Amaero International Ltd (ASX:3DA) is a specialist in metal additive manufacturing for the defence, aerospace and tooling sectors. The company announced yesterday that it will build a 120 tonne-per annum titanium alloy atomisation powder manufacturing facility in Victoria. The $8m facility is expected to be the most advanced titanium alloy powder plant in the world, taking titanium alloy bar stock inputs and converting it to powder for 3-D printing at half the cost of the current global benchmark. This project is one of four major projects that the company has previously flagged to the market and once fully operational in December 2022, will produce around $30m a year in annual revenues for the company. The company has secured letters of support from two of the 5 largest defence companies globally, indicating strong potential demand for Ti64 powder from a competitive Australian source for specific military and commercial applications. Amaero has also signed a memorandum of understanding with a global metal powder supply company for the sales and distribution of Amaero’s powder. This project is reflected in our base-case valuation of $0.93/share and underpins our earnings forecasts for FY23 and beyond.
