Loop Industries(US:LOOP)2022-01-12 20:04Financial Data and Key Metrics Changes - At the end of Q3 2022, Loop Industries had $54.9 million in cash, having used $10.7 million during the quarter [19] - R&D expenses increased by $1.6 million compared to the prior quarter due to ongoing engineering work for the Infinite Loop projects [19] Business Line Data and Key Metrics Changes - The company is advancing customer contract negotiations with global consumer packaged goods (CPG) brands for multi-year volume allocations for the Quebec facility [11] - The engineering design of Infinite Loop manufacturing facilities is progressing on schedule, with a feasibility study phase initiated to obtain a more precise cost estimate [14][13] Market Data and Key Metrics Changes - The Asian market represents nearly 70% of the world's PET consumption and is the center of global polyester fiber manufacturing [17] - Loop and SK Geocentric plan to build a minimum of four facilities in Asia by 2030, with the first facility located in Ulsan, South Korea [18] Company Strategy and Development Direction - Loop Industries aims to address climate change through the decarbonization of plastic, focusing on providing 100% recycled content for PET plastic and polyester fiber [6][7] - The company is pursuing the construction of commercial-scale facilities in Quebec, Europe, and Asia, leveraging partnerships with SUEZ and SK Geocentric [9][15][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing negotiations for government financing, which is critical for the Bécancour facility to meet Canada's 2030 plastic waste goals [23][24] - The company anticipates 2022 to be a transformational year focused on accelerating the commercialization of its technology and securing multi-year off-take commitments [20] Other Important Information - The Infinite Loop project in Bécancour is seen as essential infrastructure for Canada to meet its recycling objectives [12] - The company is finalizing site selection for the European facility in Normandy, France, with construction expected to break ground in 2023 [16] Q&A Session Summary Question: Status of Bécancour and conditions for next construction phase - Management is completing the engineering package by Q1 2022 and discussing various financing options, with government financing playing a significant role [23] Question: Timing for site selection with SUEZ - Site selection is imminent as the company has narrowed down options to three sites in France [25] Question: Groundbreaking in Asia with SK - The Asian facility is expected to break ground before Bécancour, with the engineering package being the gating item [26][27] Question: CapEx expectations for 2022 - Estimated CapEx for the Bécancour facility is $300 million, with ongoing discussions for financing [30] Question: Supply timeline for evian partnership - The resin has already been shipped to evian, and it is now on their schedule to produce the bottles [36] Question: Updates on land sale - There has been significant interest in the land for sale, with ongoing due diligence by potential buyers [46] Question: Customer off-take agreements - There is strong customer interest from beverage companies and polyester fiber users, with ongoing negotiations [48]