Amaero Accelerates Growth Initiatives with Major Equipment Orders

Core Viewpoint - Amaero Ltd has made significant advancements in its capacity expansion program by executing binding purchase contracts for an Argon recycling plant and a fourth advanced EIGA Premium atomizer, which are expected to enhance operational efficiency and reduce costs [2][3]. Argon Recycling Plant - The total investment for the Argon recycling plant was initially estimated at A$15 million, but through value engineering, the cost has been reduced to approximately A$6 million, achieving a capital saving of A$9 million or about 60% [3][4]. - The installation of the Argon recycling system is expected to be completed by the end of 2026, with commissioning anticipated in the first quarter of 2027, resulting in a 12-month acceleration of scheduled operating expense savings [4][5]. - The Argon recycling system is projected to reduce recurring Argon consumption expenses by approximately 80%, significantly lowering input costs during the company's scale-up period [6]. EIGA Premium Atomizer - Amaero has ordered its fourth EIGA Premium atomizer, with commissioning scheduled for June 2027, which will enhance the production capacity for titanium and refractory alloy powders [5][10]. - The company has already commissioned the first atomizer and expects the third atomizer to be commissioned by June 2026, indicating a robust growth trajectory in production capabilities [11]. Capital Investment Program - Amaero is on track with its A$72 million capital investment program, having invested approximately A$57 million to date, and is expected to complete the remaining investments as planned by June 30, 2026 [8][10]. - The company has secured US$22.83 million in equipment financing from EXIM Bank, structured to align with commissioning milestones, ensuring efficient capital deployment [8][9]. Financial Position - Amaero is expected to close the quarter with approximately A$53 million in cash reserves and around A$60 million in tangible assets, which supports its scaled production and commercial development [14][10]. - The company maintains a strong balance sheet, positioning itself as the largest capacity and lowest unit cost domestic producer of titanium and refractory alloy spherical powders [10][15]. Strategic Focus - Amaero is committed to addressing national security and manufacturing challenges through strategic partnerships and disciplined capital allocation, having relocated its business to Tennessee in July 2023 [15][16]. - The company has engaged intensively with key stakeholders in the maritime and submarine industrial base, demonstrating its focus on expanding the use of advanced technologies to meet increasing shipbuilding demands [16][18].