AML3D Limited was established in 2014 to commercialise WAM® (Wire Additive Manufacturing), an additive manufacturing technology for the cost-effective production of large, high-performance metal components and structures. AL3 listed on the ASX in April 2020 at $0.20/share, raising $9m and raised an additional $7m in October 2020 to hasten the commercialisation programme. The company has established a contract manufacturing facility in Adelaide, is establishing a similar facility in Singapore and is making progress with customers for the proprietary ARCEMY® WAM® modules which are capable of manufacturing items up to 6m long – a significant increase in scale relative to most competing technologies. In our view, AL3 has invested resources in customer development which are on the verge of converting to an increase in manufacturing and machine sales. We initiate coverage with a base case DCF-derived valuation of $71m or $0.475/share (against a reference price of $0.145/share) and expect well-developed customer relationships to push AL3 to higher levels of production.
13 Oct 2021
Additive manufacturing matures
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Additive manufacturing matures
AML3D Ltd (AL3:ASX) | 0 0 0.0%
- Published:
13 Oct 2021 -
Author:
Finola Burke | Scott Maddock -
Pages:
25
AML3D Limited was established in 2014 to commercialise WAM® (Wire Additive Manufacturing), an additive manufacturing technology for the cost-effective production of large, high-performance metal components and structures. AL3 listed on the ASX in April 2020 at $0.20/share, raising $9m and raised an additional $7m in October 2020 to hasten the commercialisation programme. The company has established a contract manufacturing facility in Adelaide, is establishing a similar facility in Singapore and is making progress with customers for the proprietary ARCEMY® WAM® modules which are capable of manufacturing items up to 6m long – a significant increase in scale relative to most competing technologies. In our view, AL3 has invested resources in customer development which are on the verge of converting to an increase in manufacturing and machine sales. We initiate coverage with a base case DCF-derived valuation of $71m or $0.475/share (against a reference price of $0.145/share) and expect well-developed customer relationships to push AL3 to higher levels of production.