K2fly has landed another big fish with a world-leading steel and mining multinational company signing up for two products from the Subiaco-based mining software provider’s Mineral Resource Governance platform.
The five-year agreement with ArcelorMittal Mining UK, the mining arm of the ArcelorMittal group, is worth almost $2 million.
The latest deal adds to the sales K2fly announced over the past seven days to tier 1 miners Rio Tinto and Mineral Resources.
K2fly delivers enterprise software solutions in resource governance to major resources and asset-intensive clients. It offers an integrated suite of software products it calls “solutions” to be used independently or together to drive ESG for full accountability and transparency. The company’s business model is based on a software-as-a-service, or “SaaS” cloud solution.
ArcelorMittal last year recorded revenues of more than $76 billion and is seen to be the world’s largest steel and mining company. It has a presence in 60 countries and steelmaking facilities in 16.
ArcelorMittal Mining UK signed up for two of K2fly’s Mineral Resource Governance solutions, Resource Disclosure and Model Manager to consolidate its group mineral resources and reserves disclosure. K2fly solutions will be used across all 10 mining regions within the ArcelorMittal group.
The total contract value, or “TCV” of the agreement is $1.91 million, comprising annual recurring revenue, or “ARR” of $332,000 and implementation fees of $283,000.
Company management welcomed the agreement as the first joint sale of its Resource Disclosure and Model Manager solutions.
K2fly CEO, Nic Pollock said: “This combination offers our customers a deeper governance and transparency solution and efficiencies around block model management on an enterprise-wide basis. This combination is one of the holy grails of the mining industry.”
The deal with ArcelorMittal was announced on the day of K2fly’s AGM, which saw Jenny Cutri retire from K2fly as its Non-Executive Chair. Her successor will be Pauline Vamos – the former chief executive of the superannuation association and Chair and President of the Governance Institute of Australia who joined K2fly’s board in October.
K2fly regards both ARR and TCV as key metrics and says these “sticky recurring revenues” are growing to record levels. Shareholders heard that the company’s ARR had risen 18 per cent so far this financial year and TCV had recorded a similar jump.
K2fly's share price was bolstered by the news, rising 10 per cent to an intra-day high of 20 cents.
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By Matt Birney
