PureCycle Technologies, Inc. Q4 FY2023 earnings call

• New CFO Jaime Vasquez joined, bringing 30 years of financial experience. • Ironton operations achieved end-to-end production runs up to 8,000 pounds per hour, produced co-products 1 and 2, with pellet production increasing from 200,000 pounds to 1.3 million pounds quarter-to-date, purge rates reduced to one third, and reliability metrics like steam availability at 99.8% and solvent circulation reliability up to 98%. • Commercial progress: First revenue in Q4, sampling products to customers with positive initial results. • Plan a 2-4 week outage in Q2 to address reliability improvements in extraction efficiency, filtration, seals, and co-product 2 limitations. • Unit economics trending positively with stronger demand, lower energy consumption, and co-products shifting from cost to revenue. • Purchased ~99% of Southern Ohio Court Authority revenue bonds, removing restrictive covenants and improving liquidity.

No detailed breakdown of product segment financial performance and revenue contribution % provided in the transcript.

• Intend a 2-4 week outage in Q2 to improve operational performance, expecting positive impact on reliability. • Optimizing short-term options for co-product 2 while working on long-term design solutions for a more robust continuous operational asset, with final implementation after Q2 outage. • Expect unit economics to improve as reliability continues to improve.

• Operational challenges such as seal failures, absorbent bed leaks, and co-product 2 limitations. • Volatility in unit economics due to higher than expected feedstock logistics and SG&A costs. • Risks associated with forward-looking statements and potential differences between actual and expected results as outlined in SEC filings.

Q: About CP2 engineering challenges, how difficult is it to engineer around this?

A: It's a technical problem but they have a good design solution in place and expect to develop it in Q2.

Q: About off-takers and contract dates, are there dates in offtake agreements that could cause issues?

A: No concern, strong demand, customers still testing products with positive feedback.

Q: About pellet production numbers, clarification on Q4 production?

A: Q4 pellet production was quarter-to-date, with 1.3 million pounds, an increase from previous quarters.

Q: About Augusta project and customer demand?

A: Augusta project is moving forward with KBR collaboration, and customer demand for the product is strong across applications.

Q: About market price change for PureCycle's resin?

A: Market pricing is dynamic, but there's strong customer demand across many application lanes with much runway.

Q: About revenue outlook for Q1 2024?

A: Optimistic about future fundamentals, but no mid-quarter guidance provided