The tills have been ringing at mining software company, K2fly, with annual recurring revenues from just one of its software offerings, “RCubed”, almost doubling the annual target of $500,000 in just six months. K2fly said it has now locked down $900,000 a year in recurring contracted revenues from its RCubed software as a service, or “SaaS”.
RCubed provides resource companies with a platform to assist with mineral resource reporting, ore reserve reporting and governance for shareholders and regulators, according to K2fly.
The latest tabled numbers come only weeks after the Perth based ASX-listed company signed a five-year contract with mining goliath, Rio Tinto, to supply its SaaS.
The company said that total expected revenues over the forward contracted years for RCubed currently stands at around $2m.
The company’s consulting division is also doing some of the heavy lifting too with nearly $600,000 in consulting revenues expected to come from its contracts.
Earlier this year, K2fly handed over $450,000 to acquire RCubed which now looks to have been keenly priced, given the recent market take-up of its SaaS offering.
At the time of the acquisition, RCubed was already in place for a couple of major blue-chip’s, Teck Resources and Anglo Gold Ashanti. Since picking up the SaaS, K2fly has further engaged tier-1 Rio Tinto and Brazilian based, Nexa Resources, taking its CAGR to 140% over the past four quarters.
K2fly also said that NYSE listed companies have been asking questions about RCubed as the US Securities and Exchange Commission has announced some pretty hefty changes to up the disclosure requirements for mining companies, which will come into effect in 2021.
The US amendments will align more closely with Australian ASX practices, where, simply put, mining operators must disclose specified information to the market about its resources and reserves – up until now, US resource companies have only needed to disclose non-reserve estimates in very limited circumstances.
This change to the US SEC regulations will likely put the wind up a few companies and K2fly will then be able to swoop in and take the pressure off with its RCubed offering.
RCubed looks to be a handy piece of technology that automatically generates mineral resource and reserve reports that already support reporting codes such as JORC, NI43101 and SAMREC right across all the major stock exchanges – including ASX, NYSE, LSE, TSX and JSE.
With strategic alliances with global technology companies such as GE, Esri and SAP – K2fly might just be in the right space at the right time.
Is your ASX listed company doing something interesting ? Contact : matt.birney@businessnews.com.au
By Matt Birney
