Amaero International Ltd (ASX:3DA) is a global specialist in metal additive manufacturing for the defence, aerospace and tooling sectors. The company has reported Q2 FY22 cash receipts and revenues of $0.134m, a 113% increase on the cash receipts generated in the previous corresponding period (pcp), and up 21% quarter-on-quarter. Monthly cash burn increased to $0.64m from $0.54m in the same quarter a year ago but was down on the $0.85m cash burn reported in Q1 FY22. The company invested in additional research and development (R&D) and staff ahead of anticipated revenues but contained operating costs and product manufacturing costs in the quarter. Operating cash outflow for the quarter was $1.93m, up from $1.61m in Q2 FY21 but down on the $2.55m operating cash loss reported in Q1 FY22. During the quarter, the company signed a Heads of Agreement with Gilmour Space Technologies which will lead to a long-term supply agreement expected to generate ~$1.7m in revenues over the three-year term. Amaero also progressed its key projects with Fletcher Insulation and Rio Tinto, with positive test results recorded for the spinner tools for Fletcher and the first batch of Rio’s alloy billets atomised into powder with testing now commenced. Its cash balance at quarter end was $4.97m. Just after quarter-end, 3DA announced it had signed a 10-year lease for its 150tpa titanium powder plant with works commenced and commissioning slated for Q3 CY22. We have pushed out our forecasts for these projects by six months, resulting in earnings revisions to our FY22 and FY23 forecasts. Our base case valuation remains at $0.91/share.