Gilmour Space Technologies chief executive Adam Gilmour estimates that the company has taken “a $20 million hit to our capital” during its long wait for regulatory approval for the maiden launch of its Eris rocket.
The inability to launch had also put the brakes on the company’s next capital round at a time when VC interest in space and launch capability had never been greater.
Gilmour Space engineers integrated its three-stage launch vehicle and moved it to a vertical position for the first time in April last year at the Bowen Orbital Spaceport. This was a not-too-subtle signal that the rocket was ready to fly.
Gilmour Space is waiting on a final permit from the Civil Aviation Safety Authority (CASA), which Adam Gilmour says is very close. But the final part of the regulatory journey has been a long one.
The company is hopeful that it gets this final sign-off next week, which would then allow it to give the Australian Space Agency its 30-day mandatory notification and nominate a target launch date for some time in March.
While Mr Gilmour is circumspect about the time it has taken to get approval – he says it is everyone’s first time doing this. But the wait has clearly been painful.
Counting the cost of the delays is tricky. Maintaining operations in both Bowen and on the Gold Cost is expensive.
The company has a diversified set of products and services now, so there is other work to do – manufacturing the second and third test-flight vehicles, designing and manufacturing satellite systems, and developing its Block 2 vehicles.
Regardless, there is no getting past the cash that’s been burnt in the past 10 months as the company has waited to light the rocket’s ignition.
“I would estimate it’s at least a $20 million hit to our capital to have the launch delayed for so long,” he said.
“The other thing is that we’re trying to raise capital, and [although] there’s a lot of interest – more interest in the company than I’ve ever seen before – everyone’s waiting for the launch.
That’s holding up capital at a time when Gilmour counterparts in America are raising “boatloads” of cash – hundreds of millions of dollars – from US investors.
“And we’re basically just still waiting to launch. It’s just becoming very, very painful.”
Mr Gilmour says the company has plenty of cash, which gives it a buffer and plenty of time to get its first test flight away. That’s all good news.
He knows the company is nearing the end of the regulatory process for Eris’ first flight. The launch will be a first for Australian regulators, and it has been a learning process for everyone.
“My biggest concern right now is if we have to go through a similar process for our second launch, and for our third launch,” Mr Gilmour said. “That’s going to destroy the business.”
“I will move to the United States before that happens. But it’s just ridiculous how long it’s taken,” he said.
“I know it’s the first time, but the government has to realize that they cannot do this again. It will destroy the industry.”
Mr Gilmour is not concerned about pressure coming from the new Trump administration to force companies to locate manufacturing in the US.
While there is an element of pressure to set up in the US, the administration was very obviously favourable to the space industry, given Elon Musk’s role as a right-hand commercial man who is talking about going to Mars.
Customer demand continues to outstrip supply for launch services.
Also, Mr Gilmour says the Biden administration and even the Obama administration required that rocket companies built at least 50 per cent of their vehicles in the US in order to qualify for US government business.
Gilmour Space has “always known” that it would need to set up in the US, including with manufacturing operations. The question has been how much manufacturing, and how fast the company would move.
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