3DA investor webinar. They missed guidance due to being unable to complete outstanding orders despite ramping up production and took in a $4.7M worth of feedstock inventory (60 tonnes pre-tariffs) so had a cash outflow of $9.9M. Despite the growth the market didn't like the numbers that seemed to suggest that the 3rd (due to ship Jan 26 and commission June 26, 4th to be ordered by CY26) atomiser would be needed to produce enough powder to turn a profit and the SP took a hit. Options (18c) expire December 2nd (I have taken up mine in RL). Despite stating they were fully funded they raised $50M @40c (which turned out to be a good price as it sits at 28c at time of writing) I didn't participate in the SPP in RL as the price quickly fell to well below the SPP price.

Expecting kg of powder shipped to steadily increase Q on Q but revenue may be lumpy as high value C103 may not ship every quarter. 3rd and 4th atomiser planned to operate at 50%+ to allow for accommodating large orders.

I will continue to hold for the next couple of years as long as the revenue keeps making progress towards FCF.

Highlights

Financial Performance

Amaero reported revenue for the September Quarter of A$4.7 million.

Revenue included approximately A$4.1 million from powder sales and A$0.6 million from Powder Metallurgy Hot Isostatic Pressing ("PM-HIP") manufacturing. This reflects a 445% increase from the Q1 FY2025 period.

Though production increased by approximately 240% from Q4 FY2025, the finished powder was insufficient to fill all Q1 FY2026 orders. The Company begins Q2 FY2026 with a backlog of unfilled Q1 orders, totalling A$0.5 million.

Cash used in operating activities was A$9.9 million, including A$4.7 million in inventory purchases. A significant portion of these inventory purchases represented buffer stock built to reduce exposure to potential trade disruptions and tariff policy uncertainty.

The Company ended the September Quarter with a cash and restricted cash balance of A$50.9 million.

After the Reporting Period, the Company received US$5.7 million on 3 October 2025 from draw on Export-Import Bank of the United States (“EXIM Bank”) equipment financing loan. The total EXIM Bank loan commitment equals US$22.8 million or US$20.3 million net of exposure fee. After the recent draw, the EXIM Bank loan balance equals US$13.3 million, net of exposure fee. The Company expects to draw the balance of the loan in FY2026.

Scaling Manufacturing Production

In anticipation of scaling manufacturing, the Company engaged a consulting firm to evaluate the manufacturing processes and recommended improvements to scale production, to improve safety and to enhance quality controls.

The Company re-structured the operations team and added Mark Struss, VP – Manufacturing Operations, to manage manufacturing operations. Additional processing equipment has been ordered and will be commissioned in Q2 and Q3 FY2026.

Customer powder shipments increased from 4,900 kg in Q4 FY2025 to 12,410 in Q1 FY2026, a sequential increase of 153%.

Atomization increased from 8,000 kg in Q4 FY2025 to 27,000 kg in Q1 FY2026; an increase of approximately 240%. Production shifted from a single, 8-hour shift, 5 days per week on one atomizer to two, 10-hour shifts, 6 days per week on 2 atomizers. The increased production and processing was insufficient to meet the demand and to fill all orders.

Financial and Commercial Update

On 13 August 2025, Amaero provided a financial update reaffirming that it expected to significantly scale revenue in FY2026 and that it expects to achieve positive EBITDA in FY2027. Amaero estimated Q1 FY2026 revenue equal to approximately A$5.5 million, a 550% increase from the Q1 FY2025 period.

On the commercial front, Amaero continued to advance numerous commercial opportunities, including:

Amaero received contracts from a U.S. Department of Defense Prime Contractor (“Defense Prime Contractor”)1 and collaborated closely over the past year. As culmination of the initial contracts, we expect to deliver First Article parts in September or October 2025. First Article Qualification is an important step toward receiving a contract for production parts. The ongoing collaboration with the Defense Prime Contractor and the production of First Article parts further establishes PM-HIP manufacturing as a mature technology that’s an immediate and viable substitute for large castings and forgings.

The Company has recently commenced a development collaboration with The Boeing Company (“Boeing”). The collaboration leverages Amaero’s pioneering experience in PM-HIP manufacturing of large near-net-shape parts and Boeing’s vast manufacturing and materials experience.

