ASX-listed ‘software-as-a-service’ provider, K2fly, said the annual recurrent revenue stream from its software contracts has now surpassed A$2.0M after it signed on yet more customers for its “RCubed” mineral resource governance software. The company said the total contract value for its multi-year contracts, mostly with global mega-mining clients, now tops A$6M after Belgium-based Sibelco signed on for a 3-year term and Kinross Gold Corporation inked a 5-year deal.
The new signings come after the company posted a staggering 793% year on year increase in its mining client contract values that led the Perth-based software provider to announce it could become cash flow-positive for the first time soon.
The rapidly growing tech company has also seen its quarterly invoicing double when compared to this time last year as the value of its multi-year mining client contracts balloons again with Sibelco and Kinross now on the books.
Sibelco is a global materials solutions company that was founded almost 150 years ago to supply silica sands from deposits in Flanders to Belgium’s major glass producers. It has a connection to the clay industry that stretches back to ball clay production in the south west of England over 300 years ago.
Sibelco remains a privately owned and family-run business, operating in more than 30 countries with a focus on the global supply of industrial minerals to manufacturing customers in a number of different industries.
The Kinross signing is further evidence of ongoing strong demand from TSX and NYSE-listed companies for RCubed as Toronto-based Kinross’ global gold assets make it the fifth of the world’s top ten gold miners to join K2Fly’s A-list of mining clients. K2fly said that Kinross Gold employs over 9,000 people world-wide across projects in Africa, Russia and both North and South America.
K2fly continues to outperform its own strategic targets as new and extended 3-year or 5-year contracts for its “RCubed” mining resource reporting software solution are locked in with mega-miners such as Newmont, Newcrest, Anglo Gold Ashanti and Gold Fields.
In regard to Sibelco, K2fly Chief Commercial Officer, Nic Pollock said: “We are delighted to be working with our second industrial minerals customer in Western Europe. What is especially pleasing is that as a private company Sibelco’s motivations are not regulatory driven, but by business improvement and improved governance.”
The company remains well placed and looks very strong within its technology peer group as it pulls out all stops to create what is essentially an ongoing annuity style stream of income from clients who are mostly required by law to manage their resource reporting.
Commenting on the signing of Kinross, Nic Pollock said: “We are delighted to be working with Kinross Gold, another top 10 gold mining major. What is especially pleasing for K2fly is that this is the first contract driven out of our US operation which was only established in mid-January 2020 to support our growing North American customer base which now includes Teck Resources, Glencore Canada and Newmont. That’s a very quick validation of the investment into the region. Not only that but we now have five of the top ten gold miners by ounces (Newmont, Anglo Gold Ashanti, Newcrest, Gold Fields and now Kinross Gold) using RCubed to report their mineral inventories.”
As at the end of March 2020, K2fly’s management team had slotted its RCubed and Infoscope software solutions into 52 countries across more than 40 commodities and into almost 400 sites – with Sibelco and Kinross adding to some already staggering statistics from such a short and now global, marketing campaign that has swept up multiple global mineral players.
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By Matt Birney
