PureCycle (PCT) 9 May 232023 Q1 Earnings call transcript

Good day and thank you for standing by. Welcome to the PureCycle Technologies First Quarter 2023 Corporate Update. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question and answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

to Director conference of like speaker, to now Place, Charlie Investor would hand over the your I Relations. Please go ahead.

for Thank our first Somma, Financial we quarter Olson, our I'm subsequent to our on the PureCycle Chief update joining Executive corporate and are PureCycle. Welcome be the of to will call. Dustin today for Director Charlie first you, conference afternoon, Place, Officer; me Officer. end. Relations And Chief developments This call XXXX quarter highlighting Therese. corporate Investor Technologies quarter and Larry

those that our XXXX corporate Safe call found in of currently quarter first set These that reports will Harbor our also at risks be tab presentation be www.purecycle.com.Many press today our the this available to The as based well management's which control, other many release this quarterly filed be statements with on management forward-looking forth the on going related detail further morning file website are statements through business. forward-looking on and unknown our subject the our information time. found to in Investor report of on this and the about update as and known can uncertainties, Form including SEC be for statements made end will may of provisions will risks beliefs provides under our in our XX-Q to the and at be beyond and of and are at assumptions

any as actual no we required those that materially and Additionally, obligation forward-looking except from undertake Company's the differ law, may statements. note please to update results by anticipated,

other risks included, variation financial between material. preliminary connection forth may and data preliminary non-GAAP today end may are set PureCycle's and among subject also Any and to changes estimates results actual the adjustments. quarter with Our and herein in year-end include uncertainties things, be remarks

phone, deck us you any at our if time to can You or on with by it are follow on purecycle.com. joining slide welcome access

you. I Dustin Chief are updates We to turn to share Executive excited now PureCycle's will previous quarter Officer. it with over from the Olson,

us to quarter XXXX We forward recent our Thank corporate discussing developments. you look appreciate for update call. our support your and for joining conference first today

facility is which certified mechanically management Our documentation purification the has for started deliveries, flagship pre-startup in completed state-of-the-art yesterday. and Ironton required complete solvent we safety

delivery We schedule to five charge over and next have days initial the then solvent the solvent early next circulate expect week.

operations for core our of have are All and start-up. commissioned ready been

and in recent on our expect track meet able We to begin recycle the production recycled as bondholder outlined post-consumer pellet order post-industrial agreement. in quarter. to the are We second feed in time the line to then commercial milestones still start-up first complete using the be to

recycled continued of since our call. pure goal Our million million pounds resin between produce to to is pounds activities and last pre-construction our in for ultra XXXX.We advance have XX XX Augusta project

Importantly, working a with we the activities. begin to AEDA are toward plan agreement development a for

arrive in construction module Gulfspan's Beaumont, progress is equipment Texas. for at to preparation beginning is Additionally, facilities and in

progress. projects international are making Our

process at permitting site of Our European Antwerp. our the engineering work the pre-construction team at initiated for has Port

Japan. continues continue we discussions to Korea. South detailed site joint to engineering in make with with facility purification venture venture advance efforts joint multiline Our in collaborative selection Geocentric a for And Mitsui with SK progress process the and

for on process venture of the the Our that development lines. team two to joint two started the four capacity locations has have purification feasibility study

the PureCycle's approached and opportunities recycling are global means amplify marketplace. We polypropylene to to out technology seek frequently actively also what

their been all most focus imagine, quite spending can our you As of is, time. been on Ironton. where employees our commercializing has first primary This in plant have frankly,

which present of on Industries highlighted the Association are several well PureCycle's events. to associations Gamble representatives Plastics Domestic Tabletop panel, recent through spread I D.C. opportunities. of national to as in members Recycling Davos globally Scrap Procter Plastic said the industry the was beginning invited Several to traveled of such Recycling speakership are Having technology. discussions. message as Institute our recently, to team and to Industry we & that, active our participate Sustainability are Recyclers, the Washington, And in PureCycle Association, Summit often discussions Plastic where provided as U.S.-Korea a we

with senior other met Congress also we and there, of officials. While numerous policy members

emerging AEDA for We plan few to on industry. over Augusta, next secured bonds to other equipment additional to of we years working close XXXX.Turning debt that as non-dilutive has in to is have closing line financing to govern grit, the expect increase been coming critical This XX, participation testament we an $XX We're June working and land to a financing The the the X. months. one packages has and a this finish. million by received legislation and Slide crafted project intend desire are to in several proud determination our financing are this

