3D Metalforge Ltd, has released its cash flow statement and activities report for the quarter ended September 30. The company reported continued positive sales during the quarter, achieving revenue of AUS $299K, a 12% increase from Q2 FY21. Customer receipts increased 60% from $208K in Q2 FY21 to $333K this quarter.
“The September quarter saw 3D Metalforge achieve initial traction from our new hubs in the USA and Australia with first production and sales in Houston and strong customer discussions and early orders in Australia,” stated Matthew Waterhouse, 3D Metalforge Managing Director. “We see this international interest only set to increase, whilst we continue to drive our commercialisation efforts in our Singapore facility.”
He concluded, “We remain well positioned to capitalise on the growing demand for high-temperature, anti-corrosion printed parts and services with cautious optimism in the final quarter of the financial year with a number of ongoing engagements underway.”
The company continued an international expansion phase building its presence in Houston, Texas, USA, with a new 1,858 m2 AM flagship facility; Houston, as a global centre of the oil & gas industry, is a key hub for the company, which is confident in the incoming traction from this centre. CNC machines and polymer AM machines have already been commissioned in the facility, which reportedly led to site visits from clients and the first parts under production.
Targeted cash spend was in-line with the investment in building the business with cash expenditure of $1.5 million. The company has stated its awareness of its cash burn and expects the gap between expenditure and cash inflows to narrow over time as its investments in growth pay off.
3D Metalforge has expressed optimism about the remainder of 2H FY21, as ongoing engagements with major pipeline clients advance with the expectation of conversion to customer orders.
Encouraging initial progress was reported in Australia with early orders placed for 3D Metalforge’s AM service; the company expects this progress to accelerate as COVID-19 restrictions on in-person meetings and site visits ease. Already, a non-binding letter of intent has been signed with the Australian Missile Corporation Pty Ltd (AMC) with the goal of having 3D Metalforge aid in the development of Australian defence industrial capabilities.
3D Metalforge also developed and commissioned what was said to be the world’s first on-site Additive Manufacturing facility for port applications with PSA Corporation Limited (PSA). The fifteen-month contract, valued at A$387K, is for the production of AM metal parts in the Port of Singapore’s new facility.
The company also commenced a partnership with leading refining company Par Pacific Holdings, with a market cap of approximately US $993 million2, headquartered in Houston. The two are working together in Hawaii to identify a range of parts that will be suitable for production using 3D Metalforge’s AM technology.
Subject to successful field testing of these parts, the companies plan to introduce AM parts into Par Pacific’s regular supply chain – initially in Par Pacific’s Hawaii refinery, before being expanded to the rest of the company’s refineries. The part identified for field testing was successfully installed in the Par Pacific refinery in October – after the reporting period had ended – and field testing continues.
The company was recertified by Lloyd’s Register for the production of an expanded range of material for metal parts for both Laser Beam Powder Bed Fusion (PBF-LB) and Directed Energy Deposition (DED) machines.
Recertification was also received to the ISO 9001:2015 standard by DNV. Valid through June 2023, this certificate covers the Additive Manufacturing of metal and non-metallic parts and components including CAD design, production and post-production activities.
Technology enhancements are said to be a key component of the company’s strategy, which will allow for faster manufacturing and processes with new materials, leading to increasingly automated processes.
3D Metalforge has reportedly been working on upgrades to its tool path planning for DED machines, with the objective of increasing the range of parts that can be produced on both the blown powder and Wire Arc Additive Manufacturing (WAAM) machines. This toolpath upgrade development utilises a solution that improves robot arm movement control, build efficiency, and saves on waste of raw material.
The company is also said to be working on the development of the laser and production parameters for some materials that are new to additive manufacturing. This is expected to significantly expand the range of parts that the company can manufacture for clients, based on the demand seen for these new materials.
The company has also reported that it is at an advanced stage of implementing a ‘digital passport’ system, a technical data management system that would enable clients to manage AM builds and associated data online, rather than managing hard copies. This is a component of the company’s broader inventory and cloud-based intellectual property management business model.