K2fly mining software growth flies in face of pandemic

ASX-listed mining “software-as-a-service” provider, K2fly, has defied the financial fallout of the global coronavirus pandemic as its RCubed mineral resource and reserve reporting software solution continues to attract more resources big hitters. The latest multinational group to take up K2fly’s mineral resource governance software package is French-headquartered nuclear energy giant, Orano, who has signed a five-year contract with K2fly that has a total value of A$300,000.

Since the acquisition of RCubed last year, K2fly has picked up a number of contracts with significant resources clients including Imerys, Glencore Canada, Nexa Resources, Rio Tinto, Newcrest Mining, Gold Fields, Newmont Corporation, Sibelco, Kinross Gold, Orano and South 32.

Existing K2fly RCubed and Infoscope software clients include Teck Resources, Westgold and AngloGold Ashanti have also extended their licencing agreements.

The company recently reported annual recurring revenues from its “software as a service” solution of $2.36 million, representing quarterly growth of 29 per cent and a compound annual growth rate of 177 per cent.

Total contract values for the life of all existing contracts has now reached about $7.47 million, which equates to quarterly a growth rate of 57 per cent and a compound annual growth rate of 663 per cent.

As at the end of the financial year, K2fly’s cash position stood at $2.9 million and receivables at $1.13 million, following strong June 2020 quarter cashflows of $660,000 stemming from increased sales.

According to the company, its internal revenue milestone for RCubed has been achieved in only 13 months since the acquisition of the resource and reserve reporting software, versus a target of three years at the time of acquisition.

Investors welcomed K2fly’s solid results, pushing its shares up 10 per cent today to 22 cents to a market capitalisation of over $20 million.

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