PyroGenesis Canada gets LOI for DROSRITE system purchase worth $10M-$15M

PyroGenesis Canada Inc (TSE:PYR) (NASDAQ:PYR) (FRA:8PY) has received a letter of intent (LOI) from an existing client to purchase three 10-ton DROSRITE systems.

The company said the client’s need arose after it decided to expand its aluminum processing facilities to process an additional 30 tons of dross, a waste byproduct of aluminum production. The client projects to use three 10-ton DROSRITE systems, but this may change to a combination of 5-ton and 10-ton DROSRITE systems. 

The contract, if finalized in its current form, is expected to be in the range of $10 million to $15 million, the company said. 

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“This is indeed a very interesting development, and one which we did not expect,” Pyrogenesis CEO P. Peter Pascali said in a statement. “Today’s announcement is confirmation of the rapid adoption of our environmental technologies within the aluminum industry. Our Drosrite offering enables smelters to operate in a more economical and environmentally friendly fashion.”

“Aside from the three systems disclosed today, PyroGenesis now has 11 commercial Drosrite systems either in full operation, delivered or in the process of being delivered,” he added. “Once all eleven systems are in operation, the company expects to benefit from a recurring revenue stream, from spare sparts alone, in excess of $4 Million per year.”

PyroGenesis’ DROSRITE system is a salt-free, cost-effective, sustainable process for maximizing metal recovery from dross, a waste generated in the metallurgical industry. PyroGenesis’ process avoids costly loss of metal while reducing a smelter’s carbon footprint and energy consumption.

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Story by ProactiveInvestors