I first bought into FBR late 2017. Wanting to get a bit of background intel on FBR, I went back and reviewed the year 2015 on Hot Copper, the year FBR debuted on the ASX.
On 14 May, 2015, DMY (Dromana Estate – a winery on Victoria’s Mornington Peninsula) announced “the company is actively reviewing a number of investment opportunities including opportunities in the technology sector.” At some point the company had an 8 for 1 share consolidation. It made a placement to sophisticated investors, raising $274,467 at $0.01 per share. In addition, directors received shares in lieu of cash, also at one cent per share. Then on the 24th June, it was announced DMY would acquire 100% of Goldwing Nominees Pty Ltd (operating as Fastbrick Robotics), including all IP rights and patents. DMY issued 150 million shares “as consideration for the acquisition of 100% of Fastbrick”. Another 500 million performance shares were to be paid upon achieving particular milestones [The 166,666,666 - the devil’s number! – of Class C performance shares expired in Nov 2020]. DMY directors stepped down, Mark Pivac became Chief Technical Officer, while Mike switched to being a DMY Chief Executive Officer.
At this point, more than $7 million had already been spent developing the Hadrian 105 over 10 years, and there were patents in 11 countries. The bricklayer shortage was already acute, and houses were becomingly increasingly unaffordable for average homebuyers. The global construction industry was predicted to be worth $1.3 trillion by 2019. Cygnet Capital was tasked with raising $3 million (later raised to 5 million and completed) at 2 cents per share to fund commercialisation. “Funds raised from the proposed capital raising will be used to manufacture the Hadrian 109, a machine capable of house scale bricklaying and commercial roll out.” The company was receiving support from the government, Dale Alcock and Brickworks, the latter having a 5% stake in the company. What probably led some of you to invest was the plan for “large scale manufacture and commercial roll out 2017 onwards.” That seems to have been rather ambitious, with 2021 or 2022 now seeming more likely.
Back in 2015, there were plenty of cautious people expressing scepticism, while conceding something might come of it. For example, on June 24, 2015, utopia2283 wrote:“I think all this acquisition/reverse takeover business on the asx is starting to get a bit beyond a joke now. Good for a quick trade but seriously an automated brick laying machine? Great idea in theory i suppose but will never work in reality.Be lucky to sell 6 units australia wide.Labour is cheap enough in other countries so those patents are near worthless overseas.Very interested to see if I'm wrong on this.Good luck to the believers.Hope you can make some money on it.All the best.(Oh and it will not make housing cheaper. It will only increase a builders profit.)Cash is KingFBR Price at posting: 2.6¢ Sentiment: None Disclosure: Not Held”
Ryphil, same day, responding to another poster, said, “That's interesting you should mention the small matter of the cement [presumably meant mortar] that will be feeding into the machine...if you know anything of concrete pouring you will know that trying to feed cement that sets fairly fast and of much denser consistency than concrete when being poured is no mean feat.
The cement feeder is conspicuously absent from the pictures...this will require constant maintenance and cleaning as the cement sets in the tubes...
Automating brick laying is the holly grail of building and after 200 years of industrial revolution we still don't have the answer and this machine isn't going to solve it either imo. A glorified conveyer belt for bricks by the looks of it.
However, if they can prove it can build a house on site...not in a warehouse...i.e. onsite where it has to move around in and out of the house, in and out of rooms...that is one hell of an ask imo, but then I might be convinced....FBR Price at posting: 3.0¢ Sentiment: None Disclosure: Not Held”
Later that day the price rose to 3.5 cents, causing joy.
At this point, a poster whose name I recognise made an appearance. Danger Mouse was promoting the technology. Five and a half years ago, the technological operation sounded similar to what is touted today; a June 24 presentation included these points:
“Automated Bricklaying Technology
Fastbrick’s automated bricklaying robot begins by creating a 3D Computer-Aided-Design (CAD) laying program of a house or structure, as designed by a builder or architect. Through the use of proprietary software, the machine calculates the location of every brick in the structure and creates a CAD program that is used to cut and lay the bricks in sequence from a single fixed location.
Once a concrete slab has been laid, the robot employs automated laser scanning equipment to survey the completed foundations. Brick packs are then loaded and the robot commences laying bricks, course by course, using a 28 metre articulated telescopic boom. Accuracy is maintained by a globally patented laser alignment system which ensures bricks are accurately laid, to within 0.5mm, despite any dynamic interference or the swaying movement of the boom head.
During the bricklaying process, bricks are robotically de-hacked, measured, scanned for quality, cut to length and routed for electrical and other services. Mortar or adhesive is delivered under pressure to the robotic laying head and applied to the brick which is then laid in the correct sequence as per the CAD program.”
It seems the robot could scan for dud bricks, and be rigged to apply either mortar or adhesive.
