AML3D Ltd

Cyan C3G Fund initiated a position in AML3D Ltd (AL3), a large-scale metal 3D printing company, following their $30m placement aimed at expanding into the US. The Fund manager sees significant growth potential, driven by contracts with the US Navy, and expects strong news flow as AML3D continues to expand its operations and deploy its ARCEMY systems into the large US market. This investment aligns with the Fund's strategy to back companies with solid growth prospects in emerging sectors, and the Fund is optimistic about AML3D's ability to capitalize on these opportunities moving forward.

Cerutty Macro Fund has updated its investment thesis in AML3D Ltd (ASX: AL3), maintaining its position as the company advances from early-stage development to commercial execution. The fund highlights FY24 as a pivotal year, marked by strong revenue growth and a robust sales pipeline driven by increasing adoption of AML3D’s additive manufacturing technology across defence and industrial sectors. A key driver is the U.S. Navy’s ramp-up in submarine production under the AUKUS alliance, which requires faster, more flexible manufacturing solutions—an area where AML3D’s wire-arc 3D printing is well-positioned. Cerutty Macro Fund sees the Manufacturing License Agreement with BlueForge Alliance as a major milestone, granting AML3D access to technical resources and aligning the company with a broader US$951 million U.S. Department of Defence initiative. While the defence sector presents substantial upside, the fund notes that only ~30% of the $40 million project pipeline is tied to defence, highlighting broader commercial demand. The recent sale of a major ARCEMY X system to the Tennessee Valley Authority further validates AML3D’s technology and commercial strategy. Trading at a discount to peers despite stronger revenues and smaller losses, Cerutty Macro Fund sees AML3D as an underappreciated player in a high-growth sector.