Australian (ASX) Stock Market Forum

DRO - DroneShield Limited

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DRO is my stock tip for the July 2022 comp.

Old news but nothing like a bit of exposure.

DroneShield is pleased to advise that its equipment has been deployed at the World Economic Forum (WEF) held in Davos, Switzerland on 22-26 May 2022.

WEF attracts over 2,500 participants, including world leaders and senior business executives. Swiss Police, which provided the security for the event, has deployed RfPatrol body-worn detection technology for real-time drone awareness against terrorist and privacy threats. At only 1kg and size of a radio, RfPatrol provides a unique capability for mass gathering events for law enforcement personnel.
 
Craton said:
DRO is my stock tip for the July 2022 comp.
Click to expand...
!! you got there first...!

Whilst the following isn't directly related to DRO, the whole game seems to have changed with open combat utilising drones. Commentary from ISW, 22 June:
" Reinforced Russian air-defense systems in eastern Ukraine are increasingly limiting the effectiveness of Ukrainian drones, undermining a key Ukrainian capability in the war.
Foreign Policy’s Jack Detsch quoted several anonymous Ukrainian officials and military personnel that Ukrainian forces have largely halted the use of Turkish Bayraktar drones, which were used to great effect earlier in the war, due to improvements in Russian air-defense capabilities.[1] Ukrainian officials are reportedly increasingly concerned that US-provided Gray Eagle strike drones will also be shot down by reinforced Russian air defense over the Donbas.[2] Ukrainian forces have reportedly scaled back air operations to 20 to 30 sorties per day and are facing a deficit of available aircraft for active pilots. Russian forces are likely prioritizing deploying air defenses to eastern Ukraine to nullify Ukrainian operations and to protect the artillery systems Russian forces are reliant on to make advances. However, the Ukrainian air force and armed drones remain active elsewhere, inflicting several successful strikes on targets in Kherson Oblast in the last week..."



These drones are the multi-million dollar 'planes without pilots' and sophisticated air defence systems seem to have countered them ; as well, smaller drones are being used to drop munitions onto targets. Both sides are using these. The DroneShield technology seems aimed at smaller drones, one-offs and nuisance value efforts. The Mexico-USA border is a long one!!
 
On the right side of history

DroneShield CEO Oleg Vornik, business development manager Red McClintock and vice president of engineering Hedley Boyd-Moss have been sanctioned by the Russian Foreign Ministry.
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and picking up contracts .... turn around seems quick :)

DRO has received an $1.8 million contract for its DroneGun MKIIITM handheld counterdrone system from the United States Department of Defense. Delivery will be completed this month, with full payment due to be received in the current quarter.

This contract is the largest US sale by DroneShield to date, and follows several recently announced contracts by DroneShield.... The Company is also progressing active discussions on sales to Ukraine, following the initial deployment at the start of the war earlier this year.
 
should've tipped this .... now 19.5c

DroneShield has been recommended by the U.S. DoD’s Joint Counter-small Unmanned Aircraft Systems Office as part of the Science Applications International Corporation (SAIC) joint solution for Counter-UAS as a Service.

The JCO formalized its recommendation of three approved solutions after thorough evaluation at Yuma Proving Ground earlier this year. The SAIC team, “developed and demonstrated a robust SoS (System of Systems) architecture, with layered sensors and effectors to cover long range to mobile to last-line-of defense,” the JCO recommendation stated.

The multi-layered and comprehensive solution presented by the SAIC team leveraged several of DroneShield’s dismounted, mobile, and fixed-site detection sensors and electronic countermeasures.
 
DRO has received a binding commitment from Epirus, Inc to raise $3.7 million (corresponding to approximately US$2.5 million), via a placement of 18,500,000 fully paid ordinary shares at $0.20 per Share. This represents a discount of 2.4% to the last closing price of 20.5c per Share. The Placement will result in Epirus acquiring an approximate 4.1% Shareholding interest in DroneShield. .