challenges. are when imagine, number can of starting a you through those been equipment up team there normal. is all minor our and This facility of the issues managing As has

several teething work we're the to are is start all through about for new They early challenges doing. of this headaches, what times technologies. We've spoken and needing

can months, There's I excited different with plant facility. the have forward we're you we building encountered delays this startup. team, now. to we within that the While energy to some now new over tell run are personally ready our feels and two a just last move

who willed contractors completion. field this this to on facility worked and project mechanical have have team OurPureCycle

to proud solvent deliveries, to very position receive facility three the Monday. I'm And on arrived say

operational start-up. utility in pre-startup are operational is flare operational systems We commissioned and and and ready currently requirements, plant position: extruders and PrEP are in service, completed are for service, in the service, key is and in following safety

The and result of long-term every to ensure focus step a start-up delivered As that's being is of this, on operational effort all success. to is to make safe solvent smooth the next site.

on watch and in some We of the born-digital the to the website, opportunity rush hope that into are showcase on not posted media going YouTube we and purification an steps. you've videos social I to our the PrEP, that to our operations. next had

initial way through production. We company videos showcasing continue the pellet intend these to all our with

slide, I of certification steps engineering stage call is Turning the path is between our and operational process. pellets. closed will for quarter's an agreement the days We're Ironton the April. complete shows achieving last achieving by We what XXth the pellets. milestone and first to the through updated XXth milestones the first This our a that walk PureCycle This the that next Ironton's on call that we progress Ironton XX, was June few complete completion bond slide startup from of by third-party next later just in project. mechanically is to received on formally of mechanical with certification April plant XXXX. the certification in-between currently in the mechanically

down During I would our like slowed we we originally it order underestimated solvent helped forward and activities call, planned, transition the to the more the of first foundation down operations. process take tracking last but facilitate in dual us a pellets. build path purposefully also ultimately of a introduction time for Instead steady to our effectively This better initial to completion. progress, slowed mechanical long-term for

walk final safety our a process review. extra is facility, through safety downs, commissionings. time PSSR, and the equipment operations plant checks, Given pre-startup called This or took this involves final preparing we first

we a to to During we are time operate. ready this testing spent amount instrumentation, of process, significant ensure working valves

another first Once media our of circulation then we and to remaining systems, commissioning site testing filter complete. hurdle This first major and is primarily feed will of operations. the and then accepted the systems, step introduce we for now equipment, The This big our way is is Yesterday, cleared solvent the feed. paves set will and is for will we next the two circulating, will make time. the weeks commercial introduced, solvent the solvent all a involve while pellets. levels, we

will there. start our notify the We from rates production success up of market ramping and

the where are We time these operations. today I've up in to frames remain achieving described, just committed Ironton given we in the ramping milestones

have X. to design phase have the Moving Texas. project for to Augusta our of begun on contracting progress completed design. Slide module a its the made ISBL the few our site on engineering teams Gulfspan, Beaumont, that operational OSBL XX% approximately In preparation work we've our at spend and partner, the started has want strategy. in executing the to minutes growth next Augusta, of I highlight construction

We our continue make international on projects. progress to

the initiated have priorities engineering the process. This critical in We support the South will plant work in SK identified Geocentric. permitting at schedule activity path.Our set and Antwerp this facility's to Korea advanced in with JVA designs Port engineering the Belgium of team in accordance with has venture joint

two preferred ensure as with we measures final focus the to the Mitsui And and finally, core with that now progressed site. right studies feedstock is seamlessly feasibility started on Our anticipated, available our JVA discussions to the have locations. design

this to committed Company's a of solution plastic global of mission the providing are PureCycle All fully at waste. new to

will what turn but critically important update. is Ironton PureCycle for our to become.I of it's will the today, now financial it Larry just the Somma, CFO, Larry? over beginning

turn you, the a from total under in $XX.X prior available Dustin, liquidity, of Slide million We $XXX X. please just the and Thank ended with quarter million to decrease quarter.

