Loading...
•
Sep 30, 2022
PureCycle Q3 2022 Earnings Report
PureCycle reported a delay in mechanical completion of the Ironton facility, closed offtake agreements representing 111% of nameplate capacity for Augusta lines 1 and 2, and finalized a Joint Venture Agreement with SK geo centric.
Key Takeaways
PureCycle Technologies announced a delay in the mechanical completion of its Ironton facility to Q1 2023 due to equipment delivery delays. The company finalized a joint venture with SK geo centric for a facility in South Korea. Offtake agreements for Augusta lines 1 and 2 reached 111% of capacity. They are evaluating financing options to fund the Augusta project and East Coast PreP facilities.
Ironton facility mechanical completion and pellet production expected in Q1 2023.
Offtake agreements for Augusta lines 1 and 2 are at 111% of nameplate capacity.
Joint Venture Agreement finalized with SK geo centric for a purification facility in Ulsan, South Korea.
Financing targeted to fund Augusta lines 1 and 2 and three East Coast PreP facilities.
PureCycle
PureCycle
Forward Guidance
PureCycle anticipates mechanical completion, startup, and full commissioning of Augusta lines 1 and 2 to be in the second half of 2024, with construction activities in Ulsan, South Korea commencing in the second half of 2023, and production ramp-up currently anticipated in the second half of 2025. They expect their three PreP facilities to be fully operational in advance of the completion of Augusta purification lines 1 and 2.
Positive Outlook
- Ironton facility targeting mechanical completion and pellet production in Q1 2023.
- Augusta lines 1 and 2 are currently 111% contracted through multi-year offtake agreements and commitments.
- Expect three PreP facilities to be fully operational in advance of Augusta purification lines 1 and 2.
- Construction activities to commence in Ulsan, South Korea in the second half of 2023.
- Working diligently to have financial flexibility and the needed commitments by year-end.
Challenges Ahead
- Timing of mechanical completion and pellet production at Ironton facility has been pushed back a few weeks due to unexpected delays in equipment delivery.
- Market conditions remain challenging and have created uncertainty as to the timing of the currently anticipated project financing for the Augusta Facility.
- AEDA may terminate the MOU should the Company fail to obtain financing by December 31, 2022.
- Experienced a more challenging financing market than originally anticipated when initiating fund raising efforts in June.
- Received a notice from a single feedstock supplier and offtake customer of the Ironton Facility, seeking to terminate the feedstock and offtake agreements.