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News Release -  December 22, 2017 5:20 PM ET 

 

 

PyroGenesis advancing all business lines, and announces development agreement between HPQ Silicon and solar silicon specialist Apollon Solar for one-step PURVAP silicon process

 

NEW YORK, NY, December 22,  2017 /Sector Newswire/ -- PyroGenesis Canada Inc. (TSX VENTURE: PYR) (OTC: PYRNF) (Frankfurt: 8PYF) this week announced that HPQ Silicon Resources Inc. signed a development agreement with Apollon Solar, a solar silicon specialist.

 

To the left below is excerpt copy of a Market Bulletin on PyroGenesis. To the right is excerpt copy of recent news.

 

PyroGenesis was identified in a Market Equities Research Group Market Bulletin regarding upside valuation opportunity. The market bulleting offers insight on PyroGenesis for your consideration as four of the Company's business lines are poised for break-out in 2018 (uniquely free of competition).

 

Full copy of the Market Bulletin may be viewed at http://marketequitiesresearch.com/marketbulletin-PYR-dec-2017.htm online.

 

Excerpt:

 

1) Rolls-Royce of 3D printing metal powder (additive manufacturing business line);

PyroGenesis is set to be major 3D metal powder manufacturer in a market currently dominated by GE (which uses the process PyroGenesis invented (and since improved upon)). Two NDA's have been signed with aircraft engine manufacturers, including Rolls-Royce -- major upside share price revaluation in order once contracts are formalized/announced.

 

2) Chemical warfare agents destruction system;

PyroGenesis' mobile plasma chemical warfare agents destruction system is currently undergoing ~US$100 million in testing for special forces, funded in-part by DARPA -- this level of in investment appears bound to translate to sizeable military contracts.

 

3) Dross smelter reclamation;

PyroGenesis' first customer has just ordered another system for reclaiming dross (waste) onsite at smelters without salt, and numerous other groups have requested demos that should convert to sales. PyroGenesis has an exclusive hold on this nascent market with >$400 million market potential in Aluminum production alone (the system is also applicable to zinc, and copper).

 

4) Ultra-low-cost silicon production;

PyroGenesis has potential to make a serious impact on the solar industry having developed the process to produce solar grade silicon in one step (at a fraction of the price).

 

Listed below are the business lines of PyroGenesis in order of magnitude of contribution we anticipate for 2018, each unique and ripe with potential catalysts (largest first):

 

 1) 3D printing metal powder/additive manufacturing

 

Background: PyroGenesis invented 'plasma atomization', the current gold standard for Titanium-metal powder used in 3D printing, PyroGenesis invented the process before 3D metal printing took off, when it was making armor for NATO, it sold the intellectual property to a company that was eventually acquired by General Electric in 2016, effectively allowing GE to corner the market for Ti-metal powder in the 3D printing market. However that is clearly about to change as PyroGenesis is becoming a manufacturer and has improved on the original process, now able to manufacturer customizable narrow particle size distribution, Several highly motivated big potential customers have already signed NDAs and are prequalifying product now (see November 6, 2017 news "PyroGenesis Signs Non-Disclosure Agreement with Rolls-Royce plc for Additive Manufacturing Powders" and December 4, 2017 "PyroGenesis Signs Non-Disclosure Agreement with Second Global Aircraft Engine Manufacturer").

 

What to look for in 2018: Since GE's acquisition of Arcam (which owns powder manufacturer AP&C (which uses PyroGenesis' 1st generation production technique)) 3D printer manufacturers have had two problems/concerns, besides having to approach a competitor controlled supplier; 1) supply chain interruption of powders, and 2) the inability of the marketplace to respond to new demands from innovation that will see next generation printing machines use unique particle sizes. Since PyroGenesis' new plasma atomization towers are able to produce any narrow particle size with no waste, look for NDA's from printer manufacturers, end users (e.g. aircraft engine manufacturers), and distributors, to convert into long-term revenue contracts for PyroGenesis that will see the build-out of proprietary next-gen towers. The share price of PYR.v should respond positively with each new announcement of contracts and as the marketplace realizes the dominance characteristics of PyroGenesis materializing in a growing, yet nascent, additive manufacturing industry. 2018 will likely see shareholders be the beneficiaries of a spin-out of the additive manufacturing business line as a stand-alone high-growth entity.

  

2) Mobile plasma chemical warfare agents destruction system & PAWDS

 

Background: PyroGenesis is an experience and proven supplier to the military, having already delivered Plasma Arc Waste Destruction Systems (PAWDS) for two US aircraft carriers, plus its technology is built into the design of future aircraft orders. So it no surprise that PyroGenesis now sees itself as the sole contender offering a modified, stepped-up, version of its thermal plasma technology offering a solution for mobile chemical warfare agent destruction.

