Image source: PyroGenesis Canada

Pyrogensis Canada (Nasdaq:  PYR, Toronto: PYR) reported record fourth quarter and full year 2021 revenue on Thursday, posting C$7.2 million (US$5.8 million) and C$31.1 million (US$24.9 million), respectively.

The fourth quarter revenue number alone was greater than the full year revenue in 2019 and all years prior.

Net loss for the year was C$38.4 million (US$30.7 million) compared to net income of C$41.8 million (US$33.5 million) in 2020. The ugly bottom line was largely attributable to a crushing loss in the fair market value of the company's strategic investment in HPQ Silicon Resources.

The Montreal-based company is a leader in the design, development, manufacture and commercialization of advanced plasma processes and sustainable solutions which reduce greenhouse gases.

Investment thesis

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PyroGenesis stock is down 73% from its February 2021 closing high of $9.43. At Thursday's close of $2.50, the company has a market capitalization of just US$436 million. 

We believe that the company's record performance in 2021 and growth trajectory are not reflected in the current price. We believe further that PyroGenesis has learned a painful lesson from its HPQ Silicon Resources investment.

• PyroGenesis management demonstrated strong operational control to put up record numbers in a year that was challenging from a labor market and COVID-19 perspective.
• PyroGenesis operates in four key multibillion-dollar market segments:
  • Iron ore pelletization
  • Aluminum
  • Waste management
  • Additive manufacturing
• Governments around the world are stimulating their respective economies by promoting and funding environmental technologies and infrastructure projects with a focus on reducing carbon emissions.
• The company has an all-time-high backlog of signed and/or awarded contracts of C$47.7 million (US$38.2 million).

The company is holding an earnings conference call on Friday, April 1, 2022, at 10am Eastern time:

• US callers: 877-800-3460
• International callers: +1 615-622-8042
• Access code: 2253876

An archive of the call may be accessed here.

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Source: Equities News

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