Here is a thought to consider. Tech changes move at a fast pace....

Here is a thought to consider. Tech changes move at a fast pace. For govt purchasers there is risk in signing a 10/30/70 Million dollar contract. What if the tech advances during procurement and it’s too obsolete. What if the war is halted or ceased. What if the supplier takes longer than expected to manufacture and supply.

The Australian article includes this paragraph:




Customers that expect equipment to be available right away. Previous contracts have included comment about supply happening within the month the contract is announced.

It seems possible if not likely that the short supply terms of these contracts require us to have the equipment ready to supply “right away” or in a short time frame.

This certainly supports the prevailing story that the credit raise will be followed by rapid inventory buildup then large contract then rapid supply.

Scale? Well the article quotes the $115m being leveraged to build up $400m in equipment per year. That gives a pretty good guide of their goals. Personally I would be happy if they did half that?