Fortescue Completes K2fly Software Agreement
Fortescue Metals Group has extended its agreement with software developer K2fly with an additional six-month contract worth $1.2 million to provide mining software development services.
The mining giant is a long-time customer of K2fly which has used its Infoscope land management system in Australia for over nine years and has recently extended its use to overseas projects in Europe and South America.
K2fly CEO Nic Pollock said:We are delighted to work with Fortescue in a number of areas of the business. Fortescue uses a number of our platform solutions and in addition has engaged us for software development services in other areas of their business. These services are additional one-time revenues for K2fly and are also generated from time to time with other K2Fly customers.
Perth-based K2fly leads the way in the software-as-a-service mining sphere by providing a full range of software from traditional mining elements such as resource inventory calculation to tools that facilitate meeting environmental requirements. , social and governance criteria, or ‘ESG Criteria’.
K2fly’s mission is to address ESG challenges in the resource sector by helping to manage the risks associated with its clients’ social license to operate in areas such as reputation and disclosure.
Apart from the Fortescue contract, he also signed new deals with BHP, Rio Tinto and one of the world’s largest copper producers, Asarco. Others on its client list include Glencore, AngloGold Ashanti and South32.
The integration of ESG solutions in companies is no longer a choice but a necessity driven by investors, community expectations and regulators. It is also becoming increasingly important to attract and retain professionals in a tightening labor market.
For K2fly, its mission is beginning to bear fruit. The company recently posted record results in terms of annual recurring revenue, bills issued and cash inflows, closing fiscal 2022 with a positive cash flow quarter of $1.7 million.
The company aims to continue to focus on Tier 1 and Tier 2 miners globally and sees strong potential within its existing customer base to deploy additional and complementary solutions.
In its quest to leverage its technology, K2fly has partnered with Maptek, a private mining software company specializing in mine planning and geological modeling software.
The two companies are working together to connect Maptek’s Vulcan platform, which provides modeling data input, with K2fly’s Resource Reporting solution.
Besides many common interests in the resource sector, Maptek and K2fly also have many common customers, which prompted Maptek to strategically invest 13% in its partner.
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