PyroGenesis Receives $4.1 Million Payment Under Existing Drosrite™ Contract
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 received a USD$3 million (CAD$4.1 million) payment, improving cash flow.
- The payment is part of a CAD$25+ million contract with Drosrite International
- Three Drosrite™ aluminum dross recovery systems are in full commercial operation.
- Remaining four systems are manufactured and ready for delivery, indicating project progression.
- The payment schedule had to be revised due to the end-client's cash flow pressures.
MONTREAL, June 26, 2024 (GLOBE NEWSWIRE) -- PyroGenesis Canada Inc. (http://pyrogenesis.com) (TSX: PYR) (OTCQX: PYRGF) (FRA: 8PY), a high-tech company (the “Company” or “PyroGenesis”) that designs, develops, manufactures and commercializes advanced plasma processes and sustainable solutions which are geared to reduce greenhouse gases (GHG) and address environmental pollutants, is pleased to announce the receipt of a USD
“The payment announced today is made in accordance with a payment schedule that has been revised over time to better align to the pressures on the end-client’s operating cash flows created by increased business opportunities,” said Mr. P. Peter Pascali, President and CEO of PyroGenesis.
As previously announced, PyroGenesis contracted with Drosrite International LLC, which was in turn contracted by Radian Oil and Gas Services Company for an order of seven (7) Drosrite™ aluminum dross recovery systems. The first three systems were manufactured by the Company and delivered and are in full commercial operation for the Ma’aden aluminum plant in Ras Al-Khair Saudi Arabia, a joint venture corporation with Alcoa. The facility at Ras Al-Khair is known to be the largest and most efficient vertically integrated aluminum complex in the world and boasts one of the world’s largest smelters1.
The remaining four Drosrite™ systems under the contract have already been manufactured and are expected to be delivered to the end client’s operations in Saudi Arabia.
PyroGenesis’ involvement in developing Drosrite aluminum dross recovery systems is part of the Company’s three-tiered solution ecosystem that aligns with economic drivers that are key to global heavy industry. Dross recovery is part of the Company’s Commodity Security and Optimization tier, where the recovery of viable metals, and the optimization of production to increase output, helps to maximize raw materials and improve the availability of critical minerals.
About Drosrite International LLC
Drosrite International (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. DI is considered to be a separate entity from a legal standpoint, but is controlled by PyroGenesis for accounting purposes and as such is consolidated into PyroGenesis’ financial statements. DI is owned and operated by Alex Pascali, the son of P. Peter Pascali, CEO and President of PyroGenesis.
About Radian Oil & Gas Services Company
Radian is a private Saudi Arabian company providing technologies that help customers conserve energy, operate more efficiently through a broad range of solutions while saving fuel, water / electricity & reducing CO2 emissions.
About Ma’aden
Ma’aden is a diversified multi-billion-dollar mining company, and was formed as a Saudi joint stock company in 1997. Since 2009, Alcoa, the world's eighth largest producer of aluminum, and Ma’aden have formed a joint venture that has created the world’s largest, lowest cost, and fully integrated aluminum facility in Ras Al-Khair. Ma’aden is the largest mining company in the Kingdom of Saudi Arabia, and one of the world’s most cutting-edge companies in their industry.
About PyroGenesis Canada Inc.
PyroGenesis Canada Inc., a high-tech company, is a proud leader in the design, development, manufacture and commercialization of advanced plasma processes and sustainable solutions which reduce greenhouse gases (GHG) and are economically attractive alternatives to conventional “dirty” processes. PyroGenesis has created proprietary, patented and advanced plasma technologies that are being vetted and adopted by multiple multibillion dollar industry leaders in four massive markets: iron ore pelletization, aluminum, waste management, and additive manufacturing. With a team of experienced engineers, scientists and technicians working out of its Montreal office, and its 3,800 m2 and 2,940 m2 manufacturing facilities, PyroGenesis maintains its competitive advantage by remaining at the forefront of technology development and commercialization. The operations are ISO 9001:2015 and AS9100D certified, having been ISO certified since 1997. For more information, please visit: www.pyrogenesis.com.
Cautionary and Forward-Looking Statements
This press release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of applicable securities laws. In some cases, but not necessarily in all cases, forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “targets”, “expects” or “does not expect”, “is expected”, “an opportunity exists”, “is positioned”, “estimates”, “intends”, “assumes”, “anticipates” or “does not anticipate” or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might”, “will” or “will be taken”, “occur” or “be achieved”. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking statements. Forward-looking statements are not historical facts, nor guarantees or assurances of future performance but instead represent management’s current beliefs, expectations, estimates and projections regarding future events and operating performance.
Forward-looking statements are necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by the Company as of the date of this release, are subject to inherent uncertainties, risks and changes in circumstances that may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ, possibly materially, from those indicated by the forward-looking statements include, but are not limited to, the risk factors identified under “Risk Factors” in the Company’s latest annual information form, and in other periodic filings that the Company has made and may make in the future with the securities commissions or similar regulatory authorities, all of which are available under the Company’s profile on SEDAR+ at www.sedarplus.ca. These factors are not intended to represent a complete list of the factors that could affect the Company. However, such risk factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. You should not place undue reliance on forward-looking statements, which speak only as of the date of this release. The Company undertakes no obligation to publicly update or revise any forward-looking statement, except as required by applicable securities laws.
Neither the Toronto Stock Exchange, its Regulation Services Provider (as that term is defined in the policies of the Toronto Stock Exchange) nor the OTCQX Best Market accepts responsibility for the adequacy or accuracy of this press release.
For further information please contact:
Rodayna Kafal, Vice President, IR/Comms. and Strategic BD
E-mail: ir@pyrogenesis.com
http://www.pyrogenesis.com/
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1 https://www.bechtel.com/projects/ras-al-khair-aluminum-smelter/
“Delivery of the largest greenfield aluminum smelter in the world”
FAQ
What recent payment did PyroGenesis receive under its Drosrite™ contract?
What is the total value of the Drosrite™ contract involving PyroGenesis?
How many Drosrite™ systems has PyroGenesis delivered to the Ma’aden aluminum plant?
Where are the remaining Drosrite™ systems from PyroGenesis going to be delivered?
What is the significance of the Ras Al-Khair facility in the Drosrite™ contract?