On June 29, 2015, MisterMister found and posted one of many articles about the robot that were published that year:
Excerpts from this article: "Local inventor Mark Pivac, an aeronautic and mechanical engineer, said his interest in the idea of developing the robot was sparked during Perth’s bricklaying crisis of 2005.
“People have been laying bricks for about 6000 years and ever since the industrial revolution, they have tried to automate the bricklaying process,” Mr Pivac told Perth Now.
“Hadrian” the robot — named after the famous Roman defensive wall of antiquity — will be commercialised first in WA, then nationally and then globally. [So they planned to start in WA all along]
Here’s another article from June 29, 2015: https://mashable.com/2015/06/29/robot-hadrian-bricks/ Excerpt:“A standard house takes around 15,000 bricks to build, and usually about five to six weeks to complete with traditional labour, Pivac said, while Hadrian can build a house from slab to cap height — when the roof trusses go on — in two days. If successful, this would significantly cut down on construction costs.”
On 15 July 2015, it was announced that the time limit for opposition to the European patent had expired and the patent was unopposed. Mike said, “The confirmation received from the European Patent Office represents an important milestone in Fastbrick Robotics ongoing efforts to ensure appropriate intellectual property protection. The lack of any opposition to the company’s European patent further underlines the disruptive and transformative nature of Fastbrick Robotics automated bricklaying technology and reinforces the company’s first mover advantage.”
In July 2015, according to an article in The Australian, Fastbrick Robotics fielded enquiries from numerous countries, including Saudi Arabia and Russia, and scored half a million hits on their website in less than a week. Oher excerpts from the article include:
“’If you put this machine on a rocking boat it would lay a house on the shore correctly to an inch or two,’ Mr Pivac said. [even more accurate now?]
Perth-based Pivacs devised the machine when the mining boom was in full swing, creating an acute dearth of such artisans. [in 2005]
The bricklaying stage of a project also results in construction bottlenecks, because it cannot be done in poor weather. [which we now know Hx can handle]
Fastbrick also cites labour inefficiencies, wasted materials and miscommunication resulting in $120 billion of industry losses globally.
Mr Pivac says Fastbrick does not aim to put brickies (or their assistants) out of a job, but to eliminate the “horrible” aspects of the work. Only 25 per cent of candidates starting a bricklaying apprenticeship continue in the trade — and those who do are usually incapable of working past 55 years of age given the physical strain. ‘It allows them to have much longer careers in construction,’’ he says…”
There was a price and volume query on 29 July, 2015, to which the reply included:“… we would like to refer to a newspaper article on Fastbrick Robotics and DMY Capitalfeaturing prominently in the 27 July 2015 edition on page 21 of The Australian Newspaper. Following the Company’s announcement to acquire Fastbrick Robotics on 24 June 2015, we havereceived a considerable response from both domestic and global construction industryparticipants expressing an interest in Fastbrick’s technology once it becomes commerciallyavailable. The Company confirms it has received interest in the Fastbrick technology from 35 (39 by Aug 10) countries.
Further to the ASX Investor Presentation lodged on 13 July 2015, the Company’s corporateadvisors, Cygnet Capital, have confirmed that the institutional and broker road show wascompleted last week and they received a very strong response and interest to the opportunity…”
Idle Wanderer (10 Aug 2015) was one poster who foresaw the advancement of automation as something to be expected:“… next time you go to a building site of something the size of a three storey walk up block of flats, have a look at the large machinery on and around the site. Concrete pumps pump the concrete straight into the formwork for the slabs. Nobody mixes it on site or barrows it in any more.Deliveries arrive on large trucks. The single operator typically has a hydraulic crane on the back of the truck and cranes it off himself.
This Fastbrick machine is another logical step in this progression. Like every other improvement through the industrial age, if it makes the process faster, more accurate and cheaper then there will be no stopping it. Even if the process has to be adapted to suit the machine. E.g. by providing bricks to the site in a different way - adapted to continuous feed.
The techniques for building in 'reverse brick veneer' are well understood. This is where the brickwork goes up first, usually on a slab. The inside brick walls of the building are rendered. The outside of the building is clad with something impervious. Colorbond typically with an air gap and insulation between the colorbond and the brick. The end result is an attractive house, cheap to build with a machine. And it has the thermal properties of double brick at a fraction of the cost.I live in a house built this way and it is the most thermally stable, well insulated, draught proof and quietest house I've ever lived in.
Disclaimer : I have no association with DMY or Fastbrick, other than being a retail shareholder. I can however look at the past and see the obvious evolution coming in the near future.FBR Price at posting: 2.5¢ Sentiment: Hold Disclosure: Held”
At that stage, the plan was still to sell the robots for less than a million dollars each, but these days the plan is to retain the robots and offer Wall as a Service (WaaS).
The name change from DMY Capital Ltd to Fastbrick Robotics Ltd was approved on Oct 6, 2015 (but today the company is called FBR). The company was reinstated onto the ASX, and began trading, on 18 Nov, 2015, and a video of the Hadrian 105 prototype was released:
Danger Mouse, forrestfield, P1, Sprout were enthusiastic posters. Full production was supposed to be starting in one year. Others saw 3D printing as a threat/competition even back then.
