PYROGENESIS INC - PYRGF STOCK NEWS

PyroGenesis updated investors on receiving a CAD$4.1 million payment as part of a CAD$25 million contract with Drosrite International, linked to Radian Oil and Gas Services. This payment relates to delivering seven Drosrite aluminum dross recovery systems for Ma’aden's aluminum plant in Saudi Arabia. Three systems are operational, and four are awaiting storage fee payments. An outstanding amount of CAD$6.2 million is due, with CAD$1.375 million postponed to 2025. Once the balance is cleared, the remaining systems will be shipped, expected to be operational by year-end. USD$1 million remains to be invoiced, which will be recognized as revenue upon completion.

PyroGenesis, a high-tech company specializing in advanced plasma processes and sustainable solutions, has received a USD$3 million (CAD$4.1 million) payment under its CAD$25+ million Drosrite™ contract.

This payment aligns with a revised schedule to accommodate the end-client's cash flow needs. The Drosrite™ contract involves the manufacturing and delivery of seven aluminum dross recovery systems to Radian Oil and Gas Services for the Ma’aden aluminum plant in Saudi Arabia. Three systems have been delivered and are operational, while the remaining four are manufactured and awaiting delivery.

The Drosrite™ systems are part of PyroGenesis' efforts to optimize production and maximize raw material recovery in heavy industries.

PyroGenesis has secured a second contract from a Spanish aerospace client for its titanium metal powder, ideal for additive manufacturing. The client, a global leader in aerospace propulsion, initially placed an order in April 2024 and may consider a long-term contract following this deal. The titanium powder, produced via PyroGenesis' NexGen™ plasma atomization system, is designed for Laser Powder Bed Fusion methods. This order aligns with PyroGenesis' strategy to become a key supplier in the aerospace sector, enhancing their commercial reach and reinforcing their position in the titanium metal powder market.

PyroGenesis has announced contracts worth $2.5 million for the engineering, design, and fabrication of a thermal swing adsorption (TSA) system as part of the Varennes Carbon Recycling (VCR) plant, a $1 billion biofuel project in Quebec. The VCR plant aims to convert 200,000 tonnes of waste into 125 million liters of biofuels annually, with a focus on reducing greenhouse gas emissions by over 170,000 tonnes annually. The plant is supported by major partners such as Shell, Suncor, Proman, and Enerkem, as well as the Quebec and Canadian governments. Pyro Green-Gas, a subsidiary of PyroGenesis, will complete the TSA system by Q4 2024. The TSA technology is part of PyroGenesis's strategy to provide sustainable solutions for heavy industries.

PyroGenesis has been advised by a global aerospace OEM that its Ti64 “coarse” powder has met all requirements to be added to the client’s approved supplier list. The formal addition will occur this summer. This powder, used in additive manufacturing, underwent extensive evaluations, including quality management reviews and on-site audits. This development underscores the quality of PyroGenesis' NexGen™ plasma atomization process and positions the company favorably within the aerospace industry. Additionally, PyroGenesis' 'fine cut' Ti64 metal powder is also in the qualification process with the same client.

PyroGenesis has announced its intent to exercise its option to convert its annual royalty rights into a 50% ownership of HPQ Silica Polvere, a subsidiary of HPQ Silicon. This move is part of a Development and Purchase Agreement with HPQ Polvere. The conversion is expected to enhance PyroGenesis' stake in the innovative Fumed Silica Reactor (FSR) project, which aims to produce eco-friendly fumed silica. The FSR project is progressing well, with major equipment on-site and construction on track for Q2 2024 commissioning. The market for fumed silica is growing, valued at $1.3 billion in 2022 and expected to reach $2.1 billion by 2032.

Pyro Green-Gas, a subsidiary of PyroGenesis Canada, has signed contracts worth $1.3 million with a major Indian steel company to desulphurize coke oven gas, converting it into reusable hydrogen. The unnamed client, with revenues exceeding $20 billion in 2023, is the second billion-dollar client for Pyro Green-Gas in India. This contract aligns with PyroGenesis' focus on reducing greenhouse gas emissions in heavy industries, particularly steelmaking, which accounts for 7-10% of global GHG emissions. The deal was anticipated in PyroGenesis' Q1 2024 financial outlook.

PyroGenesis Canada announces the receipt of $1.5 million as a settlement in legal proceedings involving its subsidiary, Pyro Green-Gas Inc., and Gas RNG Systems.

The settlement, concluded on a no-fault basis, results in the payment of US$1.1 million (approximately CAN$1.5 million) to Pyro Green-Gas Inc. and related parties, with all parties providing full and final releases. Details of the legal proceedings are available in the company’s annual information form.

PyroGenesis has announced its Q1 2024 financial and operational results, revealing a revenue increase of 34.5% year-over-year, reaching $3.5 million. The company's backlog of signed and awarded contracts stands at $28.1 million. Key projects include the fumed silica reactor project for HPQ Silicon and several new contracts across industries like green cement, steelmaking, and aerospace. The company recorded an EPS loss of $0.02 and a margin of 21.7%. Subsequent to the quarter end, PyroGenesis signed a letter of intent with Constellium for plasma remelting furnaces and secured contracts with a top global steelmaker and major manufacturers in mining, defense, and aerospace. Despite some financial losses, the company shows strong revenue growth and a solid backlog of projects, positioning itself as a leader in heavy industry decarbonization technologies.