- PyroGenesis (PYR) has received a C$2 million payment under its existing $25 million Drosrite contract
- Approximately $10.7 million remains to be paid under a renewed payment schedule catered to the end-client’s operating cash flows
- The company views the contract as a stepping stone to increasing its presence in the Middle East
- PyroGenesis Canada designs, develops, manufactures and commercializes advanced plasma processes and sustainable solutions to reduce greenhouse gases
- PyroGenesis (PYR) last traded at $0.93 per share
PyroGenesis (PYR) has received a C$2 million payment under its existing $25 million Drosrite contract.
PyroGenesis’ Drosrite system recovers waste from the aluminum smelting process, which can be converted into high-margin products, such as aluminum sulphate and ammonium sulphate.
Approximately $10.7 million remains to be paid under the contract, which management views as a stepping stone to increasing its presence in the Middle East.
PyroGenesis’ subsidiary Drosrite International was contracted by Radian Oil and Gas Services Company for 7 Drosrite systems. The first three systems are in full commercial operation at the Ma’aden plant in Ras Al-Khair, a joint venture corporation with Alcoa recognized as the largest and most efficient vertically integrated aluminum complex in the world.
The company has manufactured the remaining four systems, which are ready for deployment subject to a renewed payment schedule.
“We trust that this payment will allay any concerns that some may have had with respect to the collectability of this receivable,” said P. Peter Pascali, CEO and President of PyroGenesis. “The payment announced today was made in accordance with a continuously revised payment schedule geared to better align [with] the pressures on the end-client’s operating cash flows created by increased business opportunities.”
“While there have been some delays, which were communicated to us in advance, the company is in agreement with the general strategy being implemented by the client and its end-client. PyroGenesis believes that this relationship will lead to increased business opportunities as we cross-sell our downstream and upstream business lines with this end-client and potentially with others in the region. Discussions in this regard have taken place, and continue to take place, with the client and the end-client,” he added.
PyroGenesis Canada designs, develops, manufactures and commercializes advanced plasma processes and sustainable solutions to reduce greenhouse gases. Its technologies are being vetted and adopted by multiple multibillion dollar industry leaders in iron ore pelletization, aluminum, waste management, and additive manufacturing.
PyroGenesis (PYR) last traded at $0.93 per share.
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