Pryme Trading Update

29 Oct 2024 19:55 CET

Pryme Trading Update
Rotterdam, October 29, 2024


Pryme lowers its capacity and production estimates for Pryme One, its first
production plant, and confirms the technical capabilities of its technology and
foresees additional funding needs.


Pryme (“the Company”) produced its first pyrolysis oil from its first plant
(“Pryme One”) in January 2024. Since that time the plant has been in operation
for more than 400 hours during which a total volume of 301 metric tons of
pyrolysis oil was produced. The main reasons for the low production to date have
been the slow feed rates of feedstock and short production runs. The low
production rates are a consequence of the deliberate focus of Pryme’s
operational staff on learning from the early production runs rather than
maximizing production volumes although short bursts of high production rates
have been achieved. When production runs are short, significant time is lost in
the start-up and shutting down of the installation. The combined effect of short
runs at low production rates has resulted in a low total volume produced to
date. For reference, more than 30 production runs have taken place since January
2024.

During this time Pryme has gained important insights into the Pryme One
installation. For perspective, the Pryme One facility contains proven and partly
standard components such as walking floors, conveyor systems, extruders,
reactors, condensation units, a thermal oxidizer and storage facilities with
some proprietary modifications. Following multiple improvements and changes, the
Company is satisfied that all the components of Pryme One are generally
functioning well and it believes that the overall technical setup is capable of
semi-continuous production for the conversion of plastic waste feedstock into
pyrolysis oil. As a sign of a good industrial process, the char or ash produced
is dry and free of hydrocarbons and we have not experienced higher than
anticipated levels of waxing or fouling of the installation. The oil produced is
of a general quality that our existing and potential customers can accept in
this phase of early production.

Based on operational experience to date, Pryme has lowered the overall
production plan expectations of the Pryme One installation for the next 12
months. The main reasons for the new lower estimated overall Pryme One
production rate are related to the overall process layout and the oil yield
levels. As stated earlier, Pryme One has a semi-continuous process where all
steps in the process are designed for continuous operation except for the
reactor feeding and the dumping of char/ash. Operational experience to date
indicates more downtime for reactor feeding and equipment maintenance and
cleaning and hence a lower plant availability than previously assumed. We now
estimate that the annual feedstock intake of the Pryme One plant will be around
26,000 metric tons rather than the 40,000 metric tons earlier assumed. Also, we
estimate lower oil yields from the feedstock. The yield was originally estimated
at 75%. We now expect the feedstock to pyrolysis oil yield to be around 65%
initially, with higher yields to be achieved through the optimization and
fine-tuning of the Pryme One reactor train over time. Consequently, the revised
production capacity of Pryme One is estimated to initially be some 16,700 metric
tons of pyrolysis oil per annum. The Company is not able at this time to
estimate to what extent this lower estimated production capacity of the Pryme
One reactor train could affect future Pryme plants.

To date, the production at Pryme One has ramped up at a slower rate than
originally anticipated. It will therefore take longer to reach the revised full
capacity of the plant. The Company now estimates that production rates at or
near the revised plant capacity for Pryme One will be reached in the last
quarter of 2025 when Pryme One is expected to operate at cash-breakeven levels.

The estimated reduction in plant capacity and the delayed ramp up of production
is expected to have a negative impact on Pryme’s financial performance,
particularly its short-term cash flow. This will lead to lower cash flows than
originally estimated for the next quarters. Consequently, the Company will seek
additional funding in the range of €6-10 million with the target timing for
completion of such funding to be no later than in Q1 2025.

Other updates
As a preview of the quarterly report for the third quarter of 2024;
• Pryme produced 116 metric tons of pyrolysis oil in the quarter
• The quarterly net loss after taxes amounted to €4.7 million.
• The outstanding convertible loan was converted into shares in Q3 leading to
the issuing of 10,620,777 new shares resulting in a share count of 61,168,399
shares.
• The Q3 quarterly decline in cash amounted negative €5.8 million of which €0.9
million was attributable to capital expenditures.

