AML3D (ASX:AL3) share price leaps 20% on exciting development

What’s driving the company’s shares higher?
The post AML3D (ASX:AL3) share price leaps 20% on exciting development appeared first on The Motley Fool Australia. –

The AML3D Ltd (ASX: AL3) share price is rocketing during afternoon trade. This comes after the advanced 3D parts manufacturer announced that it has entered the aerospace market.

At the time of writing, AML3D shares are swapping hands for 18 cents, up 20% for the day.

AML3D ventures into space technology

In today’s statement, AML3D advised that it has entered into a supply agreement with a leading North American aerospace company.

The deal will see AML3D produce specialised 3D printed high strength alloy parts for a bespoke prototype.

Little details were offered due to the highly sensitive nature of the contract. As such, the name of the aerospace company was withheld as well as the type of product and associated revenue.

AML3D noted that it was selected because of the high-strength and robust properties of its Wire Additive Manufacturing (WAM) process.

The company’s WAM technology uses 3D metal printers to weld metal wire to create near net shapes. This is considered a more sustainable way of manufacturing as compared to machining from billet, reducing material waste by 80%.

In addition, utilising WAM technology significantly reduces the cost of manufacturing as well as the time to build. This allows clients to customise parts for their specific needs.

A number of relationships are being forged with aerospace companies both in Australia and overseas to capture significant growth opportunities.

AML3D managing director Andrew Sales commented:

To have secured a key purchase order for prototype with a globally recognised space exploration company is further validation of our technological capability at AML3D.

…I am confident that the momentum generated from this new aerospace purchase order will deliver a strong pipeline of opportunities in global space exploration part production both here in Australia and internationally, as we continue to demonstrate our capabilities to companies within this particular sector. AML3D has the desire and expertise to play a significant role in this burgeoning industry.

Market opportunity for 3D printing

The addressable market for 3D printing is growing at a fast rate. Particularly given COVID-19 disrupted international supply chains, the industry is now seeking to minimise risk by adopting 3D printing technology. This allows companies to manufacture complex 3D metal parts in-house without relying on global logistics.

As such the total addressable market for 3D printing is estimated to be around US$10 billion. In the next 5 years (2026), the 3D printing market is forecasted to increase to US$63 billion.

AML3D share price snapshot

Regardless of today’s strong rise, AML3D shares are down almost 50% since the beginning of the year. When looking at the past 12 months, its shares have fared no better, down by more than 54%.

The company’s share price reached a 52-week high of 50 cents last September. This came on the back of its contract with Austal Limited (ASX: ASB) to co-develop components for maritime defence applications. However, since then its shares have continued on a downhill trajectory.

The post AML3D (ASX:AL3) share price leaps 20% on exciting development appeared first on The Motley Fool Australia.

Should you invest $1,000 in AML3D right now?

Before you consider AML3D, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and AML3D wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

2 exciting small cap ASX shares to watch

Westpac (ASX:WBC)’s had a shocker: This is when to buy

Here are the 3 most heavily traded ASX 200 shares so far on Tuesday

Why is the Beach Energy (ASX:BPT) share price down 6%?

Why the Sydney Airport share price has beaten the ASX 200 in the last 4 months

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!