PureCycle Technologies(US:PCT)2023-03-16 18:48Financial Data and Key Metrics Changes - The company ended the quarter with over $326 million in total available liquidity [11] - Cash and debt securities available for sale decreased by $52.5 million from September [37] - The company anticipates investments in 2023 to complete the Ironton facility could range from $55 million to $80 million [37] Business Line Data and Key Metrics Changes - The Ironton facility is nearing mechanical completion, expected by early April, with plans to start producing ultra-pure recycled (UPR) resin pellets by the end of April [6][39] - The company aims to produce 55 million to 75 million pounds of UPR resin in 2023 [6] - The Augusta facility is in the early engineering phase with a startup plan for late 2024 [6] Market Data and Key Metrics Changes - The company has secured new feedstock and offtake relationships, with letters of interest signed representing a feedstock over-subscription at 125% and off-take nearly sold out at 75% [20] - The company announced a new purification facility at the Port of Antwerp, expected to produce up to 520 million pounds annually, with startup planned for early 2026 [20] Company Strategy and Development Direction - The company is focused on scaling operations at the Ironton facility and optimizing costs through operational excellence [41] - The company is actively pursuing joint ventures in Japan and South Korea, with site selection efforts narrowing down to two locations in Japan [17] - The company aims to leverage lessons learned from the Ironton project to improve execution and construction efficiency for the Augusta facility [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving operational milestones for the Ironton facility, despite previous delays [18] - The company is optimistic about the long-term economics of the Ironton facility and expects to see significant performance improvements as operations ramp up [37] - Management highlighted the importance of maintaining financial flexibility and optionality in capital raising efforts [50] Other Important Information - The company successfully negotiated a waiver with bondholders, which included operational milestone dates for the Ironton project [18] - A $150 million revolving line of credit was secured to support operations and bridge funding needs [38] Q&A Session Summary Question: Can you walk through the next four weeks regarding the Ironton facility? - Management indicated that the next four weeks will focus on finishing final touches and initiating the operations PSSR process, with all extruders nearly mechanically complete [43] Question: What is the status of feedstock sourcing? - Management confirmed that all feedstock requirements for Ironton are firmly sourced, and they are well-positioned for both feedstock and offtake [46] Question: What are the expectations for the Augusta facility's financing? - Management stated that they are evaluating financing options and maintaining flexibility to ensure compliance with the Augusta Economic Development Authority's requirements [50]