of restricted in $XX.X or we net As bondholder roughly in the agreement $XX once the remaining unrestricted reimbursed bond for transferred cash a original from million was stipulated cash PCT million to requisition. executed we March,

used taxes as expenses. from Our million paid first slight despite employee such operations, quarter, quarter various which employee vesting. insurance, and during fees the cash corporate We was $X.X the quarter the $X.X professional million corporate during for of decrease pre-operational expenses were additional a stock on and prior normal other

in the and we assets. investments unrestricted continue to which of Additionally, facilities, PreP our from came Augusta make Ironton, majority

with we construction note the is One in a million bond, for As able to sale from we $XX and December Augusta debt for is conjunction securities positive bondholders, cash by made available million. and surety which $XXX.X XXst execute a the escrow relevant restricted account. consequence that that decreased were our payments to

account previously were the was unrestricted restricted restricted Augusta multiple to with which to able Subsequently, returned of long with escrow, to to progress sub-suppliers. during $X lead quarter construction one purification us bond balance. with for of our Our of costs recoup cash from the and payments we of modules in the the agreement risk fund items the future surety of escrow requires been their to the cash Closing escrow account. allows some payment the $XX vendors the the construction address million to project had Augusta the funds PCT supplying that million

comment let on the completing project. for our Now Ironton me budget

to our that morning, million. facility the XXXX remaining various in as XX, anticipated As favorable $XX is of contingencies $XX PureCycle which XX-Q we forecast. of Ironton range resolution ultimate total any will resolution. a to that upon for our range the contract Slide This investments from need turn is The dependent cash to contingencies million, complete the or future positive have to $XX noted and their X. forecasted that most contract million be point March important already spent this means in of filing Please could

Before the the I March. me discuss slide, on that events points in financing were our some details let call on completed provide since the

are pleased million We continue sources. plans non-dilutive with to financing raised on $XX our executing from

execute sheets, of financing agreements to will which Augusta. discuss in minute, and plan ability to a additional purification to the enabled completion the one a us AEDA term of Our of at in least present line some I to related

incentives of build sent addition tax In million closing to ready bonds, in The them, we them Augusta. the the information financial we which line. us operate of plan second more to on on purification has completed for the spend sent than to focus and $XX will that grant PCT now informed

XXth, can for are work. the that begin this land close to and We diligently June required transaction so land it prepare by the OSBL working ready to we

and we managing discuss on focus will highlighted against sources. I our uses our Now available our capital calls, raise In past cash cash strategy.

opportunity what is So intended this present achieved the our slide and so goals, has been to summarize far. depict

utility shareholder financing, and for until capital for acronym technology build, the the are non-core And with capital loans once plant is Ironton optionality to project A and mindful which our have PreP cash relevant and lines. operating.Near-term capital is operations outsourcing the Pursue provides flexibility are structure. financing removed been and of as financing few examples projects will that DBOOM, opportunities of manage wash simple: corporate Augusta goals financial sort the house, operate rate execute long-term and growth and building, equipment transactions pursue our Ironton burn on while central being operational. focused referred Augusta which maintain. own, design, Our risk longer-term is cost-effective

and secured transaction leaseback that which by rate a plan. million the Augusta estimate with We capital of sale sale-leaseback terms. lease the end interest we approximately equipment. Leasing, is $XXX CSC on closed a X% a lease wash central and outsourcing Since equipment, last have opportunities, It's million] update, excluding with Augusta flexible our of we [$XX XX-month utility PreP PreP

$XX We largest Gibson, the bears loan an with million on also a Officer Sylebra Dan XXXX, rate of by Capital, PCT's XX, a + Chief secured X.X%. entity loan SOFR term controlled December floating interest The at Investment matures shareholder. of

also Augusta of actively working are PreP to We additional equipment. transactions close sale-leaseback

We proposals and steps. are have next received evaluating

for first achievements. Now let's quarter X summary turn to of Slide our a

continue and goals. We long-term to on execute near- both

circulation. for Ironton $XX mechanically we we've land and construction AEDA. that's by received.We're our the million completed forward, and safety $XX project Augusta is complete a of to As the project $XX certified secured that we're moving we've capital independent Ironton by other on sale-leaseback that management on XXth additional We non-dilutive million June evaluating Augusta close to is will the and process and has submitted is that loan noted, the pre-startup plan the proposals the prepping working for now solvent engineer. and additional site referenced raises, I million keep term

us able. preparing were the construction Antwerp, forward News everyone call line Belgium the respect Port our we of Texas. for And open we questions. Best One would on up We're Plastic year Work of look financing construction second voted Beaumont, to to Augusta start-up market the to in flagship the At the row. at for you to as work will updating of the facility process the achieved a Ironton and, completing Places modules to course, joining our we this We've milestones set time which initiated process for engineering with of project. the for to We in by time, call today. soon are Augusta as like upcoming Thank the in

Operator?

