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The Royal Netherlands Army is buying ten metal manufacturing and repair stations, called Cold Spray Systems, from ASX-listed Titomic Limited (ASX:TTT).
The Dutch will then send 9 out of 10 cold spray systems to Ukraine’s armed forces to be used as the war against the Russian invasion rolls on.
Titomic shares jumped nearly 30% in turn to 6.3cps in the second hour of trade on Tuesday.
As for its flagship ‘D523 Cold Spray’ product, Titomic reported on Tuesday this is the largest order it’s received to date.
In short, the Cold Spray system allows additive manufacturing solutions to quickly repair metal equipment on-site in the field, or, close to the action.
“This order from the Royal Netherlands Army marks a pivotal moment for Titomic, showcasing our D523 System’s ability to provide versatile repair and maintenance solutions on a large scale and creating a significant revenue opportunity,” Titomic chief Herbert Koeck said.
“This is a stride forward in our ongoing efforts to bring these innovative solutions to a wider market.
“Titomic is aiming to attract more large-scale orders from innovators across various sectors in the coming months, including resources, defence, and aerospace, who are eager to leverage the advanced capabilities Titomic offers.”
Despite the impressive gains in the microcap’s share price on Tuesday, however, the value of the contract is only worth A$1.28M.
ASX stocks involved in any way with Ukraine are generally treated to a short-lived premium once announcements hit the market – just look at Droneshield’s (ASX:DRO) share price a few years ago when they shipped counter-UAS tech to the European democratic country.
Bell Potter released a note back in 2022 calling a ‘global defence thematic’ to last into the 2030’s. So far, that analyst call has proven fairly reliable.
“This collaboration underscores our dedication to staying at the forefront of technological innovation and ensuring readiness for the challenges of modern warfare,” Royal Netherlands Army Colonel C Heukers added.
Titomic last traded at 6.3cps.
