 I'd love to welcome everybody back to the Independent Investor Channel. My name is Ryan. Through my coverage of aduro clean technology, it has become very clear to me that we are probably due for a status update on where we are now. And I was thinking about in reflection of what I've covered on this company. And I think we're scratching the surface on one of the most important times of investing early on in an emerging market where I think that a lot of the focus right now and craze is going toward the artificial intelligence movement. And I think half of the people that I talked to probably could not even explain to me what artificial intelligence is and what it means to the efficiency of the businesses that they look to augment. But all too often, I think that this emerging market that I contend are at the very, very beginning stages of its evolution in addressing a monumental global problem that we have here in the plastic recycling space as it compares to the amount of plastic that is produced every year and is expected to increase coming over the next couple of decades. The demand on plastic is not going away. What we have built up over the previous decades has lent itself to the very problem that is facing us now. And the magnitude of how overwhelming this problem is is to look at the sheer statistics of annual plastic production per year, which sits at about 170 billion pounds of plastic, which equates to about 85 million tons per annum of plastic produced. And just to give you another idea, that's about 233,000 tons per day produced globally to meet the demands of the plastic need. It's really difficult to conceptualize that magnitude of problem, especially when compounded with the sheer reality of comparing the two methods, one historically relied upon to deal with this plastic problem on the mechanical recycling side of the house. And what we're going to talk about today with what is considered to be advanced recycling, we cannot move into a secular or circular economy without augmenting the plastic problem as we know it now without the emergence of advanced recycling. I'm going to talk a little bit about what that means, what we're looking at as we cover the story and we uncover what the chemical recycling breakthroughs that are being brought to bear now can lend itself to making sure that we're breaking into an arena of plastics that have been historically impossible and economically unviable to recycle historically. Okay, so this is a very complex problem. The idea here is to understand the magnitude of the problem, understand current methods in that we are deploying to recycle those plastics that we can recycle. And really up to this point in 2023, ignoring those plastics that have been historically proven impossible to recycle. And unfortunately seeing statistics that only 9% of our global plastics produce actually make it to the mechanical recycling methods of melting, of shredding, and grinding the plastics into a material, unfortunately by use of those mechanical means we lose a lot of the integrity and the quality of the plastic rendering it incapable of being introduced in what we all are seeking in a circular economy to make sure that that plastic is rendering itself available to a useful product or a useful resin or a useful pellet on the back end. For those who have tuned into my message and cover of Aduro, it is a company that I am intimately involved in. I am an investor in the company. I am also employed by Aduro to provide information and commentary on those disclaimers are made available for you as well as my share base that I have purchased on my own in the tune of 27,500 shares and growing. I do intend on buying more Aduro shares as the opportunity is made available to me. In monitoring the stock over the past six months, I've seen a leveling off of the stock action from its highs here sitting at around 65 cents US as we are reporting out today. I do anticipate the continued coverage of the company. I find this company fascinating. Where it really hits the ground for me is when we look at what Aduro is trying to do in the plastic recycling space. I'd like to attempt to draw a comparison. I've engaged in a line of due diligence with regard to what I feel like is probably one of the most attractive companies in way of the marketplace that has gained real favor, especially over the last three months in market action seeing pure cycle, which was a SPACs that was brought to public markets during the SPAC process. Procter and Gamble still retains the intelligence around and the patent protections around the highly coveted processes that makes pure cycle what it is in what they consider to be a molecular wash. I've listened to the Q1 call for pure cycle and I was really able to glean some themes in cross comparison between these two companies, which if I'm going to state what I feel like Ofer Vicus, the CEO of Aduro wants to convey to would-be share owners in Aduro and current share owners in this company is that the magnitude of the plastic problem is so large that even when we look at some of the anticipated production results from a competitor in the landscape, I have a hard time saying that they're a competitor because I think there's going to be multiple names that are going to be needed in combating this plastic problem. I think the gauge of whether or not we are making true progress toward that 170 billion pounds produced per year is actually being addressed in any type of measurable fashion. I think we take even the top end of the current anticipated metrics from pure cycle and you're talking about a less than 1% potential penetration is what is being produced now and when we look at a 3x of expected plastic production and demand over plastic products over the next couple of decades to 2050, the problem is now and we are just in the beginning stages of really putting