Dear Poetech2,

Good to see you post here again.

Still crazy busy here so please allow me to comment/answer your points directly below:

These news from today are amazing and very exciting! Congrats to the entire team!

Answer: Thanks.  I will pass that on

I have some related questions and I would really appreciate your feedback.

Once this current modelling contract is complete, what would the next steps be?

Answer:   It is difficult to say here as I wouldn’t want to tip my hand to the other side…but the next step would be to implement the transition to plasma.  The sooner they do it the sooner they save money (and arguably have a leg up on the competition).

Would it be safe to assume that another contract for the actual torches will need to be negotiated and signed?

Answer:  That would be reasonable, yes.

Are there any timelines / milestones estimated for that?

Answer: I want to say “imminent” just to get CdnBacon’s (another poster) goat, but I won’t…not this time at least ;-).   Look, in my humble opinion,  timelines/milestones at this level are really immaterial in the context of the question (which I think is when do things translate to the bottom line).  The market potential is so huge, and the potential impact of the Company is equally huge, that we are not talking pennies here where timing/timelines are crucial to determine value.  The impact is so great that one shouldn’t care if the timeline is next week, next month, six months or a year from now…it is that big.

When mentioning that each torch generates "up to $3M of revenue to PyroGenesis", is that based on terms already agreed with this customer, or just a ballpark number for a torch?

Answer: Being torch experts we know what this type of torch should generate in “normal” circumstances…what do I mean by “normal”? i.e. priced competitively and not as a function of cost savings by the customer.  Let me explain (and this is just to make a point and has nothing to do with the situation at hand: Say something is priced at $3M in a competitive environment, but say the same item is not priced in a competitive environment and brings $10M of savings to the client…don’t you think you could price it higher? Maybe $4MM?  That’s my point.

Hope that helps,

Peter