Okay. Hi, everyone. There's still a few people coming in. Let's wait. All right. Okay. Hi, everyone. Welcome again to another investor update that we've got going post our last quarterly result. It's been another great quarter and a significant amount of progress on the ground in Virginia, and we continue to see great tailwinds for our sector in our company in particular and I want to take us through some of the progress here. This presentation will be up on the website and on the exchange, so please have a look at it post this webinar. But essentially, where we sit today is really happy and excited to report, as you all would have seen that have already read the quarterly report, our capacity is now built.
We've got some final things being completed specifically on drying, but our capacity is built, and now we're looking at how do we take this production that we have and let's turn it into parts and the different products across the different programs that we've got going. Right now, we're sitting on 19 tons of inventory. If I look back on the years, there was years where we were producing less than 1 ton of titanium metal finished powder, and it severely limited our ability to get out there and talk to customers and progress customers.
Today, not only do we sit on a significant amount of titanium powder inventory that we can now start turning into products or are turning into products and turn into more products to engage with more customers, we also have the capacity built out to respond to customer demand in the near term, and we have the capacity being built out with government funding to be able to respond to even increased capacity over the next coming 18, 24, 36 months. So we're in a very strong position. We've demonstrated the ability to scale this technology, and now we're focused on taking the customer engagements we have, taking them through the process of validating our material, prototype production, and into repeat customer orders. We've got four products right now that are targeted towards the Defense Industrial Base.
We've got many multiple engagements across the Defense Industrial Base, but directly into U.S. defense, into U.S. Army and U.S. Navy. We've got a couple of fastener projects going right now. We announced the ballistic plate, the order there for the manufacturing of titanium metal plate, which is a very, very large market. Plate and bar is the first derivative of primary titanium metal, and so manufacturing titanium metal plate could be a very large market for us in the future, and we're being funded by the U.S. Navy to deliver that. And we've got our naval components that we'll talk about, where we've produced pumps for Carver Pump impellers for Carver Pump, and those are now out for testing, and we're expecting those to come back with additional customer orders across there from Carver Pump. Over the quarter, we also secured an additional $18.5 million Task Order.
We still have over $70 million remaining on the SBIR Phase III IDIQ with the $99 million ceiling, but the $18.5 million Task Order is a huge vote of confidence in what we're doing from the U.S. Army. There's been a lot of follow-ons from when we first received our funding and our SBIR Phase III in terms of contracts, which just demonstrates the product that we're putting out there and the need for our titanium metal, especially into the Defense Industrial Base today. Another big milestone for us has been GenX. Huge improvement. This will see a huge improvement in both capital intensity and operating cost, and we're very, very excited about that. In these sort of market times, it's these sort of volatile market times, it's always great to have a significant amount of liquidity there.
We're sitting with a very strong balance sheet, with most of our capital being spent already, forward-looking capital spend being heavily funded by the Department of War. We're sitting in a very strong position to execute on taking our powder and making it into product and securing those repeat customer orders, which will really drive the value of our business in the next few years.
I just want to take a step back, because we've done a lot, and although we're very focused on the minutia on day-to-day, especially when you get into production, if you take a step back and look at what we've done, this idea of reshoring the titanium supply chain has been six years in the making, and we've gone through a lot of work over the last six years to take the idea and bring it to the point now where we have capacity, and we now have powder and the ability to make product and get those out to customers. Those first few formative years was all about setting up the building blocks, the pieces of the puzzle, so to speak, and then putting those pieces of the puzzle together started really in 2024.
From 2020 to 2023 was things like, let's secure our titanium mineral resource so we have that eventual backward integration. Let's get it permitted. Let's develop the feasibility and technical packages for scale-up from our industrial pilot facility. Let's secure our first customers, our support. Importantly, let's secure our largest customer and one of our largest supporter, which is the Department of War. We did that in those first few formative years. Going from there into construction, which has been the last few years for us, really started in 2024 and was in full swing in 2025. We also were able to get the follow-on IBAS funding, the $47.1 million, and our $99 million SBIR Phase III IDIQ contract.
