K2fly continues to stamp its mark on the mining software market, topping off a record invoicing quarter with the purchase of specialist software provider, Decipher. The purchase of Decipher received final approval at a meeting of shareholders this week and delivers K2fly another significant software solution for mine rehabilitation and tailings management. Decipher provides the only end-to-end mining and tailings management solution in the current market according to K2fly.
The company has been turning out solid numbers quarter on quarter for some time now and says it has already invoiced record numbers this quarter – even before the quarter has finished.
Invoicing has cracked $2 million so far for the March quarter, the first time the $2m quarterly milestone has been achieved, representing a solid 20 per cent hike on the corresponding period in the previous financial year.
K2fly’s purchase of Decipher was paid for by issuing previous owner, CSBP with $3.7 million in K2fly script. The purchase looks to be well timed too given the ongoing tightening of tailings dam regulations and renewed regulatory scrutiny.
The mining industry generally is rapidly adopting a standard for tailings dams known as the Global Industry Tailings Standard, or “GITS”, which augers well for software companies that are specifically in the business of tailings dams like K2Fly and Decipher.
The GITS is also receiving support from a raft of governing bodies, including the International Council Mining and Metals and the UN Environment Program.
Even investors are getting on board with the standard now.
The Church of England Pensions Board and Council on Ethics of the Swedish National Pension Funds together control over $21 trillion in assets. Both recently wrote to over 350 mining companies asking them to confirm their support for the GITS and to provide a timeline to move into compliance.
The support of the GITS by both investors and government sends a clear message to the mining industry with regards to its tailings storage practices and comes in the wake of several high-profile tailings dam failures across the world, including the catastrophic failure at the Brazilian Brumadinho iron ore operation in 2019.
K2fly’s Tailings Management Software, or “TMS” is a collaboration between the company and previous partners SAP and Decipher, with K2fly’s purchase of Decipher all but wrapping up ownership of the industry-leading software package which has already been adopted by a raft of industry participants including multi-national miner Rio Tinto.
Adding to the K2fly’s windfall has been the ongoing uptake of its extended range of mining software, with its “Infoscope” heritage management software being adopted by Rio Tinto and trialled by Griffith’s University whilst the company’s mainstay, its “RCubed” software has attracted two new significant users in North America, Alcoa USA and Coeur Mining.
K2fly also recently picked up fellow mining software provider SATEVA. The new arm of the business has already taken in $850,000 in orders in the three months since the WA developer was acquired by K2Fly.
With the company’s purchase of Decipher now firmly put to bed and its various software as a service packages being snapped up across the mining sector, K2fly looks to be well placed as the final fiscal quarter looms.
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