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PyroGenesis new generation of 3D metal powder production poised to skyrocket valuation

PyroGenesis Canada Inc. (TSX-V:PYR) is the Company that invented plasma atomization, the current gold standard for Titanium-metal powder used in 3D printing.

PyroGenesis Canada Inc. (TSX:PYR)

PyroGenesis is active and on the cusp of breakout on four key plasma solution fronts, each with company-maker potential. Near-term (12 month) price target for PYR.V: $3.00+/share.”
— Technology MarketWatch Journal

NEW YORK, NY, UNITED STATES, October 19, 2017 / -- PyroGenesis Canada Inc. (TSX-V: PYR) (OTC: PYRNF) (Frankfurt: 8PYF) is arguably the most advanced plasma technology Company in the world, with one of the largest concentration of plasma expertise under one roof working out of a ~40,000 sq. ft. facility in Montreal, is considered the go-to source for the US Military when an application requires a plasma solution, it has over 57 patents (issued or pending), including being the inventors of 'plasma atomization' which is considered the current gold standard for production of Titanium-metal powder used in additive manufacturing (3D printers). The Company's latest innovations/plasma solutions in chemical warfare agent destruction, metallurgy, and especially additive manufacturing, are all revolutionary, each on the cusp of exponential growth, and position the share price of PYR.V at a major inflection point, presenting opportunity for astute shareholders. It appears only PyroGenesis' new generation plasma atomization system, able to produce any size cut, will be able to cater to what is setting up to be explosive growth in future 3D metal printing.

PyroGenesis is the subject of a Technology MarketWatch Journal review, the full Journal article may be viewed at online.

PyroGenesis has been advancing plasma solutions for over 20 years, it currently has delivered Plasma Arc Waste Destruction Systems (PAWDS) for two US aircraft carriers and its technology is built into the design of future aircraft orders. Its trusted relationship with the military (which has the very highest DD/vetting standards) speaks to PyroGenesis' credibility and reliability -- something that gives it a leg-up as it commercializes/monetizes the latest applications of its technologies. Only recently has a confluence of opportunity materialized that will see demand grow exponentially for new applications of its technologies on four key fronts:

A) Military/environment: 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.

B) Mining metallurgy DROSRITE: PyroGenesis Canada Inc. (PYR.V) invented DROSRITE, a process for reclaiming dross (waste) onsite at smelters without salt -- sales are gaining traction and exponential growth appears in store. Its first customer is in negotiations to buy several more, and numerous other groups have requested demos that should convert to sales. This is a ~$400 million market potential in Aluminum production alone, then there is zinc, and copper.

C) Mining metallurgy PUREVAP solar grade silicon production: PYR.V has ~$8M contract with HPQ Silicon Resources Inc. to develop PUREVAP process for it, 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.

D) Metal Injected Molding (MIM) powder production for additive manufacturing (3D Printing): PyroGenesis' new generation plasma atomization process can do what no one else can and will give it significant advantage in the marketplace; able to produce any narrow particle size with no waste, and can be adapted for different metals. If all goes according to plan, the marketplace will see PyroGenesis quickly capture market share, filling the immediate need for a credible 2nd producer of Ti-metal powder, and put a target on its back in the process, able to readily scale-in systems to service this explosive market. GE has effectively cornered the current market with old IP/technology that PyroGenesis invented (but sold before 3D metal printing evolved and became in demand). Ramp-up of PYR.V's first production tower is almost complete, and several highly motivated big potential customers have already signed NDAs and are prequalifying product now (before ramp-up completion, way before PyroGenesis had originally planned). This move into powder production appears to be the beginning of what is shaping up to be a massive growth story that will richly reward shareholders astute enough to establish a long position now. Each plasma atomization production tower PYR.V brings online, at current commodity pricing, should be capable of generating ~$12M in revenues per year (with very healthy margins) -- if the Company conservatively brings say 16 towers online over the next couple years that would represent LESS THAN 6% of the market demand. For those familiar with the shifting fundamentals afoot in the marketplace, PYR.V is poised to dwarf conservative projections as it appears to be the only entity with technology able to cater to the explosive growth in future 3D metal printing (see overview/analysis section further below).

PYR.V currently has a market cap of ~C$54 million (107.8 million shares outstanding (~119M fully diluted) recently trading at ~C$0.50/share), miniscule compared to what is shaping up. Forward discounted metrics of revenue dictate PYR.V trade at a significantly higher valuation, the share price is apt to rise in spurts as developments/news catalysts unfold; a near-term upside share price revaluation closer to $3/share for PYR.V is in order to better reflect the reality of what is unfolding, on its way to even higher valuations from there.

PYR.V on solid footing -- The Company has started to cash flow positive on an adjusted EBTDA basis this 2017 from its core/traditional business lines alone; revenue is up in both Q1 (+67%) and Q2 (+165%) over the same periods the year prior. Its gross margins are 48%, and this is from its core business incorporating the expenses of ramping up the additive manufacturing business (the cost of the tower, the salaries, and the analytical equipment -- the Company still made 48% Gross Margin). The backlog of signed contracts from its core business is $7.63 million (which is respectable as it had been running $5M - $6M/year for the past 3 years). Its pipeline is ~$21M.

The full Journal article may be viewed at online.

This is NOT a solicitation to buy or sell any securities mentioned.

Fredrick William
Technology MarketWatch Journal
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