ASX-listed K2fly’s cloud-based software solution that audits mineral inventories has attracted as new customer, with Canadian company Lundin Mining committing to a new three-year, $661,000 agreement.
The deal for K2fly’s “Resource Disclosure” solution – which has an annual recurring revenue value of $180,000 – will provide Lundin with a total mineral resource governance solution to be delivered at the corporate level, covering all of the company’s material reporting sites.
The Canadian company joins a list of high-flying mining identity firms that feature on K2fly’s client list, including Rio Tinto, BHP, Fortescue Metals Group, South 32 and Anglo American.
The Resource Disclosure solution is a software as a service (SaaS) cloud product that has replaced K2fly’s previous non-cloud version known as “RCubed”. It is also the only global commercial off-the-shelf (COTS) solution in its class.
Further down the track, the company expects to integrate Resource Disclosure with its other products, “Model Manager” and “Reconciliation”, to provide clients with a full mineral resource governance suite.
In April, the world’s biggest iron ore and nickel producer, Brazilian powerhouse Vale, also contracted K2fly to supply its Resource Disclosure software across 69 of its sites for at least three years.
K2fly chief executive officer Nic Pollock said: “This adds another client to the newly-released Resource Disclosure solution and another TSX listed client”.
Pollock described the solution suite as “totally unique”.
The deal with Lundin comes hot on the heels of K2fly’s confirmation last Friday that it had entered into a scheme of arrangement with Argyle Bidco, a wholly-owned subsidiary of global-leveraged buyout (LBO) titan Accel-KKR, which has bid to acquire 100 per cent of its shares at 19c each.
The bid price is a whopping 90 per cent premium above its previous closing mark of 10c last Thursday. The scheme, which the K2fly board has unanimously recommended to shareholders, is due to be signed off by the courts at the end of September once a successful shareholder vote has been concluded and all other conditions have been met, including Foreign Investment Review Board (FIRB) approval.
K2fly’s share price jumped 85 per cent last week on the back of the news.
Lundin, which is listed on the Toronto Stock Exchange (TSX), is a diversified Canadian metals miner producing copper, zinc, nickel and gold through its operations in Argentina, Brazil, Chile, Portugal, Sweden and the United States.
With the firepower of KKR’s considerable wallet behind it, K2fly’s future now looks rosy as the company sets out to win more deals with global mining entities.
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By James Pearson