Eric of [Operator comes Craig-Hallum. Instructions] Stine question Our first from

Spychalla It's on Aaron for Eric.

little million you Dustin, that the about out that from million XX can the the end -- talked you about get Can to me, Ironton about as just you a in bit you for of of some pounds you of XX pounds First kind to XXXX. talk end low think factors that? high

It how we really depends ramp on the just quickly facility.

and plant. pretty solvents get X, start plant to and is the we we this going idea or week next of kind we're the able We're first well then how how plant. feed a to where to The sound the plant to ramp silly, but points how to listen will quickly we're through operates, introduced going be and As the good tell rate. us pinch going the to going are, circulating of have to it's operating

So rate of we have in current forecast linear nine to the estimate first kind of the a over months months. our ramp six

all then and well, do earlier. about going raising rates, we is feel that if But we'll good

you then can and customers, And Good. lessons as Anything cetera? Ironton of about at on high just just the into maybe of kind from feedstock, to kind Europe level, you learned Okay. a some et expand look of talk Asia?

That's Yes. great Aaron. question, a

side first on this side. So project the I'm and discuss -- the commercial down then break into to going maybe

project, these of are three, years recycling okay, the circa side, are There ago. unknowns a four years decisions ago, the this lot four in project On around and early market.

of also we a And to when needed there facility. that make lot building this are assumptions

done little look And okay? so there. to And anything expectation decisions when potential areas I mean, build this at I would how we capacity were areas. would how to around more we this of be, anticipate maybe that feed I the And see in some had and purpose. what a need I an see of in when they they operate, possible get bit than that early going type lot I up were a will to plant robust operate, overengineered of so and out on helicopter was some built design we we -- extra and

So operate facility, we begin operates. this as how see to we it really

we the we the done. basis, site, was design to opportunity really to an built on future perspective, a when really, And better, in it's of that. in that have an brought One, big we we'll the more just think it From it -- okay? execution based perfectly. things. that really, efficiently just I descope look, modular fit the Beaumont couple modularize, the Everything everything on

module off it did, was build And was also costly execution less work the that more in just in were on of Beaumont. we to the this it the field side. Some It's some than efficient. there misses

So thing all have would -- I say, models. in forward, going work going to modularize one the XD is the we're thing, general. It's hard future.The more other to more this maybe we and

in through together would do you where it are type Like for that until that able did fit things efficiency walked virtually you game shore field, would identifies but it out areas you to be We see aren't there did things that see we changing at lots and But valve up. coming pipe some why items, put the Why to actually different. obvious jump certainly see to we'll this were together. look of put that These there? that it construction there? we how

work -- to I we're collecting, we're around future It's you incorporating of were And we into be lessons the tell plans. some Augusta. can But long all actively that have that a for fine. that going and list decisions learned of those improved they'll

sounds Right. to of color scale Thanks for up. best Right. the and luck That good.

a Yes. lot, Aaron. Thanks

next Ahmed question comes from Global Hassan from Advisors. Our Alembic

our approach. Being analysts a a are guess, pre-revenue using company, I guys valuing obviously of most you DCF

your obviously, as more tonnage Asia. actively the a the as provide call guys would Augusta you variety be projects in of Ironton happening at what's trends, thought out expansion involved cycle, now of the sort they in well where know or days, Europe poundage by And decade. a in of are of early and I or in with best historically, it, would you guesstimate guys us Now be you end

regards to terms production number in any Do of to have? you be slides older guys pounds that where mean, could of intend of end sort those of of I thoughts sort update the decade? one with by the that So you to used under

Hassan. you, that's good Yes, Thank question. Yes. a

I haven't get time the our the will we growth plan capacity out think so straightforward for alone.With the much given now that region. per on test the the where is as on to potential right we each the been attack Ironton I which be and on find technology [project], we plant we've as that detailed focus plans. real Ironton at through with, overall focused to there's The se in been respect Ironton we good we've will on those think different incremental growth plans, because think capacity pretty line want

one each But on the that think I of you area that good is property. get kind can sense a availability the from