As it relates to Amaero’s refractory and titanium powder business, we are pleased to share that we had orders from 14 different customers in Q1 FY2026. The orders included and we successfully atomized Niobium C103, pure Niobium, Tungsten (WHA), TZM and Titanium (Ti64).

A$50M Placement to Accelerate Growth Initiatives

Placement of 125 million new fully paid ordinary shares at an issue price of A$0.40 per share (“New Shares”) to raise gross proceeds of A$50 million before costs.

Amaero plans to accelerate investments that include ordering a 4th atomizer by end of this calendar year, design-build of an Argon gas recycling unit and other corporate development initiatives.

The webinar listed some opportunities

SP has improved over the last couple of months and the recent investor presentation along with the announcement of the 2nd atomiser commissioning has given a positive news flow. My overview is that the SP will continue to ebb and flow with announcements until revenue growth is evident in late 26 and then possible sell out by Hank in 28 once profitable.

Key take aways for me:

On planned capacity

"we have two production areas uh that we have completed one production area which houses the first atomizer we commissioned a year ago will be dedicated to C103 and refractory alloys an adjoining production area that is much larger has been built to have room for up to five atomizers dedicated to titanium production our current capex plans include three atomizers dedicated titanium but again we have room to the extent we have the long-term demand to expand to five the first of those atomizers dedicated titanium the second overall"

On tariffs

"Titanium Bar we have two supplier relationships we have a mill in China that we have a relationship with and we have a long-term supply agreement as you might recall with Perryman one of the premier titanium manufacturers in the US so we have both China supply and we have US supply the fact of the matter is today even with a 60% tariff which is the current tariff for titanium that we import from China even after that tariff the cost of our Chinese bar okay is much lower than our US bar our US bar is 50% more expensive than our titanium bar even with a 60% tariff now we have certain applications that require what's called DEFAR material or US allied source material particularly defense applications of which we are using US source bar we have other applications that are more price sensitive uh of which we are using Chinese bar

On growth

"I say with confidence this year will be the year that we scale revenue I would then expect 100% year-over-year growth into 27 100% year-over year growth from 27 into 28 given the demand and the nature of the market that we're satisfying"

" our revenue mix what I would expect is about 80% of our revenues will come from long-term agreements and about 50% of revenues from DoD or the US government and about 50% of revenues from commercial"

On qualification process delays to supply agreements

"there will be certain opportunities that have very very long qualifications so probably the longest qualification would be to be in a rotor part aerospace it could be two or three years to get qualified with Boeing right in that type of application you've got other applications such as printing suppressors which is a great AM application and very timely given change of the legislation in the US we can qualify with a printer in a matter of weeks right for that type of application and printing suppressors and then you've got other opportunities that fall in the middle a medical application might be uh for an existing part where you're updating a material it could be six to 12 months right uh and we are approaching that along the way where you know different parts of qualifying with different companies on different applications if you look at where we are for FY26 revenue I do not see any qualification impediments that is I'm highly confident we can achieve FY26 revenue and the goals that we have with our current qualifications and current qualification strategy"

On US govt cuts

"there's five areas they're increasing hypersonics missile defense submarine industrial base AI and unmanned the first three of those directly align with our initiatives right hypersonics missile defense and submarine industrial base so I think we continue to be highly in line with this administration strategic policies"

On FY26 progress

"so I would say that the the leadership's primary two priorities for fiscal year 26 is we now will embark upon scaling production so up to this point we've been operating one shift on one atomizer as of July 1 we'll be operating all out full production of one shift on two atomizers we'll then be adding a second shift later in the quarter or probably more like the second quarter of the fiscal year because we've invested forward in our capacity right and we've done this very intentionally we're establishing capacity a couple years ahead of where the demand signal is at any given time we'll be operating at maybe 50% capacity and the benefit that gives me when I'm having these large strategic conversations right now is no one and I underscore no one else US domestic production has capacity to scale at the pace that we do

Held in SM and RL

Updated Financial Guidance from 3DA putting profitability back to 2027 and reducing expected demand of C103. SP was up 4% today despite the news and still a long way off highs.

"The extended Continuing Resolution (CR) for the FY2025 congressional United States budget and the Department of Defense programs paused “new starts” and “re-starts” has contributed to a delay in revenue and new contracts. Additionally, various hypersonic programs have advanced more slowly through research, development, testing, and evaluation (RDT&E). An updated Fairmont Consulting study estimates demand for C103 powder at approximately 93 tonnes in FY2030 versus an earlier estimate on 8 February 2024 of approximately 105 tonnes in FY2028."

