PyroGenesis Canada Inc (PYRGF)

[Tom Joad]

re: consumables, real money

I'm not sure where the best profits can be found. I look for greatest profit margin. I'm guessing that, roughly-

profit margin = revenue - initial costs - variable costs

For powder, initial costs should be fixed as I don't see how the machines are exposed to much wear. The variable costs are the cost of raw material in the form of wire and employee salaries.

I don't see powder overproduction being a problem for some time so powder producers should see demand keeping prices up at a healthy level, so margins should be healthy. I don't know what margins to expect for 3dam manufacturers because they are labor and technology intensive machines. The technology changes at such a rate that variable costs are high due to the research needed to stay competitive. It would be best to dig into some Arcam and Concept Laser quarterly reports to find out.