Earlier this month, PyroGenesis Canada (TSX-V:PYR)(OTCQB:PYRNF) said that it received and order for its Drosrite Furnace System from an unnamed North American auto parts manufacturer. The system is trumpeted for being more environmentally friendly than traditional system, while maximizing metal recovery from dross, waste created during metal processing.
Following up on the news of the order, the Montreal-based company said that it has received a down payment of $508,000 for the new system.
It was the second order of a Drosrite System by the customer, a "carbon copy" of the first order, according to PyroGenesis president and CEO Peter Pascali. Pascali disclosed that his company was able to charge substantially more for the second system, C$1.02 million compared to $600,000 for the first order. Pascali attributes the customer willing to pay more to the "impressive return on investment" to the end user.
Management added that Drosrite is expected to start being a a major contributor to PyroGenesis' non-additive business unit in 2018. This thesis is underscored by the existing client still having a need for three more systems, orders that are expected to be realized next year.
The company is also negotiating contracts from other potential clients, including one in the the Middle East and another in India, markets that could potentially create demand for hundred of Drosrite systems. Because of increased interest, PyroGenesis has hired a full-time business development account manager whose efforts exclusively are dedicated to Drosrite.
"2018 is shaping up to be a good year for Drosrite system sales,” said the company in a Monday morning news release on the down payment.
Shares of PYR have risen sharply since hitting 40.5 cents on the final trading day of September, including touching a more than three-month high at 81 cents last month, but are dipping on this morning's news, edging down 3 cents (-4.2%) to 69 cents in early morning action.
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