"The Company expects revenue growth to accelerate in the current quarter and a continuation of accelerated revenue growth into FY2026."

C103 alloy qualification completed ahead of schedule and announcement of partner identity. This was expected but is a further derisking of the company's business plan.

Amaero Completes Qualification of Niobium C103 with ADDMAN

Amaero completes qualification of C103 AM powder to ADDMAN Group and its subsidiary Castheon’s technical specifications.

Positions Amaero as the largest capacity and most responsive U.S. domestic producer of C103, refractory and specialty alloy powder for additive manufacturing.

Amaero’s successful qualification of C103 AM powder triggers ADDMAN’s offtake obligation with 0.25 tonnes expected to ship in CY2024 and 2.0 tonnes expected to ship in CY2025.

The qualification commences a five year preferred supplier agreement whereby Amaero will be the primary supplier of C103, refractory and titanium alloy AM powder to ADDMAN Group and its subsidiaries, including Castheon and Keselowski Advanced Manufacturing. Expected future sales are material to Amaero’s revenue; moreover, the attributable revenue is a key assumption underpinning Amaero’s expectation that it will achieve EBITDA breakeven in FY2026. 

Investor presentation and financial guidance update. CR incoming. $12M in the bank and an estimate of $43M needed for FY25, $206M MC. SP has fallen back from near 50c highs to 35c and I would expect further falls following today's announcement.

Strategy built on subsidised electricity price, reshoring of manufacturing to the US, securing government grants and Defence contracts, focus on high-value C103 and Ti64, cost savings in additive manufacture for high-end products and successful testing of C103 powder which appears to be a longer time frame than expected.

Company estimates that capital expenditures over 3-year period of FY2024 to FY2026 to equal $71.5 million; prior estimate was $71.3 million. $7.4 million of expenditures budgeted for FY2024 have been deferred to FY2025. • Company estimates that EBITDA breakeven to be achieved in FY2026; prior estimate was CY2025.

Company now expects that EBITDA breakeven will be achieved in fiscal year 2026 (six months later). The estimate assumes that the company achieves qualification of C103 prior to end of 2 nd quarter of FY2025; moreover, the estimate attributes revenue to the offtake and preferred supplier agreement, to scaling production of 1st atomizer over calendar year 2025 and to commercial demand pertaining to isostatic powder pressing (IPP) manufactured components.

Only after qualification is achieved, counterparty is required to take 2.25 tonnes of Amaero’s C103 AM powder (expected in late CY2024 and CY2025) • If qualification is achieved, agreement will run five years with additional opportunities for further supply of AM powder (beyond the initial 2.25 tonnes)

C103 powder prices are ~20x greater than Ti-64 powder prices; Ti-64 prices are ~5x greater than stainless

The synergy of this high performance alloy with AM not only enhances the design and functionality of critical components but also provides cost savings and environmental benefits.”

Additive manufacturing can reduce traditional manufacturing buy-to-fly ratios of 40:1 for machining and 15:1 for forging to below 1.5:1 • Implementation of additive manufacturing results in significant design and manufacturing process efficiencies

Milestones

Ship C103 powder for testing

Achieve C103 qualification; disclose offtake and preferred supplier agreement counterparty

Order Atomizer #3

Commence commercial sales of C103, specialty and titanium alloy powder; manufacture developmental refractory alloys

Deliver multi-ton HIP-manufactured components and commence revenue scale

Commission Atomizer #2

Complete Phase 1, 2 and 3 improvements to Tennessee manufacturing and HQ facility

Secure 1st U.S. government grant and advance other grant opportunities

Advance collaboration with preferred supplier partner

Advance collaboration with U.S. DoD-funded labs

US ownership moves to 50% +if all options are taken up which opens up US govt grant options.

Held in SM and RL.

Atomiser Commissioning Completed Ahead of Schedule. Good to see things progressing ahead of schedule (original Jun30). You can see the strategic direction but it is such a shame that this tech couldn't have been kept in Australia considering some of the hypersonic testing has been done at Woomera.

