Fortescue Metals Group has extended its deal with software developer K2fly with an additional six-month contract worth $1.2m for the provision of mining software development services.
The mining giant has been a long-term customer of K2fly utilising its Infoscope land management system in Australia for over nine years and more recently expanding its use to overseas projects in Europe and South America.
K2fly's CEO, Nic Pollock said: “We are pleased to be working with Fortescue across a number of areas in the business. Fortescue are using a number of our platform solutions and in addition, have engaged us for software development services in other areas of their business. These services are additional one-off revenues for K2fly and are also generated from time to time with other K2Fly clients.”
Perth-based K2fly is blazing a trail in the mining software-as-a-service sphere providing an encompassing range of software from traditional mining items such as resource inventory calculation to tools that facilitate meeting the increasingly important environmental, social and governance, or ‘ESG’ criteria.
K2fly’s mission is to address the ESG challenges in the resources sector by helping manage risks around its clients’ social licence to operate in areas such as reputation and disclosure.
Besides the Fortescue contract, it also inked fresh deals with BHP, Rio Tinto and one of the world’s biggest copper producers, Asarco. Others on its customer list include Glencore, AngloGold Ashanti and South32.
Integrating ESG solutions into businesses is no longer a choice but a necessity being driven by investors, community expectations and regulators. It is also becoming increasingly important to attract and retain professionals in a tightening labour market.
For K2fly, its mission is beginning to pay dividends. The company recently posted record results in annual recuring revenue, invoices raised and cash receipts, closing out the 2022 financial year with a cashflow positive quarter of $1.7 million.
The company aims to continue its focus on tier 1 and 2 miners globally and sees a strong potential within its existing customer base to roll out additional, complementary solutions.
In its quest to leverage its technology, K2fly has joined forces with Maptek – a private mining software company specialising in mine planning and geological modelling software.
The two companies are working together to connect Maptek’s Vulcan platform that supplies modelling data input, with K2fly’s Resource Reporting solution.
Along with many common interests in the resources sector, Maptek and K2fly also have many common customers prompting Maptek to take up a 13 per cent strategic investment in its partner.
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