Nog eentje:
Client A probability it is the biggest giant ,VALE, is extremely high and the numbers make huge sense to move asap w PYR!
VALE Iron Ore Producer / Salient Points:
$57Billion USD maket cap .
Biggest iron ore pelletization international producer in the world
International producer with 19 plants[10 in Brazil, 2 in China, 2 in Oman, 4 JV with BHP Biliton, 1 currently out of operation]
$2Billion USD earmarked/budgeted specifically to lower Vale's GHG emissions by 33 % in less than 9 years(2030)
Reduction target of 9.5Million tons of GHG emissions
$2B/9.5M = $210.53 USD price per ton allocated..very important facts as you see the correlaton
Pyrogenesis correlation & relevance / Salient Points:
Vale stated in their sustainability report(p97) to decarbonization of metallurgy and using electric processes to accomplish that...."One of the main curren programs of the company is PowerShift, which seeks to boost innovation and technologies for the effective reduction GHG emissions in operations...."
Pyrogenesis’ first NR for this client on April 30 stated that the client is an ‘international producer’ of iron-ore pellets with over 10 plants requiring plasma torches
June 11, 2020 Pyrogenesis NR states the use of PYR's plasma torches could result in at CO2 reduction in excess of 350,000 tons per yer per plant *THIS IS OF HUGE IMPORTANCE*
Vale's utilizaing PYR's torches per plant: 350,000 tons/year x $210.53USD/plant = $73.7Million USD/year
Economics effectiveness per torch: $73.7M USD/50 torches per plant=$1.474M USD is $2M CDN
$2CDN is the base minimum Vale can budget for each PYR plasma torch. Add Gov't grant $, carbon credits and avoiding fines/penalties, appeasing investors etc...we can easily conclude $3M CDN NPV valuation at very base min. per torch as Peter stated.
PYR is the ONLY game in town who is the only induration plasma torch application granted patent!
On July 2, Pyrogenesis announced that the subsequent phases of the benefits of transitioning to plasma torches were extended by 6 weeks in order to incorporate the additional data into an ‘ideal plasma torch configuration’ for this client, with the ultimate goal being to eliminate GHG emissions from all their plants. “Barring any unforeseen events, we believe that it is entirely reasonable that initial torch equipment purchases will be placed in Q3 2020.”
Only a few days later, July 6, Vale announced plans to offer notes due 2030 and July 7 there is the US $1.5B offering due 2030. The timing of the offering and the dollar value heavily leans towards everything coming together...very strongly!
Reconcilion of facts on hand:
18 plants @ 350,000 tons/year reduction of GHG w PYR torches = 6.3Million tons/year of reduced GHG emissions . Compare that with Tesla 3.6Million tons over 3 years to day. Vale can almost double that inredible feat in the 1st year utilizing PYR's torches
Highest and best case with full swap out of all of Vale's 18 plants: 18 x 50 torches/plant = 900 torches. 900 torches x $3M/torch =$2.7B torch sale @67% margin = $1.809B profit [ based on Sweden Rise contract of $1M w small profit cab deduce $3M would carry 67% profit margine spread at base min].
Add 5% recurring revenue for maintance 20-30 years useful economic life of torches = $135M/year [very high profit margin as only one service center PYR]. I will let you guys use your own P/E ratios of 20,30 etc....
Client B , C and beyond...till next time bc this is monterous huge enough for today and it would be hard to wrap our heads around this bc it is that huge. This is only one division in 1 industry...PYR has other massive divisions that can and will morph into greatness you can be sure of that!