This year's been all about, let's demonstrate the ability to get to commercial scale with our 200 tons per annum run rate, which we've hit now through our HAMR deox furnace. Let's move from there into making product for customers and converting those customers from these engagements, prototype agreements, into full customer orders that will see repeat orders and will be matched to our scale as we grow over the next few years. It's been six years in the making. We're at an inflection point now and over the next six to 12 months, we expect to see rapid, both not just growth in production as we execute on the IBAS-funded expansion program, but also see those repeat orders, those longer-term customers, and those longer-term contracts go from engagement through to orders and contracts.
We're doing this, continue to do this on the backdrop of strong tailwinds in the sector. Some of our peers, ATI, Howmet, reported some great results just recently. Still very long lead times in the titanium metals supply, 20 months for premium titanium metal products. This is on the backdrop of titanium metal being utilized in a lot of the military products that we're seeing go out in the Iran-Ukraine war today. There's even more of a focus on how do we build a sustainable, long-term titanium metal supply chain to support the Defense Industrial Base in the United States today. The United States has no titanium metal sponge capacity. In the next slide, we'll show where titanium metal sponge fits, but it really is just the primary metal capacity. We have no primary metal titanium metal capacity in the United States today.
This is on the backdrop of China significantly increasing their capacity, with China and Russia now having over 80% control of the titanium metal sponge supply chain globally. We sit here today with constraints in the titanium metal supply chain whilst we're using titanium metal extensively in our military products. There needs to be a change. We're seeing the tailwinds. The government understands this. This is why they have funded us. They want to put a dent in that titanium metal sponge import and convert our product into product that comes into the Defense Industrial Base. That's the whole reason the Defense Production Act Title III and the IBAS programs have funded us.
Most recently, as many of you that are tracking the sector would have seen, in August, the Defense Industrial Base Consortium released another request for project proposals, which focused on four minerals now, one of them being titanium metal. It is at top of mind for the government as well to continue to fund and find a solution to reshore the titanium metal industry. That's where we come in. We believe we are that solution. We have been funded by the Department of War to be that solution, and we believe we're that long-term solution from mineral and scrap all the way to titanium metal products. Not only do our technologies, HAMR and HSPT, allow us to reshore the titanium metal industry and be competitive, it also allows for a step change in the efficiency of American-made titanium metal manufacturing.
This is not just a reshoring story, this is definitely not a reshoring story where we need any tariffs or any floor prices to survive. This is a reshoring story where we can bring back American titanium mineral or titanium metal dominance to the sector. Not only can we produce titanium metal for the Defense Industrial Base, we can produce it more efficiently and lower the cost of those titanium metal products so that the Defense Industrial Base can use more and more, and the wider world can use more and more titanium metal for a range of products which historically have never been thought of because of the cost of titanium metal in the past. If we delve into it now and look at an example, we like to use the fastener example, and I have used this multiple times before.
Fasteners is one of the highest, what they call buy-to-fly ratios in the titanium metal industry today, because to make a fastener, you have to go through the entire supply chain and you have a lot of waste. Essentially, the buy-to-fly ratio, the inverse of that is the yield. We have seen titanium metal fastener-type components have yields of less than 10% from ingot through to final finished titanium metal product. This is an ultimate example of why titanium metal is expensive, but also where we can take that supply chain and turn it on its head. If we go through this, which we have been through many times before, that up there at the top, the primary titanium metal sponge is all imported today.
Luckily, Japan is still there supplying titanium metal sponge into the United States, but you can imagine if a conflict started in the South China Sea, that titanium metal sponge supply chain will most likely go to zero, and the manufacturing of F-35s and our key military vehicles and U.S. Navy components will be severely hampered. That is a big reason why, again, the Defense Industrial Base, the Department of War is funding us. Even if you had titanium metal sponge, taking it through into a final titanium metal product requires multiple steps. You first have to melt it into an ingot. You have to take that ingot, forge it into a billet. You have to take that billet and roll and draw it to make a fastener, 0.5 in hex head bolt, into, say, a 0.5 in bar.