For in enough is I eight Japan big four. one per gets that, four two pounds is you instance, is lines. SK hold to And think the across line hold Belgium simple ballpark. is to million that to Augusta big lines. enough and XXX math

question a quickly a capacity going The can paper, see will tighter pen the I'm how numbers. put we to to those goes. to future reserve as startup And be and call we get how for we that

super helpful. actually That's

follow-up, One, $X you a that side. parts on just mean, you question. to the a two talk $X.XX. then as maybe about to Now historically, the number pound, up I pricing would took guys strategy

modeling thinking So a perspective how should we about pricing? be from

with it And just part regards feedstock on sort then part strategy. of And the pricing are well? to what are on So you the of of as a good and second availability market you seeing pricing then guys a question, off premium? one using

Yes, you Yes. that. thank for

as and an show and built the a it that the max us So spot our where a to to flexibility strong pricing to pricing see and agreements off-take that in But we a at gives more structural premium our option, secure contracts. at a the and nice reality side, pull have in show to min opportunity also back sell to gives we on ability have us strategy in is plant definitely our The we sold-out fit. on we virgin.

will and virgin seen, level, shrink price generate goes a planning the do are drive into polypropylene and down, the And okay? hands, that in we virgin as up globe that to ultimately, will to production to and feedstock. or appetite what and on max's be But on for potential of our to products they delta probably overall Ironton, As products feedstock, about different. min's around respect And depends lot you've would or whether a the bit. technology numbers And the pretty at and say, feel the application price, we the the trialing, I will very moving to set we the the Again, we pricing. really the spot -- that to similar for much scale is is so grow go fundamentally we can do virgin will it's customers' With testing. -- that good development not contracts.

It's really wash, feedstock So across the forms. can We molecular all it what a okay? comes similarly the manage in. form matter doesn't it different

what active so is people, the around have suppliers. market see in We with we to purchase And feedstock a now different world okay? ability other to right differentially the discussions feedstock nice pretty really

aggregators working we it a are are they because well. -- them as outlet that coming for because take onerous market than hard opportunity less But products it on most The on And can. their feedstock us aren't excited potential others also, reality them outlet because or and feedstock grow is that there's for they believe limited other another on as them. an a suppliers, they contaminants can we as limited to offtake online about see as more a polypropylene gives they

to projects global it's And giving opportunity the where so circular over to people feed in our actually lots changes us really different going years. more product our with we to truly see world, of the into And the our We're excited countries. of together partner technology to around grow the feedstock PureCycle's polypropylene, put projects, anywhere, as draw product creates and a that market. high-quality it's

fulfilling -- we've our any plants from the perspective, we obligations been see sure story talking of so a that really about. for for feedstock is And a the short problem and we Ironton don't

comes Stifel. Michael Hoffman question next from with Our

What the for with therefore, is And do now Two agreed X? money. line AEDA have amount hand? that have you you the the And how questions much in around left? what's

it take one demand. that this, to CapEx The sufficient then pass I'll sources and I'll Larry. satisfy million. have And $XXX is So line around to expected we

offset opportunities that the question have several remember, we through well. are DBOOM significantly different Larry will and various financial number. the for million pass substantial they mechanisms $XXX to Now and as to can through be reduce that I the DBOOM, answer can

Yes.

So talked correct. is about right, around Michael, we've be first this. $XXX will the lines is at line infrastructure. million Remember, the Dustin because any site of multiple with expensive most

can lines probably. be expect beyond than million, and less you So $XXX two significantly to

them alluded as closer cash $XXX to, of them what X. one of $XX formal on also But showed million presented, we the of or that million were million. behind and line the a excess details a We to also to $XXX plan the financing and already we we showed we've spent presenting we in committed for AEDA funds spent for wrote line, we letter the either

on to working in June position we're are to close we good there. land begin diligently we So a we've there. work as so surface by And try XXth, can the land indicated, the

my that minimum as have mean, Okay. you left raise [rigid] to... I'm get I are but about How million? going much have this. the details? still -- What to the second opposed of to be just raised guess, I Truly of sort $XXX I question, to to do

None.

None.

