The Richmond Club

Technology

PyroGenesis projects revenue growth from unique business lines targeting niche markets

By Galit Solomon and Annemarie Brissenden for The Richmond Report

January 28, 2020

4 min. read

Here's what you need to know

  • PyroGenesis offers unique and effective solutions to clients in niche markets — There aren’t many other vendors that can offer the same solutions.
  • The company identified a number of key niche markets in just 18 months — It also partnered with several significant, credible partners that independently validate the proprietary processes.
  • Pyrogenesis is set to earn revenue well into the future from its backlog of signed contracts — Up from $7 million one year ago to $30 million today, the backlog is projected to increase again by $14 million in the coming months.

PyroGenesis Canada Inc. is adapting the technology it uses to convert waste into plasma energy on American aircraft carriers to break into three niche markets: 3D printing, oil and gas, and mining and metallurgy.

“It’s been a transformative time for PyroGenesis,” says Peter Pascali, the company’s President and Chief Executive Officer. “Our accomplishments over the past year have proven that we have a track record of successfully introducing plasma processes into high value markets.” Plasma, the fourth state of matter, is at the core of the PyroGenesis business model.

“PyroGenesis is a world leader in the design, development, manufacturing and commercialization of advanced plasma processes.”
Greg Beckett, Senior Analyst and Chartered Investment Manager for the Richmond Club

High-tech company that has been around over 25 years

“You may recall your teacher telling you about three states of matter: solids, liquids and gasses,” explains Pascali. “When you heat up an ice cube, it turns from a solid into water. When you heat up water, it turns into gas.” When you heat up gas, it turns into plasma. “We harness plasma and put it into a variety of products and processes including torches, plasma waste processes, high temperature metallurgical processes and engineering services. It’s a highly reactive environment that’s ideal for transforming materials from one state to another.” The patented technology created by PyroGenesis can destroy garbage, convert garbage to electricity or convert wire to powders used for ink in 3D printing.

The high-tech company, which began as a research and development company, has been around for over 25 years. It now has one of the largest concentrations of plasma expertise under one roof at its 40,000 square foot facility in Montreal.

Increasing capacity while cutting costs by 50%

In early 2019, PyroGenesis signed an exclusive partnership deal with Aubert and Duval, one of the world’s leaders in high performance steels, superalloys, titanium and aluminum. It has also developed relationships with American and British special operations to use plasma to develop tactical systems.

The success PyroGenesis has experienced in recent months has increased the company’s backlog of signed contracts from $7 million a year ago to about $30 million today. Pascali thinks that backlog will increase by another $14 million in the coming months, thanks to multi-billion-dollar partnerships in each of its three independent business lines.

“PyroGenesis is a world leader in the design, development, manufacturing and commercialization of advanced plasma processes,” says Greg Beckett, Senior Analyst and Chartered Investment Manager for the Richmond Club. He picks stocks for the Richmond Club Index, which has averaged a return of 20.4% per year over the last 15 years.

“It is impressive to see how far the company has come over the past 18 months. I believe PyroGenesis is on the cusp of rapid growth and that’s the reason I picked the stock for the Richmond Club Index.”

Beckett’s reasons for investing in PyroGenesis:

  • PyroGenesis offers unique and effective solutions to clients in niche markets — There aren’t many other vendors that can offer the same solutions.
  • The company identified a number of key niche markets in just 18 months — It also partnered with several significant, credible partners that independently validate the proprietary processes.
  • Pyrogenesis is set to earn revenue well into the future from its backlog of signed contracts — Up from $7 million one year ago to $30 million today, the backlog is projected to increase again by $14 million in the coming months.