All,
Below is a a summary of what was discussed at the AGM. Please keep in mind, most of these comments come directly from management, so you'll have to filter out the more optimistic claims with those that are well-based.
Also, a disclaimer, the commentary below is largely based off memory and some brief notes I made during the session, so please keep this in mind as you read.
High-Level Summary
It was clear from the AGM, Titomic are definitely generating a lot of interest around the globe, and as a result, are pursuing a multitude of opportunities in various industries. However, being a small company, the need to focus on a subset of these opportunities in the short-term was emphasised. Doing otherwise would result in them being caught up in too much at once. This reason partially explains their growing interest in the tooling market, as it will provide near-term revenue due to the significantly shorter lead times as opposed to Aerospace for example.
With respect to the long-term prospects, Titomic over the course of the year, have put in place the building blocks to take advantage of what is expected to come. Firstly, the deals that were inked during the year with respect to the powder-supply agreements, are seen to be fundamental to their long-term growth strategy. These procurement channels allow for bulk discounts on the large quantities of powder being ordered, and has led to a joint-R&D project, with the intention of commercialising a lower-cost powder capable of being used via the TKF process. Secondly, attaining the ISO certification is another step to ensure the Titomic's process attains appropriate validity and exposure to global enterprise.
In the further explanatory text below, I've tried to keep my point's brief, or if I continued as I have above this will turn into an essay.
Sales
→ The $3-5m sales set to close this quarter were reaffirmed, with anticipation of deals closing in the coming weeks.
→ Revenue from the production of tooling systems are seen to be significant in the near-term. An aerospace client in particular, has a 17-year backlog on tooling systems (I believe I heard that correctly - it is also documented the annual report). Titanium tooling is seen to be quite lucrative, as the wear of the wearing of Titanium per unit is less than conventional materials, allowing these systems to be used for a materially increased number of units.
→ OEM sales forecast I believe relates to calendar year. From the wording, implication is that it excludes sales of machines and/or powder.
→ A number of clients interested in the TKF 1000 (the smaller version of the machine), with the anticipation of deals to close in Q1.
Future Projects
→ Detailed on page 18. Application of titanium coating on the leading edge of a wind-turbine's blade may potentially reduce wear and prolong the lifetime of the blades. Using Ti coating in defense applications also mentioned.
→ Metallisation of Carbon Fibre Reinforced Composites (CFRCs). This is an interesting one, and I briefly skimmed through a research paper on this after the meeting to understand it in more detail. Essentially, a coating of titanium is applied to a carbon fibre part (e.g. the wing of an aircraft) to increase its durability and improve resistance to corrosion etc. This process can be applied for other materials other than CFRC (e.g. piping, electrical wiring, an so forth).
→ Tooling JV's a possibility (don't remember much more than this - apologies).
→ A portable version of the TKF likely. I don't think timing was mentioned, but apparently there was interest from clients whom require the machine on-site particularly for repair jobs (e.g. Defense, Oil & Gas companies).
I hope the above gives those that did not attend an overview of the key points discussed.
Like most, I am anticipating an update prior to Christmas on the current sales opportunities. I have a feeling that management are hoping to ink a deal in the next week or two, so they can go-to-market with a better narrative for shareholders. It was mentioned that upwards of 50% of the larger deals in the pipe (in particular defense and aerospace) have high levels of confidentially associated with them, which makes them unable to announce play-by-play updates to the market.
As always, DYOR.
Cheers,
CappMan
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