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Mar 31, 2022
PureCycle Q1 2022 Earnings Report
Announced corporate update and financial results.
Key Takeaways
PureCycle Technologies reported progress in Q1 2022, with the Augusta facility construction underway and on track for a Q4 2023 startup. The Ironton facility is nearing mechanical completion, and commercial progress is visible through the allocation of Ironton and Augusta's first two lines.
Ironton, Ohio facility remains on schedule for mechanical completion in early Q4 2022 and pellet production by year-end 2022.
Construction is underway for the Augusta, Georgia facility, with Phase 1 on track for startup in Q4 2023.
Commercial pipeline progressing with the Augusta facility (lines 1 & 2) currently 70% allocated through multi-year commitments.
Feedstock discussions remain on track with 75% of lines 1 & 2 under letters of intent (LOIs).
Forward Guidance
PureCycle is focused on completing the Ironton facility, constructing the Augusta facility, and securing feedstock and project debt financing.
Positive Outlook
- Ironton facility on track for mechanical completion in early Q4 2022 and pellet production by year-end 2022.
- Augusta facility construction underway and on track for startup in Q4 2023.
- Commercial pipeline progressing with Augusta lines 1 & 2 currently 70% allocated.
- Feedstock discussions remain on track with 75% of lines 1 & 2 under letters of intent (LOIs).
- Jefferies LLC engaged to lead project debt financing for Augusta lines 1 and 2, along with three PreP facilities.
Challenges Ahead
- Expect to exceed the original Ironton facility budget by $55 - $65 million due to increased investments and inflationary pressures.
- Potential risks related to meeting regulatory requirements for UPR resin in food grade applications.
- Risks associated with scaling and building the Ironton facility in a timely and cost-effective manner.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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