ABV’s brakes fail again, this time in extreme mining conditions
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Advanced Braking Technology is still having problems with its high tech brake: this time it couldn’t stand up to extreme conditions in mines.
The company says in some circumstances, the polymer brake housing design of the Terra Dura brake experienced “difficulties” in mining condition trials.
This is a problem because the polymer housing is a key feature: it’s the bit that is supposed to extend the life of automotive brakes by keeping abrasive materials and water out.
Or as chairman Bruce Grey said when the first brakes were shipping in August last year, that housing was supposed to be “a fully sealed solution that prevents moisture and material getting into the brake casing”.
The company has started a redesign to use a non-polymer material for the brake housing.
Advanced Braking Technology (ASX:ABV) makes brakes for extreme conditions such as construction sites, forestry and surface mines.
Struggling to get it right
The Terra Dura brake has plagued Advanced Braking for years.
Last year peeved shareholders sent a strong warning to the board with a 70 per cent vote against the remuneration report.
At the time new CEO Peter Hildebrandt speculated that quality and supply issues with the new brake could be why shareholders vented frustration via the remuneration report.
This year’s AGM is on November 29. If shareholders strike again — that is, put up a 45 per cent or more vote against the report — the board will be forced to put itself up for re-election.
The company started buying the Terra Dura brand in 2016. It was the retail offshoot of their industrial brake and a way into the consumer off-road market.
All seemed to be going well, with a few delays in testing, and expected to start selling products in the first six months of 2017 as the orders began to roll in.
But by June the scale of problems began to become clear.
They had to reveal “further” production delays to the next month as they had to reject brake hubs because of porosity – that is, casting metal contamination in the form of a trapped gas.
Later that month the problems claimed the scalp of then-CEO Graeme Sumner.
Finally coming together?
By May this year the company had delivered 50 sets of Terra Dura brakes to customers for paid trials lasting three to six months.
It’s unclear whether commercial, non-trial sales have started yet.
Cash receipts taken during the last four quarters have slipped each period.
Stockhead is seeking comment from Advanced Braking Technology.
The stock has traded between a tight band of 0.6c and 0.1c for the last 12 months, and is currently near its 52-week lows at 0.2c