PyroGenesis Receives First Payment Under $6.0 Million Contract Entered Last Year
PyroGenesis Canada (TSX: PYR) will be able to keep the lights on for a few more weeks, after having received the first payment for a contract entered into by the company back in September 2021. The firm has received payment from “Client B” in relation to a torch order placed last year.
The payment, of $1.3 million, was evidently enough that the company felt the need to announce the money coming in to shareholders. It’s unclear if the funds are a part of the firms $19.2 million in outstanding receivables as of June 30.
The torch order itself is being pushed by PyroGenesis as a means for their client to pursue a “decarbonization effort,” with the use of their plasma torches replacing natural gas or fuel oil torch variants representing an opportunity to reduced CO2 emissions.
“Our goal has always been to help companies, across multiple industries, replace all manner of fossil fuel burners with PyroGenesis’ plasma torch, not just those using fuel oil or bunker fuel, but also natural gas and other fuel types .. several major industry players, particularly in the iron ore pelletization industry, have initiated their decarbonization efforts by first switching from heavy fuel oil to natural gas which was essentially a switch to a cheaper fuel but with limited impact on CO2 emissions,” said CEO Peter Pascali.
The company is currently working with two clients within the iron ore pelletizing space. The first client is evidently waiting to test a plasma torch system that was delivered in July, while the second client, which is to spend $6.0 million acquiring four torches, is looking to trial the firms torches in an iron ore pellet baking furnace.
The announcement of the receipt of a $1.3 million payment follows the company surprising shareholders late last month with a $1.3 million private placement, conducted at $1.30 per unit.
PyroGenesis last traded at $1.10 on the TSX.
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As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