this technology to the rigor in mass scale production. Now I do want to premise this when I do talk about Aduro clean technologies and I talk about the comparison between pure cycle. I want to draw a staunch distinction between what I feel like is probably months if not years in separation of the evolution of these two companies. I also want to premise that my dialogue in cross comparison between these two companies is not to disparage the technologies of one company over the other. I think we are so far away from properly addressing and making a significant impact on this problem that I am all ears whether or not it be a pure cycle or Aduro or some of the other players in the space that are bringing solutions to bear and and subjecting their technology to the rigor of addressing this problem because if we all can agree that this problem is not going away only to be compounded going forward it begs the high capital intensive input approach of a pure cycle and compared to a more conservative approach like an Aduro who is looking to scale into the commercial aspect a little bit more carefully a little bit more conservatively right or wrong you know pure cycle with their millions and millions of dollars into putting into both of their projects to hear domestically here in the states and to globally one in South Korea and the other I believe is in Japan they are throwing millions and millions of dollars at this plastic problem knowing that we have to step into more of an advanced recycling type of regime as opposed to relying on traditional methods which has just proven futile up to this point cost prohibitive and I think we are all in agreement that the current status quo with only 50% cannot be recycled using traditional means you know what happens to the other you know 91% of plastics out of which a certain percentage are going to be your harder to recycle plastics like polypropylene which is the flagship plastic problem that a company like pure cycle is looking to address through their through their through their two facilities that they're looking to bring online both with Augusta and Iron Tun in in Ohio very important to study you know what they've went through to listen to those calls and to understand the amount of capital intensive demand that has been over bringing these plants to the Iron Tun has just received its mechanical certification to start to enter into what they consider to be both a it's a five-day continuous run test that they will have and I think those value propositions for pure cycle are very important in noting I think once pure cycle is able to actually turn out the pellet is what their their product on the back end renders and when we cross compare we'll talk about that a little bit but I think that's going to be a value shift as well as a value added proposition for pure cycle when they can show some level of consistency in output because right now their range of output is anywhere from you know 45 million pounds per year all the way up to about 75 million pounds per year you know which could equate anywhere from about 60 tons to about a hundred tons on the high end of output for their Iron Tun facility so it's going to be really interesting and I just want you guys to understand the comparison between the old mechanical recycling means and the new chemical added processes that use more of a molecular breakdown of the plastic polymers that have been traditionally hard to recycle and and looking to move more toward the advanced recycling techniques now in cross comparison between these two companies I really want to draw your distinction between what I feel like has been important reporting to you now in June of 2023 pure cycle is a little bit more aggressive little bit more capital intensive they've got about a 90 million burn rate they do have a significant amount of debt on the books at about 260 million dollars of debt on the books they have loans outstanding on their properties and there is a significant amount of non-dilutive capital raise I will give them credit for however very capital intensive in bringing these two plants the one specifically Iron Tun as well as the plans to bring Augusta on Iron Tun I understand to be I believe two lines of production whereas Augusta is going to going to go to eight lines of production with a staggering potential of one billion pounds per cycling per year on the Augusta potential so some of the interesting figures that they're putting out there are quite frankly very impressive they boast a market cap of about 1.3 billion we cross compare that with a duros market cap of about 45 million and that's those are us statistics we look at a stock price for the pure cycle opportunity that has increased from a low of about four dollars and 41 cents so where we are at the time of filming this video at seven dollars and 82 cents which over the last three months has proven to be a 73 percent increase in the stock price so you can see a stock that absolutely has some impressive attention going toward it market caps have been all over the place for pure cycle pure cycle has fallen from grace boasting a stock price just here a couple of years ago of over 30 dollars a share having fallen down to the lows of four dollars in a market cap less than 500 million dollars us that market cap has since doubled since then to about the 1.3 billion dollar mark but when you to look at that staggering increase just over a three month short time frame you can start to look at and cross compare an aduro market cap at 45 million that has not budged and I went back and doubled the three months to six months the stock comparatively speaking is down 3 percent over that same time horizon that's to account for the game changer announcement from aduro that's to account for the finalization and the mechanical and electrical certifications on r2 that is to account for the