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Jun 30, 2022
PureCycle Q2 2022 Earnings Report
PureCycle announced a corporate update and financial results.
Key Takeaways
PureCycle Technologies provided an update for the second quarter ending June 30, 2022. The company's flagship purification facility in Ironton, Ohio, remains on schedule, targeting mechanical completion in the fourth quarter 2022 and expected pellet production by year-end 2022. Project debt financing to fund Augusta’s first two purification lines and three East Coast PreP facilities expected to be completed by the fourth quarter.
Ironton facility remains on schedule, targeting mechanical completion in Q4 2022 and pellet production by year-end 2022.
Augusta multi-line purification facility build-out is underway, with startup now expected to be in the first quarter of 2024.
Received FDA prenotification letter for use of food-grade recycled materials.
Expanded feedstock supply network, with full allocation of Ironton and the first two lines in Augusta through multi-year commitments.
PureCycle
PureCycle
Forward Guidance
PureCycle expects project debt financing to be completed by the fourth quarter of 2022, providing sufficient capital to fund Augusta’s first two purification lines and three East Coast PreP facilities. The Ironton facility is on track for mechanical completion in Q4 2022, with initial pellet production by year-end. The company anticipates its first regional PreP facility in Central Florida to be operational during the fourth quarter of 2022.
Positive Outlook
- Project debt financing expected to be completed by Q4 2022.
- Ironton facility remains on track for mechanical completion in Q4 2022.
- Initial pellet production expected by year-end 2022.
- First regional PreP facility in Central Florida anticipated to be operational during Q4 2022.
- Augusta lines 1 and 2 are currently 70% allocated through multi-year offtake contractual agreements and commitments.
Challenges Ahead
- Startup of Augusta multi-line purification facility now expected to be in the first quarter of 2024 due to current economic climate.
- Changes in leadership were announced, effective August 5, 2022.
- Potential impact of climate change on PCT, including physical and transition risks, higher regulatory and compliance costs, reputational risks, and availability of capital on attractive terms
- Operational risk
- The risk that the COVID-19 pandemic may have an adverse effect on PCT's business operations, as well as PCT's financial condition and results of operations.