PureCycle (PCT) Update / Briefing Transcript

PureCycle Technologies Growth Capital Raise Corporate Update Conference Call Summary Company Overview - Company: PureCycle Technologies (PCT) - Event Date: June 17, 2025 - Key Speakers: Dustin Olson (CEO), Jamie Vasquez (CFO), Eric Gennantale (Director of Investor Relations) Key Points Industry and Market Context - PureCycle operates in the recycled polypropylene (PP) market, which is experiencing significant growth due to increasing demand for sustainable materials and regulatory changes favoring recycled content [6][10][12] - The global PP market is projected to grow by approximately 7 billion pounds annually, with PureCycle aiming to capture a portion of this market [30] Growth Plans and Capacity Expansion - PureCycle plans to increase its installed capacity to 1,000,000,000 pounds following a $300,000,000 capital raise [3][6] - The expansion is expected to generate approximately $600,000,000 in EBITDA by February [6] - The company is focusing on establishing facilities in Thailand, Antwerp, and Augusta to optimize costs and meet global demand [15][21][22] Financial Metrics and Capital Expenditure - Total capital expenditure (CapEx) for the expansion is estimated at $2,000,000,000, with expectations to keep CapEx per pound below $2 [24][62] - The Thailand facility's all-in cost is projected to be around $220,000,000, translating to $1.4 to $1.7 per pound [58] - The Antwerp facility is expected to have a higher CapEx, around $300,000,000, but still aims for competitive pricing [59] Operational Improvements and Technology - PureCycle has made significant operational progress at its Ironton facility, achieving on-stream times approaching 90% and producing pellets for 65 consecutive days [8] - The company has developed a world-class R&D facility in Durham, North Carolina, enhancing its technological capabilities [10] - The learnings from Ironton are being integrated into future designs to improve reliability and efficiency [34][77] Customer Engagement and Market Demand - Strong endorsements from key customers such as Drake, Churchill, and Bruckner indicate growing commercial interest [9] - Regulatory changes, such as Extended Producer Responsibility (EPR) and minimum recycled content laws, are driving demand for high-quality recycled materials [12][40] - The company anticipates that its growth plan will facilitate discussions with major global brands, enhancing its market position [42] Strategic Partnerships and Global Footprint - Collaboration with IRPC in Thailand is expected to reduce CapEx and operational costs due to existing infrastructure [18][19] - The global footprint allows PureCycle to source feedstock and distribute products efficiently, meeting customer sustainability needs [15] Future Outlook - PureCycle aims to penetrate less than 0.5% of the total global polypropylene market by 2030, setting the stage for continued growth [13][30] - The company is optimistic about its ability to scale operations and meet increasing demand for recycled materials [41][62] Conclusion - PureCycle is positioned as a leader in the recycled polypropylene market, with a robust growth plan supported by significant capital investment and operational improvements [30][83] - The next five years are expected to be transformative for the company, with a strong focus on expanding capacity and enhancing product offerings [83]