DroneShield Ltd (ASX: DRO) shares are having a volatile session on Thursday.
In afternoon trade, the counter drone technology company's shares bounced 2.5% higher to $3.67 before giving back those gains and more.
At the time of writing, the company's share price is down 7% to $3.32.
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What's going on with DroneShield shares today?
Interestingly, the volatility in the company's share price today appears to have been driven by the release of an announcement after lunch.
And while that announcement was a positive one, it is possible that some investors have decided to use it as an opportunity to take profit after some strong gains in recent weeks.
What was announced?
This afternoon, DroneShield revealed that the Minister for Defence Industry, Hon Pat Conroy MP, has awarded the company a contract under Project LAND156 to supply handheld counter-drone equipment to the Australian Defence Force (ADF).
According to the release, DroneShield was awarded approximately $5 million of a $16.9 million in contracts across 11 vendors. This includes 5 Australian companies.
The release notes that the contract involves the provision of portable drone detection and defeat systems designed to support ADF personnel in identifying and mitigating unmanned aerial threats. This procurement forms part of the Commonwealth's broader initiative to accelerate the acquisition of counter-drone capabilities.
All being well, this may be the first of many contracts from the ADF. Management highlights that it is ready to support the ADF as Systems Integration Partner under the broader LAND156 program.
With deep expertise in sensor fusion, electronic warfare, and command-and-control integration, it believes it is well positioned to contribute to the development of scalable, interoperable counter-drone architectures that meet Defence's evolving operational requirements.
Commenting on the contract award, DroneShield's chief executive, Oleg Vornik, said:
We welcome the opportunity to support the Australian Defence Force through Project LAND156. This contract reflects the growing operational need for portable counter-drone capabilities and DroneShield's continued role in delivering solutions aligned with Defence requirements.
The Minister for Defence Industry, Hon Pat Conroy MP, stated:
We have accelerated the acquisition of an appropriate mix of drone capabilities to suit Australia's environment of military interest and are continuing to examine new autonomous capabilities. The Australian Government knows drone and counter-drone technology will continue to evolve rapidly.
The delivery of cutting-edge drones and counter-drone technology shows the increasing speed at which Defence and industry are able to deliver new capabilities to the ADF. Australian industry is critical to delivering this technology, and they are demonstrating world leading innovation while creating Australian jobs.
