RE:RE: If we get bought out then maybeHello Domovyk, I agree with your comments, that it is indeed all speculation either way. Personally, I'm optimistic that IBC will release a positive news release. Especially in view of what IBC Advanced Alloys Corp., CEO Anthony Dutton said during his recent interview with James West-Midas Letter, July 22nd 2015. See transcript Below:- Note Anthony's comments pertaining to IBC's "absolutely MONUMENTAL ACHIEVEMENT" and how Lockheed Martin first order will positively impact IBCs bottom line. "James West: Anthony, thanks for joining us today. Anthony Dutton: Great to be here. Thank you for having me. James West: Anthony, your recent press release basically outlines your first delivery of an order of parts to Lockheed Martin, and by all accounts, that is transformational for the company. Can you outline exactly why that is transformational for the company? Anthony Dutton: Its transformational for a very, very important reason: in emerging technologies, whether they be material, software processes, it doesnt really matter what they are, but in emerging technologies, you often see companies being awarded purchase orders by large Tier 1 aerospace defense contractors who can see the value in the technology. Whats rare, however, and Im glad that we did not fall into that, is that very, very, very frequently, these companies fail to deliver on the promise of the technology. For whatever reason, they cant get it off the ground, they cant get it to meet spec, they cant get it to meet budget, they cant get it to meet deadline, or whatever the case may be. So ultimately they fail. The success rate of actually making delivery on these promising technologies is much lower than people realize. So with the announcement that we put out yesterday, that we have achieved first article casting, first article machining, and have delivered these parts to spec, on time, on budget, is an absolutely monumental achievement, and Im extraordinarily proud of what weve done and that weve been able to do it, and that were going to carry on working with Lockheed for many years, I hope. James West: Thats great. Congratulations on that! How does this first order impact your bottom line in the next quarter? Anthony Dutton: The first order will impact the bottom line in the next quarter by a significant amount. We will see the bulk of the receivable on that order that was issued to us last September start to come in, and thats going to have a marked improvement on the bottom line. What really is going to improve the fortunes of the company, however, going forward, are the awards of additional orders, and thats what Im hoping will happen, both inside the company, and obviously our investors alike. And given whats been going on in terms of our discussions with the company, and obviously Lockheeds approval of first article and taking delivery yesterday, I think theres a very good chance that our relationship with Lockheeds going to continue. James West: Okay. So we can expect to see orders for other parts for other divisions of Lockheed? Or is it going to sort of pave the way for orders from other aerospace companies in the industry who are going to look at this order and say wow, obviously IBC Advance Alloys is capable and is fulfilling on their promises? Anthony Dutton: Well, I think, both, to be quite honest with you. This is really the tip of the iceberg here. you know, essentially what we have demonstrated is that our casting process is a highly disruptive process technology which is going to allow IBC to deliver a material, beryllium-aluminum alloys, which are already very widely used in the aerospace industry on the F35 and many other platforms, F18, F16, many drone applications, satellite applicationstheyre used all over the place, and what we have demonstrated is that we can now deliver those components as castings using our proprietary beryl-cast technology, and allow us to deliver those at a lower cost on a quicker time frame. So essentially its better-faster-cheaper, and that normally means that your business is going to increase. James West: Sure. Absolutely. So what is the size of the market globally for cast alloy products that are previously not possible to cast and have been machined? What is the size of the market you can capture there? Anthony Dutton: Well, theres two ways of looking at that. One is the existing market, the market for existing beryllium-aluminum components, and thats in the hundreds of millions of dollars, and we think that weve got a great opportunity to go after that market as low-hanging fruit. The bigger question is, how big is the market for components where lightweight and stiffness and a high coefficient of thermal expansion are important? That market is billions in size, currently being served by beryllium-aluminum alloys obviously, but many other materials as well, from composites to carbon fibres to high-stress aluminums. Theres a whole bunch of materials that are being used as substitutes for beryllium-aluminum. Aerospace engineers absolutely love beryllium-aluminum as a material because it is phenomenally high-modulus, or stiffness to weight ratio, compared to other materials; and its also got an excellent coefficient of thermal expansion, and that is very, very important in environments where you have extremes of temperature range. However, theyve not been as open to using it in the past because it was only available as a material that needed to be machined, and therefore it had a much higher cost per part. Now that we can deliver it as a casting, its going to have a much lower cost per unit, and thats going to therefore we think expand the potential market size well beyond what it is today. Now its going to take a little bit of a trickle for those benefits to filter through the market. I can think of many, many components that are currently not being made from beryllium-aluminum that now could be made from beryllium-aluminum because we can now cast those components. James West: So who else is casting beryllium-aluminum? Anthony Dutton: Currently theres nobody casting beryllium-aluminum. Were the only company in the world that can do it. We do know theres a couple of other companies that