Installation and testing of atomiser in accordance with technical specifications in Purchase Agreement have been completed and Acceptance Agreement has been duly executed.

Amaero’s technical and manufacturing team will commence proprietary modifications of the atomisation process and optimization of the operating parameters on 3 June.

Final commissioning of the atomiser is an important step toward C103 and specialty alloy powder production and toward the expected achievement of qualification.

“This is an important achievement for Amaero and an important step towards addressing gaps in the U.S. domestic supply chain. Given the importance of advancing priority hypersonic and strategic missile programs from development and demonstration phases to serial production as quickly as possible and the pressure to achieve material properties and performance criteria, additive manufacturing plays an important role. The insertion of additive manufacturing in high-temperature applications is enabled by improved resiliency, scalability and responsiveness of U.S. domestic production of C103 and specialty alloy powders. Amaero is committed to collaborating with the U.S. government, the Department of Defense, prime defence contractors and suppliers to address priority initiatives to reshore strategic industrial base capabilities.” 

Held in RL and SM

RAAS flash comment on the raise. "We anticipate that the next significant milestone for the company will be the release of the Fairmont Consulting Group’s review of the company’s business model early in the New Year. 

Our expectation is that Amaero will deliver revenue from FY25, profitability from FY26, and achieve “at capacity” earnings in H2 CY28. Our forecasts anticipate Amaero will opt to produce a range of powders, first C103, followed by specialty alloy and Ti64 titanium powder. Our modelling has incorporated only three gas atomisers as per 3DA’s commentary, despite having capacity in its Tennessee facility for five. A decision to add additional gas atomisers and/or to focus entirely on C103 or a mix of C103 and specialty powders would have a significant impact on our forecasts. 

Retail investors left out of CR for US facility. Looks like a takeover on the cheap as Pegasus moves closer to a 50% stake.

Amaero secures firm commitments from new and existing institutional and sophisticated investors to raise A$10 million

Subscription price at A$0.1600 per share, representing a 15.8% discount to the last traded price on Thursday, 16 November 2023 and a 18.3% discount to the 5-day VWAP

Funds raised will be used for the Tennessee facility fit out and purchase of capital equipment

Pegasus Growth Capital leads the two-tranche Placement with A$4 million commitment. Increasing shareholding to 45% and 47% after options taken up

In addition to Pegasus, the financing had broad participation from the Board of Directors and from senior management. Further, an investment fund at Wilson Sonsini Goodrich & Rosati, a premier and pioneering law firm that specialises on emerging growth businesses, participated in the financing

Free attaching unlisted options exercisable at A$0.2400 per Share and expiring on the date that is 3 years from the issue of those options,

The Company proposes to use the proceeds from the Placement as follows: Facility fit-out A$5,680,000 Capital equipment A$4,320,000

Reading the EGM documentation an issue of 62M shares which is a dilution of nearly 60% for an input of 14% of market cap.

Disc small holding in RL

First atomiser being dedicated to C103 Niobium alloy for Hypersonic applications closely tied to defence. Investor presentation and briefing tomorrow.

For the past nine months, Amaero has described the opportunity in alloy powder production as “titanium and specialty alloy powder;” yet, we have provided financial guidance based on solely producing titanium alloy powder. Based on the critical need for refractory alloy powders for hypersonic applications, we will now dedicate production of the first atomiser to C-103. The Niobium alloy’s high performance and heat-resistant properties are utilised in hypersonic and space applications. The determination of production priority and production mix is a direct response to the industry’s demand pull. The production of C-103 powder is expected to be beneficial to the Company. We look forward to updating investors and taking questions.”

Speculation (Bloomberg confirmed steel AM trial) that Apple is moving to additive manufacturing using binder jetting technology which uses powder sprayed with a binder then sintered for some titanium components. Unlikely to directly involve 3DA but use of AM for mass production will increase demand and their powder will be produced at lower cost.

Both Apple and HP (which has binder jetting technology) are Berkshire holdings.

Making progress. Atomiser plant arrives in Port September 27 to be installed April 24 three months early and they have managed to squeeze it in to the existing building reducing fit out expense by $15M and rent by 30%. Now just need $12 M not $27 M.

Amaero Announces Key Executive Hires for U.S. Leadership. Seem to be good names added to the team.

