Special Report: This innovator has drilled a “Behemoth” minerals project while advancing AI robotics and printable memory projects.

Strategic Elements (ASX:SOR) has increased its market capitalisation by 131 per cent in the past six months.

Pooled development fund Strategic Elements beat the ASX200’s tiny 3 per cent gains over the same period as it backed projects that could deliver big returns for investors.

The fund supports and invests in a unique portfolio of technology and resource projects that it has identified to have high growth potential.

SOR’s shareholders have the potential to enjoy tax-free capital gains from its special registration by the Australian federal government.

Strategic Elements managing director Charles Murphy told Stockhead the group’s mandate to back innovation meant investors received exposure to high-risk, high-reward unconventional projects.

“This year we’ve progressed development to a number of key milestones,” Murphy said.

“We’re building a world first printable memory demonstrator, drilling into a potential meteorite impact site and launched a whole new AI and Robotics division that has immediately signed an agreement with global giant ‘Honeywell’.

 

Milestones past and present

Strategic Elements’ portfolio includes an innovative resources project known as Behemoth in Western Australia at the site of a potential meteorite hit. The project is a collaboration with globally respected scientist Dr Franco Pirajno.

Drilling has been underway this month at the Gibson desert project owned by exploration subsidiary Maria Resources.

Results from the project are likely to come in from the lab early in 2020.

Strategic Elements also backs Australian technology projects with globally disruptive potential. Its model is to establish a subsidiary and collaborate with world leading scientists or innovators that investors can profit from as development efforts pay off.

Successes, like a hoped-for printable memory demonstration in January, could bring rewards for shareholders backing the high-risk, high-reward company.

Murphy said a core focus for the AusIndustry-regulated company was to match world leading Australian researchers and industry innovators with real world commercial problems.

While Strategic Elements provides commercial oversight of the resource and technology businesses, research groups and universities benefit from the companies’ success through increased funding, licensing and other incentives, he said.

“The first few months of 2020 is going to be particularly significant as we have meteorite impact drilling results, a world first printable memory technology demonstrator and the delivery of an autonomous robotic security vehicle with US giant Honeywell,” Murphy said looking ahead.

 

Partnering for returns

This year Stealth attracted a big-ticket partner in multinational conglomerate Honeywell, to work with on autonomous robotic vehicle innovation.

Murphy said the September collaboration deal with $US100 billion company Honeywell was a major milestone this year and an area where the company was generating “a huge amount of momentum”.

If Strategic Elements and Honeywell have success with AI and driverless vehicles in the first quarter next year, the major partner could put the technology to use in facilities needing security services across the world.

On the Nanocube Memory Ink side of things, Strategic Elements was invited into to a major global cluster of commercial grade electronics companies hosted in Finland by the Printocent group.

If the company releases its first liquid ink demonstrator it could advance to partnering with a large global player for its unique printable memory technology.

Printable inks for transferrable surfaces such as glass and silicon chips are expected to be a large industry going forward.

The opportunity for a development partner for the ink invented by a University of New South Wales team, led by Professor Sean Li and Dr Dewei Chu, could be significant.

Conductive electronic inks are already a multibillion-dollar sector for the advanced materials industry and the company believes there it is way ahead of any competitor to deliver a memory ink.

Strategic Elements’ investors could experience flow-on benefits such as royalties on profits.

 

Future focus

Next year offers potential future opportunities for the company.

Murphy expects Strategic Elements will continue to focus on printed electronics, AI and robotics which may benefit shareholders as these industries are among the fastest growing technology sectors globally.

“We’re uniquely structured as a listed company to provide certain tax benefits and our mandate is to find Australian scientists and innovators under our Pooled Development Fund program with AusIndustry,” Murphy said.

AI and robotics projects could be a focus as the company takes its ventures forward.

The company plans to focus on product development opportunities and possible new projects.

This story was developed in collaboration with Strategic Elements, a Stockhead advertiser at the time of publishing.
This story does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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