funding rounds the close out of the the may 2021 warrants so a lot of positive information to not move the needle on aduro just begs the question in doing our technical analysis on both companies and understanding the ramp up in some excitement on when we look at both of these companies they're both pre revenue they're both pre revenue and I think to give credit on the pure cycle side for being so capital intensive they need to be commended for bringing this plant online to what is going to be some of the final stages of what they expect to be a ramp up of production and going through the final tests and and and having an actual operational facility that can take polypropylene and actually render a final product and I think when we cross compare these two I think that's a flag in in pure cycles hat in that investors can actually visualize what this end product from pure cycle is going to look like now the cost to get to that end and the demand over that end product that customers are going to have over the pure cycle cycle pure pellet that they actually produce on the back end and the use case for that pure pellet pellet and the the use case in way of how flexible that use case is is yet to be determined again it doesn't do us any good right now to split hairs over what pure cycle is probably going to have some answers in following months and even years of getting to a commercial stage where they're turning out this this pellet product and and be able to share that pellet product across you know the globe in understanding what the use case is and the demand over this pellet as a final recycled product of polypropylene is going to to seek out in the marketplace as a use case so we will just have to continue to cover the story there in understanding now the plastic focus that they have is a one tier focus and and again I'm not looking to degrade from the technology that's brought to bear by by pure cycle in that they are focused on polypropylene polypropylene being in that category of one of those hard to recycle plastics one of the most common plastics but also one of the most difficult to to recycle historically so they are grabbing a big swath of the plastic problem by going after polypropylene a duo has a three headed approach where they can not only through their technology achieve the ability to recycle polypropylene but also polystyrene and polyethylene respectively with their hydrochemolytic technology to be able to go after what has been historically three plastics that have been historically difficult to recycle whether or not that will prove to be a game changer no pun intended for a duo on the back end is yet to be seen I think in all fairness to do a cross comparison now I'm trying to be less presumptuous and more observant on what both of these companies are currently bringing to bear as we speak now and then report out on the developments on how each company has set themselves up to render themselves viable in a marketplace that is thirsty for these solutions make no mistake about it a duo pure cycle I believe in my best assessment in covering both of these these companies will absolutely have a place in this industry how that looks five years from now and how that looks 10 years from now is anybody's guess I do see both of these companies having a place and I do think a duo is significantly significantly in a different stage as pure cycle in their own respective evolution of bringing their technology and ramping up the pre-commercial and eventually the commercial viability of the aduro technology fun times to be had we're kind of seeing a little bit of trickle of that through pure cycle and me as a steward of what I consider to be one of the most attractive thematic investing opportunities of this decade that is emerging under everybody's nose and not very many people are talking about it I think that's a big mistake and those who are introduced in the opportunity earlier then later are probably stand to make the greatest amount of profit on what I consider to be a multi decade investable theme going forward we already talked about the technology being the molecular wash I do apologize I do not cover pure cycle this was a surface level review of pure cycle in an attempt to draw a cross comparison between aduro and pure cycle the technology of aduro for those that have covered it hydrochemical as well the timeline for pure cycle looks to be somewhat immediate and midterm so it'll be interesting to see over the coming three to six months which I consider to be very short term on what pure cycle can actually render from its iron ton facility I'm not so interested in the developments of the Augusta project for you guys that are stock owners in pure cycle which I am not I am not a current stock owner in pure cycle I know there's a lot of buzz around the company and rightly so I think they're in the right spot I think investors are looking at the right stuff by looking at this space as a whole and picking those horses where they think stand the greatest chance of upward potential I just want to caution you that when we're cross comparing these companies one is very aggressive and capital intensive the other I feel like is the complete opposite in aduro clean technology in taking a more conservative capital lean approach to bringing their technology to bear to tackle the exact same problem in the industry okay when we talk about volume production here we're talking about pure cycle boasting on the upper end of the iron ton facility to be about 100 tons per day that's pretty impressive but when we look at that in compared to the tons the 233 000 tons per day of plastic production we're talking about a point zero zero four penetration on opportunity that's even if they can meet that 100 100 ton production me as a steward of this space would love to see pure cycle below those numbers out of the