2017 annual and special meeting of … agm-presentation.pdf2017 annual and special meeting of...

June 21st, 2017 Confidential

TSXV: PYR • OTCQB: PYRNF

2017 ANNUAL AND SPECIAL MEETING OF SHAREHOLDERS


FORWARD LOOKING STATEMENT

This presentation may contain forward-looking statements. Various factorscould cause actual results to differ materially from those projected in forward-looking statements, including comments predicting the timing of financings,strategic partnering, regulatory actions, or the capabilities of the platform.Although the Company believes that the forward-looking statements containedherein are reasonable, it can give no assurance that the Company’sexpectations are correct. All forward-looking statements are expresslyqualified in their entirety by this Cautionary Statement. This presentationshould not be considered an official disclosure document of the Company.

This document is for information purposes only and is not intended to be usedto solicit the sale of securities.

PyroGenesis Canada Inc. PRIVATE and CONFIDENTIAL – NOT FORDISTRIBUTION without the express written consent of PyroGenesis Canada Inc.

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WHAT IS PLASMA?

1. Solid 2. Liquid 3. Gas 4. Plasma

Plasma is the fourth state of matter.

Ideal for material transformation: 1. Waste2. Wire

Energy Powders

PyroGenesis is the world leader in the design, development, fabrication, and commercialization of plasma solutions.

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GUIDED BY AN EXPERIENCED BOARD:

+20 YEARS OF EXPERIENCE

> 250 YEARS OF COMBINED EXPERTISE IN

PLASMA TECHNOLOGY

57 PATENTS WORLDWIDE (ISSUED OR PENDING)

P. Peter PascaliFounder, President and CEO

• Founded PyroGenesis

• 12+ years in investment banking in NYC

Alan CurleighChair of the Board,

Interim Chair of the Audit Committee

• Former Chairman of the Canadian

Commercial Corporation (“CCC”)

Robert RadinMember of the Audit Committee

• US Army Major General (Ret.)

Christopher Twigge-Molecey, Dr.• Past board member of the Hatch Group of Companies,

Engineering consultants.

• 40 years experience in Metallurgy and Engineering Consulting

Angelos Vlasopoulos, CPA, CAMember of Audit Committee

• 18+ years financial experience• President and CEO of Aeson Leeds Inc.

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PYROGENESIS’ FACILITY

3,800m2 MANUFACTURING FACILITY IN MONTREAL, CANADA

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BUSINESS LINES

Additive Manufacturing (3D Printing)

MILITARYU.S. NavyU.S./U.K. Special Ops(DARPA)

THE INVENTORS OF PLASMA ATOMIZATION

Powders that flow like water

Lack of powder producers

Consolidation (GE Arcam AP&C)

PyroGenesis re-enters the market

Ramp Up Phase ends Q3-2017

Core/Traditional

MINING & METALLURGYDROSRITE™PUREVAP™

Cash Flow Positive (EBITDA Adj.)

Gross Margin: 52%

Cash on hand: $1.3M

Backlog of signed contracts: $9.4M(Revenues: 2016: $5.2M

2015: $6.2M 2014: $5.8M)

Revenues: 67% (Q1 2017 over Q1 2016)

Q1 2017 HIGHLIGHTS:

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June 19th, 2017:Successful Delivery of First Order of Titanium and Inconel Powders Plus Receipt of Third Powder Order During Ramp-Up Phase

June 14th, 2017:New “PyroGenesis Additive” Division

June 7th, 2017:Second Order for 3D Printing Powders

April 25th, 2017: First Order for 3D Printing Powders

March 30th, 2017:Completion of Powder Production System


BUSINESS LINES









Core/Traditional



Gross Margin: 52%

Cash on hand: $1.3M


2015: $6.2M 2014: $5.8M)

Revenues: 67% (Q1 2017 over Q1 2016)

Q1 2017 HIGHLIGHTS:

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BUSINESS LINES









Core/Traditional



Gross Margin: 52%

Cash on hand: $1.3M


2015: $6.2M 2014: $5.8M)

Revenues: 67% (Q1 2017 over Q1 2016)

Q1 2017 HIGHLIGHTS:

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MILITARY

PyroGenesis’ Plasma Arc Waste Destruction System

US Navy:High tech platform> US$50M

Destroys shipboard waste

PyroGenesis ’ system specified in the design of future aircraft carriers

Additional order expected in 2017: $5-7M/system

PyroGenesis’ Tactical Plasma Arc Chemical Warfare Agents (CWAs) Destruction System:

US/UK Special Operations

> 99.9999% of Simulated CWAsDestruction Efficiency

DARPA tests PyroGenesis’ system withSimulated CWAs

US$100M testing by client (April-Sept. 2017)

~ $6M/system

CREDIBILITY

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BUSINESS LINES


MILITARYU.S. Navy $5-7M/systemU.S./U.K. Special Ops(DARPA) ~ $6M/system







Core/Traditional



Gross Margin: 52%

Cash on hand: $1.3M


2015: $6.2M 2014: $5.8M)

Revenues: 67% (Q1 2017 over Q1 2016)

Q1 2017 HIGHLIGHTS:

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DROSRITETM

DROSRITE™ recovers metal from dross (a waste generated in the metallurgical industry).

