Why the Titomic Share Price is Up 4.83% Today

Metal manufacturer Titomic Limited [ASX:TTT] has seen a solid jump in its share price after a turbulent past few months. Titomic’s share price is up 4.83% at time of writing to $2.17 per share, a jump of 10 cents.

TTT is a metal additive manufacturing company focused on developing and commercialising the 3D printing of metal.

Titomic is currently investigating new applications for titanium that are now technically and economically viable with its proprietary Titomic Kinetic Fusion (TKF).

What caused the jump?

TTT today announced it had secured an exclusive licence agreement with CSIRO. The deal grants Titomic global rights to two patents of pipe and continuous pipe using titanium and titanium alloys, which are used in major industries such as oil and gas, marine and mining sectors.

Titomic says the deals will offer significant revenue opportunities. The pipeline industry is thought to be worth $264 billion, with the associated valve and fitting industry worth another $88.4 billion.

The technology and manufacturing TTT will receive as part of the deal are derived from more than eight years of Victorian government sponsored research at a total historical cost of $10 million.

The company believes these new patents will allow them to produce piping, valves and fitting components with a significantly higher wear resistance than current piping being used in the oil and gas industries.

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Titomic Managing Director, Mr Jeff Lang, commented:

This is a significant expansion of Titomic’s IP and associated revenue opportunities. By adding these two new patents we are broadening our footprint in the Titanium and Titanium Alloys Additive Manufacturing space to firmly secure our future market segments.

What’s next for Titomic?

Although the acquired new patents might give Titomic some competitive advantage, they are yet to secure a buyer for their new run of pipes.

Regardless of whether they do find a buyer, Titomic are required to pay CSIRO $125,000 in cash as an upfront free for the licensing of the technologies.

The company must also pay royalties on the gross revenues received directly from the sales of products produced using either of the licensed patents.

Despite their heavy spending on research and development, the company has secured several potentially lucrative projects within the marine and defence industries within the past year.

This will give them some financial wiggle-room when it comes to footing their bills.

With the obvious benefits of 3D printing metal components coming to light, the 3D printing market was valued at US$452 million in 2017 and is projected to reach US$2.09 billion by 2023, at a growth rate of 28.8%.

If Titomic can continue to expand the value of its intellectual property and secure new long-term production agreements then their share price might be one to watch.

Regards,

Ryan Clarkson-Ledward,

For Money Morning

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Ryan Clarkson-Ledward is one of Money Morning’s junior analysts. Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects. Ryan’s primary focus is assisting Sam Volkering with background research and insight for readers by dissecting the latest events affecting the world. Working closely with Sam, they explore the latest in small-cap and technology stocks as well as cryptocurrency opportunities. You can find Ryan’s contributing research, developments, and supporting information across several e-letters, including:


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