FBR - New Investors 12/07/2024

Hi all,

There have been a lot of good posts lately. Thought I would throw mine in for new investors to consider. In this post, I will touch the surface and cover about 40% of the reasons why I believe FBR to be groundbreaking and at a prime time to consider this in your portfolio. Not investment advice etc.

I have been following FBR for 8+ years invested for about 7 and continued to accumulate. The most common questions turning people away on initial thought seem to be where the mortar is and why is there small gaps in the bricks. Here is the thing HX doesn't yet do face brick so best accept and move away from those thoughts. It uses an adhesive accepted to building requirements in many parts of the world.

FBR is not after building every house. To be a behemoth with a lot of success they don't need build every house neither does any other company. Look around different countries and suburbs and you will see face brick isn't the only option. Many houses have render or external cladding finish suitable for HX. In one home structure, HX completed the majority of walls with masons completing a small face brick wall showing how people and machines can work together if chosen.

Using the prototype HX 109 which came out in about 2020 they have completed walls for approximately 30 structures in Perth WA. These structures include homes, double-story townhouses, childcare centres, and smaller office/shopping centre. The focus for 109 was to complete all different types of structures under different conditions for example tilted slab. Most structures have been done with Perth prominent well-known builders of the area. 109 was an infield testing ground of what can happen. Those structures can be seen by watching many of the FBR videos. They have all met building codes and structural engineering requirements.

109 has demonstrated to the world that has been watching how DST (the primary technology of interest) works. This is pioneering technology in this space for outdoor robotics and is worth reading up about. Using DST FBR has built-in rain, 25 knot winds, hail, etc. the machine just keeps going. It has built a home without a single brick waste using its proprietary software whereas most homes will waste around 10% in brick waste.

Competition in this market exists with the most prominent being ICON 3D concrete printing and Construction Robotics SAM & MULE. Neither of these comes close in product delivery. ICON gantry system takes about 16 days to build the walls and leaves a layered toothpaste structure which has its issues like dust buildup on lumpy walls etc, they are worth approximately 2 billion USD in comparison to FBR at 2.2 million AUD. ICON's gantry system needs to be set up and then removed in comparison to FBR's HX which is a fully mobile machine designed for local roads. HX drives to the site and is ready in approximately 15 minutes. HX has millimetre accuracy allowing roof lintels to be prefabricated, other areas can be predesigned. The only negative for HX is it costs about $500 more to get the slab to be accurate.

Like ICON's products, SAM & MULE are both good inventions, but they are not in the same ballpark, I won't write about that here go and have a look. Since 2020 FBR has been working on its first commercial model HX 110 improvements have been made in speed, reliability, waste, and component design for mass manufacturing. Some of Liebherr's engineers have been assisting with design. The current JV if processed and significant machine orders look to have Liebherr mass manufacture machines. All information is available for you to read, and look at announcements.

FBR is currently setting up a maintenance workshop for the first HX 110 in Liebherr facilities in Florida while they undergo the pilot program with CRH. The 110 wasn't given to the Australian market in the first instance as the global opportunity with Liebherr and CRH presented better. FBR are about to undergo SAT (Sits acceptance testing in Florida) and 10 structure programs with CRH before signing a JV which will give them a rolling loan of 40 million for HX production with up to 300 machines to be provided. FBR has already built more structures than the pilot program and met key milestones such as speed. CRH is a company worth 50 billion. Unlike opportunities in Australia first JV is with a behemoth in Florida to FastTrack revenue and growth.

110 is currently laying at 330 blocks an hour approximately at the size of 6 standard bricks meaning a 4x2 home of double brick can be built in a single day. 110 can deliver much larger bricks and that time can significantly reduce to less than half a day if bricks of that size become available. Remembering the best competitor with a far less superior end product is 16 days.

110 has recently landed in US and gone through customs. It is on its way or has arrived at Liebherrs facility about to begin the CRH JV program. The world has not yet seen a machine that can build the walls of a house in a day, when they do what will happen to the share price? Time will tell.

I have friends who have seen the HX in real life and feedback has been great, following trades with comments on the accuracy making following work much easier.

I could go on for days. But I strongly suggest people who are looking to invest do their research not on initial face value but look at the details, look at the partnerships, look at the achievements, look at the industry (currently average bricklayer is 50, and young ones don't want to do it).

I am not tied to FBR and can pull my money at any point. I do however see this as a once-in-a-lifetime opportunity to significantly change the building industry with no real competition currently present. A strong patent security by FBR. The best part is commercialization is only starting now.

The first commercial model is now presented to CRH who have been working with FBR for years through subsidy Oldcastle. Other international behemoths are ready to get on board such as Wienerberger the world's largest clay block manufacturer

Last points. it costs approximately 2 million for a unit, 3 operators but can go with 2. The structure of One house per day, the operator runs a tablet and doesn't need an engineering degree or anything similar (suitable for current brickies skillset or similar), financial gain for JV partners is huge (read FBR's estimates then research your own sense check) driving its market.

I could go on, but I'm limited with time. that is a lot to start with for someone new to FBR and HX. I do recommend anyone interested in an investment or just knowledge on the subject do their research, challenge that research, and see where you find your thoughts on this topic.

Ignore the short comments.

Sorry for the typos was in a rush.

Good luck.

GJ