Pro-Or Inc. (TSXV:POI) reported a positive economic outlook for its proposed 200 tons per year plant for the recovery of platinum group metals (PGMs) from recycled catalytic converters, using a combination of its 100% owned proprietary and patented technology. Highlights include: a gross profit margin of $ 10.3 million would give an estimated payback period of 9.3 months pre-tax for the capital required, a capex of C$8 million for a fully automated proposed plant, and an estimated Gross Revenue of C$29 million from the proposed plant.

HIGHLIGHTS:

  • Estimated Gross Revenue from the proposed plant is C$29 million from the recovery of 3.5 gr of PGMs per kg of catalytic converter (CC) substrate material. This equals to recovering an average of 700 kilograms of mixed PGMs per year;
  • Feedstock cost of 200,000 (CC) (200 tons) for a 24 hour-a-day/ 345 days-a-year proposed plant is estimated at C$ 16 million using 2010 – 2013 metal price averages of US $1,614.70/Toz Platinum, US $659.50/Toz. Palladium, US $1,732.4/Toz Rhodium;
  • Estimated Capex of C $8 million for a fully automated proposed plant, requiring a maximum of fourteen full-time staff; =
  • Estimated operating cost of C $2.7 million or $13.48 per kg of CC, including outsourced refiners’ costs.
  • A gross profit margin of $ 10.3 million would give an estimated payback period of 9.3 months pre-tax for the capital required for this project.

Pro-Or will hold a webcast conference call on June 27, 2013 at 10:30 am Eastern Time to discuss the economic results of the Seneca study. To access this conference call, please go to the Company’s website at www.pro-or.com

Pro-Or President and CEO Sylvain Boulanger said:

The equipment cost estimates presented by Seneca exceed our own internal estimates but we are confident that we can reduce it significantly by seeking competitively priced equipment around the world. This proposed plant has been elegantly designed by Seneca, using full automation and new equipment to secure the process in conformity with the HAZOP Study (1) for complete safety and health measures.

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