ASX-listed K2fly continues to build momentum with the "software-as-a-service" company’s invoicing building to in excess of $1.64m across the first quarter of the financial year, up 15 per cent on the previous corresponding quarter. The company is riding high on the back of a stream of new client signings seeking access to K2fly’s specialised land management and mining software.
ASX-listed K2fly continues to build momentum with the software-as-a-service, or “SaaS” company’s invoicing building to in excess of $1.64m across the first quarter of the financial year, up 15 per cent on the previous corresponding quarter. The company is riding high on the back of a stream of new client signings seeking access to K2fly’s specialised land management and mining software.
K2fly has kicked off the new financial year bedding down several new SaaS contracts and recording its second quarter in a row of positive cash flow. The company’s cash flow in the June quarter came in at a solid $700,000 which continued through into the September quarter at close to $400,000. These positive returns are a dramatic improvement on the same time last year with the company posting an impressive 167 per cent increase in its total revenue stream year-on-year.
Key to the company’s continued growth has been due in large part to the ongoing expansion of its SaaS contracts with its more most recent signing being high-profile multinational nuclear fuel cycle company Orano SA. French-based Orano, previously known as Areva, is an integrated miner and producer of nuclear fuels, operating a number of facilities throughout the world including mining operations in Canada, Niger and Kazakhstan. Orano have signed a 5-year deal to utilise the K2fly’s RCubed resource management software, delivering $300,000 to K2fly over the life of the contract.
Several other companies have also entered into a proof of concept studies on K2fly’s various SaaS offerings that may lead to additional long-term contracts.
French specialist mineral producer, Imerys is currently conducting a paid trial of the Infoscope, land management software for potential adoption across more than 200 work sites around the world. In addition, various Australian mining companies and consultants are also looking at Infoscope for the management of indigenous and heritage sites throughout their tenure.
K2fly have also hinted at a possible tie up with Canadian mining giant Teck Resources for the ongoing development of a new software product for mining reconciliation application which may yet be another feather in K2fly’s cap.
On the software development front, work continues with the company’s partners SAP and Westfarmer’s subsidiary, Decipher, on the progression of its Tailings Management Solution, or “TMS”.
Tailings are a semi-liquid, chemical waste produced by mining operations, which in recent years have garnered unwanted attention following a raft of high-profile tailings dam failures. These included the catastrophic failure of the tailings dam at the Brazilian Brumadinho iron ore operation in 2019 that killed more than 250 people. This high-profile event sent miners around the world scrambling to assess their operational and decommissioned tailings facilities.
The social and financial costs of these structural failures at mining operations have prompted the industry to take a second look at their procedures, construction and monitoring seeking to secure better management of these important facilities and prompted K2fly to develop a monitoring and management solution, partnering with SAP and Decipher.
K2fly’s partnership has worked to further develop the TMS software through consultation with more than 15 tier one and tier two mining groups seeking best practice solutions to what has become a headline issue for mining operations the world over.
With its cash balance of boosted to more than $3 million and successive quarters of profitable cash-flow, K2Fly continues to build its software-as-a- service business and develop its innovative software to meet the needs its diverse clientele across the globe.
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