Ann: AML3D Expands to UK Defence Market with Alloy Test Contract, page-20

It's not a very attrative deal but it's a start in the right direction. Like Tadpole said earlier, I think while the US is gearing up for a big maritime manufacuring push potentially even harder than the previous administration, the financial changes and restructuring that is ongoing is probably throwing a spanner in the works for AML. Recent changes in the maritime plan have opened up an opportunitiy for AML to access orther surface vessels in the US Navy fleet as well as Naval vessels for the Army, Marines and Airforce which opens the door to land force contracts. However, unless she is landing a deal directly with a company such as AUSTAL or HII, I can't see her getting a significant contract over there for another couple of months. They had previously mentioned a 40mil contract pipeline but it seems the pipeline has stalled for now with ongoing budgetary and departmental restructuring through the new admin.

I wasn't a fan on the move to the UK because like others have mentioned I feel like they should be prioritising work in the US to justify the move and expansion there. However, with things stalled over there at the moment and capacity freeing up in the AU facility, it makes sense to start work on some initial UK based contracts because Australia is offering her nothing at the moment. I'm surprised to see this BAE targetting the UK when we have been building a relationship with BAE in Australia for the last two years or so. It's very dissapointing to not see further contracts with BAE in AU by now working on the Frigate program however that program is already fairly delayed.

***********It's strange to see this contract titled as a 'test' contract for Nickel Alluminium Bronze, it seems to be misleading people to believe that this is a metal characterisation contract even though it mentions a feasibility test. AML3D have alrready done extensive metal characterisation testing of Nickel Aluminium Bronze with the US Navy in March of 2023 printing a AUD $0.6 million (US$387,000) 1ton NAB component. I am assuming that also consdiering the AUKUS pact, that this testing data would be transferable and that this contract really is just a 'fesibility study' that both tests the feasibility of AML sourcing material to service the UK market as well as covers the initial costs for AML3D procurring 8.5 tons of the NAB alloy, and subsequently printing parts for the UK defence industry that could be put onto BAE Submarines or other Vessels for testing purposes like the Virginia class attack submarines in the US. For example the recent tail piece component earlier this year that was fitted to a VCA Sub.

The contract isn't that appealing however it gets free capacity working in Australia and potentially increases the amount of AML printed parts on actual vessels sailing around. I know everyone is sick of demonnstrations and testing but remember that the UK is probably facing the same sustainment and maintenance issues as the US and home here in Australia. Together the combined budget of these countries that is spent on parts that AML could be printing is only growing through these sorts of contracts. I know that while most of that budget could go to the sub contractors who would use AML machines however, the print potential print volume is also expanding which increase the required machine count and subsequent fees associated.

The good news:

- Huge companies are still interested in her tech and throwing her a bone here and there.
- We have done extensive amounts of testing, characterisation and demonstrations, and it is clear that her technolgoy is legit. By now it would have been clear whether or not her technology is up to scratch or not and worth investing in or not for these companies.
The fact that we are still alive and in the game and have plenty of cash to burn at this point is a testament to her modest potential.

Patience. Not financial advice, DYOR.