A little-known ASX microcap stock is setting the bar high today.
While the All Ordinaries Index (ASX: XAO) is deep in the red, down 1.33% at time of writing, this ASX microcap stock just soared 40%.
Any guesses?
If you said AML3D Ltd (ASX: AL3), go to the head of the virtual class.
Shares in the metal additive manufacturer were trading for 8.8 cents apiece in early morning trade, up from a closing price of 6.3 cents per share yesterday. Shares are currently trading for 7.9 cents apiece, up 25.4%.
Here's what's stoking investor interest.
Image source: Getty Images
ASX microcap stock soars on US military contract
Investors are bidding up the AML3D share price after the ASX microcap company reported it has signed a contract with non-profit BlueForge Alliance to develop and 3D print in metal a replacement component used in United States Navy submarines.
AML3D said the component in question is in high demand and no longer available from traditional manufacturers. The company said its technology, which enables the metal 3D printing of these types of non-safety critical components, solves a significant US Navy supply chain challenge.
The non-safety-critical components are made with a nickel-aluminium-bronze alloy material.
The manufacturing contract is valued at just over $2 million. That sum is payable upfront and upon meeting contract milestones. The contract will run for nine months, commencing in September.
Commenting on the contract award sending the ASX microcap stock soaring today, CEO Sean Ebert said:
AML3D is excited to continue to deepen its long-term, strategic partnership with the US Navy's submarine industrial base. The NSC components manufacturing contract is further evidence of the growing momentum in our US scale-up strategy.
With an eye on the future, Ebert said, "AML3D's focus is on the US defence, aviation and maritime sectors."
He noted that the ASX microcap stock "is well positioned to access the many opportunities that will be created as a result of the AUKUS Alliance, in the US, Australia and Europe".
AML3D share price snapshot
With today's big boost factored in, the AML3D share price is up 14% in 2023.
Shares in the ASX microcap stock remain down 38% over 12 months.
