• Agreement signed for first commercial supply of RMP-1 Beta Printer to AdditiveNow
• Execution of Research Project contract with GraÌnges AB
• Engagement to produce sample parts for global
• Successful placement to raise $4 Million from institutional and sophisticated investors
Aurora Labs Limited (“Aurora” or “the Company”) (ASX:A3D), is pleased to present its quarterly report to shareholders and Appendix 4C for Q2 FY2020 .
During the quarter Aurora delivered significant progress in marketing and sales activities, and strong developments in the technology that underpins its industry-leading 3D metal printers.
The Company has extended an invitation to its Shareholders to a Technology Open Day during February 2020. The Open Day will allow investors to view Aurora’s latest developments in person at the Company’s Bibra Lake facility.
Managing Director, David Budge said;
“Throughout the industry and as a result of the efforts of our sales and marketing team there is growing recognition that we are delivering on key speed and accuracy performance indicators at commercially relevant thresholds that are unobtainable with traditional 3d printing technology. As a result, this is leading to close collaboration and meaningful projects with a number of significant potential clients. We are excited by the level and maturity of engagement we are having with manufacturers who now understand the potential of our metal printing technology. This is part of our ongoing work to develop a clear sales pipeline through pre-sales with conversion of interest in our technology into results we can inform the market about.
“We look forward to updating investors with progress as we move through what we believe will be a very exciting year ahead for Aurora Labs.”
First commercial supply of RMP-1 Beta
Aurora entered an agreement in October 20191 to supply its RMP-1 (Beta) metal printer to AdditiveNow Pty Ltd (“AdditiveNowTM). The commercial supply of the Beta is a major milestone for the Company as it will deliver the first cashflow from its Rapid Manufacturing printers. Income to Aurora from AdditiveNow will be modest during the initial phase of the business as it expands and grows to meet demand.
The RMP1- Beta machine will service demand for printing from AdditiveNow’s growing list of tier one resource clients in Australia.
Execution of Research Project contract with GraÌnges AB
Following the Memorandum of Understanding executed with GraÌnges AB in July 20192, the Company announced in December that it had entered into a service contract with GraÌnges to deliver a research project exploring the material properties the parties can develop using their combined expertise in aluminium alloys and additive manufacturing. The project is focused on alloys for the automotive sector, for which GraÌnges is a major global supplier, and is expected to run for up to nine months. The Company looks forward to exploring the many opportunities that may arise from studying and successfully printing with GraÌnges’ unique alloys.
Industry Partner Program
In addition to progress with AdditiveNow and GraÌnges AB, Aurora continues to work alongside its Industry Partners on various projects;
DNV-GL: As announced on 30 January Aurora has executed a Certification Services Framework Agreement with DNV GL. The framework Agreement sets out a general scope of certification and audit services that A3D can now request from DNV GL, and the terms and conditions of delivery of these services.
VEEM: The size of parts required by VEEM means practical use of the RMP technology for production will need a larger printer. Special materials required for the project have been sourced. Preliminary testing of material will begin in 2020.
UWA/RPH: Agreement has now been executed. The S-Titanium Pro Printer has been optimised, personnel trained, and the project is underway. Project completion is anticipated in 3-6 months.
FMG: The previous term sheet has expired and discussions are continuing as to whether changes may be required to meet the client’s future needs
Engagement to produce sample parts for global manufacturers
During the quarter, Aurora Labs entered into discussions with a number of leading global manufacturers across a range of sectors to produce sample parts for evaluation. Subject to successful evaluation and testing, these manufacturers have indicated an interest in purchasing Aurora’s RMP-1 metal 3D printer. Sample parts production will be undertaken on commercial terms.
Research projects and sample part production agreements are key deliverables in our sales and marketing strategy. These agreements create the opportunity for us to continue to evolve and develop our printer’s capability, and to demonstrate its commercial and technical viability to potential customers.
Strong customer interest at FormNext global additive manufacturing exhibition and conference
FormNext is the world’s leading additive manufacturing (3d printing) conference and exhibition. The Company’s presence at this event generates significant market awareness about Aurora’s product and how it compares to global competitors.
Managing Director, David Budge said;
“Following news of the increases in speed that we reported for the RMP-1, there was renewed interest in our product this year. At the same time, we are experiencing a shift in the discussions we are having with potential customers, from an interest in working with us to taking clear action around moving forward. This is demonstrated in the discussions we are having with global manufacturers to produce sample parts for evaluation. The discussions have given us clear data that the targets we are aiming to achieve for these clients are within the bounds of the technology we have created, giving us a strong confidence of converting interest in the technology into pre-sales”.
During the quarter the Company advanced its plans to open a Corporate sales and support office in Dallas, Texas. Aurora has now signed the lease for the property and is expecting to occupy in May after fit-out is complete.
The Company now has a number of S-Titanium Pro printers installed in North America. The US is also a huge metal manufacturing market and has been the source of significant interest in the RMP-1 machine.
Our US office will provide product service, support, and manage sales to the North American market. We have established a wholly owned subsidiary, Aurora Labs 3D US LLC, and initial staff have been hired with the appointment of a Senior Vice President of US Operations.
Dallas is centrally located with great access to the manufacturing and oil and gas centres of the US in addition to being near the offices of several organisations we are already in contact with. Aurora intends to use the Dallas facility as its US showroom. We believe the real world demonstration of the speed parts can be manufactured in will be one of the most effective ways to show the cost benefit our 3D metal printing ecosystem represents.
Finance and Cash Position
Successful Placement to raise $4 million
On 30 October 20193 the successful completion of a capital raising of $4 million (before costs of the issue) by way of placement to new institutional and sophisticated investors. A total of 15,384,616 Shares were issued at $0.26 per Share. Funds from the placement are primarily being applied to accelerate commercialisation of Rapid Manufacturing Technology (RMP-1) and large format machines), powder development and working capital purposes.
As at 31 December 2019, the Company’s cash at bank and on deposit was approximately $2.56 million.
Please refer to the Appendix 4C quarterly commitments report for the period ended 31 December 2019 for further information.