PYR stock soars on payment from unnamed client

We don’t know who the client is, but PyroGenesis (PyroGenesis Stock Quote, Chart, News, Analysts, Financials TSX:PYR) is already reaping the rewards from the relationship.

PYR stock is leading the TSX gainers today after announcing it had received an initial payment from said client to the tune of $667,252 Canadian, or half a million US dollars. The payment, the company says, is part of contract valued at more than $10-million to build high power 2MW air plasma torch systems.

“This nonrefundable down payment is a significant step towards concluding the first SOW under the Master Agreement, a contract which anticipates many more SOWs to come,” said CEO Peter Pascali. “Provided the Client receives adequate financing, this contract has the potential to be a springboard from which PyroGenesis introduces a significant number of plasma torches into the marketplace. These direct sales would have an obvious impact on revenues and profitability, but they would also speak to our strategy to develop ongoing revenue streams from activities such as maintenance and spare parts sales. As industries increasingly seek efficient alternatives to fossil fuel-based systems, PyroGenesis’ electric and carbon-free plasma torches continue to be proven as not just a highly suitable alternative, but also a potentially faster and more cost-effective solution.”

Montreal-based PyroGenesis has developed patented plasma technologies that the company says are undergoing evaluation and implementation by various industry giants across four major sectors: iron ore pelletization, aluminum production, waste management, and additive manufacturing.

At press time, PYR shares were up 22.8 per cent to $0.70.