I reckon you're on the money mate, great pickup. This statement surely points to EOS
”During the quarter, DroneShield commenced initial production batches with an experienced defence manufacturing contractor in Australia (a fully Australian owned and rated medium size specialised electronics manufacturer), for some of its product lines.”
Note that DRO have included the "subcontractor for large defence prime contractors" statement in their 4Cs since June 2020 (snippet below).
See EOS' Announcement 8 Sep 2020 EOS Releases New Counter Drone Product
Of the 10 core elements of a CUAS system, only the first two were outsourced by EOS. EOS' Mopoke system elements 1 and 2 are almost certainly DRO subcomponents.
From EOS' 4C released yest 30/04
"The Mopoke Counter-UAS (CUAS) system continues to lead the world market. EOS has deployed the full Mopoke system to a field test site in Australia for a full test of all functional elements including radar, electronic warfare, kinetic systems and directed energy. Mopoke will undergo several customer evaluations within 90 days in this mode, with contract awards anticipated from H2 2021. EOS also completed another successful CUAS demonstration for the US Government in April, highlighting reduced collateral risk when engaging armed drones."
So we can expect some juicy subcontract award announcements from June this year. The question is, how much do the EOS Mopoke Systems go for, how many will be under Contract with these large Governments, and how much of each CUAS system sale will DROs subcomponents and C2 interface software be worth? Will the EOS C2 software be a DRO SaaS offering, integrating EOS' tech?
DRO Price at posting:
17.5¢ Sentiment: Buy Disclosure: Held
(20min delay)