So it is completely done.

say done. would you're would if to call AEDA So -- were them we

right process yes, that their ultimately, them review it of approval. can there's to And Board They're the go June. on with working with take they'll through process in then a details close But by now. the are for Well, end we the we so the AEDA. final

on going what be I to were what then March? wanted versus in hear. And final shown what spend That's Okay. we to is the Ironton

The March. numbers in what you saw changed have not from appreciably

So a little meaningful. bit higher, but not

little a but bit on really little it's creep, It's of par. bit higher, a

million that say XX. spend. March that range March million $XX the of $XX was of quickly, to left XX, had we Yes. to Remember, I I'd Michael, referenced as of as

in we've the money all the today, of exhausted fund. construction As

in cash be will funded sheet. balance on rest the So our

to subcontractors. left And of the is payment performance about half our is no upon number recovery of The spend, partner assuming contingencies neighborhood million. in to complete $XX of remember, completion that

So the been majority of exhausted. the now have funds

Kaye will be from next question Noah Our Oppenheimer. with

So question one, Dustin, mechanical a this to is huge as congratulations to team how has you and reach up And is, two, that. My doing? push on completion you're been the standing of along the do out several kind weeks capacity put makes place what for troubleshooting way? you think steps in and the laid the have you I operations, to next sense. months

us what capacity Just internal, rapid partners? do that talk is how much to that troubleshooting, to response, of how about is that with much of is

today, whole bunch you equipment feels of run operators going. is plant get the you but because to you contractors to the it of facility how team? excited interesting watch also that bunch whole so is can learning to there tell the I around buzz is just literally to a It's So everybody plant the a because When because the see you different Noah. a some walk simply facility. facility, the running, building transition from hear

completion last slipped date. over couple months And mechanical bit of so the a we with the

today are are plant. They of they But growing facility know over have, on lineups, the what we gained every day And and the they they is side. their facility. better and the operations the the run understand than people experience ability all a confidence bunch to ever

optimistic extremely I'm about team. So our

I really growing. we good a have team think

the always the training With -- going. This right much tasks project buffer think has job we've we built right how facility? of get path. chasing to critical into the operational I good done packages, been the respect really have And building to readiness a

And look to in. time of frankly, still close the And standards, this chasing path We've the the project always pretty so we've on been industry ability finish. our quite critical so always been at would other to when we side optimistic could probably we good. plant thought relative we the when look pull you

about during the months time, six in behind. came months XX and behind COVID projects Most are we

items could that I good factors. million capacity okay? unknown We on couple we through. that. So this start-up there pounds, to have pounds feel have -- is push mean, a million I some mortality still The are XX of about infant the XX to

already had We've dealt few that with. a we've

so our that run we also we numbers. But could upside some have facility. to have positioned well this believe I could And to really are more. we

is Our And paper. think than we I have capacity that eager. more they're have ready, what on team the we in plant

And we'll running it, once so start see. we

there a where that the things to schedule This right is I we now, on So delay of we slide? now. show us. lot This think are in No, what the really. is not could is right happen float

production year, and the surpass like This feel is I indicator or just also which we catch up can exceed is performance. the of for for life. expectations overall ultimate But our

place And point on like to isn't Yes. these and better the team is keys? a over whether to internal this that a to that's is this to finer setting running much now? operations. internal pretty or for understand the put I up I the all mean, better mean, folks contractors We'd and of PureCycle on did run help the just operations. have in outside kind hand it's comment

Is to there help an ahead. ongoing debottleneck? Go

your I Yes. part That was a the That's question skipped. that follow-up. good last of

support that for just have repurposed about every we the we Augusta hired Ironton. to have engineer So project

-- focus So Ironton. internally to drive staffed on really to up we have refocus on

of out are the facility. Almost all of the contractors

this know, think XX site, for we I don't time this we're two down and had, left on talking contractors talked, five to about last we're -- we I XXX contractor, contractor.

very frankly, they're to we're for over down holding quite And now. start-up very, support. So low levels

items crew infant tuning with of some or construction us help to the maintained items. we So mortality

of all all partners in refocused that, staff now core say, the right support been startup.In KMPS, hands PureCycle let's like deck partner addition the have, our to a our They have they've technology development. we to on core inside Ironton also. And

done They've they're their have JV sleeves And help. support. to a that also engineering also and really lot. and So they're offered up we smart staff SK that's like ready have partners already there, roll

a I I And phone so know call offer quickly okay? I support can And to talk have to that get needed, every time they I that them. if

the the but So, lot, know in team good we've about the so to about a, partners technology, very good feel the experts, are I about and we most learned I our also own help a way. because if needed we industry along get our the feel

