PyroGenesis Canada Inc (TSX: PYR; FSE: 8PY) is based in Montreal, Canada and is listed on Toronto and Frankfurt Stock exchange.
PyroGenesis is a global leader in design and development of advanced plasma processes and technologies. The products are used by a wide range of customers in the defence, metallurgical, mining, advanced materials, oil and gas, aerospace and environmental industries.
The company is in a rapid growth phase. In the Q1 2021 revenues were over €4.2 million, over 771% in same period in 2020. Even more striking, revenues in Q1 2021 were 40% greater than whole of 2019. The company’s shares have seen an incredible 5 year return – from €0.53 in July 2017 to €3.84 in July 2021 - a return to investors of over 600% during this period.
According to the CEO, Peter Pascali, “the company has never been better positioned and is well placed to build upon this trend for the foreseeable future”. The company is a globally recognised leader in 4 key areas: Iron Ore Pelletization, aluminum dross recovery, waste treatment and Additive Manufacturing and powders for 3D printing.
PyroGenesis has emerged as a global leader assisting the iron ore industry in reducing green gas (GHG) emissions. Traditionally the iron ore industry has used fossil fuel burners to burn iron-ore so it can be easily transported. The iron ore has historically used old style fossil fuel burners to burn iron ore into pellets for transportation that emit large amounts of carbon dioxide and greenhouse gases. Globally, governments are mandating that materials processing plants reduce or eliminate greenhouse gases.
What is plasma torch technology? Very simply it converts gases to plasma matter and is considered by many as a 4th state of matter after solid, liquid and gas. A plasma torch can reach more than 5000 degrees Celsius (as hot as the Sun) and is an excellent tool for transforming materials to value added products such as powder for 3D printers, waste into inert materials, iron-ore into pellets or quartz to fumed silica.
The Company as strong competitive advantages in the global marketplace due to over 25 years of working at the cutting edge of Plasma technology, over 110 worldwide patents, 70 employees and one of the highest concentrations of plasma torch technology in the world at one country. These competitive advantages provide PyroGenesis with a strong and compelling first mover advantage.
PyroGenesis enables the worlds largest mining companies to reduce greenhouse gas emissions to meet carbon neutrality goals in a cost effective manner. The globally patented process ensures that iron ore can be reduced to pellets (pelletization) for transportation without any greenhouse gas emissions and eliminating the need for high polluting diesel or fossil fuel burners. This is transformational and the addressable market for this technology is over € 6.5 billion. Whilst the company only has patents on Iron Ore pelletization, the company considers it has the technological expertise and first mover advantage to move into the cement, steel, aluminium and automotive industries.
Through patented technology PyroGenesis has developed procedures to enhance additive manufacturing using high-purity spherical and speciality powders. The global 3D printing market is expected to grow exponentially from around €518 million in 2019 to € 2.1 billion in 2024. Of interest for European investors, the company has recently signed a mutually exclusive distribution with Aubert & Duval in France (a division of giant Eramet) with major customers in the aero space industry. The contract will involve the sale of titanium powders.
The company as patented technology for creating powders of 3D manufacturing called NEXTGEN. This has the potential to create up to 25 kilograms of powder an hour – most competitors can only to around 12. This process is also at a lower cost than most competitors. Almost as soon as NEXTGEN production line was completed a major tier 1 aerospace company concluded a qualification agreement with PyroGenesis
In May 2021, the company received €402,000 grant from Sustainable Development Technology Canada to develop a novel process to transform quartz into silica. In July 2021 the company announced a € 2.68 million contract from HPQ Silica Polver Inc. to design, develop and manufacture downstream business opportunities by converting quartz into fumed silica using a novel one step plasma based reactor. The demand for fumed silica is substantial with a addressable market of around € 1.2 billion.
In April 2021, the company acquired AirScience Technologies Inc. (AST) for € 3.2 million, the acquisition will enhance the market opportunities from designing and building systems and processes using gas-upgrading such as biogas to renewable natural gas. PyroGenesis considers the AST’s experience with biogas upgrading combined with PyroGenesis engineering and technical skills, will provide a catalyst and major growth opportunity from the increasing demand for clean biogas.
Below is a link to a great video of CEO, Peter Pascali, talking about the company, the technology and the strategic opportunities.
With the global drive to sustainable manufacturing and processes together with legislative efforts to reduce greenhouse gas emissions, PyroGenesis is uniquely placed for significant growth in the coming years.
The company's June 2021 investor deck can be downloaded here