 

What to look for in 2018: Besides another PAWDS aircraft order expected for 2018 and additional land based system sales, the big catalyst in this sector will be orders for special forces as they are currently spending ~US$100 million testing PyroGenesis' mobile plasma chemical warfare agents destruction system. DARPA is funding part of this development and given the size of total investment just for testing, it is likely to translate into several orders near-term at US$6M a system, just for starters. The cumulative dollar value of contracts have potential to be sizeable, however it is the prestige and reputational goodwill generated from being a supplier of technology of this calibre to the military that has potential to add even more value -- the barriers to entry at this level position PyroGenesis in a rare group.

December 21, 2017 news release from PyroGenesis:

 

PyroGenesis Announces that HPQ Silicon Signs Development Agreement with Solar Silicon Specialist Apollon Solar

   

MONTREAL, Dec. 21, 2017 (GLOBE NEWSWIRE) -- PyroGenesis Canada Inc. (http://pyrogenesis.com) (TSX-V:PYR) (OTCQB:PYRNF), a high-tech corporation (the “Corporation” or “PyroGenesis”) that designs, develops, manufactures and commercializes plasma waste-to-energy systems and plasma torch products, announces today that HPQ Silicon Resources Inc., (“HPQ” or the “Client”) signed a development agreement with Apollon Solar, a solar silicon specialist.
 

As previously disclosed, PyroGenesis has been engaged by HPQ to demonstrate, on a laboratory scale, that the PUREVAP™ process can produce high purity silicon metal from quartz in a one step process. Pursuant to a Can$8.3 MM contract signed with HPQ in August 2016, PyroGenesis is designing, fabricating, assembling, commissioning and testing a PUREVAP™ pilot system to produce silicon metal directly from quartz.
 

Mr. P. Peter Pascali, President and CEO of PyroGenesis, provides an overview of today’s announcement in the following Q&A format.
 

Q: HPQ Silicon announced Monday1 their agreement with Apollon Solar (“Apollon”), a solar silicon specialist. What does this mean for PyroGenesis specifically and the project in general?
 

A: This move, to bring Apollon into the HPQ-PyroGenesis fold, is in one word: ingenious. Not only does it demonstrate the validity and merit of our project, but the development agreement, in our opinion, not only increases the probability of success, but decreases the time frame in which success may be obtained.

Q: How is that?
 

A: To answer your question one must first understand who Apollon is and what they have achieved to date.

 

First, Apollon is a private French company which, as one of the world’s leaders in renewable energies, has developed processes to make high purity silicon metal for photovoltaic conversion for use in high performance solar cells…

Q: So, they are competitors to PyroGenesis?
 

A: Absolutely not! They complement us and that is the genius of this partnership.
 
Apollon is an expert in the manufacture of silicon wafers for use in solar panels. Apollon’s unique knowledge and experience with silicon, silicon wafers, and solar panels has enabled it to understand what works and what doesn’t, and they have been extremely successful at this. In fact, Apollon was the first to manufacture entirely monocrystalline Czochralski (“Cz”) ingots made with 100% solar grade silicon metal refined metallurgically (“SoG Si UMG”). Which in layman’s terms translates simply to the fact that they were one of the first to manufacture silicon wafers using an upgraded metallurgical grade (“UMG”) silicon metal as feedstock. In addition to this achievement, Apollon has also managed to obtain conversion efficiencies of over 20% in solar panels using these same wafers. In fact, Apollon holds a world record conversion efficiency of 21.1% with wafers made from UMG silicon metal used as feedstock.

 

So, in short, Apollon has managed to use UMG silicon metal as feedstock, manufacture silicon wafers, introduce them into solar panels, and get world record conversion rates.

Q: And….?
 

A: And we can supply Apollon with the required feedstock, and therein lies the beauty of this arrangement. Apollon has proven that UMG silicon metal can be used as feedstock to make silicon wafers for solar panels. Our results to date show that PUREVAP™, at a bench test scale, could convert quartz into the UMG silicon metal which can be used as feedstock to manufacture Apollon’s wafers for solar panels.
 
Q: What else can you say about Apollon and the team?
 

A: It is important to realize, that in all this, Apollon is actually the first independent party to validate the innovation potential of the PUREVAP™ process. When reviewing the PUREVAP™ process, Apollon concluded that:

  • PUREVAP™ is a new metallurgical process (patent pending held by HPQ) for the production of solar grade silicon metal, and that it is a unique process, based on the innovative plasma technology that is at the heart of PyroGenesis’ expertise, and

  • The successful commercial application of the PUREVAP™ process will lead to the production of solar quality silicon at significantly lower costs compared to those of competing process technologies (examples include Siemens chemical process, Elkem Solar, Silicor Materials, etc.)

Without a doubt, future collaboration between HPQ, Apollon and PyroGenesis should increase the probability of success of the project. In this sense, Apollon brings two important elements to the team:

  • Firstly, the ability to achieve a higher level of vertical integration (from the extraction of raw quartz (SiO2) by HPQ all the way to the production of solar cells), and

  • Secondly, many years of innovative research and development work in the field of solar silicon and solar panels which complements the work already underway.

