K-TIG signs MoU with Darchem Engineering for nuclear waste storage
K-TIG has posted a 36% increase in quarterly revenue with a record 285 opportunities in its sales pipeline.
K-TIG (ASX: KTG) has announced it has signed a memorandum of understanding (MoU) with Darchem Engineering in a bid to novate a three-cubic-metre intermediate level waste (ILW) nuclear storage container contract.
Darchem has more than 180 nuclear sites worldwide and is considered a market leader in the design and manufacture of varying high integrity engineered products in stainless steel and titanium, as well as thermal insulation systems.
The UK-based engineering company supplies 3 cbm ILW containers for the United Kingdom nuclear decommissioning program.
K-TIG previously entered into a research and development agreement with the Nuclear Advanced Manufacturing Research Centre (NAMRC) aiming to optimise the design and manufacturing process for the suite of 3 cbm ILW nuclear waste storage containers.
K-TIG hopes to gain direct access to an ILW containers contract and the production scale to compile the necessary artificial intelligence (AI) database to support the development of its quality control and quality assurance (QC/QA) technology.
The QC/QA technology aims to reduce the total cost of welding quality through the use of acoustic arc, ultrasonic and visual inspection technology.
K-TIG believes the MoU is an important milestone towards fulfilling its nuclear waste storage strategy and continuing to reinforce its commercial presence in the UK and the European Union.
While it is not fully concrete, the company’s current expectation is that the contract will provide the opportunity to supply hundreds of containers over a period of at least five years.
June quarter highlights
K-TIG delivered its June 2022 quarter results in a separate announcement, highlighting its agreement with NAMRC as the company looks to make inroads on the UK’s nuclear decommission waste containers sector.
The company’s revenue for the quarter reached $765,000, representing a 36% increase compared to June quarter 2021.
Improved brand and technology recognition also lead to a record pipeline of 285 opportunities throughout the United States, UK and European markets, indicating a 142% increase on last year’s June quarter.
The company continued to show developments with its Evolve 3 product, establishing its user interface.
K-TIG hopes to perform its first welding arc with the new software in the coming months.
As at 30 June 2022, the company held a cash balance of $3.8 million.