Q&A with IBC Advanced Alloys President, CEO, and Director, Anthony Dutton
What does IBC Advanced Alloys do Anthony? And what are the alloys used for?
IBC Advanced Alloys (TSX: V.IB, OTC QX: IAALF) Stock Forum). IBC Advanced Alloys manufactures industrial and specialized performance alloys using copper, aluminum and beryllium for many different industries including technology, automotive, aerospace and defense. Our head office is in Vancouver, however our primary operations are all in the Eastern US with four manufacturing plants which employ 80 people situated in Indiana, Massachusetts, Pennsylvania and Missouri. The company is also engaged in research to stimulate the primary demand for the rare metal beryllium which includes research to develop a safer nuclear fuel which uses uranium and beryllium oxide.
You recently announced that you are working with Lockheed Martin. Who are they and what do they do?
Lockheed Martin is a prime US aerospace and defense contractor manufacturing aerospace, defense and information technology equipment. Lockheed Martin is the designer and builder of the F-35 Lightning II fighter jets which are considered to be the most advanced fighter jets in the world.
What will IBC be doing for Lockheed Martin?
We are working with Lockheed Martin’s F-35 Electro-optical Targeting System (EOTS) team based in Orlando, Florida to develop specific components made with our proprietary Beralcast® alloys. We’ve completed several advanced prototype castings which are currently being evaluated for several critical structural and sub-system aerospace components for the F-35 Lightning 11.
Why is this a significant partnership?
Lockheed Martin is widely acknowledged as a leader in materials technology while also being committed to manufacturing excellence. Our Beralcast technology has been acknowledged by them as leading ultra-light high modulus material that can be used cost effectively in a wide number of applications across multiple air frame platforms.
Our objective is to demonstrate the potential of Beralcast across a variety of applications and to win multi-year long term supply agreements with Lockheed Martin and other aerospace contractors.
What other companies are you working with?
We are currently working with a number of other aerospace companies developing potential applications using our proprietary Beralcast technology. However, these relationships are currently covered by confidentiality agreements and as such names cannot be disclosed. We anticipate being able to make more definitive disclosures going forward.
Are there any other companies that can do what IBC does?
IBC is currently the only company in the world that can commercially produce high performance beryllium aluminum castings. It is a high barrier to entry market and has been dominated by one big company for decades. Because of this, the market has been somewhat dysfunctional and has created the opportunity for a company with our skill sets. Currently there is no competitor who can provide high performance cost effective beryllium aluminum castings like those produced by our team at IBC Engineered Materials.
What is the demand for castings and what industries would require your services?
The global market for high performance castings is huge with enormous opportunity. One company for example, Precision Castparts Corp. generated over $8 billion in FY 2013 revenues. In 2012 they bought Titanium Metals Corporation, which produces a range of titanium forgings and castings, for approximately $2.6 billion. IBC’s Beralcast alloys and castings address a very real need in the aerospace, automotive and high tech industries as they are ultralight and exceptionally stiff making them irreplaceable for many applications.
What can we expect to see from IBC in the 2014?
In 2014, IBC will continue to focus on the aerospace industry as the main driver of its growth. High performance aerospace applications, from EOTS to weapons mounting to advance gimbals and targeting systems will be the greatest opportunities for IBC. The company is currently in discussions with fixed wing, rotor and UAV manufacturers and sees many exciting opportunities for its alloys and casting technologies.
Why should an investor be interested in IBC?
Although broad markets have had a good run during the last few years, the same cannot be said for many TSX Venture companies. In fact 2012 and 2013 have been downright cruel to investors as all the risk capital has fled and subsequently been either sidelined or found new homes. IBC has been caught in the downturn and it has really been the perfect storm for us.
Having said that, we believe IBC is on the cusp of a wave of tremendous growth; especially in the aerospace sector. With a strong relationship already in place with Lockheed Martin, IBC will be looking to strengthen its aerospace relationships and to aggressively grow its business in this exciting market. In addition, we continue to move forward with our nuclear fuel initiative. The Company is currently not getting any value for its growth potential and management believes that there is a significant high growth opportunity for an investor comfortable with risk and with realistic time horizons.
Disclosure: IBC Advanced Alloys is a Stockhouse client.