AVA Risk Group - Poised For Significant Growth, page-3

re-posting the relevant section: 

Before I highlight operational updates from the AGM, I should mention AVA signed off on another significant contract win today with Mining3, which provide a variety of solutions to the mining industry.

AVA technology will provide Minin3 with a predictive conveyor monitoring system for the mining industry to be launched in Q1, 2019.

Paul Lever, the CEO of Mining3, said, “Our mandate is to provide solutions to our mining industry members’ identified challenges and fast-track the develop and delivery for the benefit of the global mining industry. This new technology is an example of how Mining3 has effectively delivered on its mandate with it being a major game-changer for the industry. It delivers significant cost savings, productivity gains and safety by reducing the need to physically “walk the belt” to audibly detect faults.”

Andrew Hames, Group Head of Extractives and Energy for the Ava Group comments, "We have been working with Mining3 for some time developing the interrogator units which form part of the conveyor monitoring system. When we were provided with an opportunity to take this innovative new technology to market, we were excited by the potential prospects it presented as well as the ability to develop the technology for further applications.”

Mining3 will be working with the Ava Group to rapidly bring the technology to market, with an initial focus on the Australian mining industry. The technology will then be rolled out across international markets towards the second half of 2019.

It would seem AVA have hit on a very significant new technology that has huge potential to improve mining productivity, without significant additional costs, but reduce them and make convayer monitoring a much safer environment, and less labour intensive.

Q1 Actuals 

 • Positive start to FY19 with revenue in line with guidance Rapidly growing pipeline • Technology pipeline has now grown in excess of $300m – all addressable over the next 36 months. Growing earnings visibility

• Large contract win in data network security provides earnings visibility through FY19/FY20

• Services division at breakeven, with anticipated increasing market share from all customers Contract success in high growth sectors

• Transformational contract win in the high growth data network security sector

• Recent ongoing contract success in Energy & Extractives sector across both divisions Continued synergies post merger

• Synergies post merger are expected to flow through for the company into FY19, including the uptick in contract wins on the back of cross selling strategies across the Technology and Services divisions Product Innovation

• Focus upon increasing addressable market through development of new solutions in existing and adjacent markets Strengthened Board and Management

• Additional expertise brought into the business to leverage expertise and relationships to grow the business