Through that process, you are losing 30%, 40% of the ingot into that final cold drawn bar. It does not stop there. You take that bar and you then have to CNC machine it into the titanium metal blank, that they call, and then you can thread roll it, and you have a final titanium metal bolt. Very complex process, very energy-intensive process. Very energy-intensive in a time when the world is coming up against a huge power crisis because of the build-out of AI. An energy-intensive process that has a lot of scrap that is inefficient and ends up with a high-cost part is not something we should be trying to reshore in the United States when we think about reshoring the titanium metal supply chain. That is where we fit in.
Not only is our HAMR process able to take mineral or scrap and at low energy intensity, turn that into titanium metal in the form of powder, but this powder now is essentially like a billet or an ingot in the form of a powder. We can take that and form it. We can form it into a bar. We can form it into a billet if we wanted to. We can form it into a plate, and we can work with existing industry to turn that into the products going through the standard supply chain, but with higher yields. We can go even further than that.
We can take that powder and, for instance, like what we're doing for the U.S. military today that we've been paid to do, and with Task Order 2, we've been also funded to further scale up, is we can take those powders and form it into a near-net shape, or in this case, in terms of a fastener, and many of you would have seen on our X and LinkedIn posts, our SACMI press can form that into a bolt blank. We then put that through HSPT, our sintering process that gets the equivalent or even better microstructure than what the industry has today, and we have a product that performs as good or better than what the industry is making today. All we need to do is roll the threads on that.
In that specific example, our yield's above 95% versus the example here where the yield would be down at 10%, maybe less. This is how we see ourselves reshoring the titanium metal supply chain. Not just reshoring it for the hell of reshoring it, but it's reshoring it with efficiency in mind and creating American titanium metal dominance again to give us an edge, or give our military and our industries an edge in making high-quality products. Where's the technology now? This is why we're so excited, and this quarter's been a big one, is that the technology's now proven. We ran back-to-back runs validating that our titanium HAMR furnace can produce over 200 tons per annum.
Even more than that, and as we'll talk about with GenX, we've demonstrated GenX at 100 tons per annum and now putting that into our production line over the coming months. Powders are consistently now hitting Grade 5 out of the HAMR furnace in the 1080 Building, with spherical powder hitting Grade 23. Importantly, again, GenX, as we'll talk about, we're hitting Grade 23 almost every time. Well, every time. Yeah, almost every time. We're running GenX right now, and the results are just amazing. We've been able to demonstrate this powder capacity. More importantly, we also now have the capabilities to now take that powder, form it into parts, and take those formed parts and sinter them into final titanium metal products which we can get out to customers.
We installed the SACMI press, which has given us huge capacity for forming parts into intricate components, whether it's bolts, whether it's gears, whether it's nuts, whether it's a range of small components which are needed today in the titanium metal world, where the buy-to-fly ratio, that yield is very low. Our SACMI press can demonstrate at commercial scale us making those parts and getting that out to customers. It's been a long time coming, but we now have three large-scale HSPT furnaces in the building, two of which are in operation today, and the last one being put into operation. This is a significant improvement over the last, from the start of the year, where we only had one smaller furnace carrying the weight of HSPT.
Now we can take our powder, form it into multiple different products, and get it out to industry and get it through that qualification and verification process to get those repeat orders that are going to drive our business into the future. As I talked about before, we have a significant amount of powder on hand, and the focus is let's get that powder into products. There was one comment that came up from a couple of investors. We reported finished titanium metal powder and inventory as we're moving towards a production focus now, or a product focus, because we had production as a focus, but more of a product focus.
