Pyrogenesis Canada Inc., Montreal, Quebec, Canada, has announced financial results for its second quarter 2019, ended June 30, 2019. The company, which designs, develops, manufactures and commercialises plasma atomised metal powders, as well as plasma waste-to-energy systems and plasma torch products, reported Q2 revenues of $913,769, a decrease from $1,421,352 in Q2 2018.
P Peter Pascali, President and CEO of PyroGenesis, explained that the recent results were “significantly affected by management’s decisions in 2018 to pursue strategic partnerships at the expense of revenues.” However, he stated that the company has imminent contracts amounting to more than $32 million, with associated future revenues, for the next eighteen months.
In its financial report, the company stated that “2019 is turning into the year that bears the fruit of 2018 strategies, in which PyroGenesis successfully positioned itself with unique and strategic partnerships, geared to effectively accelerate commercialisation in two of its three business segments.”
By the end of 2018, PyroGenesis had established relationships with multi-billion dollar companies in each of its three commercial offerings, including the US Navy, a major Japanese trading house, and Aubert & Duval. However, in developing these relationships, the company dedicated significant resources to demonstrating its value proposition and capabilities to the companies and organisations it was in discussions with.
This has had an impact on revenues and increased the costs of non-paying projects, but the company reported that revenues for the next eighteen months are expected to increase by six times 2018’s revenues with the addition of the new, high-value contracts.
The company also expects 2019 to see new steps taken, outside of its ordinary business, to unlock additional value for investors. One step which has been announced so far is the spin-off of the company’s Additive Manufacturing capabilities, as well as the future up-listing of the company’s stock to a more senior exchange than it is currently on.