. (http://pyrogenesis.com) (TSX-V: PYR) (OTCQB: PYRNF) (FRA: 8PY), a high-tech company, (the “Company”, the “Corporation” or “PyroGenesis”) that designs, develops, manufactures and commercializes plasma atomized metal powder, plasma waste-to-energy systems and plasma torch systems, is pleased to announce today that, further to its press releases dated March 4th and April 30th, 2020, it has now entered into the final stages of negotiation for equipment supply with the major iron ore pelletization client (the “Client”) previously disclosed. The Client is a multi-billion-dollar international producer of iron ore pellets, one of the largest in the industry, whose name will remain confidential for competitive reasons. The Client has over 10 plants each requiring approx. 50 plasma torches.

“This is indeed a very significant development as the Client has accepted the successful completion of the first phase (“First Phase”) in the modeling contract as a basis to move forward for equipment supply,” said Mr. Peter Pascali, CEO and President of PyroGenesis. “This was not entirely unexpected as (i) the balance of the modeling contract was geared to further quantify the benefits of transitioning to plasma, and (ii) the initial stage of negotiations had already begun prior to the First Phase getting underway, and as such it served just to confirm expectations. In management’s opinion, this is moving quickly, particularly in light of the Client’s size, the current pandemic, and how busy they are. This is just one of many discussions taking place with other producers in this, and other industries.”

As previously disclosed, the purpose of this multi-phase modeling contract was to evaluate the performance of PyroGenesis’ proprietary torches in an existing iron ore industrial furnace with the goal of replacing all existing fossil fuel burners with PyroGenesis’ plasma torches. The all-important First Phase was successfully completed as previously disclosed. All modeling phases were to be completed by the end of Q2 2020, and such remains to be the case. The balance of the contract is solely geared to further quantify the benefits of transitioning to plasma.

“There is no guarantee of successful conclusion, nor of the timeframe in which this might occur,” noted Mr. Pascali. “However, things seem to be moving in the right direction, and at a very rapid pace. Since our success with RISE, we have seen a significant increase in interest in using our proprietary torches to reduce greenhouse gases. We continue to find that the proposition to reduce greenhouse gases emissions, and avoid carbon taxes, with a simple bolt-on replacement of current environmentally damaging fossil fuel burners, is too compelling to resist.  That, combined with the environmental pressure these industries are currently under (only recently a new trend has emerged where financial institutions are tying credit facilities and debt issuances to carbon reduction targets for multi-national industrial and mining conglomerates), has contributed significantly to this wave of interest and proposals.”

Pelletization is the process in which iron ore is concentrated before shipment, thus significantly reducing the cost of transportation. In conventional technologies, the process heat is provided by fuel oil or natural gas burners (both environmentally damaging). The combustion, in the burners, of fossil fuels results in the production of greenhouse gases, mainly CO2. Plasma torches, by contrast, utilize renewable electricity and as such offer an environmentally attractive alternative to fossil fuel burners.

About PyroGenesis Canada Inc.

PyroGenesis Canada Inc., a high-tech company, is the world leader in the design, development, manufacture and commercialization of advanced plasma processes and products. We provide engineering and manufacturing expertise, cutting-edge contract research, as well as turnkey process equipment packages to the defense, metallurgical, mining, advanced materials (including 3D printing), oil & gas, and environmental industries. With a team of experienced engineers, scientists and technicians working out of our Montreal office and our 3,800 m2 manufacturing facility, PyroGenesis maintains its competitive advantage by remaining at the forefront of technology development and commercialization. Our core competencies allow PyroGenesis to lead the way in providing innovative plasma torches, plasma waste processes, high-temperature metallurgical processes, and engineering services to the global marketplace. Our operations are ISO 9001:2015 and AS9100D certified, and have been since 1997. PyroGenesis is a publicly-traded Canadian Corporation on the TSX Venture Exchange (Ticker Symbol: PYR) and on the OTCQB Marketplace. For more information, please visit www.pyrogenesis.com.

This press release contains certain forward-looking statements, including, without limitation, statements containing the words “may”, “plan”, “will”, “estimate”, “continue”, “anticipate”, “intend”, “expect”, “in the process” and other similar expressions which constitute “forward- looking information” within the meaning of applicable securities laws. Forward-looking statements reflect the Corporation’s current expectation and assumptions and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These forward-looking statements involve risks and uncertainties including, but not limited to, our expectations regarding the acceptance of our products by the market, our strategy to develop new products and enhance the capabilities of existing products, our strategy with respect to research and development, the impact of competitive products and pricing, new product development, and uncertainties related to the regulatory approval process. Such statements reflect the current views of the Corporation with respect to future events and are subject to certain risks and uncertainties and other risks detailed from time-to-time in the Corporation’s ongoing filings with the securities regulatory authorities, which filings can be found at www.sedar.com, or at www.otcmarkets.com. Actual results, events, and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements. The Corporation undertakes no obligation to publicly update or revise any forward- looking statements either as a result of new information, future events or otherwise, except as required by applicable securities laws. Neither the TSX Venture Exchange, its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) nor the OTCQB accepts responsibility for the adequacy or accuracy of this press release.

SOURCE PyroGenesis Canada Inc.

For further information please contact:
Rodayna Kafal, Vice President Investors Relations and Strategic Business Development
Phone: (514) 937-0002, E-mail: [email protected]RELATED LINK: http://www.pyrogenesis.com/