3DA 2.56% 38.0¢ amaero international ltd

I've been buying since just after IPO, but was struggling for...

  1. 226 Posts.
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    I've been buying since just after IPO, but was struggling for free cash during the COVID opportunity, picking up only dribs and drabs at $0.07. Holding just over 350,000 in total now at avg. $0.28 and if all goes well over the next few years leading to 2025, am confident we are looking at in excess of x10 return from here (and will keenly hope that the RAAS Group forecast calculations of $5.00 come to fruition in same timeframe).

    I am assuming that they have based their production yield pretty confidently. I believe Dr James Sears (Amaero USA) actually invented the particular Atomizer (and I believe holds the Patent for it but would appreciate someone confirming) so would hope the estimate is fairly accurate.

    Then in terms of revenue, i suspect that the following statement in relation to current purchase costs is then informing the $40Million estimate:

    "Australia has the world’s largest titanium reserves, particularly the source minerals rutile and ilmenite.
    It exports the minerals at around $400 a tonne, while Amaero must import the titanium alloy powder at
    around $300,000 a tonne – yes, $300,000 a tonne."

    https://uploads-ssl.webflow.com/5f2de60d3f802f48bd2d6305/61ad765eee423f06955bab64_2021%2012%20Amaero%20appears%20at%20the%20Senate%20Industry%20Hearing.pdf

    So

    150tpa production
    @ $300,000 per tonne
    = $45,000,000 per annum

    If they sell at a 10% discount, its an additional competitive advantage (as well as being Australian/Five-Eyes based etc)

    If Commissioning of the first Atomizer goes well, then hopefully they build Market confidence in the proposed expansion and they can build a P/E of 15-20 instead of say a steady Gold producer of closer to 8. If they can achieve even 10 P/E once scaled up and possibly achieving $200M per annum at even 30% margin on that, we are looking at $600-700 Million market cap. (now i am taking liberties there that all goes well and deman exists).

    We all just want the delays to stop, but I'm happy to wait through 2025 to achieve the above.
 
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