We reported finished titanium metal powder and inventory, with inventory being the big one because we built a really large inventory of titanium metal powder today that showcases the ability for us to now get that powder into product. Historically, in the June quarter and the quarters before, we had released the HAMR deox furnace numbers. Well, it had gone through deox, but not necessarily through the final steps of the process, through all the final steps, including drying and then out through QA/QC and being put into inventory. So the June quarter saw us with about 5.1 tons of powder through deox. This last quarter was 15.9 tons of powder through deox. There's now steps from that, so this is work in progress. This is WIP, this is inventory. This is what's going to be coming through the system going forward.
Going forward, we're going to be focused on products, so there'll be very much a huge focus on inventory and how we take that inventory of finished powder and into products. That was just a number that was left out of the June quarterly. I had some questions on it, and so it's there, three times increase in what we had seen through the HAMR furnace in the June quarter. So big, big uptick there. Now with the focus on product, it's all about getting that product into customers and getting those repeat orders. The platform that we've built supports multiple different products, and as a company, we've followed closely with what industry does and looks at. We look at engineered products as one side of the business, titanium metal powders, and then mill products. You can see there the different pricing that we're seeing across those markets.
Engineered products, you put a lot of work into. It is a lot of close work with our customers, a lot of iteration, but very high value and very long-term sort of customer base. Examples here are the fasteners that we are putting into the military, the track pins we are putting into the military, the Carver Pump impellers we are putting into the military. Things like the work we are doing with Ford, where we are putting components and getting them into Ford.
Once we are specced into those programs or those products or those platforms, you are pretty much there forever. It takes a lot of work, it takes a lot of engineering work. Each different SKU needs its own production process from powder through to final titanium metal part. So it takes work, takes a lot of qualification, but once you are in, it is very high value and you are in for the long term.
We have got multiple different products going through that process right now, and it starts with the fasteners and the impellers and the automotive components that we are going through now, and we expect to make over the coming months, and that is going to be a focus for early next year as well, is to convert those engagements into those longer term either repeat orders or longer term contracts with those engineered products. As we look at scaling it, now that we have the capacity and now that we have more powder, we look at how do we get more powder into these probably larger, more commoditized type markets.
Titanium metal powders, we can drop that powder cost substantially, and we are seeing a lot of engagement across the Defense Industrial Base, which is looking at titanium metal powders for additive manufacturing to go into replacing components for things like missiles, PAC-3 and the THAADs. We were at the AUSA Conference just a month ago or so, and a lot of focus on that missile supply chain and how we ramp up there. There is a lot of titanium metal components in that really will go through 3D printing to get that ramped up and be resupplying the Defense Industrial Base. Then we also, as a company, we think about mill products. We have been funded for plate.
We have been making bars as a way to make one of the large titanium metal components that we supply into the military, one of the large fasteners that we supply into the military. The mill product market is— all products are derived from mill products today, so that is that huge market. How do we not just make those mill products, but support existing industry with better titanium metal products today, or better titanium metal mill inputs today?
So we are working through multiple engagements there, a couple of which I am very excited about, and we hope to have some progress there in the coming few months. So we are working on this. This is the primary focus. We can now have the powder where we can supply a significant amount of product to our customers and take it through those process steps. This platform is built, so we have got it there.
We've spent the capital. The focus is now that production. Let's get product out to our customers. We have the capital is sunk. We have that production there. We're ready to go. We also have the funding for the scale-up. Our focus right now is not just about how do we sell to meet our capacity that we've built now over 2027, but securing those contracts and securing those customers that will see us through the scaling that we see, not just with IBAS, but even beyond. Where are we going to be by 2030, and who are those customers going to be? We have the platform now set up and the ability to make those products that we can secure those customers, and we're working diligently on a few very large opportunities that will see us through all those stages.
