There was an article on ABC news recently about Finland commencing work on a border fence with Russia. I wonder if this is linked to the recent Aura IQ announcement?
NATO member Finland breaks ground on Russia border fence - ABC News
Since we have two Aura IQ contracts now, I feel like we should have somewhere seperated just to talk about this game changing technology that is suppose to save every shareholder.
I just did some more research on the first mining sector contract that worth USD$ 0.3 million. For the first time, we have a project to investigate the profitability of Aura IQ.
As I recall from a Q&A section, Rob did say there are two types of Aura IQ contract:
We don't know exactly what type of contract this deal is going with. Based on the narrative of the anouncement, I assume it's a one time deal. Actaully I hope it's a one time deal because it is just sad if the 0.3 million contains any future recurring revenue. All the discussion will be base on this assumption.
Let's have a look at Ferroport then.
Ferroport is a joint venture between Anglo American and Prumo Logistica, a infrastructure and logistic company own by Mubadala, an Emirati state-owned holding company and EIG, an institutional investor focusing on the global energy sector.
The operation has approximately 5 to 6km conveyor belts installed on site. Those conveyor belts carries the ores all the way from filtration facilities to stockpiles, then all the way to the ships through the pier.
So in a one time deal like this, AVA makes about $50k+ in USD per km and I bet the margin is really good also.
Here is my reasoning:
In 2021 AVA won a contract to protect 15 major airbases in a large Asian country (we all know it's India) with Aura AI technology. The size of the contract was USD$0.55M, which is around 2 times of the size of Aura IQ contract.
Although I don't have the exact information of the 15 airbases, I am pretty damn sure that the perimeters of all 15 airbases combined together, should be much longer than 5km.
Since the gross margin of FFT has always been decent when winning this type of contract, the margin of Aura IQ contracts has to be even better.
I'm expecting this type of deal to be small but very profitable. Although one may not materially change the fundamental of this company but there are dozens of iron ore and coal terminals, if not hundreds, in the region covered by Strata Worldwide, the distributor of Aura IQ, so the addressable market is quite significant for a company currently valued at $64M.
Even without the recurring revenue opportunity, Aura IQ is looking really good to me and I can't wait fo the future news.
And don't forget about the mine site opportunities.