K2fly extends lucrative Glencore mining software contract
A mining-focused software-as-a-service provider, K2fly has extended a pre-existing contract for its âRCubed Resource & Reserves Solutionâ platform by three years with global mining giant Glencore Canada. The deal is expected to contribute A $ 443,000 in total contract value and A $ 130.00 in annual recurring revenue to K2fly coffers, with Glencore to use the proceeds for its global zinc operations at 56 locations in seven countries. .
To date, the contract with Glencore has been renewed annually since mid-2019. Under the new deal, the deal will now run until August 2024.
RCubed is a cloud-based platform for governance, compliance and reporting of mineral resources and reserves. This âdrasticallyâ reduces overhead and improves efficiency, according to K2fly.
The platform provides comprehensive audit trails and other required information for auditors, while complying with the reporting requirements of major stock markets such as the Australian Securities Exchange and the New York Stock Exchange.
K2fly CEO Nic Pollock said:âThe RCubed solution shows strong continuity with renewals of customer contracts and extension of contract terms, as demonstrated by Glencore Canada. Adoption in the mining industry allows us to provide this solution to 14 customers worldwide, many of which are Tier 1, on a number of mineral types and supporting multiple exchanges and reporting codes, including new NYSE SK-1300 requirements.
The acquisition of RCubed in May 2019 continues to show very successful customer growth and is now an integral part of our business model. Building on the success of RCubed Version 1, we have invested in the next generation of Version 2 which will make the solution more accessible to a wider audience and increase our product range.
K2fly operates under a software as a service, or âSaaSâ business model that creates both one-off sales and annual recurring revenue streams – a key metric often used by software companies.
Using platform-based cloud services, the company’s product offerings cover nine âsolutionâ areas focused on environmental, social and governance compliance, disclosure and technical assurance.
K2fly’s growth-oriented strategy targets global Level 1 and 2 miners with its assortment of clients including Rio Tinto, Newmont, Glencore, Newcrest, Fortescue and AngloGold Ashanti.
The company recently reported a record 79% annual recurring revenue growth in the September quarter of this year, compared to the corresponding quarter of 2020.
K2fly’s record revenue growth is driven by three new long-term contracts with mining heavyweights Alcoa, Newmont and Sibanye-Stillwater.
Annual recurring revenues for the first quarter of FY22 reached $ 4.06 million.
The total contract value in the September quarter increased 42% from the prior quarter to $ 14.02 million.
With a longer term deal now with Glencore and other contracts with major mining players also made, K2fly’s growth strategy for its software platforms appears to be right on the money.
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