Amaero Chairman and CEO Hank J. Holland said: “Amaero is fortunate to have attracted some of the pioneering and leading minds in the industry just as the Company shifts its focus to operational execution and excellence. Attracting talent of this caliber to join Amaero at this exciting juncture is another important milestone for the Company. I’m confident that Eric Bono’s longstanding and industry leading experience, along with Fred Yolton’s renown as a pioneer in the industry, Dr. David Schmidt expertise and the collective skillsets of the rest of our existing team, will help Amaero deliver one of the most advanced titanium and specialty alloy powder manufacturing facilities in the world.”

Eric Bono brings extensive experience and relationships in powder metallurgy and additive/alternative manufacturing. Over the past 28 years, Eric has held leadership roles across technical and sales functions for various industry leaders, including 6K, Carpenter Technology, Puris, Summit Materials and Crucible Research. His education includes a Bachelor of Science and a Master of Science in Mechanical Engineering from University of Pittsburgh, and an MBA from Carnegie Mellon. As Amaero’s President and Chief Technical Officer, Eric will lead corporate strategy, project planning / management, process development and equipment procurement for the McDonald, Tennessee facility. Mr. Bono has been nominated to join the Board of Directors, subject to predicate regulatory approval.

Fred Yolton will lead Amaero’s powder metallurgy and materials engineering, including titanium and specialty alloy powder production and consolidated HIP manufacturing. He is a well-respected authority in these specialised industrial sectors. Fred pioneered the development and production of advanced powder metallurgy and invented the atomization process for producing titanium alloy powder. He has published over 50 peer-reviewed papers in the areas of powder metallurgy and advanced materials and is registered as an inventor or co-inventor on 12 patents. Mr. Yolton is a Fellow of ASM International. He received a Bachelor of Science in Metallurgical and Materials Engineering from the University of Pittsburgh.

Dr. David Schmidt will lead Amaero’s simulation-driven design and computational analysis efforts. Dr. Schmidt has over 20 years of invaluable industry experience across aerospace & defense, automotive and power generation. His expertise in blending simulation tools with traditional engineering design will aid Amaero’s alloy powder production, as well as its manufacturing of near net shape parts via consolidated hot isostatic pressing. Dr. Schmidt received a PhD in Computational Mechanics from Carnegie Mellon University and Bachelor of Science and Master of Science degrees in Civil Engineering from University of Pittsburgh.

Amaero on a big profile push with coverage on Share Cafe and Research as a Service resulting in a bump in the SP and a speeding ticket.

RAAS update gives a valuation of $0.85 fully diluted. Predicting July 25 as revenue start from Ti production. CY26 for profitability.

Key hires and capital funding arrangements coming

Like musical chairs and now we are off to the US! Another pivot in search of subsidies. Cash flow positive in CY26. Not sure how long this will remain listed now. Investor briefing recording

Amaero Green Lights Flagship Titanium Project in the United States Tennessee Location Delivers Financial, Operational and Strategic Advantages. Accelerates Breakeven Operations by 12 months and Reduces Working Capital Need by $22 million.

Amaero will pursue US government funding and incentives that target re-shoring advanced manufacturing and critical materials supply chain

Amaero continues to have strong relationships in the UAE and will pursue “offset credit” funding for other strategic projects 

The “nearing completion” facility in Tennessee will reduce the required working capital for the same 3-year period to $56 million and we expect to be cash flow positive in 2026.

JV signed, some details and wait till Q3 23 for more. Possible revenue from the licensing agreement of IP. 3d printing mentioned and an expansion of the gas atomisers to include aluminium, copper and superalloys. Considering the original forecast was for $40M revenue pa from Titanium this could become a big company if the JV gives 3DA a fair deal. Clearly the review gauged that the energy, labour and funding situation in AUS would not allow such an aggressive approach but a great shame that this opportunity just gets licensed overseas and most of the earnings going with it to UAE and US.

Disc: hold a small parcel in RL

As well as additive manufacturing and powder production, the JV will pursue an ambitious strategy to vertically integrate the titanium supply chain including titanium sponge, melt, mill and forge operations

The JV company, FALCON Advanced Metals PLC (FALCON), will be a 50/50 partnership between the two companies and will operate as a holding company that controls and owns directly and indirectly subsidiaries that will undertake projects. The partners will contribute working capital on a pro-rata basis.