One article posted by Levelgrinder (18 Nov 2015) mentions, “It will specifically focus on Western Australia, which Fastrbrick believes offers it an 85 percent addressable market”, again showing that the intention had been to begin with building in WA. The article: http://www.itnews.com.au/news/aussie-bricklaying-robot-brings-the-fight-to-builders-411937 Another excerpt from the same article: “The SAM machine is further alongside the development stage than the Hadrian, with the first robots to go on sale for US$500,000.”
Danger Mouse was getting a bit exasperated with people posting stuff without first doing a little research, posting (only his or her 10th post on HC) the following on 18 Nov 2015:“Just curious but Does anybody else actually read the announcements and do a little research . Because with some of the things that are being mentioned it does not appear so . Timber frame what the , no timber frame is needed . Here is some clues I found . On A previous announcement it States . "Hadrian 109 design compatible with wienerberger products and industry standards " Google wienerberger and you may start getting the picture .And lastly I believe the main focus will be on monolithic brick construction not brick and timber frame or double bricks.FBR Price at posting: 2.8¢ Sentiment: Hold Disclosure: Held”
Similarly on 20 Nov Danger Mouse pleaded, “Can the people that really have absolutely no idea what this thing does or what they are talking about please reframe from commenting. you are only making yourselves look silly.Thank you and kind regards. FBR Price at posting: 3.3¢ Sentiment: Hold Disclosure: Held”
A couple of non-holders made comments. V8 said, “Im in WA, I have never seen a brick house with a timber frame, every house constructed in Perth is double brick, in the regions double brick or stud wall transportable.” Vic Wattle added, “block work and double brick construction is popular in Perth. Brick veneer with a timber frame is the most common on the east coast. It will not be practical with brick veneer.” Utopia2282 (19 Nov 2015) couldn’t see the robot working in the real world and listed a bunch of reasons, but thought the laser guidance system could be of value.
Wadegarrett (20 Nov 2015) remembered being told CDs would never replace cassette tapes. “Hard to predict the future but I know it will be driven by tech disruption in practically everything we do. That's good enough for me. 10c soon. ...FBR Price at posting: 3.6¢ Sentiment: Buy Disclosure: Held”
Idle Wanderer (20 Nov 2015) didn’t agree with the idea that the robots would be sabotaged. “… Back in the 1950s and 1960s when diesels were replacing steam on the railways there was a lot of claptrap about "it's the end of the romance of steam - that living and breathing monster". Still goes on whenever one of those preserved steam locos takes an excursion train out and photographers turn up from everywhere. But just ask any [unionised] driver, and particularly the firemen, what they thought of their new diesel boxes. They couldn't wait to get into a nice comfy seat and not have the dirty, noisy, backbreaking job that it was with coal. They definitely were not going around putting sand in the diesel tanks.
Brick veneer isn't necessarily impossible for machines. Google search 'reverse brick veneer'. Structural brick walls go up first. Then clad on the outside.FBR Price at posting: 3.6¢ Sentiment: Hold Disclosure: Held”
2nd gen 7 (20 Nov 2015) wrote, “… I meet with Mike Pivac a few months back. We were trying to help with some of the structural engineering solutions. Every "issue" everyone has raised has a simple solution.Look forward to where this goes in the years ahead.FBR Price at posting: 3.2¢ Sentiment: Hold Disclosure: Held”
On 23 Nov 2015, there was “Notice of ceasing to be a substantial holder (11,500,000)DOMINET DIGITAL CORPORATION ,THE CAROSA FAMILY A/C.”
On 23 Nov 2015, Danger Mouse demonstrated some ability to predict the future:“I thought I would start another thread for the tech side of the idea seeing as though there are a few of us investors that seem to like , know a think or two about it . ( and it might mean we could stop replying to the same silly questions repeated over and over and over again ) Please add any thoughts - ideas you may have .
One thing I was thinking about that really excited me was that thoughout history bricks have been made to be laid by hand and because of this they are the size they are , but now if you take that parameter out of the equation things start to get very exciting . Imagine how fast this thing could build a house if the bricks where say 1200 cm by 400cm or bigger. That 2 - 3 days becomes even shorter.
And then I started thinking custom large bricks they did mention wienerberger already who are the biggest brick company in the world what if there was a joint venture with them to supply these custom bricks globally once we are up and running.this is just me crazy thinking out load and based off less than nothing so don't read anything into it .”
And here we are in 2020, about to receive a load of bricks from Wienerberger, and talking about bringing out 35kg blocks.
Again, I wrote this post because I was not on HC when FBR first listed. I am heavily invested, so feel the need to do such background research. I think 2021 and 2022 will be huge.
FBR Price at posting:
4.4¢ Sentiment: Buy Disclosure: Held
(20min delay)