water now the ceo did allude to the potential of the iron ton facility being able to produce more than the top end of production of about 75 million tons per day excuse me 75 million pounds per day of production okay I think that's a little lofty because the range is about 45 million pounds per day to about 75 million pounds per day I want to mix up my tons per day and tons per year but that's that's the range of where they're looking to fall so anywhere between 65 tons per day of output on the upside 100 tons per day guys I'd love to see some some level of physical evidence turned out in what these companies are projecting in way of volumes per day and what they're actually producing in way of a tangible product that investors can look at and say okay boom now we've got this there's a real value here on the back end and we can really associate with an actual product that pure cycle brings to bear and what aduro is going to bring to bear with regard to their final resin that can be used in a variety of different products and it brings me to a differentiation between these two products okay there's actually two major differentiations the one is that aduro in conversations with me that I share with you can tweak the chemistry in a way that can provide an output resin or a usable product in a desired fashion in other words what is it that the desired output is and how can we tweak the chemistry in the hydrochemical process to make sure that the molecular bond structure on the back end is as desired major difference this is one of those major differences that the chief scientist Anil Javar has disclosed to me in differentiating aduros technology when compared across the industry is that the ability to tweak the input chemistry to a more desirable output now if you cross compare that with pure cycle pure cycle has put millions and millions of dollars into building this facility to produce in what my best estimation is to be a pellet a polypropylene pellet that will be taken and used as basically new stock into new products does that help to solve the polypropylene problem you bet it does you bet it does and I commend those efforts my question is a deeper one in understanding the cost input to get to that end result is the customer demand across the industry such that those pellets are going to be the vast use case for what the industry needs in way of a nice shippable product that which is clean pure and odorless as pure cycle boast to be put back into the circular economy the way we expect that a high level advanced recycling technology to work I think on the surface I look at this thing and I'm very very impressed with what pure cycle is doing I do think there's going to be a use case I do think that the inputs rather in a very narrow swim lane as they are is going to produce a huge volume need that is easily shippable to the plastic producers to introduce the back end to the plastic cycle of producing new product on the back end finally what is the cost to produce the pellet okay if we're putting input cost into producing the pellet there has to be a level of articulatable margin and I listened intently to the Q1 call of pure cycle I never heard any of those ideas of how much they're making per ton per output of pellet produced let's say per ton of pellet produced to be to be fair to pure cycle I didn't hear it the bulls and those who actually cover pure cycle would probably have a better indication of how much money pure cycle anticipates some of the analysts on the Q&A kind of hemmed and hot around that and pure cycle did the same they danced around the question to really understand how much money could they make off of this end product because pure cycle in all fairness probably doesn't have a handle on how much demand they're introducing into a market for these polypropylene pellets is going to be there and and it's very difficult to understand what they're anticipating in way of a profit range okay now with the aduro clean technology the same argument can be made for them how much demand how much more difficult is that going to be how much more monitoring is going to be necessary to put over the reactor from the aduro technology and how how anticipatable or how predictable are the tweaking's and the tweaking's by nature of the output that's rendered how predictable is that how much of a use case is there truly for that to tweak the chemistry to a desired output to aduro's case they think that that's the differentiator between them and every other company out there but is there more of a need for that specific chemical input to a desired output of the chemistry as opposed to going more of a we're producing a pellet we're putting millions of dollars into producing this because the need is so large that we know that there's going to be a need on the back end for polypropylene I think there's a use case for both I really do and by doing a cross comparison in the study between these two companies I really did come to that realization to where me as it sits right now as an investor in the space in general specifically in aduro clean technologies it's going to be very fun for me I'm in on the ground floor I have nothing to worry about I'm not chasing anything I when you get in on the ground floor you have no worries this message brought to you is just providing you an opportunity to make an educated decision to put yourself in the same position as I have or make an educated decision not to because you don't like what you hear about where the companies are right now and there's a bear case to be drawn up on how early stage even a pure cycle is knocking on the door to commercial production of their polypropylene pellet I still contend that they're in the very early stages of market penetration provided by the early stage projects and development and knowing the groundbreaking happened on the iron ton project