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Jun 30, 2023
PureCycle Q2 2023 Earnings Report
Announced corporate update and financial results.
Key Takeaways
PureCycle Technologies announced a corporate update and financial results for the second quarter ending June 30, 2023. They achieved first two bondholder milestones, successfully tested core technologies at scale, and extended their revolving line of credit. The Ironton facility is operational and they anticipate operating margins to be in line with budgeted expectations as they prepare for first shipments.
Achieved first two bondholder milestones: mechanical completion and PIR pellet production.
Successfully tested and validated core technologies of the PureCycle purification process at scale.
Closed on the land rights with the Development Authority of Augusta, GA for up to eight purification lines; site construction expected to begin in Q4 2023.
Extended $150 million revolving line of credit through March 31, 2025.
PureCycle
PureCycle
Forward Guidance
PureCycle is focused on commissioning operations to improve processes and core technologies in preparation for full capacity operations at the Ironton facility. They expect to achieve their next bondholder milestone of producing 4.45 million pounds of UPR resin in a month by September 30, 2023. Site development and construction activities for the Augusta site are targeted to begin in the fourth quarter of 2023.
Positive Outlook
- Ironton facility is operational and focused on commissioning operations to improve processes.
- Expect to achieve next bondholder milestone of producing 4.45 million pounds of UPR resin in a month by September 30, 2023.
- More than 10 million pounds of feedstock available for Ironton operations.
- Closed on the Augusta Bonds and is in the final stage of the selection process for an EPC partner for the Augusta site.
- Targeting site development and construction activities for the Augusta site to begin in the fourth quarter of 2023.
Challenges Ahead
- Still in the commissioning phase at Ironton, working to improve processes and core technologies.
- Relying on successfully negotiating contract contingencies to reduce remaining 2023 investment in Ironton.
- Permitting process for Belgium plant expected to be completed by late 2024.
- Joint venture agreement discussions with Mitsui expected to be executed in the fourth quarter of 2023.
- Subject to various risks and uncertainties that may cause actual results to differ from forward-looking statements.