Amaero will contribute goodwill, reputation and expertise. A licensing agreement is expected to be signed between FALCON and Amaero for IP and know how in respect of the JV.

The project under consideration by the JV has a capital budget of A$300 million. The integrated project includes:

• An Applied Engineering, Design and Commercialisation Centre;

• Large format 3D printing; and

• Large scale metal powder production that would include seven gas atomisers – four dedicated

to titanium and three atomisers for aluminium, copper and superalloys.

Hank Holland, Amaero’s Chairman and CEO said: “After spending three months in the UAE and countless hours with our partners, I couldn’t be more excited about embarking on the next chapter of Amaero’s growth and development with Rabdan Industries. Our partner brings deep knowledge and relationships in the UAE, as well as in the Kingdom of Saudi Arabia. Moreover, FALCON Advanced Metals’ capabilities and growth strategy closely align with the UAE’s priority economic and industrialisation initiatives.”

I feel like valuable Australian IP has just been stolen. Pegasus gets to buy out the company for peanuts. How can this be in Australias interest to lose valuable materials manufacturing capability?

Share price has tanked, a CR at historic lows with little incentive for existing shareholders to get on board other than a 38% dilution if you don't. 6% of the raise + options going to the underwriter which happens to be the largest shareholder, all operations being moved overseas. Then only 50% ownership of the new JV(incorporated in Abu Dhabi) with the UAE company and further raises of $78M and $290M total with no projections for revenue.

JV Term Sheet The key points of the Term Sheet relating to the joint venture are summarised below: • The joint venture company (JVCo) will be incorporated in Abu Dhabi. • JVCo’s ownership will be held 50% by the Company and 50% by the JV Partner. 

Issue Price of $0.067 Per New Share with 1 free attaching New Option for every 1 New Share issued (The exercise price of the New Options is $0.18 each, 3 yr expiry)

$750K of $10.5M are costs of the raise, 2% management fee, 4% underwriting fee + 1 option /5 shares issued all going to the largest shareholder $630K,$120K other costs, $2.9M of the raise used for restructuring costs. $6.8M for operating costs.

The Directors have considered the matters outlined in ASIC Regulatory Guide 170 and believe that they do not have a reasonable basis to forecast future earnings, because the proposed future operations of the Company do not have an operating history from which reliable forecasts can be made. Accordingly, any forecast or projection information would contain such a broad range of potential outcomes and possibilities that it is not possible to prepare a reliable best estimate forecast or projection.

The maximum total number of New Shares proposed to be issued under the Offer is approximately 156,716,418 which will constitute 37.91% of the Shares on issue following completion of the Offer

50% take up would change Pegasus holdings from 14.55% to 33.5%

Disc: small parcel held in RL

Looks like the whole company is going to move to the UAE and be US funded. No mention of 3D printing or Australian operations.

Amaero will embark on the next phase of its strategic review which includes comprehensive assessment of the Company’s geographical footprint, staffing and commercial projects. 

Fully Underwritten Renounceable Entitlement Offer to raise up to A$10.5 million, priced at A$0.067 per share representing a 10.7% discount to the last traded price on Friday, 28 October and a 18.6% discount to the 5-day VWAP •

The Entitlement Offer is fully underwritten by PAC Partners Securities which has entered into a sub-underwriting agreement with affiliate of major shareholder Pegasus Growth Capital (Pegasus) whereby Pegasus has agreed to sub-underwrite the Entitlement Offer to the amount of A$10.5 million

Amaero has signed a non-binding term sheet to form a joint venture with United Arab Emirates (UAE)-based strategic partner, Technology Holding Company LLC, an affiliate of Ethmar Holdings, for the production of titanium, aluminium and super alloy powders in the UAE

Joint Venture Funding

It is also anticipated that the JVCo’s capital investment will be funded by a U.S. defence offset obligor (Strategic Funder) working in cooperation with the UAE offset program administrator (such funding being subject to the approval of the UAE offset program administrator). It is anticipated that the equipment and inventory funded by the Strategic Funder will be conveyed to and wholly owned by the JVCo.

The estimated cost for capital investment (facility improvements, equipment and inventory) is approximately A$290,000,0001 , which is expected to be funded by the Strategic Funder. The Joint Venture working capital will be initially funded by a pro-rata equity contribution made by both Amaero and the JV Partner. It is estimated that approximately A$78,000,0002 of working capital will be required over the first three years of the JVCo. Any subsequent working capital funding would be sought by way of asset-backed debt.

