The Drone Warfare Portfolio - Boresight Ltd

BST.AX (watchlist): Not buying yet because too much needed to underwrite a position isn't available: per arborator_capital_research, key claims (6,000+ units sold, sold into every Five Eyes military) are entirely company-sourced with zero independent confirmation of any specific contract, customer, or country, and there's a structural category question — armies sometimes shoot down cheap foam/3D-printed silhouettes on disposable consumer drones instead of a dedicated system, with no good evidence how much of the addressable market that workaround has already eaten; company is unprofitable and burning cash (A$7.88m reserve as of June quarter implies ~8.8 quarters runway, but that predates the Huntsville build-out), so they expect another capital raise before self-funding, signaling dilution risk; positives noted include >50% gross margins, FY24/25 revenue A$4.36m up 58%, recent-quarter order intake near A$10m annualized run-rate, a new 812-sqm Huntsville, Alabama facility (~15x current US site, occupied, production migrating Aug–Sep) that once ramped can build >5,000 BQ-400s/year, Chinese makers like DJI banned/restricted across most Five Eyes/allied markets, and ~7x run-rate revenue valuation; A$70m market cap, listed on ASX June 2026; will revisit as the picture fills in or if the price drops significantly.

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