Mining focused software-as-a-service provider, K2fly has extended a pre-existing contract for its ‘RCubed Resource & Reserves Solution’ platform with global mining giant, Glencore Canada by three years. The agreement is set to contribute A$443,000 in total contract value and A$130,00 in annual recurring revenue to K2fly’s coffers, with Glencore to use the product for its global zinc operations at 56 sites across seven countries.
To date, the contract with Glencore has been run on an annual renewal basis since mid-2019. Under the new agreement, the deal will now stretch through to August 2024.
RCubed is a cloud-based platform enabling mineral resource and reserve governance, compliance and reporting. It “dramatically” reduces overheads and improves efficiency, according to K2fly.
The platform provides full audit trails and other information required for auditors, whilst also adhering to the reporting requirements for major stock markets such as the Australian Securities Exchange and the New York Stock Exchange.
K2fly Chief Executive Officer, Nic Pollock said:“The RCubed solution is showing strong continuity with customer contract renewals and extension of contract terms as evidenced by Glencore Canada. Take-up across the mining industry sees us delivering this solution to 14 customers globally, many of which are tier-1, across a number of mineral types and supporting multiple exchanges and reporting codes including the new SK-1300 requirements of the NYSE.
The acquisition of RCubed in May of 2019 continues to show very successful client growth and has become integral to our business model. Given the success of RCubed Version 1 we have invested in the next generation Version 2 which will make the solution more available to a broader audience and increase our product mote.”
K2fly operates under a software as a service, or “SaaS” business model that creates both one off sales and annual recurring revenue streams - a key metric often used by software businesses.
Through platform-based cloud services, the company’s product offerings cover nine “solution” areas focused on environmental, social and governance compliance, disclosure and technical assurance.
K2fly’s growth-driven strategy targets tier-one and tier-two global miners with its assortment of clients including the likes of Rio Tinto, Newmont, Glencore, Newcrest, Fortescue and AngloGold Ashanti.
The company recently reported a record 79 per cent growth in annual recurring revenue in the September quarter this year, when compared to the corresponding quarter in 2020.
K2fly’s record revenue growth came on the back of three new long-term contracts with mining industry heavyweights Alcoa, Newmont and Sibanye-Stillwater.
Annual recurring revenue for the first quarter of FY22 clocked in at $4.06 million.
Total contract value in the September quarter rose by a serious 42 per cent over the previous quarter to clock in at $14.02m.
With a longer-term deal now locked-in with Glencore and other contracts with major mining players also secured, K2fly’s growth strategy for its software platforms appears to be right on the money.
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