There's customers there where we see the pathway towards well in excess of what our IBAS has funded us for, the 1,400 tons per annum. We're working extremely hard on progressing those engagements. Now with having the ability to make those products and get it to them at a large scale, at a high rate, at volume, we expect that to accelerate. This brings us to GenX. When we first started the scale-up in Virginia, the commercial scale-up, we based it on the batch process, and we could have scaled on the batch process. It's a very good process. It's a fast batch process as opposed to the Kroll process, which is a slow batch process. As we announced at the start of the year, we had a breakthrough, and this breakthrough was GenX. This completely changes the game.
This not only lowers our capital intensity, but significantly lowers our operating cost. This is where we get to a scale where we can start competing, not just really bringing down the cost of titanium metal products, but further bringing down the price of metal products, further bringing down the capital intensity of titanium metal products getting out into the market. GenX has seen us with as we run GenX, we're seeing 75% less power consumption. We're seeing 50% less reagent consumption. It's a huge improvement. We're going to see huge improvements over the labor intensity in GenX. This is the way we scale this business, not just to thousands of tons, but tens of thousands of tons. As we have seen with GenX as well, just the process that we go through, we're seeing a significantly improved quality through the GenX process as well. So, we're running this continuously.
We've already built out the GenX HAMR furnace to a scale where it's over 100 tons per annum, and now we're putting that into operations. We're also now working on, what's that next scale for GenX? How does that fit into our plans going forward? Those are going to be, and we'll put those out to market in the coming months as well. Then, of course, we've got the Titan, the backward integration. A lot of you are all aware of this, but Titan not only has the titanium minerals, but the rare earths as well that are needed. It's construction-ready. The Department of War funded us getting it to the definitive feasibility study stage, so it's construction-ready.
With the most recent DIBC RFP around how the industry can reshore the titanium metal supply chain, Titan provides that backward integration to reshore the entire supply chain and never ever have to rely on foreign-sourced titanium metal for United States industry. Going forward, we have a huge fourth quarter and early next year ahead of us. We have the platform built. We are focused on getting product out to the customer, and now we are seriously focused on, we always have been, but we are significantly more targeted on getting that powder now that we have that 19 tons in inventory and the capacity to produce significant amounts into our customers' hands and turning those engagements, those multiple engagements we have, from prototypes into validated, qualified repeat orders across multiple different industries, defense industrial base and commercial.
With that, again, this presentation is going to be up on the website and on the exchange. There have been a few questions that came through since we put out the quarterly report that I will run through, and we can go from there. I think we have covered it already, but capacity and how we see capacity and production going forward is one of the questions I had a lot of and we have seen come through. We have validated 200 tons per annum. We did the 1.6 tons back-to-back run over 60 hours or so, which validated over 200 tons per annum. Now with GenX, very soon in the coming months, we will have another 100 tons per annum added to that capacity to make powder. We do not need to overmake powder. It takes both the labor and operating costs to make powder.
There is no need to make it ahead of time and build huge inventory of titanium metal powder. We are going to be more scheduling our powder and making, scheduling and lining up that powder with the production that we see going forward, and with the contracts that we see going forward. We can respond very quickly to any prototype orders or any repeat orders that are coming through with both inventory and our capacity that we have there. Over the long term, we still are building out that IBAS capacity, and in the next 12-24 months, have that IBAS capacity also added and be at thousands of tons of capacity of titanium metal product. Really, the focus again is on taking our powder that we have now that we have made and making it into product and getting those repeat orders.
A big one continues to come through on the sales process. I cannot control how quick we receive feedback from or we go through the qualification processes, whether it is military or non-military. But we have multiple engagements going now. But with more product, we can get more of those engagements working, some of which have been historically constrained because maybe we did not have enough HSPT furnace capacity. But the pathway is the same.
Groups come in, they validate at a small scale product, whether it is our powder or our final product. We then take it through some component or prototype testing. We then get a prototype order, and then that order goes into funded scale-up, typically. We are in the final stages with multiple products here. For example, Carver Pump, where it is out being tested, and we expect that to come back as repeat orders in the coming months.
