Australian mining technology company K2fly has wrapped up its second major contract with a leading global iron ore producer this month, closing a A$2.44 million deal that extends its long-term partnership with the expanding Roy Hill operation in WA’s Pilbara region. The new five-year Roy Hill contract follows hard on the heals of last week’s international pact with Fortescue Metals Group.
Perth-based K2fly has built a world-class enterprise software-as-a-service, or “SaaS” business over the past five years through organic growth and corporate development. It has mapped out a plan to more than double current annual revenue, predominantly through its exposure to tier 1 miners, over the next three years.
Roy Hill, operated by Gina Rinehart’s Hancock Prospecting, is Australia’s largest single iron ore mine with annual output of more than 60 million tonnes and approval to take that to 70Mtpa.
K2fly says its first sale of the full suite of products that came from its 2020 acquisition of SATEVA, marketed under its Mining Technical Assurance Suite banner, continues its strong growth momentum this year.
Annual recurring revenue is up 9 per cent in the current quarter to date.
The company says demand for its Mining Technical Assurance Suite offering continues to grow.
K2fly CEO Brian Miller said: “We are delighted to expand our relationship with Roy Hill across the Technical Assurance suite and are very excited by the opportunities for both companies that will come from this contract and further solution collaborations.”
Roy Hill, which has invested heavily in a major mobile mining fleet automation program, is expected to see significant gains in short-term scheduling and mining efficiency via key mine geology processes. Large-scale open pit mines such as Roy Hill can convert even small mine ore grade and excavation efficiency gains into significant value improvements.
The SATEVA product suite components to be used by Roy Hill, including Model Management, Automated Ore-Blocking and Mine Geology Data Management, are said to work together to enhance enterprise-level technical assurance and mine recoveries.
SATEVA, RCubed, Infoscope and Decipher are core proprietary systems underpinning K2fly’s SaaS offering.
The Australian tech company is also leveraging strategic connections with global leaders such as Esri in the US, Germany’s SAP and the Japan-based Hitachi-ABB alliance to build its presence in the mining and other large land-based asset management markets.
K2fly got a 10 per cent kick in its share price early today to 33c, taking its market value past $45 million.
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By Matt Birney