Q: From a practical perspective, how do you expect these benefits will be integrated into the project?
 

A: In the short term, we expect Apollon to provide immediate input into, and to help accelerate, the development phase of GEN-2 as well as to de-risk the design and testing of the pilot phase of the project (GEN-3). In the longer term, Apollon’s knowledge and expertise in solar panels will not only lend itself well to the integration of silicon produced by the PUREVAP™ technology into solar panels, but could eventually lead to HPQ becoming a vertically integrated producer of such solar panels.
 
Q: Conclusion?
 

A: Once again, we are impressed with the strategies and forward thinking of the HPQ team. They have done their research and positioned themselves to be a significant force within their space. We are happy to be engaged in this project.
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...click here for full copy of release from source

 

  

 

3) Mining metallurgy DROSRITE

 

Background: PyroGenesis invented DROSRITE™, a system for recovering metal from dross (a waste generated in the metallurgical industry). At smelters dross forms at the top of hot batches where the metal comes in contact with oxygen. Traditionally dross is scooped off and taken offsite to be treated with salts (salt can’t come in contact with the main batch as it will ruin it) to recover the metal content within -- the conventional process typically costs between $250/t - $350/t as it involved transport, reheating, and several steps. PyroGenesis’ DROSRITE™ allows a smelter to handle dross onsite adjacent the smelter at a cost under $100/t and achieve between 10% - 15% better recovery. PryoGenesis’ first DROSRITE™ client is an aluminum smelter in Mexico, at a subsidiary of an American mining Company, which purchased the system after successfully testing out a demo unit. They have since ordered a second unit and indicated they require two additional systems.
 

What to look for in 2018: Currently PyroGenesis is in negotiations with its repeat/first client for the other systems, negotiating pricing and trying to work out a recurring revenue stream/maintenance contract. Every smelter in the world could benefit from a
DROSRITE™ system and PyroGenesis has hired a full time global salesperson. Important to note is that the proven M.O. of 'testing a unit which then leads to a sale' is expected to play-out in 2018; so far demo units have been requested by new clients in the Middle East and India (these are large clients with ultimate need for multiple systems). In terms of magnitude, DROSRITE™ sales potential for 2018 have potential to dwarf all business lines – this is a new market in which every client would be remiss in not using the technology and PyroGenesis owns this nascent sector. Although the Company is concentrating on aluminum smelters, the system is also applicable to copper and zinc. Look for this business line to grow in multiples in 2018.
 

4) Mining metallurgy PUREVAPTM solar grade silicon production

 

Background: PyroGenesis has a contract with HPQ Silicon Resources Inc. to develop PUREVAPTM process (for HPQ's benefit), able to turn quartz into 6N (99.9999% purity) solar grade silicon in one step. HPQ will be positioned to singlehandedly disrupt the silicon market pricewise once the contract is complete -- PyroGenesis gets 10% royalty upon commercialization.

 

What to look for in 2018: HPQ Silicon Resources Inc. is a very focused well managed Company that, if all goes to plan (and there is no indication it shouldn't), is looking to achieve 6N purity in its second phase, lab scale testing program. The Gen 2 PUREVAP™ Quartz Reduction Reactor, a 1/250 scale model of the planned 200 metric tonne (MT) per year pilot plant, is undergoing testing/refinement, and will be able to improve on what was accomplished in Gen 1 PUREVAP™. So far PyroGenesis and HPQ Silicon Resources Inc. have already achieved near-4N purity in the one-step process, which is a phenomenal accomplishment and in itself has important commercial application. There is a critical shortage of solar grade silicon in the market (see related Bloomberg article "Solar Companies Are Scrambling to Find a Critical Raw Material") and it is the largest material cost in producing solar panels. The PUREVAP™ process is revolutionary and will dramatically change the solar industry if PyroGenesis and HPQ accomplish what they appear on the cusp of doing -- if 6N purity is achieved in the upcoming testing the share price of HPQ Silicon Resources Inc. will skyrocket, and PYR.v will see a noticeable boost too. Note: HPQ recently had an equity financing in which demand for the placement exceeded the over allotment potential, however the Company decided to close the placement and limit dilution -- don't let the fire-sale price of HPQ's stock bias you, there are a lot of smart people jockeying for position in anticipation of a major win here.

 

 

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We have identified the following additional research links for further DD on PyroGenesis Canada Inc.

 

 

This release may contain forward-looking statements regarding future events that involve risk and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual events or results. Articles, excerpts, commentary and reviews herein are for information purposes and are not solicitations to buy or sell any of the securities mentioned.

 

 

SOURCE: Sector Newswire editorial

editorial@SectorNewswire.com

 

 

 

  

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