JVCo Business

JVCo’s business will be the large-scale production of advanced alloy powders. It is expected that the business will be operated from a green field purpose-built facility (or an existing re-purposed building) in a mutually agreed industrial zone in Abu Dhabi. It is anticipated (however not confirmed that) the facility will be commissioned and operational by the end of 2023, with commissioning of additional powder capacity production through 2026. 

What a shocker of a strategic revue. SP down 28%. US based private equity firm Pegasus Growth Capital takes over. Not focusing on 3d printing and not making Titanium powder in AU despite taking out a lease on a location. As a result, it is no longer anticipated that Amaero will become cash flow positive in CY2023. (after projecting 40M revenue)

In terms of the Company’s Fletcher Insulation, Rio Tinto and Boeing projects, these projects are continuing but are not anticipated to produce significant revenue in the near term.

As a result of the strategic review undertaken:

o Amaero will not proceed with the titanium powder manufacturing facility in Victoria, Australia

o The Board is taking active steps to pursue alternative opportunities for titanium powder production with Mr Holland exploring a number of opportunities in the Middle East over the past four weeks

o The Board has determined that Amaero’s operations will be primarily focused on titanium powder production

Hold a small parcel in RL not worth selling will hold and see if anything comes of the titanium powder production

Big loss as expected. Looks like some questions will be answered in the strategic review due in October. Wording suggests more capital raising to come. Mention of Fletcher Insulation project for the first time in a while.

Revenues increased by 13% to $569,834 compared to previous corresponding period (pcp); Amaero reported a net loss of $8.62 million (FY21: $6.99 million), with an increase in R&D a major part of the increase in the loss. R&D was predominantly focused on the atomisation process, aerospace materials, machine development and development of tooling technology for the Fletcher Insulation project.

Board and executive leadership have commenced a strategic review of Amaero’s operations, business development opportunities and allocation of capital:

In light of the delay of the powder manufacturing facility and the uncertainty of timing of Middle East opportunity, the review will include funding needs

Board and executive leadership plan to provide an update to the market prior to the September quarterly report, due at the end of October

28% increase yesterday off a 52 week low following an Investor presentation and an announcement "Amaero has engaged Guggenheim Securities to assist in the evaluation of strategic alternatives."

I missed the webinar but appears to be seeking US capital possibly via SPAC.

@Hogajo identified a few concerns when the quarterly came out a month ago. The half year report doesn't give any more confidence. Cost of $214K sales was $376K! Middle East face to face meetings still planned in March. At least the Ti powder plant is on track.

• Committed to build an $8 million customised and proprietary Titanium Alloy Powder Manufacturing Plant

" project management plan for the manufacture of equipment is on time and within budget. The project is on track to finalise construction and commencement of commissioning which are both expected in 3Q CY2022."

 A fivefold ramp up of additional gas atomisers with commensurate revenues is expected by 2025.

Cash reserves of $4,967,862 so raise coming soon.

ACTIVITIES SUBSEQUENT TO 31 DECEMBER 2021 

Amaero’s US operations received a purchase order totalling ~US$100,000 from Oceaneering International Inc. (NYSE:OII). Oceaneering is a subsea engineering and applied technology company based in Houston, Texas, that provides engineered services and hardware to customers in the marine, space and other sectors. The purchase order is for a development project for space applications involving aluminium 3D printed components and test specimens.

3Q of funding left with Ti powder plant commissioning due in Q3 suggests a raise is coming.

Revenue of 134K against a cash outflow of 1.9M even with a 22% reduction in costs.

Delays to ME project put down to travel restrictions seems a bit dated, personal meetings due in March puts any revenue quite a way off. Progress on other projects.

December quarter highlights:

Heads of Agreement secured with Gilmour Space that will lead to a long term supply agreement expected to deliver total revenues of ~A$1.7 million

Positive test results for spinner tools for the Fletcher Insulation project and good progress with Rio Tinto with the first batch of billets atomised and being tested

Revenues increased 21% quarter on quarter (qoq) to $134,388; Amaero continues to focus on progressing key projects to deliver increased revenues

 Operating costs fell 22% qoq to $2.064 million due to a significant drop in manufacturing, corporate and administration costs

Progress with Fletchers Insulation and Rio Tinto projects

Amaero recorded positive test results for its spinner tools for the Fletcher Insulation project during the quarter, with the spinner tools performing well within Fletcher’s required performance standards.

