Pryme Trading Update

10 Dec 2024 18:00 CET

Pryme Trading Update
Rotterdam, December 10, 2024

Following Pryme N.V.’s (“the Company”) trading update dated October 29, 2024,
Pryme has developed a detailed operational and production plan for 2025 for
Pryme One, the Company’s first plant. This plan is designed to ramp up
production to industrial volumes approaching the nameplate capacity for Pryme
One in the second half of 2025. As stated in earlier communications, such
nameplate capacity is expected to be around 17,000 tons of pyrolysis oil
production on an annual basis. This trading update is to provide further
information on the production ramp-up, the resulting cashflows and current
funding activities.

Pryme One: Operational Plan

The production plan involves a staged increase in production based on testing
and validating operational and hardware improvements before ramping up to
industrial volumes. For the first quarter in 2025, Pryme One is expected to
produce between 750 and 1,000 tons of pyrolysis oil. In the second quarter
production is expected to increase to a level of between 1,500 and 2,000 tons of
pyrolysis oil. The Company expects the third quarter of 2025 to be the first
quarter with industrial volumes of 3,000 to 3,500 tons of pyrolysis oil followed
by the fourth quarter when the production is expected to reach around 4,000
tons.
Please note that the above operational plan and further financial implications
of the performance of the Company are not intended as a guidance to Pryme’s
future performance, but rather is intended to inform the market of Pryme’s
operational ambitions and plans for 2025.

Liquidity Implications of Pryme’s Operational Plan and Ambitions

With the planned production ramp-up the Company expects the cash burn rate to
decrease during the course of 2025. However, the Company does not expect to
break even on a cash basis before the end of 2025. Reaching the cash breakeven
level in the second half of 2025 will require improved pricing from the
Company’s customers. The Company is therefore in the process of renegotiating
its customer and supplier contracts. An improvement in the pricing levels would,
if effective already in the first half of 2025, lead to a somewhat favorable
cash flow compared to the above figures.
Some additional investments in the Pryme One facility are required in the first
and second quarter, and as the revenue levels increase, the associated increase
in working capital will also consume some cash.
All included, Pryme expects its cash flow in 2025 to be negative for an amount
around EUR (12.5) million. The breakdown by quarter indicates that all the
quarters will have negative estimated cashflows in the approximate amounts of
EUR (3.5), (3.0), (3.5) and (2.5) million for Q1, Q2, Q3 and Q4, respectively.
With an expected cash balance at the beginning of 2025 of around EUR 5.9 million
of which around EUR 1.6 million is earmarked for specific activities related to
subsidies received, this cashflow outlook forms the basis for the estimated
funding needs for the Company for 2025 for around EUR 8-10 million as disclosed
in Pryme’s trading update on November 28, 2024.

Funding Activities

As outlined in the October and November 2024 trading updates, the longer ramp-up
phase for Pryme One has led to lower cash flows than initially expected. To
address this liquidity shortfall and fund ongoing early engineering work for
Pryme Two, Pryme has explored the interest from sector investors and the major
existing shareholders. Such early conversations indicate that up to around EUR 4
million of funding could be obtained. Based on the same early indications,
additional funding above the indicated EUR 4 million level would most likely be
dependent on the Company reaching certain operational and financial milestones.
The Company continues to search for funding in order to satisfy its liquidity
needs for 2025. If Pryme is not successful in obtaining funding above the EUR 4
million level, a further funding round is estimated to be needed in the
April/May 2025 timeframe as per the above indicated expected cash flows when
considering the current cash balance of the Company.

Other updates

As per the date of this trading update,
• The Company had a cash balance of EUR 6.9 million.
• The net loss for November 2024 amounted to EUR 1.8 million and we expect the
December 2024 losses to be similar to the November 2024 losses.
• The cash burn for November amounted to EUR 1.7 million and the expected
December 2024 operational cash-burn amounts to EUR 1.1 million.

The Company will publish its quarterly report for the fourth quarter of 2024 on
February 26, 2025.  

Disclaimer

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”,
“indicates”, “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 December 10, 2024 at 18:00 CET on behalf of the Company.

More information:
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634294_Pryme N.V. - Trading Update 10 December 2024.pdf