In This Article:
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Unrestricted Cash: Ended June with just under $11 million.
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Cash Expenses: $34.7 million for the second quarter, $9 million higher than the first quarter.
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Normalized Cash Outflows: Approximately $26 million per quarter.
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Revenue Bonds Sale: $22.5 million face value sold for $18 million cash proceeds.
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Production Metrics: Achieved new high bars for feed at 8,000 pounds per hour and pelletization at 11,000 pounds per hour.
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CP2 Removal: Improved from 3,000 pounds per day to over 20,000 pounds per day.
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Peak Daily Production: Reached 134,000 pounds in June.
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Production Days: Produced pellets 25 out of 30 days in June.
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Solvent Circulation and Utility Plant Reliability: Operating at greater than 98% uptime.
Release Date: August 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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PureCycle Technologies Inc (NASDAQ:PCT) achieved new high production rates, reaching 8,000 pounds per hour for feed and 11,000 pounds per hour for pelletization.
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The company successfully removed over 20,000 pounds per day of CP2, significantly improving from the previous 3,000 pounds per day.
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PureCycle received an FDA Letter of Non-objection for its process, allowing the supply of FDA-quality products to the market.
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The company has established a footprint with multiple compounders, enabling tailored product solutions for customer needs.
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PureCycle successfully marketed and sold $22.5 million of revenue bonds, with plans to market the remaining bonds later in the year.
Negative Points
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The production rates, while improved, are still significantly below the nameplate capacity.
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The company faced downstream bottlenecks in the low-pressure CP2 system, impacting production rates in July.
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Cash expenses increased to $34.7 million for the second quarter, higher than the previous quarter.
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The variability in operations and feedstock has led to fluctuations in product quality, affecting consistency.
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PureCycle's liquidity position remains a concern, with just under $11 million of unrestricted cash at the end of June.
Q & A Highlights
Q: What are the near-term production goals for PureCycle, and how do they plan to achieve optimal operating rates? A: Dustin Olson, CEO, stated that the near-term goals are to reach a feed rate of 10,000 pounds per hour, produce 200,000 pounds per day, and achieve 1 million pounds per week. These are intermediate milestones, and the company aims to reach nameplate capacity by resolving constraints like the co-product two removal system, which has previously limited feed rates.