PureCycle Technologies(PCT) - 2023 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company processed 410,000 pounds of feedstock through the purification system, which is lower than expected but validates the technology's capability to recycle large amounts of feedstock and remove contaminants [130] - The corporate cash burn was approximately $10 million per quarter, with $23 million used for ongoing corporate and Ironton operations during the quarter [63][88] - The company ended the quarter with over $211 million in unrestricted liquidity, which will be used for growth initiatives [87] Business Line Data and Key Metrics Changes - The company achieved a PreP feed rate of 14,000 pounds per hour, approximately 97% of nameplate capacity, and a final product extruder flow rate of 13,400 pounds per hour, exceeding nameplate capacity at 109% [1][24] - The feed extruder flow rate reached 9,400 pounds per hour, which is 77% of nameplate capacity [1] Market Data and Key Metrics Changes - The company has successfully produced on-spec products for various PIR and PIR PCR blends, with initial shipments to Formerra and Milliken marking a significant step towards customer sustainability goals [2][7] - The company noted low current feedstock pricing and competitive variable costs, supporting a strong business model [3] Company Strategy and Development Direction - The company plans to implement an automated screen changer during a two-week shutdown to improve production rates and operational reliability [5][103] - The focus remains on improving operational efficiency and reducing carbon footprint, with a commitment to using renewable energy sources for future facilities [80][81] Management's Comments on Operating Environment and Future Outlook - Management expressed pride in the team's resilience despite operational challenges and emphasized the importance of learning from the startup process to improve future operations [3][51] - The company aims to restart production at 50% capacity post-outage, with a goal of achieving 4.45 million pounds in December [104][122] Other Important Information - The company has an agreement in principle with bondholders for a revised bondholder agreement, expected to be finalized soon [82] - The company raised $218.5 million in net proceeds from green convertible bonds, which will fund growth initiatives [84] Q&A Session Summary Question: What is the current status of the Scheibel column seal? - Management confirmed confidence in the Scheibel column seal, addressing early design problems and implementing solutions [93] Question: Can you elaborate on the environmental impact of the technology? - Management highlighted multiple life cycle analyses showing a significant reduction in carbon usage compared to virgin polypropylene production [120] Question: What are the expected production rates post-outage? - The company plans to restart production at 50% rates and aims to ramp up to higher levels, targeting 4.45 million pounds in December [104][122]