Also during the quarter, one of Amaero’s SP400 3D printing machines was built for the project with commissioning beginning in January.

The High Operating Temperature Aluminium Alloy (H.O.T Al) project with Rio Tinto is also progressing well, following freight delays causing project timing slippage earlier in 2021.

The first batch of Rio Tinto’s alloy billets has been atomised into powder and testing has commenced. In addition, the second shipment of Amaero H.O.T. Al was dispatched from Rio Tinto during the quarter.

Proposed Middle East 3D printing centre

Amaero is making progress with virtual meetings on the project agreement for the proposed Middle East centre for additive manufacturing. In person meetings are also expected to be conducted in March, subject to international travel restrictions.

Amaero executes LOI with Australian Missile Corporation

In December, Amaero executed a letter of intent (LOI) with Melbourne based Australian Missile Corporation (AMC) to explore opportunities to support of the accelerated establishment of a Sovereign Guided Weapons and Explosive Ordnance (GWEO) Enterprise in Australia.

AMC is a subsidiary of NIOA, a 100% Australian?owned Defence Prime specialising in the provision and support of weapon systems and integrated soldier systems.

The LOI follows AMC’s proposal to the Federal Government following a request for information for the establishment of the GWEO Enterprise. The proposal provided feedback and advice on how a Sovereign GWEO Enterprise could be established and operated, including proposed commercial model options and identified several areas that could accelerate Enterprise establishment.

Boeing Purchase Order

During the quarter, Amaero received a Purchase Order totalling $50k from Boeing for a defence aircraft Independent Research and Development (IRAD) project.

As @jwrostagno27 said things are moving slowly and the language is quite a bit more conservative

Lease secured for titanium powder plant

• Ten-year lease secured for a 3,857 sqm facility in the Monash Precinct

• Additional works to begin in January 2022 to prepare for the installation of the titanium powder facility

• The additional works include the construction of a 600sqm warehouse extension high bay to accommodate Amaero’s first gas atomiser for the plant

• The project is expected to provide Amaero with a strong revenue and profit stream of ~A$40.8 million per annum

• Amaero expects construction to be finalised and production to commence in 3Q

CY2022; ramp up of additional gas atomisers and revenues expected over the next few years

• Plant expected to position Amaero as a supplier of choice for defence, aerospace and critical manufacturing segments in allied nations

Disc: small hold in RL

3DA has had a couple of recent announcements which start to show some significant progress toward taking a strong position in specialist manufacturing. Share price has been lagging of late.

HoA will lead to a long-term supply agreement for the manufacture of rocket components for Gilmour Space

The resulting supply agreement will be for a three-year term and is expected to deliver total revenues to Amaero of approximately $1.7 million

Gilmour Space is a venture-backed Australian rocket company which is pioneering

innovative hybrid propulsion technologies that will offer lower cost access to space.

 Production of the components for the supply agreement will commence in FY2022

Also following the announcement of the Boeing manufacturing centre to be built in Queensland https://statements.qld.gov.au/statements/93300

3DA are part of a webinar series supported by Boeing.

https://kapara.rdbk.com.au/landers/994608.html

Australian Additive Manufacturing Forum webinar series for 2021. 

After Boeing and BAE Systems are bringing together the webinar series for this year to continue supporting the Australian Additive Manufacturing Industry. 

Our distinguished speakers for 1st Webinar are :

• Ms. Melissa Orme , VP Boeing AM 

“Additive Manufacturing in Aerospace:  Opportunities and Challenges on the Road Ahead”

• Mr. Nicholas Mule, Director Boeing AM

“Digital Additive Manufacturing at Boeing: The Opportunities and Challenges towards achieving Quality at Scale”

• Mr. Barrie Finnin, CEO Amaero

“Additive Manufacturing of Aerospace Components”

• Doug McPherson, Engineering Manager Memko

“Challenges and Opportunities in the Certification of AM parts for Aviation”

• Mr. Dan Braley , Boeing Global Services AM

“The Future of Additive Manufacturing for Boeing Global Services”