Pearl Global Limited (ASX: PG1) uses its state-of-the-art next-generation technology to convert wastes into valuable fuels and products following strict emission norms. It currently focuses on recycling of rubber wastes including tyres.
About 1 billion tyres worldwide are disposed of every year, causing environmental concerns as these rubber products are non-degradable and thus require specialized technology to process such wastes. Pearl Global uses Thermal Desorption system which is based on the extreme heating process to disintegrate waste into its component parts. It further converts components into char, oil, and non-condensable gas by separating steel from the rubber. These released fuels can either be sold for commercial purposes or can further be treated to create higher value products. The design of the Thermal Desorption unit is robust, compact and portable which makes it cheaper and efficient than other systems.
Recently, a Malaysian refinery entered into the contract with Pearl Global to buy 100% of the fuel produced by it. The first consignment of 60k litres fuel was delivered to Hiap Huat, a Malaysian refinery. Following this, they have agreed to buy all volume produced by Pearl Global at a negotiated price based on the standard and volume of each shipment. Under this contract, 100 tonnes of fuel were ordered out of which 45 tonnes have already been delivered.
Pearl Global has successfully commissioned two Thermal Desorption Units at its Stapylton site in order to cater to the increasing demand. Currently, the units are operating at 24 hours a day with 4 days on and 3 day-off under 96 hour per week limit. The off-days are utilized as downtime for the maintenance requirement and review of the units. Pearl Global has taken various steps to optimize its resources to run its operation 24 by 7. It has started its hiring and training process with an intention to ramp up its production.
Since its mid-December 2018 operations, it successfully processed 119 tonnes of waste tyres (approx. 15k standard car tyres), from which fuel oil volumes comprised 40% of the total volume processed beating the expectation. Another extracted component “char” was sold to a domestic customer who confirmed its use as an alternate coal commodity. A high-quality degreaser obtained from further processing of fuel was tested and declared to be an efficient solvent and can be used commercially.
Mr. Andrew Drennan, MD, Pearl Global, told media that their December quarter results got impacted by off-capital expenditures and delays which are now resolved. They have spent around $1 mn for past 12 months in order to bolster their hardware and software of TDU units at Stapylton site to obtain the best performance. Most importantly, both the TDU units are about to get fully commissioned by which they will be able to enhance their working hours from 96 hours per week to 24 by 7.
On stock Information, PG1 last traded at A$0.175 (as at 1 February 2019) with the market capitalization of A$25.41 mn. Its earnings per share is 0.008 AUD and price to earning stood at 22.150x. Its 52 weeks high has been noted at A$0.335 and 52 weeks low at A$0.140.
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