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DROSRITE™

PyroGenesis’ DROSRITE™ System

Onsite

Low cost: Conventional: ~ US$250-350/TPyroGenesis: < US$100/T

Higher metal recovery

Salt free (no contaminants)

No inventory cost

Energy savings

$1.6M/systemMarket Potential: > US$280M*

Existing client need for 3 additional systemsInterest from Middle East for ~ 4 systems(Total: 7 systems ~ $11.2M)

PyroGenesis’ DROSRITE™ System

12*Based on www.world-aluminum.org.


DROSRITE™ POTENTIAL MARKET

Aluminum Copper Zinc

Primary Smelters > US$280M*

Secondary Smelters

Casting Producers Existing client

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Current client is an Aluminum casting producerPrimary focus: Aluminum Primary Smelters

*Based on www.world-aluminum.org.


BUSINESS LINES









Core/Traditional

MINING & METALLURGYDROSRITE™ 7 systems

$11.2M

PUREVAP™


Gross Margin: 52%

Cash on hand: $1.3M


2015: $6.2M 2014: $5.8M)

Revenues: 67% (Q1 2017 over Q1 2016)

Q1 2017 HIGHLIGHTS:

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PUREVAP™

$8M (10% Royalties on all future revenues) Contract with HPQ Silicon Resources to develop a process to convert high grade quartz to solar grade silicon metal in one step.

SOLAR GRADE SILICON

Capacity (MT) Capital Cost (USD) Spot Price (USD/kg)

Conventional Technology~ 20,000

> 665M ~ 17

PUREVAP™ ~ 38-75M ~ 2

PUREVAP™ Ultimate Target:

SOLAR PANELHIGH GRADE QUARTZ

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PUREVAP™

*The Globe and Mail: “Timminco: How Eric Sprott got solar burn”, published Aug 31, 2012 16

*

*


BUSINESS LINES









Core/Traditional


$11.2MPUREVAP™


Gross Margin: 52%

Cash on hand: $1.3M


2015: $6.2M 2014: $5.8M)

Revenues: 67% (Q1 2017 over Q1 2016)

Q1 2017 HIGHLIGHTS:

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$8M10% Royalties


BUSINESS LINES









Core/Traditional


$11.2MPUREVAP™


Gross Margin: 52%

Cash on hand: $1.3M


2015: $6.2M 2014: $5.8M)

Revenues: 67% (Q1 2017 over Q1 2016)

Q1 2017 HIGHLIGHTS:

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$8M10% Royalties


3017 14,379

20152020

Estimates based on Wohlers Report, 2016:

1,810,200 kg 8,625,000 kg

2015

2020

3D Printing machines sold (cumulative):

Metal Powder Demand:

CAGR 36.6%

CAGR 36.6%

ADDITIVE MANUFCTURING (3D Printing) - METAL POWDERS

> 90% 3D metal printers use the size fractions:

15μm-45μm or

45μm-106μm

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INVENTED: PLASMA ATOMIZATION

PyroGenesis’ Plasma Atomization System

SMALL, PURE, SPHERICAL, METAL POWDERS

Plasma Atomization is the most efficient method to produce metal powders for Additive Manufacturing (production rate; yield).

« Based on 2006 production rates, if PyroGenesis doubles capacity each year from internal cash flow alone, by 2021 we would have 16 systems, each estimated to contribute up to $12M in revenues, whose combined output would address < 6% of the projected market need at that time. »

P. Peter Pascali, CEO & President

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PYROGENESIS’ POWDERS (uncut)

SEM 400x

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PYROGENESIS’ POWDERS

Sample 1 (45μm) - SEM 400x

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CURRENT MARKET - LACK OF POWDERS, CONSOLIDATION

Problem:

Suppliers of 3D printers are now buying their powders from Arcam - a competitor

GE has purchased Arcam (AP&C): US$696M GE’s competitors need to find other powderproducers

DISRUPTING SUPPLY CHAIN

AP&C was purchased by Arcam in 2013 and became the dominant supplier of Ti64.

