Join our daily newsletter At The Bell to receive exclusive market insights
- Amaero International (3DA) closes green on the ASX after bolstering the revenue guidance for its planned titanium alloy powder manufacturing plant
- The 3D printing company first announced its plans to build the plant in July, but now says recent trials show better-than-expect product yields
- Amaero now expects the annual revenue capacity for the facility to reach roughly US$30 million (A$40.8 million) per year
- This is 36 per cent more than the company’s initial prediction of A$30 million in revenue per annum from the Victorian plant
- Shares in Amaero closed 0.96 per cent higher this afternoon at 52 cents each
Amaero International (3DA) closed green on the ASX today after bolstering the revenue guidance for its planned titanium alloy powder manufacturing plant.
The 3D printing specialist first announced its plans to build the plant in July, expecting the facility to be the most advanced of its kind in the world.
Today, the company said recent evaluation trials have shown that yields of its metal powder products are better than the base case for its investment. Subsequently, it now expects output from the facility to be higher than previously predicted.
Given all this, the company now expects the annual revenue capacity for its planned power manufacturing plant will reach roughly US$30 million (A$40.8 million) per year — roughly 36 per cent more than 3DA’s initial prediction of A$30 million per annum.
The plant is designed to convert titanium alloy bar stock material into powder to be used in 3D printing applications. What’s more, Amaero said the plant will be able to create the titanium powder at about half the cost of the global benchmark.
The company said it believes that this high-quality, low-cost product will give it a distinct advantage when it comes to securing long-term offtake deals for the powders.
Amaero said in July it expects the facility to cost around $8 million to build over an 18-month period.
By building the facility, Amaero hopes to get a foot in the door of a market currently dominated by China and Russia. The company said an Australian-based powder manufacturing plant will position Amaero as a supplier of choice for defence, aerospace, and critical manufacturing segments in allied nations.
Shares in Amaero closed 0.96 per cent higher this afternoon at 52 cents each. The company has a $61 million market cap.
