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Additional payments are expected to follow
MONTREAL, June 26, 2024 (GLOBE NEWSWIRE) — PyroGenesis Canada Inc. (http://pyrogenesis.com) (TSX: PYR) (OTCQX: PYRGF) (FRA: 8PY), a high-tech company (referred to as the “Company” or “PyroGenesis”) that designs, develops, manufactures and markets advanced plasma processes and Sustainable Solutions, which aims to reduce greenhouse gases (GHG) and address environmental pollutants, is pleased to provide additional information in response to investor questions regarding the receipt of a $4.1 million CAD payment announced earlier today.
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As previously announced, PyroGenesis has contracted with Drosrite International LLC, which in turn has contracted with Radian Oil and Gas Services Company to order seven (7) Drosrite™ aluminum waste recovery systems under a C$25 million contract. The first three systems were manufactured and delivered by the company. These systems have been in full commercial operation since April 2022 at the Ma’aden Aluminum Plant in Ras Al-Khair, Saudi Arabia, a joint venture with Alcoa. The facility located in Ras Al Khair is known to be the largest and most efficient vertically integrated aluminum complex in the world, and it also houses one of the largest smelters in the world.1.
In the course of the contract, PyroGenesis agreed to delay payments in favor of such amounts allocated by Radian to efforts that the parties agreed would be best for all participants and could result in additional business mid-term. Despite the new arrangement, the accounting provisions did not allow the existing payment terms to be amended and, as such, the terms of the original contract were reflected in the balance sheet as amounts receivable in unreasonable arrears.
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The amount owed now stands at approximately C$6.2 million (US$4.5 million) plus storage fees. Of this amount, approximately C$1,375 million (US$1 million) has been deferred to 2025 to match spare parts deliveries. Once the remaining outstanding balance of approximately C$4.8 million (US$3.5 million) plus storage fees is paid, the remaining four systems, which have been manufactured and are currently in storage, will be shipped. All seven systems are expected to be operational before the end of the year. Finally, with respect to the original contract, the $1 million USD ($1.375 million CAD) invoice has not yet been issued and will be recognized once completed as revenue.
“I believe our stance, as a result of our patience with the challenges our clients have faced, bodes well for our future in the region. We have proven that we are not a good friend and that we stand behind our clients when asked to do so. This has given us a level of credibility and trust that bodes well for any future arrangements in the region,” said B. Peter Pascali, President and CEO of PyroGenesis: “There are already plans afoot to not only expand our presence in Drosrite, but also to sell our other offerings. “We have repeatedly informed the customer that the Drosrite systems are working very well, although there have been some delays.” We agreed, for which we received a lot of criticism regarding our strategy, but the Board and I are very happy with the result. We look forward to expanding our presence in the region.”
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Part of the company’s involvement is PyroGenesis’ involvement in the development of Drosrite aluminum slag recovery systems Three-tier solution ecosystem Which is in line with the economic drivers that are fundamental to global heavy industry. Waste recovery is part of the company’s business Commodity security and improvement level, where recovering viable minerals and optimizing production to increase production helps maximize raw materials and improve the availability of critical minerals.
About Droswright International LLC
Drosrite International (DI) is a private, US-based corporation duly incorporated and existing under the laws of the State of Delaware, providing state-of-the-art waste management technology to the aluminum industry. DI is duly licensed by PyroGenesis to manufacture, market, sell and distribute Drosrite™ systems and technologies to the Kingdom of Saudi Arabia and certain other countries in the Middle East, on an exclusive basis. All DI Drosrite™ systems are manufactured in the USA. DI is a legally separate entity, but is controlled by PyroGenesis for accounting purposes and is therefore consolidated in PyroGenesis’ financial statements. DI is owned and operated by Alex Pascali, son of P. Peter Pascali, CEO and President of PyroGenesis.
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About Radian Oil and Gas Services Company
Radian is a private Saudi company that provides technologies that help customers conserve energy and operate more efficiently through a wide range of solutions while saving fuel, water/electricity and reducing carbon dioxide emissions.2 Emissions.
About minerals
Ma’aden is a diversified, multi-billion dollar mining company that was established as a Saudi joint stock company in 1997. Since 2009, Alcoa, the world’s eighth-largest aluminum producer, and Ma’aden have formed a joint venture that has created the world’s largest, lowest-cost, 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 most advanced companies in its industry in the world.
About Peru Genesis Canada Inc.
PyroGenesis Canada Inc., a high-technology company, is a proud leader in the design, development, manufacture and marketing of advanced plasma processes and sustainable solutions that reduce greenhouse gases (GHG) and are economically attractive alternatives to traditional “dirty” processes. PyroGenesis has created proprietary, patented, advanced plasma technologies that are vetted and approved by many multi-billion dollar industry leaders in four massive markets: iron ore pelletizing, aluminum, waste management, and additive manufacturing. With a team of experienced engineers, scientists and technicians working in the Montreal office located on an area of 3,800 square metres2 And 2940 AD2 In manufacturing facilities, PyroGenesis maintains its competitive advantage by staying 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.
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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,” “goals,” “expected,” “does not anticipate,” “expected,” “opportunity exists,” or “positioned.” or “estimates,” “intends,” “assumes,” “anticipates,” “does not expect,” “believes,” or variations of such words and phrases, state or state that certain actions, events or results “may,” “could,” or “May”, “may”, “will”, “will be taken”, “happen” or “achieve”. In addition, any statements that refer to expectations, projections or other characterizations of future events or conditions contain forward-looking statements. Forward-looking statements are not historical facts, nor guarantees or guarantees of future performance, but instead represent management’s current beliefs, expectations, estimates and projections with respect to future events and operating performance.
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Forward-looking statements are necessarily based on a number of opinions, assumptions and estimates that, although 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 anticipated. Through forward-looking statements. Important factors that could cause actual results to differ, perhaps materially, from those indicated in forward-looking statements include, but are not limited to, the risk factors identified under “Risk Factors” in the Company’s most recent annual information form, and in other factors. Periodic filings that the Company has made and may make in the future with 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 factors that could affect the Company. However, these risk factors should be considered carefully. There is no guarantee that these estimates and assumptions will prove 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 OTCQX Best Market accepts responsibility for the adequacy or accuracy of this news release.
For more information, please contact:
Rdina Kaval, Vice President, Investor Relations/Communications. and strategic BD
e-mail: ir@pyrogenesis.com
Related link: http://www.pyrogenesis.com/
1 https://www.bechtel.com/projects/ras-al-khair-aluminum-smelter/
“Delivery of the world’s largest aluminium smelter”
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