ASX-listed software business K2fly has been contracted by Rio Tinto for another of its mining packages, the resources giant signing on for its Mineral Resource Governance Reconciliation Module.
It’s the first sale of the product to any tier 1 miner and the sixth software solution the Subiaco-based company has sold to the global metals and mining giant – its biggest customer.
The three-year deal will generate for K2fly an annual recurring revenue of $75,000 and a total contract value of $360,000.
K2fly delivers a suite of nine resource governance solutions for the mining and other asset-intensive industries that cover areas such as resource disclosure, tailing management and governance, heritage and land disturbance.
The company’s business model centres on its platform-based software-as-a-service, or “SaaS” cloud solutions.
It says its products enable clients to ensure their operation systems are ESG-ready for reporting and disclosure, an increasingly important feature worldwide.
K2fly says its reconciliation module can help companies like Rio that have standardised mine reconciliation processes compare performance across multiple mines and against predictions, so they can identify and promulgate good practices.
Rio will use the reconciliation module across 24 of its sites in various countries and for assorted commodities.
Other packages it has purchased include the heritage management and ground disturbance modules that Rio signed up for after the destruction of the Juukan Gorge caves in 2020.
Only a small company with a market cap of about $30 million, K2fly has spread its net far and wide and contracted with many of the world’s top global miners including Glencore, Newmont and BHP in addition to Rio.
Though 60 per cent of revenue comes from Australia, 20 per cent of its revenue is now generated from the Americas and another 20 per cent from the rest of the world.
Company management has big expectations for its recently released new Mineral Resources Governance suite and is reporting strong interest from the Americas for its resources governance and tailings modules.
Management says it is also grateful for Rio’s continuing support.
K2fly CEO, Nic Pollock said: “We are proud to continue supplying Rio Tinto with new and innovative solutions to the resources industry. We have made tremendous strides forward in delivering key components to build out our Mineral Resource Governance suite as the only vendor focused on delivering a commercial-off-the-shelf solution to this global market.”
Pollock said Rio Tinto’s investment in the resource governance suite demonstrates the company’s commitment to strong governance and disclosure practices that builds trust with all stakeholders.
K2fly’s mission is to assist the resources sector overcome ESG challenges in increasingly faces by helping manage risks around social licence to operate in areas such as reputation and disclosure.
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