Droneshield (ASX:DRO) shares have enjoyed a modest boost in afternoon trades on the news the company has been approved by Canberra as a certified supplier of hardware goods to the Australian military through the Department of Defence (DoD).
Ultimately, the panel means that Droneshield can now apply for private government tenders which are not publicly advertised due to sensitive national security considerations.
With a boosted status as a trusted manufacturer and supplier, Droneshield ultimately provides products which support missions.
The best example of this is Droneshield’s portable antenna system which can be worn as a backpack and allows troops in the field to detect nearby UAVs.
The value of such a product has been realised recently by the war in Ukraine where small commercial drones are increasingly being modified to carry grenades or other explosive devices, a strategy known as ‘lingering munitions.’
The ISREW panel, Droneshield notes, covers a range of services now available to Droneshield with government support, including
Engineering development assistance
Hardware testing and evaluation procedures
Commissioned design of prototype products
But perhaps the most high-impact element of inclusion onto the panel is the ability for Droneshield to now see its products fast-tracked through the bureaucratic procurement process, should an urgent or rapid need for Droneshield tech be required by the DoD.
The company notes it cannot place a material value onto the mere inclusion on the panel alone, but, management is confident this certification as an approved manufacturer will bear good things down the line.
“In addition to our growing counterdrone business, the ISREW work is a highly complementary, adjacent market,” Droneshield CEO Oleg Vornik said.
“We already have real experience in this space via our secondary Electronic Warfare contract with the Australian Department of Defence, as well as an Intelligence, Surveillance and Reconnaissance (ISR) contract with the Defence Innovation Hub.”
Those contracts with the Australian DoD are not the only high-level defence contracts under Droneshield’s belt.
In July, the company revealed it was in receipt of a similar contract with the US DoD, at the same time it unveiled its work with the Australian Missile Corporation.
Just last week, Droneshield logged its largest ever order at $2m, with the company now supplying UAV detection tech for an unnamed European government entity.
Days prior in late August, the company announced a like-for-like contract with an unnamed US civilian airport. That release referenced an ongoing government contract with an unnamed entity; the US airport regulator is the FAA, but whether this is the agency in question is unclear.
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