TD with Boyes Cowen. question next And Thomas our is from

base I back facility to some A potentially of up make that with wanted kind gone have just close targeting? ramp-up on couldn't earlier, confirm just is be of the availability And as now issue agreements your just question to good given you're there XX the to feedstock on that to million Ironton ago, you pounds follow its couple get just towards replaced. at you and from that quarters supplier suppliers just so period. First, was pounds to had XX that million to feedstock

that more take The willing will to sell as us of They we've that know as be more to want to pay our begin to They want going that come to also feedstock the suppliers have going so operate for deepen that ready we more we to continued we're suppliers and reliably. is they're will reliably. supply also polypropylene And well with that feedstock and time. yes. XXX%, know we're over engaged the well. the suppliers relationship the have to as reality engaged Augusta as all around world, we on them, to

so a really, waiting And with is the let's strong build it that also the Ironton this kind that's for around all really done and our and we go. will to, are say, and But we really then wide. JVs start have safety helping of net on work facility, Augusta of

well had on call even the we that And have couldn't that other we can so of a suppliers to people if gap. fill we deliver,

And this. so very we excited are about

already given me you've two remind how quarter have feedstock Ironton you number, of in a I I know Can or of site think on a advance at startup? much you ago? maybe

for It's been to last we've processed X how so another [X quite it a as of of flake month. of I million] feedstock, unprocessed the on completely for while. right believe, million through order been and on an quite we've that's now. and better operate day. million] And silos today. I the and facility learning order don't better every growing and of agglomerate pains of But been example, [X frankly, our bagging there or running one is exact the and know full, We've out PreP the to numbers working the

super bunch a all blue feedstock ready has over have setting go. of the purification to got We which sacks, for property,

order and million million feed X it's say, of of, I X So on order unprocessed think let's to on pounds. the processed the

a you one. million That's that helpful. on real in as raised of you that already then that And million but housekeeping pre-PreP, We're amount? was quick maybe my that exclusive the some identified follow-up $XX of housekeeping, related Augusta $XXX clarity maybe just inclusive not to just the or

Larry, do you want to...?

Yes. Yes, the is million of opportunity. million that's part -- the $XX $XXX

from question next comes of Gerry our Sweeney MKM. ROTH And

the question we it -- looking up know so at that and for running, it. revolves project opportunity. getting for Just derisking around you're Ironton you, really me mean, I financing one all and actually, just

opportunity more line cross capacity sort what up really does really really of access better opens have access? capital to becomes or an that you capital. But level at derisking that to the of the to of be get So Ironton utilization

Yes, question. a I think good that's

that's varies in investor. technical investors then this what pellets, And we let's taken think question table a is be, there's amount say, the But there are off make, say, that I really to risk off say, heard, project by us. once risk have the of a table, invest run show that rates. for can the the But will taken first from let's we it we substantial, we moment economic at let's willing okay?

going how to a to there's and getting I don't pellets answer the this first have be of test critical can a that Leidos perspective, to we'll reliability then reliable But from as XXX%. getting time. and run, always think as that's over facility at I -- to question

crossed. items, once think we the hurdles think I those two I hit are

the And is Ironton test running Leidos five consecutive correct? Is Got it. at days. that

and we plants where X-day to decide This Yes. at another Gerry. test a when... situation is yet. And listen scheduled haven't we right, XXX%. that That's to are basically going the It's

Go ahead.

five me, an a didn't but hours And that's I'm mean assuming Sorry. I XX I'm days [indiscernible]. pardon days, engineer, week. not day, a seven

Yes, sure...

get to going I'm that question.

to So but just that's what ask, I see. I want

outages. is XX/X it's XX/X, be a going run we But facility have will sure, operation. the and designed for This XXX, for to to X-day tests, periodic Yes.

back now to it like turn I would to Dustin remarks. Olson for closing

Yes.

Okay.

much joining mechanical continued when to completion you a for very you actually ready It's solvent -- took step thank big for today. We and yesterday the we the plant call we solvent. your that crossed thank So for support.

really for the Ironton just and operational. We're we optimistic to ready And deal. around about a wait truly our what show the first and we're feel to paces making world pellets. now until growth them is operations all can the to are get customers and now big in mode like solvent plant can't world. to full start plan. excited is running we We the Getting the delivering to of we pellets our start do, We truly

much time your you your soon. talking again Thank you and Look so support. for your to patience to continued and forward

in you today's for the conclude does your participation This Thank program. conference.

You disconnect. may now