3D metal printer Aurora Labs soars 75pc after teaming up with engineering giant
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Aurora Labs (ASX:A3D) has surged more than 75 per cent this week after finalising a deal with engineering giant WorleyParsons to sell 3D metal printers to major infrastructure, mining and resource companies.
The deal was first announced in January when Aurora’s shares were trading above $3.
Since then Aurora’s shares have been in steady decline — but this week they’ve soared from 56c on Monday before the announcement to 98.5c at the close on Tuesday.
Aurora will team up with $4 billion Australian engineering group WorleyParsons (ASX:WOR) to create a joint venture “Solution Centre” providing manufacturing services to major industries.
Aurora plans to sell machines and services to clients of WorleyParsons, as well as establishing a business that sells 3D templates for printing. On-demand 3D metal printing can help companies reduce inventories of spare parts.
“We are extremely pleased that since working with WorleyParsons in January, our collaboration has now resulted in a clearly defined arrangement,” chairman David Budge told investors.
“This is a validation of the impact 3D printing will have, and of the technology we are developing.”
The hardware maker is mainly focused on small form-factor printers, but is developing bigger models it hopes will be ready by the fourth quarter.
Aurora reported only $6000 in sales in the September quarter, but burned more than $2 million, leaving $3.2 million in the kitty.