Slide 1: Second Quarter 2024 Corporate Update
Second Quarter 2024 Corporate Update August 8, 2024 Confidential Information. Do Not Distribute. Confidential Information. Do Not Distribute. 11
Slide 2: Forward-Looking Statements
Forward-Looking Statements This press release contains forward-looking statements, including statements about the financial condition, results of operations, earnings outlook and prospects of PCT. In addition, any statements that refer to projections, forecasts or other characterizations of future e
Slide 3: Q2 Highlights
Q2 Highlights • Record monthly production in June with low CP2 feedstock; continued progress in pushing unit production rates higher – reached 8,000 lbs./hr. feed rates and 11,000 lbs./hr. product rates. Lower production in July resulted principally from needed CP2 modifications Operations • Commiss
Slide 4: Ironton Purification Facility Update
Ironton Purification Facility Update Q2 Overview April Dedicated entirely to Reliability Improvement Outage Restarted facility on 20-May; balance of month used to commission reliability May improvement projects Most successful operating month; 1.1MM lbs. production - stronger uptime June with repeat
Slide 5: Post-Outage Operations have Improved
Post-Outage Operations have Improved Core Production Outage Improvements are Working Well Rotating Equipment • 13 days in a row – Final product pelletization June - Added back-up power supply to multiple key • 25 out of 30 – Calendar days running 2024 seal systems • 134k lbs – Peak daily production
Slide 6: Path to Removing CP2 Bottleneck
Path to Removing CP2 Bottleneck Original Position - Max of 3000 lbs./day removal and >10% CP2 in feed Current Position - Demonstrated CP2 removal performance at 20-22k lbs./day - Demonstrated CP2 reduction in feedstock to 3% with Flake sorting Increase Goal CP2 Removal CP2 Removal (lbs./day) Feedsto
Slide 7: Reducing CP2 in Feed to Improve Overall Process Yield
Reducing CP2 in Feed to Improve Overall Process Yield Feedstock Avg Feed Quality Cost to PCT (%PP) (cpp) Sourcing higher quality feedstock options 90-99 40-65 Expensive option – not pursuing at this time 3rd party operators to advance sort #5 bales 1000-2000 lbs./hr. capacity usable today, 95 14-20
Slide 8: What is Compounding?
What is Compounding? Feeding Extrusion • Combine PureFive resin with recycle or virgin resins and/or additives to achieve specific performance requirements • Tailored to meet customer’s specific performance requirements by application Pelletizing Cooling • Creates product uniformity and consistency
Slide 9: Why Compounding?
Why Compounding? Should accelerate adoption into Tough fabric used Multiple designs with different color a broader range of customer for outdoor rugs variations applications Opens new market channels and should increase near-term sales Attractive unit economics on higher volumes Pictures provided by
Slide 10: Compounding Addresses Specific Customer Needs
Compounding Addresses Specific Customer Needs PureCycle Operations Recipe A Customer Requirements • Feedstock and operational variability PIR or drives variability in pellet Virgin • Give customers exactly the product characteristics that they want • Mechanical properties are improved as • Reduces t
Slide 11: Q2 2024 Liquidity Update
Q2 2024 Liquidity Update (in MM) Mar. 31, 2024 June 30, 2024 change Summary of Liquidity Changes Unrestricted Cash $25.0 $10.9 $(14.1) Unrestricted Cash Uses: Restricted Cash and Investments § $30.0MM net proceeds from May/June Bond sales Ironton Reserves 3.5 3.6 0.1 § ($14.2MM) Ironton operations,
Slide 12: Second Quarter 2024 Corporate Update
Second Quarter 2024 Corporate Update August 8, 2024 Confidential Information. Do Not Distribute. Confidential Information. Do Not Distribute. 12 12