K2fly has reinforced its emerging prominence in the resource’s software space with mining giant, Teck Resources, extending its annual “RCubed” software contract with K2Fly out to three-years. K2fly said it has now locked down contract values that total over $2 million from its RCubed software as a service, or “SaaS”, as clients sign onto three and five-year terms. The latest numbers come only weeks after the ASX-listed company signed a five-year software contract with Rio Tinto.
RCubed provides resource companies with a software platform to assist with mineral resource reporting, ore reserve reporting and governance-related issues.
K2fly is set to receive over $380,000 from Teck Resources over a three-year term that will see its total contract values for RCubed increase by 159%.
K2fly’s Chief Commercial Officer, Nik Pollock said: “We are very proud to call Teck a customer as they live the values that we aspire to in leading Environment, Social and Governance practices in the mining sector.”
Earlier this year, K2fly paid just over $450,000 to acquire RCubed – a price that now looks to have been pretty good given the value of the forward contracts already signed up by the company.
K2fly also said that NYSE listed companies have been enquiring about RCubed on the back of the US Securities and Exchange Commission 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 may well create a market opportunity for K2fly in one of the worlds greatest mining markets.
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 across most major stock exchanges – including the 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 as in-depth reporting becomes the norm rather than the exception.
Is your ASX listed company doing something interesting ? Contact : matt.birney@businessnews.com.au
