Aurora Labs secures first large printer cashflow, shares jump 25pc
Special Report: 3D metal printing technology disruptor Aurora Labs (ASX:A3D) has booked first cashflow from its large format printers, sending shares to month-long highs.
Aurora Labs is having an impressive 12 months.
In October last year it inked a deal with iron ore heavyweight Fortescue Metals (ASX:FMG) to investigate the potential for 3D printing to be used in the mining industry.
In May, the company announced it was developing 3D-printed titanium medical implants.
Then this week it told investors that it was leasing an RMP-1 Beta metal printer to its half-owned subsidiary AdditiveNow, which runs training programs, provides engineering design services, and prints sample parts for clients in the resources sector.
Aurora will receive $2.1 million, representing its first cashflow from large format printers.
This commercial supply deal is a major milestone for Aurora, which has developed world-leading additive manufacturing technology that it hopes will revolutionise metal manufacturing.
David Budge, the company’s managing director, said Aurora’s industry leading printers have increased in speed by a whopping 2215 per cent in a year to 350kg a day.
“This is a great result for Aurora on a number of levels,” he says.
“Importantly, we will generate revenue from the supply of this machine, as well as ongoing revenue from our share of the work it will do for AdditiveNow.
“The RMP-1 is the only printer in the world designed to do this work for AdditiveNow to the specifications required.”
The RMP-1 will be based at Aurora’s facility in WA, where the company will have access to real time feedback from a customer – important stuff as it prepares to launch the production model.
Aurora is also fielding significant interest outside the mining sector, including from a US medical group, two major global industrial groups, a US aerospace company, international car manufacturers, and a major global steel manufacturer.
Its shares rose 25 per cent to as high as 32c, their highest point since late August. Stockbroker Blue Ocean Equities recently rated the company a speculative buy, raising its target price to $1, with a strategic target of $1.60.