Strategic Elements Secures $225K EdgeiQ Pilot with Major Gold Producer

Strategic Elements (ASX: SOR) has announced the Strategic Elements EdgeiQ Mining Deployment through its wholly owned subsidiary, Stealth Technologies Pty Ltd. The company has received a purchase order from a major global gold producer for the pilot deployment of EdgeiQ, its production efficiency technology, at an operating underground gold mine in Western Australia. This represents Stealth’s first commercial order following an extended period of internal development, system integration and preparation for operation in live underground environments.

The purchase order has a total contract value of approximately $225,000 (excluding GST) and covers the supply and installation of the EdgeiQ system for a pilot deployment. The contract includes a pilot software licence valid for 12 months, incorporating system monitoring and support. The identity of the counterparty has not been disclosed.

“This pilot deployment represents an important step in the commercial evaluation of EdgeiQ in a live underground mining environment. We’ve been deliberate in preparing the technology for this stage, and this deployment allows both parties to assess performance under real operating conditions,” said Charles Murphy, Managing Director.

For investors, this first revenue-generating deployment validates the commercial viability of EdgeiQ after years of development. The contract establishes a pricing benchmark for future commercial applications and opens a pathway into the high-value mining sector.

What is EdgeiQ and why does it matter for mining?

EdgeiQ is a production efficiency technology designed specifically for underground mining operations. In practical terms, production efficiency refers to optimising the extraction and movement of ore through underground mine networks. The technology aims to improve operational output per tonne, which is particularly valuable in high-margin commodity operations where material value is significant.

Stealth has progressed EdgeiQ through a deliberate development pathway over an extended period:

1. Concept development – Initial technology design and theoretical framework
2. System design – Engineering specifications and technical architecture
3. Prototype build – Physical construction of working system
4. Pre-deployment testing – Validation under controlled conditions
5. Live deployment – Commercial application in operating mine environment

Underground mines face operational challenges that surface operations do not encounter. These include restricted access, ventilation constraints, material handling bottlenecks and complex logistics in confined spaces. Technologies that improve efficiency per tonne are particularly valuable where the material being extracted has high value, making even marginal improvements commercially significant.

The company has identified gold and copper operations as strong initial fits for the technology due to the high value per tonne of these commodities. This strategic targeting maximises the potential impact of efficiency gains and creates a compelling value proposition for operators.

Why gold and copper sectors are the initial focus

The commercial logic behind targeting gold and copper operations first centres on material economics. High material value per tonne means that production efficiency improvements translate more directly into measurable financial benefits for operators. Even small percentage gains in throughput or ore recovery can generate substantial value when applied to high-grade gold or copper production.

However, applicability varies significantly by site. Factors such as mine life, existing production bottlenecks, processing capacity and infrastructure constraints determine whether the technology is suitable for a particular operation. The pilot deployment is designed to evaluate EdgeiQ’s performance under real operating conditions and demonstrate its value proposition for potential broader commercial deployment at this site or others.

For investors, the strategic focus on highest-value applications maximises early revenue potential while building compelling case studies. Successful deployment in demanding underground gold operations could accelerate adoption across the sector.

Contract structure and commercial pathway

The purchase order breaks down into several key components covering the pilot deployment phase. Stealth retains ownership of all intellectual property associated with the EdgeiQ technology, preserving long-term commercial optionality. Any subsequent renewal or expansion beyond the initial 12-month pilot period would be subject to separate agreement.

The pilot structure de-risks the deployment for both parties. The customer can evaluate performance without committing to a long-term contract, whilst Stealth demonstrates commercial capability and gathers operational data to refine the technology. Retained IP ownership means the company can leverage learnings from this deployment across future contracts without restrictions.

For investors, this structure validates the technology whilst preserving strategic flexibility. The $225,000 contract establishes a commercial pricing benchmark that can inform future deployment economics and revenue projections.

Defence and sensing technology heritage

In parallel with its mining-focused activities, Stealth has previously undertaken development work supported by collaborative programmes and grant initiatives aligned with defence and national security priorities. This work has focused on sensing, perception and autonomous systems, contributing to the maturation and field-readiness of Stealth’s core technology platform.

Collaborative programmes with defence applications often involve rigorous testing standards and performance requirements that exceed commercial sector norms. This development heritage has helped accelerate technology maturation whilst reducing reliance on dilutive equity capital. Non-dilutive grant funding has supported advancement of the underlying technology platform that now underpins the EdgeiQ commercial application.

For investors, defence-grade development standards provide additional confidence in the technical robustness of the EdgeiQ system ahead of commercial deployment.

The Pooled Development Fund advantage

Strategic Elements is registered by the Australian Federal Government as a Pooled Development Fund (PDF), a programme supporting early-stage Australian innovation through patient capital and tax incentives. Whilst no new PDFs can be registered, existing funds operate under Federal regulation with strict oversight to ensure compliance with the Pooled Development Fund Act 1992.

The PDF structure provides several advantages:

• Tax benefits for investors – Major tax advantages encourage patient investment in Australian SMEs
• Earlier-stage focus – Structure enables investment in earlier stage innovation with longer development timelines
• Collaborative access – Close collaboration with research institutions and universities provides access to advanced infrastructure and expertise
• Non-dilutive funding – Access to government grants accelerates development whilst reducing costs and dilution
• Pilot programme strategy – Real-world validation with customers remains central to the development approach

SOR collaborates closely with research institutions and universities to access advanced infrastructure, expertise and non-dilutive government grants that accelerate development whilst reducing costs. Pilot programmes remain central to this strategy, enabling real-world validation with customers, refining performance and building confidence ahead of broader rollout.

As a registered PDF, SOR is also actively scouting new opportunities across Australia’s innovation ecosystem, engaging early with universities, research bodies and government programmes to identify high-potential technologies aligned with its collaborative, patient-capital approach.

For investors, the PDF structure provides structural advantages uncommon in the small-cap sector. The ability to pursue longer development timelines with patient capital, combined with tax incentives and access to non-dilutive funding, supports the company’s technology commercialisation strategy.

What comes next for EdgeiQ

The 12-month pilot period represents the key evaluation window for both parties to assess EdgeiQ’s performance under live operating conditions. The company expects to provide further updates as the pilot progresses and evaluation outcomes are assessed, in line with continuous disclosure obligations.

Successful completion of the pilot could open several potential pathways. These include contract renewal or expansion at the current site, deployment at additional sites operated by the same customer, or new customer acquisitions based on demonstrated performance. The company has noted ongoing interest from the gold and copper sectors in technologies focused on production efficiency in underground mining.

Key milestones and catalysts investors should monitor include:

• Performance updates during the pilot deployment period
• Technical validation of system effectiveness in live operating conditions
• Customer feedback and evaluation outcomes after the initial deployment phase
• Contract renewal or expansion discussions following pilot completion
• New customer enquiries from other gold and copper producers
• Broader commercial deployment opportunities across additional sites

The pilot is designed to support evaluation and demonstration of the technology for potential broader commercial deployment. Any subsequent renewal or expansion would be subject to separate agreement. For investors, successful pilot completion validates the commercial proposition and establishes operational proof points that could accelerate customer acquisition in high-value commodity sectors.

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