So volume follows this customer qualification and the equipment being commissioned and ready to scale up for that. We are at that point now. So big focus this quarter and next quarter in converting those engagements into repeat orders. Very much so. Big, big focus. GenX and how we think about government funding there. We are going through with the scale-up of GenX. We have done a lot there. There is going to be some more announcements around GenX coming in the near future around how we see that affect both capital intensity and operating costs and numbers, and where we see GenX going in the near future as well. We have a significant amount of liquidity there. We have still $33 million or $34 million of unobligated IBAS funds to spend on our scale-up. We have $63 million in the bank.
We still have over $70 million of ceiling left in the SBIR Phase III IDIQ, and we are working on further task orders as we speak. So we have got significant liquidity to see us not just secure these customer orders, but continue to scale and get to a point where we are producing a significant amount of titanium metal product. When we incorporate GenX into all of that, lowering that capital intensity is just expected us to get to much larger scale with the same amount of money that we spent. We are very excited about that. GenX really changes the game, not just for our scale in the short term, but also where we can go over the longer term, 2030 and beyond.
We are very excited to work through that and update the market as we get more material and as we get more testing done there and work through our process. We have not talked a lot about Atlas-Titan, and we get a few questions on that. We put out the DFS and then secured the Atlas-Titan project not long after that. Titan is a permitted asset. It is key to our backward integration and reshoring the entire mineral-to-metal supply chain. Excellent economics. It also comes with the added benefit of having the rare earth products there and the zirconium and hafnium products there as well, which are crucial to many other industries, especially the Defense Industrial Base as well for those products. We are taking that through the process.
It is a big part of the submission we made for this recent request for project proposals from the DIBC for an entire mineral-to-metal solution. We are the only company out there that has that entire mineral-to-metal solution in the United States all in one house, that not only can supply the mineral-to-metal solution, but do it cheaper and bring about a more efficient titanium metal supply chain for the United States. Titan is crucial to that, and having it permitted and ready to go is a huge advantage there. Adding in Atlas has added that near-term potential to get the reprocessed tailings out into the market, but also gives us the base from which to start building some of that intermediate infrastructure that we need to take the minerals and separate them out into titanium minerals, rare earth minerals, and zirconium and hafnium.
It was a crucial strategic acquisition for us. We were lucky that that mine had shut in, and we were able to pick it up for cents in the dollar. We would have spent more money just building out the utilities to set up a site like that in the region, whereas we were able to pick up that with additional reserves, both in tailings or additional resources that we potentially see both in tailings and in the ground, in the pits there, where they've already mined out the topsoil and the higher McNairy sands, and we're straight into the higher grade, lower McNairy sand. With the added benefit of having already built out all that utilities as well for us. It's been a strategic acquisition that is going to pay dividends for us, pay significantly for us as we look to scale up that process.
Another thing we had announced, which we're working diligently on at the board level, is the redomiciliation to the United States. We announced that earlier in the year. We're working through that. It's natural. We're going to be a— we are a U.S. company. All but 99% of, all but 1% of employees are in the United States. We're U.S. assets. To be a fully U.S. company listed on the Nasdaq with CDIs on the ASX is the way we see it going forward. There's going to be scheme booklets and more announcements around here coming in the near future, which will give timeline for that redomicile into the United States. That's going to be released to market when it's ready. With that, I'm sure there's going to be more questions.
Please just send them through, and we'll try and connect with anybody where we've missed anything and you have more questions. We've had a great quarter. We've demonstrated our scale. We're fully focused now on product. Let's get it out to customers. Let's get those contracts through that we've been working hard on. We've got the platform now to secure and deliver into those contracts and now scale, and that's going to be the focus of our business. We're sitting here in a very strong position, able to ride these volatile markets out and deliver and execute, and we're going to see ourselves We see a very exciting future ahead for us. I look forward to updating everybody in January, and thanks very much for joining. I really appreciate everybody that dialed in to listen to this presentation. Thanks very much.