PyroGenesis Canada's (CVE:PYR) shares were on the rise Monday afternoon after the maker of plasma waste-to-energy systems said it has signed a $12.5 million contract with a "major international manufacturer" for 10 plasma-based, power production systems for 3D printing.
The company will supply 10 of its metal powder production platforms to the undisclosed customer over an 18-month period.
PyroGenesis said its backlog now exceeds $20 million, or the equivalent of 350% of the company's revenues in its previous fiscal year, all of which is expected to be completed by year-end 2015.
"As mentioned in our March 31, 2014 press release, one of the limiting factors in the full commercialization of 3D printing for metal products is the availability of high-quality, high-purity metal powder," said president and CEO, P. Peter Pascali, in the release today.
"Our patented platform can produce these powders effortlessly. It is a proven product with completed commercial sales having already taken place in North America and Europe."
The chief executive took note of the company's focused business development strategy implemented last year, the effects of which it is only now beginning to see. The company said the customer announced today is looking to use its plasma-based technology to ensure a "strategic and continuous supply of metal powder feedstock" for internal 3D printing production.
Based out of Montreal, PyroGenesis provides engineering, manufacturing, contract research and turnkey process equipment packages and services to the defense, metallurgical, mining, advanced materials, oi and gas, and environmental industries. It has a 3,800 square metre production facility, and is focused on providing plasma torches, plasma waste processes and high temperature metallurgical processes.
Shares rallied to as high as 75 Canadian cents on Monday, and were last up 10.8% at 72 cents. The stock has a 52-week high of 83 cents.