Can$35M(2013)

PyroGenesis’ oldtechnology

PARTS PRINTER POWDER

15µm-45µm

45µm-106µm

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Patent filed for an improved metal powder production process and that the Company was on schedule for a 2017-Q1 assembly and first production run

Creation of “PyroGenesis Additive”: Division Dedicated to Additive Manufacturing and First Step to Spin-off; Provides General Update on Additive Manufacturing

Receipt of its second powder order

Receipt of its first powder order from a multinational conglomerate, with the down payment already received, and market interest exceeding expectations

Completion of the assembly of its first powder production system, with its first powder run exceeding expectations. The ramp-up, which was already underway, was expected to take place linearly over approximately four (4) months

June 14th, 2017

June 7th, 2017

April 25th, 2017

March 30th, 2017

October 25th, 2016

Intention to spin-off its additive manufacturing capabilities into an independent public entity

3D metal particle size distribution greatly exceeded expectationsApril 27th,

2016

April 7th, 2016

PyroGenesis re-enters the market to produce metal powders, specifically for AM (3D printing)October 26th,

2015

ADDITIVE MANUFACTURING MILESTONES/PRESS RELEASES

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Successful Delivery of First Order (Titanium and Inconel Powders) Plus Receipt of Third Powder Order During Ramp-Up Phase

June 19th, 2017


PYROGENESIS ADDITIVE STRATEGIC PLAN

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Expand existing relationships with major players (ex: US Military, Metal 3D Printer Manufacturers, Distributors, Strategic Alliances)

Intention to spin-off additive manufacturing capabilities into an independent public entity “PyroGenesis Additive” Monetize powder manufacturing business

Double Powder Production Facilities each year from cash flow

Adapt process to produce other lucrative alloys and/or composites

1

2

3

4


BUSINESS LINES








Ramp Up Phase ends Q3-201716 systems; $12M Revenues each < 6% of market

Core/Traditional


$11.2MPUREVAP™


Gross Margin: 52%

Cash on hand: $1.3M


2015: $6.2M 2014: $5.8M)

Revenues: 67% (Q1 2017 over Q1 2016)

Q1 2017 HIGHLIGHTS:

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$8M10% Royalties


FINANCIAL KEY FIGURES (Can$)

2014 2015 2016Q1

2016 2017

Revenues $5.8M $6.2M $5.2M $1.0M $1.7M

GrossMargin

53% 27.1% 41.6% 29% 52%

Adj. EBITDA

($1.18M) ($2.6M) ($1.7M) ($649.5K) $22.6K

April 25th, 2017:1st Order for 3D Printing Powders from a Multinational Conglomerate; Down Payment Received; Interest exceeds Expectations

March 30th, 2017:Completion of Powder Production System; Successful First Run of Powder Production; Start of Ramp-Up; Interest exceeds Expectations.

Core/Traditional Additive Manufacturing (3D Printing)

June 7th, 2017:2nd Order for 3D Printing Powders During Ramp-Up Phase; Interest in Powders Continues to Increase

June 14th, 2017:Creation of “PyroGenesis Additive”: Division Dedicated to Additive Manufacturing and First Step to Spin-off; Provides General Update on Additive Manufacturing

> $13.5M contracts signed since June 30, 2016

Q1 2017 HIGHLIGHTS:


Revenues: 67% (Q1 2017 over Q1 2016)

Gross Margin: 52%

Cash on hand: $1.3M


2015: $6.2M 2014: $5.8M)

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June 19th, 2017:Successful Delivery of First Order of Titanium and Inconel Powders Plus Receipt of Third Powder Order During RampUp Phase


MARKET AND CAPITAL DATA (Can$)

TSXV:PYR/OTCQB:PYRNFAs of December 31st,

2016As of March 31st,

2017As of April 30th ,

2017As of June 20th,

2017

Share price $0.20 $0.43 $0.72 $0.89

Shares Outstanding 101.9M 104.3M 104.3M 104.6M

Warrants 10M 7.3M 7.3M 7.3M

Options 10M 9.7M 9.7M 9.7M

Market Cap $20.37M $44.7M $75.06M $92.1M

20 day average $0.192 $0.32 $0.49 $0.82

Average volume > 100,000 > 200,000 > 350,000 > 450,000

Year High $0.315 $0.495 $0.79 $0.98

Year Low $0.15 $0.16 $0.16 $0.16

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CLOSING PRICE (Can$) & MONTHLY VOLUME

Volume

Closing Price

0

2,500,000

5,000,000

7,500,000

10,000,000

12,500,000

15,000,000

17,500,000

20,000,000

22,500,000

Sep/16 Oct/16 Nov/16 Dec/16 Jan/17 Feb/17 Mar/17 Apr/17 May/17

00.05

0.10.15

0.20.25

0.30.35

0.40.45

0.50.55

0.60.65

0.70.75

0.80.85

Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17

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TSXV: PYR OTCQB: PYRNF

www.pyrogenesis.com

http://www.pyrogenesis.com/


APPENDIX:

Additional Information



PYROGENESIS’ SPIN-OFF (Win-win for PyroGenesis Investors)

PYROGENESIS 3DCo

Non-competeIntellectual Property

Supply 1 systemContracts/staff

Purchases SystemsAfter Sales Services Contracts

Royalties on Powder Production

10-20% Equity

Powders Sales

$$$

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