@Silky84 Yeah, very small number. So the $0.5m is just for the supply of the fibre optics cable, it would be interesting to know what kind of ballpark value they anticipate the 5yr support and software updates contract to be worth. I am assuming that this must be significant and is probably worth more than the intial supply contract? Does anyone know from previous Aura Ai-X deals what kind of magnitude of higher margin revenue this brings in?

When I saw the price sensitive label and the multiple airlines I was expecting more and my initial thoughts were bugger, that I was too slow to jump back on the AVA train. Surprisingly the buy sell spread is 2x higher sell side, which is interesting that this announcement couldn't even slow the short term sentiment, although only 8 trades have gone through currently. It does look like a good opportunity could be building at AVA.

It concerns me that they announce these small contract wins. Effectively they are announcing they are not winning big contracts

@actionman thats what makes me wonder if the 5yr software support component actually makes these announcements material. As it is hard to reconcile how they hit the revenue targets in their 3yr plan with these types of contracts.

I am wondering if the supply component is effectively just unit cost of fibre cable x distance + sales margin which is easy to quantify and hence it has a value on it in the release, but the software component is more variable and depends on the use and support level required maybe KPI targets around false alarm levels etc, and hence they don’t know it’s value yet. I am surprised they haven’t even put an estimated min max level in or something similar. I think I will send Mal an email and see if I can work out if this contract is actually material or not.

There has been previous discussion on here about AVA doing the exact opposite -- not making ASX announcements when they have signed new deals/customers etc. To be frank this is unlike them to report.

What gives here, then? Are we missing something in the announcement? Or is this management merely highlighting that these wins are strategically really important and speak to the market opportunity for Aura Ai-X? Who knows.

@Slideup great idea, I am interested to see what Mal says.

I’m guessing they might just be talking up this revenue because it is EU (which I think was their most under-penetrated market for this line of business).

More likely they want to tell the market that this new “AI” product line (finally) has revenue. (Don’t you get an automatic PE multiplier for saying you do AI these days)

in the chat with Mal I recall he was pointing out that the product line tech was more than just mine site conveyor belts.