The world’s largest iron ore and nickel producer, Brazilian powerhouse Vale, has contracted Perth based ASX-listed company K2fly to supply its unique mining software across 69 of its sites for at least three years. The deal will add almost half a million dollars a year to K2fly’s all important “annual recuring revenue” figure that many software as a service companies are judged on.
Vale has committed to implement K2fly’s ‘Resource Disclosure’ software to meet its reporting obligations to the New York stock exchange for its multitude of mine sites across the globe.
The total contract value across the initial three year period including up front set up costs is close to A$2 million.
Vale is the world’s largest producer of iron ore and nickel and it is also a big player in other commodities such as manganese, ferroalloys, copper, gold, silver, and cobalt. The group is publicly listed on the São Paulo, New York and Madrid stock exchanges.
Vale is now the third of the world’s top five mining companies to contract K2fly’s software and its name adds to the already stellar list of notable mining companies that have signed on. They include BHP, Rio Tinto, Glencore, Anglo American, Fortescue and Newmont to name just a few.
K2fly’s CEO, Nic Pollock, said; “This agreement demonstrates K2fly's continuing leadership in the mineral resource governance space with six of the world’s top 15 global mining companies using our solution to disclose their mineral inventories. Achieving over 40% share of the tier-one market is a considerable milestone.”
“With the new cloud first version of Resource Disclosure in the market we are ready to ramp up distribution and expand this across the entire industry with fit for purpose and scale offerings.”
K2fly’s assists companies to better manage risk related to reporting and governance, reputation and disclosure demands.
It also systematises and de-risks the process of preparing resource and reserve statements and creates and auditable process trail.
With the need for regulatory compliance and transparency in reporting continuing to rise, K2fly would appear to have timed its run well and the addition of Vale to its rapidly growing list of big global players will no doubt have others looking.
K2fly’s revenue for the half year to December 2023 was $6.8m, up 25 per cent on the prior corresponding period. Notably, its annualised recuring revenue as at December 2023 clocked in at $8m, representing a 16 per cent hike on the prior year.
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By Bart Bogacz