are still trying to crack the nut and figure out exactly how to do it. We expect that we will maintain our first to market advantage for a bit of time yet, however, eventually somebody else will figure out how to do it; thats the nature of competition. And we quite welcome that competition, to be quite frank with you, because once another company is able to also cast beryllium-aluminum components, that means that theres going to be no more sole-source supply risk. So some companies are quite reluctant, and Im sure that your listeners will be familiar with this, theyre reluctant to acquire a technology or to use a technology when theres only one company in the world that can do it, because if anything should happen, theyre going to be stuck a little bit there. So sole supplier risk is a concern for some companies. When theres an additional supplier, that sole supplier risk is therefore gone, and that means historically if you look at other examples, the market size increases, and it usually increases quite dramatically, actually. James West: Okay. So tell me, how much capacity do you have currently in terms of production ability, and what is the path to scale up should you find yourself inundated with orders? Anthony Dutton: Well, the capacity that we currently have now is fairly low. Were using about 15 to 20 percent capacity utilization in our factory, and the reason for that is that we overbuilt back in 2010 when we first started to discuss this material and this process with Lockheed Martin. And the reason for that is that Lockheed Martin, like most other aerospace companies, wont actually talk to you until you have a fully built up facility. They wont just talk to you about an idea on the back of a napkin, for example; you have to have the physical plant already in place. We expected that there would be a pretty significant ramp up in growth once we got our first article acceptance, which we got, as I said, yesterday. So we have built in that capacity growth for the near term. The limiting factor in the capacity for us and any other company that uses vacuum cast furnaces are the furnaces themselves. And so we are configured for three additional furnaces, a total of four furnaces; we currently only have one, and with each additional furnace, we can increase our capacity significantly. The reason for that is, the furnace that we currently use is relatively old-school. It works fine, but its not an ultra-high-efficiency modern furnace that are now available to us. So we could effectively increase our capacity by 400 percent just purchasing one more furnace, and we have room for not one more, but three more. James West: So Anthony, essentially, you are good to go if Lockheed Martin decided to build everything out of beryllium-aluminum alloys; youve got the growth potential in place. Anthony Dutton: We absolutely have it in place, and if its not in place right now, its planning to be in place very soon. As I said earlier, we are not limited by our physical plant, we are limited by the number of furnaces that we have, and when we designed and built the facility that were now manufacturing this material out of in Boston, we configured the layout of the facility for an additional three furnaces. And with these new ultra-high-efficiency furnaces, which have got significantly more capacity than the furnace were currently using, we could then drive a lot of growth out of this one facility without having to make any expansion of our footprint in Boston, or anywhere else, for that matter. James West: Okay. So Anthony, Im looking at your market cap, and it is by all accounts modest. I cant understand how the market hasnt picked up on the fact that youve become a supplier to one of the largest aerospace companies in the world. How is it that your market cap remains this low? What is the market missing here? Anthony Dutton: Well thats an excellent question, and were a little bit puzzled ourselves, to be quite honest with you, because what we have done is, as I said, revolutionary, disruptive, many people said that it couldnt be done, but we have done it. Weve proved that weve done it, weve delivered orders now, and were very optimistic that theres an enormous potential ahead of us. The only thing that I can possibly believe is that maybe some people just dont understand what we have done, or the significance of what weve done, or cant believe that a small company like IBC could succeed where we know others have tried and failed. But the reality is that Lockheed are committed to us. Lockheed has given us this order because they understand that what we have been able to do is going to allow them to save hundreds of millions of dollars over the course of the next decade; going to allow them to save huge amounts of time in terms of lead time delivery, and improve the efficiency of their supply chain. In short, the people who really understand what this means Lockheed, United Technologies, Kaman Aerospace, all of them have given us orders. They understand the significance of it. And so perhaps weve just got a bit of an investor lag here, while they kind of digest all of this and appreciate and understand what Lockheed and Canaan and United Technologies have already demonstrated by having given us orders. Part of my job, obviously, is to be available for investors who have questions; part of my job is to explain to the capital markets and investors in general just exactly how important this technology is with development that we have achieved this milestone. Short of jumping from the rooftops, my job is to speak with people like yourself and to hope that Im being heard when I say that the future, the potential for this material, is very, very, very significant; much more significant than our market cap would suggest. James West: Okay, Anthony. Thats an excellent interview. Lets leave it there for now. Well come back to you in another quarters time and see how youre making out. Thank you so much for joining us today. Anthony Dutton: Thank you very much, and please, anyone of your listeners who would like to call me, Im always available. James West: Great! Okay, well put the number on the website. Thanks again. Anthony Dutton: Cheers. All the best.