Titomic Limited (ASX:TTT) has announced its sale of its cold spray solutions to U.S. Navy entity NAVSEA – its first U.S. Navy contract.
NAVSEA is the contraction for Naval Sea Systems Command – the intragovernment entity tasked with procurement of ships and combat systems. The entity also maintains the Philadelphia-based inactive ships maintenance facility.
TItomic’s cold spray tech ultimately allows for heatless welding to be performed on metallic assets. It’s also known as Supersonic Particle Deposition (SPD) – in short, small metal particles are literally sprayed in a powerful gas stream.
Shareholders were clearly bullish on the news on Tuesday. Shares have jumped 15% just short of 19cps; on a one-year basis, the company’s share price is up over 1,100%.
With that said, shares were worth more than 50cps back in 2020.
But the company’s first sale to the U.S. Navy has – clearly – caused excitement. The deal follows recent sales of cold spray tech to the Royal Dutch Army and French Navy – firmly placing Titomic back in the middle of a macro defence spending thematic.
“Titomic is in dialogue with NAVSEA and exploring future commercial opportunities in relation to further coating and repair applications as well as cold spray additive manufacturing solutions,” Titomic wrote on Tuesday.
“The acquisition of the D523 system marks an initial step towards potentially integrating Titomic’s cold spray technology across a range of naval applications.”
One of the key components that makes cold spray attractive in the maintenance of seafaring assets is it can offer corrosion resistance, depending on the coatings applied.
The fact it’s heat-free also has obvious implications for gas pipelines, but that’s not the (already heavily crowded) market Titomic is focusing on.
There’s just one catch: NAVSEA, according to Titomic, requested the value of the contract be kept confidential.
TTT last traded at 19cps.
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