Furthermore, in October 2024, the Company drew the unsecured loan previously
granted in the amount of € 5 million. Details of such loan can be found in the
Company’s disclosure on NewsWeb on June 6, 2024.

The Company’s cash position on October 29th,2024 amounts to €9.5 million of
which €8.8 million is unrestricted. The restricted cash represents prepayments
of subsidies received that are earmarked for certain specific activities.

The Company will publish its full quarterly report for the third quarter of 2024
on November 7, 2024.

This disclosure (the "Disclosure") has been produced by Pryme N.V. (the
“Company” or “Pryme”). This Disclosure and any information contained herein or
provided in this Disclosure are being made available for informational purposes
only, and may not be distributed to any other person, reproduced, published or
used in whole or in part for any other purpose. It does not constitute, and
should not be construed as, any offer or invitation or recommendation to buy or
sell any of the securities mentioned or described herein. No representation,
warranty, or undertaking, express or implied, is made to, and no reliance
should be placed on any information, including projections, estimates, targets
and opinions, contained herein, and no liability whatsoever is accepted as to
any errors, omissions or misstatements contained herein, and, accordingly, the
Company accepts no liability whatsoever arising directly or indirectly from the
use of this Disclosure, or its contents or otherwise arising in connection
therewith.

All information in this Disclosure is subject to verification, correction,
completion and change without notice. In publishing this Disclosure, the Company
undertakes no obligation to provide the recipient with access to any additional
information or to update this Disclosure or any information or to correct any
inaccuracies in any such information.

This Disclosure contains several forward-looking statements relating to the
business, financial performance and results of the Company and/or the industry
in which it operates. Forward-looking statements concern future circumstances
and results and other statements that are not historical facts, sometimes
identified by the words “believes”, expects”, “predicts”, “intends”,
“projects”, “plans”, “estimates”, “aims”, “foresees”, “anticipates”, “targets”,
“will”, “should”, “may”, “continue” and similar expressions. Forward-looking
statements include statements regarding objectives, goals, strategies, outlook
and growth prospects; future plans, events or performance and potential for
future growth; liquidity, capital resources and capital expenditures; profit;
margin, return on capital, cost or dividend targets; economic outlook and
industry trends; developments of the Company’s markets; the impact of regulatory
initiatives; and the strength of the Company’s competitors. The forward-looking
statements contained in this Disclosure, including assumptions, opinions and
views of the Company, are based upon various assumptions, including without
limitation, management’s examination of historical operating trends, data
contained in the Company’s records and other data available from third party
sources. Although the Company believes that these assumptions were reasonable
when made, the statements provided in this Disclosure are solely opinions and
forecasts that are uncertain and subject to risks, contingencies and other
important factors which are difficult or impossible to predict and are beyond
its control. A number of factors can cause actual results to differ
significantly from any anticipated development expressed or implied in this
Disclosure. No representation is made that any of these forward-looking
statements or forecasts will come to pass or that any forecast result will be
achieved, and you are cautioned not to place any undue reliance on any
forward-looking statement. The information obtained from third parties has been
accurately reproduced and, as far as the Company is aware and able to ascertain
from the information published by that third party, no facts have been omitted
that would render the reproduced information to be inaccurate or misleading.

This Disclosure has not been reviewed, approved, authorized or registered with
any public authority, stock exchange or regulated marketplace.

This announcement is considered by the Company to include inside information
pursuant to the EU Market Abuse Regulation and is subject to the disclosure
requirements pursuant to section 5-12 the Norwegian Securities Trading Act. This
stock exchange announcement was published by René de Graaf, General Counsel of
Pryme N.V., on October 29, 2024 at 19:55 CET on behalf of the Company.

More information:
Access the news on Oslo Bors NewsWeb site

630665_Pryme N.V. - Trading Update 29 October 2024.pdf