Epirus is a high-growth U.S. technology company developing software-defined directed energy systems that enable unprecedented counter-electronics effects and power management solutions to optimize power efficiency in defense and commercial applications. This includes the LeonidasTM solid-state, software-defined high-power microwave (HPM) technology to enable unmatched counter-electronics effects for a range of use cases. Additional information about Epirus can be found at https://www.epirusinc.com. Epirus was founded in California in 2018 and has raised approximately US$300 million (approximately A$450 million) in funding since inception.
 
DRO share price surging today (up 25%) after the company announced that it has received its largest ever order, an A$11 million purchase from an unspecified government agency.

DRO has obviously capitalised on the high profile way that drones have been used in combat operations in the war in Ukraine. It's fair to say that in the future, unmanned vehicles will be a critical part of any army's offensive operations for both reconnaissance and attacking enemy positions and equipment.

While the DRO share price hasn't gone too crazy this year, apart from a very good run from mid-March to early May, if they continue to get these kind of orders 2023 could be a good year for DRO. Much will depend on how their hardware performs in real world scenarios and the reputation that the company develops over time.

DRO211222.png
 
frugal.rock said:
Hit and held and closed on 42c
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And after the froth, the bubble is burst, the balloon is deflated.

Now 37c and in a trading halt for Cap Raise

....
brokers launched a raising worth $9 million to $11 million, with shares at 30¢ each, according to terms
 
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The SPP, which follows the $10.9 million Placement, was completed on 06 February. The SPP generated significant support from DroneShield’s existing shareholders and substantially exceeded the $3 million the Company targeted via the SPP. DroneShield received SPP applications of $29.4 million at an issue price of $0.30 per Share.

Given the strong support shown by shareholders, the Board exercised its discretion under terms of the SPP and has determined not to scale back applications, in recognition of the long-term support of its investors and to maximise growth opportunities. The funds will be used to accelerate DroneShield’s growth through a faster scale-up of inventory for near-term sales, growth of key parts of the team, and general working capital.

DroneShield’s total funds raised under the Placement and SPP are $40.3 million (before costs).

Following completion, the Company has a robust balance sheet to accelerate growth with cash of approximately $50 million and no debt.
 
frugal.rock said:
Hit and held and closed on 42c
Click to expand...
given most of that back, now 22c

DRO awarded a follow-on 2-year R&D contract with a total value of $9.9 million by a Five Eyes Department of Defence (DoD). Approximately $4.5 million is due in the September and December 2023 quarters. Five Eyes refers to the defence/intelligence alliance between the US, Canada, UK, Australia and NZ.

The award follows DroneShield materially completing the $3.8 million contract announced 4 June 2021 with the DoD, with a final milestone payment expected this month.

Oleg Vornik, DroneShield’s CEO, commented, “Follow-on contracts are the ultimate customer measure of our performance. As an Australian sovereign industrial capability business, DroneShield is proud and pleased to continue undertaking multi-year contracts of increasing size
with this customer.”
 
tech keeps advancing. DRO is going to find it a challenge to adapt?

www.defensenews.com

Cardboard drone vendor retools software based on Ukraine war hacks

SYPAQ's aircraft were designed to resupply military forces with medical supplies. Now Ukrainian troops are using them for ISR in fighting Russian invaders.
www.defensenews.com www.defensenews.com
.
i particularly like the bit about a 10 -second GoPro sequencing that eliminates the signal streaming ...
.. to film a short clip when the unmanned systems reach the turnaround point that’s pre-programmed into their GPS. This helps make the drones even harder to detect, as there’s no datalink streaming the video back or receiving navigation instructions
Click to expand...
 
The problem with DRO is that it's not actually a viable business, it's a great example of what I call narrative speculation. In its 7 years since listing its share count has increased around 500%, never made a profit, never had +'ve Operating Cash Flow. Its survival has been totally dependent on speculators tipping more of their hard earned money in to keep it solvent.
 
33c

• DroneShield continues its rapid surge in cash receipts including $12.9 million received end of last week, with $62.9 million received YTD, at 4x the entire FY2022, and growing.
• The Company continues to strengthen its 2024 pipeline and significantly scale operations to support demand.
 

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