four years ago so it just gives you an idea how long it takes now there will be learnings from the iron ton project that will be incorporated into the new projects the CEO talked about the modular aspect of designing some of the components for these plants offsite and then bringing them on site I think those learnings will render itself invaluable to pure cycles evolution of these plastic recycling facilities that they're bringing online me as an advocate for the planet and looking for in desperation these companies to bring forward in conjunction with very large investors that are obviously willing to throw a lot of money at these solutions I think pure cycle has been proven to render a back end product that is tangible and observable in nature I think Aduro has a little bit of work to do on that front in producing what is going to be what a resin right that can be introduced how will that resin be shipped what will it look like what type of purity will it will it contain will it contain any smell will it contain any odor these are all things that pure cycle has already completed in being ahead of the evolution on their own respective path to commercialization the last thing I will mention is the input of feedstock this is something that was interesting on the Q1 call for pure cycle and it stuck it stuck out to me where the analyst asked whether or not the feedstock availability from the feedstock suppliers was going to be availability for the input for the massive numbers of millions of pounds of input to this facility when it gets up and running to make sure that that feedstock is going to be available to them I want to point you back to the efficiency of the output of the product okay now where polypropylene is input at 100% feedstock the renderings from a pure cycle technology is only going to render 45% less than half efficiency on the total renderings of the input of feedstock of the pure cycle polypropylene to the to the pure cycle process rendering itself 45% to usable usable polypropylene on the back end this is a staunch difference between the two technologies this really raised my eyebrow really made me think of the byproduct made me think of the chemical inputs that's going on to render this chemical process that pure cycle boasts which I feel like they were a little bit elusive on which is the most interest to me which is where I do commend aduro on being very very forthcoming with how their technology works what they're looking to do and what they're rendering on the output side of the house whether it be styrene propylene polystyrene polypropylene on the back end at a staggering 85% of rendering that that is incredible difference on expecting that the input of feedstock and the amount of loss on the back end is only going to be around 15% and the rest is going to be 85% of usable product so when you're talking about almost double the usable material on the back end that is a huge huge difference and I will just draw this conclusion by closing out this video and understanding we are going to know a significant amount more on each of these respective companies and the technologies that they bring to bear the molecular wash on the polypropylene side rendering the pellets and rendering the pellets alone as well as the aduro product when it's being put into the rigor of the R2 which we should have a very clear understanding of where we are by the year in 2023 don't expect this to happen overnight this is a ground floor investment it is a multi-year project if not a multi-year multi-decade project to really make a dent because when I talked about even on the high end of what pure cycle is anticipating for output in the tons per day a hundred tons per day that's at the Augusta facility running I believe eight lines is what they're calling for at the Augusta facility that is hardly a dent in this technology and there has to be some scaled reciprocation of these well-known facilities once they get proven out in their viability and their use case for these plastic producers that are anxiously awaiting the results of some of these finalizations on the pure cycle side with the facility and the product that they're able to render as well as the exciting developments that we expect from aduro over the coming months guys I appreciate you tuning in to this video and the ongoing coverage of aduro clean technologies this was a little bit different of a cross comparison between what I feel like is the most intriguing in the space in pure cycle technology I do want to yield to some of the bears if some of my statistics are incorrect but I did do a pretty good surface level review I listened to the q1 call and I'm actually somewhat encouraged it has been a wild ride for pure cycle in their valuation from upwards of 10 billion plus all the way down to 500 million and back up above a billion it has been a a a a whipsaw of of a market and I think it really just speaks to the demand over these companies to accelerate their growth as quickly as possible the amount of of capital that is being raised and spent on these initiatives right now in the marketplace and I think it behooves the investor to make sure that we are having patience that we are monitoring the landscape we are celebrating achievements and we are learning from setbacks as disclosed by the CEO of pure cycle and as well as earmarked by the CEO of aduro mr. o for vikas who talks about the importance of multiple solutions to really address what is a mountainous problem and we are just in the beginning stages of addressing what we consider to be the plastic problem guys thank you so much leave your comments in the in the comment section below please hit the thumbs up button and subscribe to the channel if you do enjoy content like this guys thank you so much for tuning in to the totality of this aduro update and good luck in your investment future