Strong growth in the metal 3D printing powder market! PyroGenesis's fourth quarter 2020 revenue grows 367%

       

Strong growth in the metal 3D printing powder market! PyroGenesis's fourth quarter 2020 revenue grows 367%

【Summary】:

 

Introduction: In 2020, despite the impact of the epidemic, the market demand for metal 3D printing is growing. Antarctic Bear has received positive feedback from many domestic metal 3D printer manufacturers, service providers, and powder manufacturers. Even at a conference, the general manager of AVIC Matt said, "In 2020, our metal 3D printing powder orders will increase significantly, and the growth is expected to be even higher in 2021. The metal 3D printing market ushered in an explosive historic opportunity." So how do foreign metal 3D printing powder manufacturers perform?

Introduction: In 2020, despite the impact of the epidemic, the market demand for metal 3D printing is growing. Antarctic Bear has received positive feedback from many domestic metal 3D printer manufacturers, service providers, and powder manufacturers. Even at a conference, the general manager of AVIC Matt said, "In 2020, our metal 3D printing powder orders will increase significantly, and the growth is expected to be even higher in 2021. The metal 3D printing market ushered in an explosive historic opportunity." So how do foreign metal 3D printing powder manufacturers perform?

 

 

On January 20, 2021, Antarctic Bear learned that PyroGenesis, a metal powder producer and plasma atomization expert, released its financial performance forecast for the fourth quarter of 2020, showing that annual revenue will increase significantly.

 

△PyroGenesis expects that its revenue will increase substantially, and is seeking the industrialization of plasma atomization process, the picture is from PyroGenesis

 

In the three months ending December 31, 2020, PyroGenesis is expected to generate $3-5 million in revenue, an increase of 180% to 367% compared to the $1.07 million reported during the fourth quarter of 2019.

 

PyroGenesis’s strong revenue forecast is conducive to applying to be listed on the Nasdaq. The company’s CEO P.Peter Pascali said at the time that the company has begun to enter a "high-growth phase."

 

Although the company's NASDAQ listing application is being processed, the stock is still only listed on the Toronto Stock Exchange (TSX). Since the announcement of the performance announcement, the stock has risen 7%, from 3.57 Canadian dollars to 3.81 Canadian dollars.

 

Results for the fourth quarter of 2020 and fiscal year 2020

 

According to performance forecast data, PyroGenesis predicts that during the 2020 fiscal year, its total revenue will be between US$14 million and US$16 million. This figure represents an increase of 192% to 233% from the reported revenue of $4.8 million in 2019, and shareholders will now receive a small dividend.

 

In terms of earnings per share (EPS), the company expects that the data for the fourth quarter of 2020 will be between 0.10-0.12 US dollars, and the 2020 fiscal year performance will be between 0.22-0.24 US dollars. Compared with the reported loss of $0.04 in the fourth quarter of 2019 and the loss of $0.07 in fiscal year 2019, these figures represent a turning point for PyroGenesis in a challenging year.

 

Of course, these figures still need to be adjusted at the end of the period, and the company has not yet completed a detailed audit. Therefore, it is currently difficult to determine the factors behind the company's revenue growth, and it is impossible to assess profitability.

 

Allegedly, PyroGenesis is currently seeking to "attract institutional and retail investors" to drive further growth. Looking forward to listing on NASDAQ, PyroGenesis also began to repurchase shares through the NCIB program, which means that the company is expected to increase its valuation.

 

In the repurchase program, PyroGenesis will be able to purchase up to 5 million shares within 12 months.

 

In a statement issued at the same time as NCIB, the company’s board of directors stated: "The market price of the company’s common stock may not reflect the company’s fundamental value, especially growth opportunities."

 

Founded in 1991, ProGenesis uses a patented plasma atomization process to process industrial waste and produce fine spherical metal powders for 3D printing. In recent years, it has been steadily increasing its investment in plasma technology research and development, and has achieved a series of technological developments.

 

PyroGenesis successfully eliminated tungsten contamination in 3D printing powder in March 2018, and subsequently launched the NexGen plasma atomization system. The new machine can produce metal powder at a rate of more than 25kg/h, which is critical to the industrialization plan.

 

Pyrogenesis seeks to produce at full capacity, but in the past two years, it has received several substantial contracts. For example, in 2018, it won an order worth 32 million US dollars, including the first batch of government professional powder goods, and a memorandum of understanding signed with metal processing company Albert & Duval.

 

In addition, in the most recent full financial data for the third quarter of 2020, PyroGenesis reported a backlog of US$36.4 million, which included US Navy transactions of US$11.5 million and Drosrite International’s contracts worth more than US$20 million. In more than half of 2019, PyroGenesis also raised $3 million through non-intermediary private equity financing to continue its expansion.

 

Plasma atomization can produce materials with uniform particle size, making it an ideal choice for 3D printing. Some Canadian competitors use technology similar to PyroGenesis to make 3D printing powder.

 

GE Additive's metal 3D printing powder production unit AP&C also uses plasma atomization to produce proprietary metal powders. This process is very suitable for the production of additive manufacturing materials, but it can also be used in the production of coatings, injection molding and stamping powders.

 

Tekna is another company that produces 3D printing powders through gas plasma atomization. The company signed a memorandum of understanding with steel expert Aperam in 2018, agreeing to jointly develop a spherical metal powder raw material for use in the additive manufacturing industry.