Software company K2fly (ASX: K2F) has unveiled a new commercial contract that will see miner Gold Fields Australia harnessing its RCubed software platform to help manage its global operations and major projects for the next five years.
According to K2fly, the total contract value of the new deal is “initially in excess of $580,000” with implementation expected to begin immediately.
Gold Fields is one of the world’s largest gold and copper miners with operations spanning multiple countries.
Currently, it operates eight mines and two ongoing projects in Australia, Chile, Ghana, Peru and South Africa, with total attributable annual gold-equivalent production of approximately 2.2 million ounces.
The tie-up with K2fly intends to improve its internal operations and streamline how the company meets the logistical challenge of being a leading gold producer.
K2fly’s RCubed software is a secure cloud-based platform, operating on a SaaS model, that allows companies to handle governance, compliance and reporting functions through one holistic portal.
Miners are facing increasingly stricter oversight from regulators and are therefore keen to simplify the sprawling task of documenting the stack of activities they conduct across multiple sites in real-time.
K2fly said that it has received a “high level of interest” from several US companies in view of new US regulations expected to come into effect in 2021.
In the last three months of last year, K2fly recorded its largest-ever quarterly revenue figures after securing sales totalling $1.67 million, which represents a doubling over the previous year’s figures.
K2fly’s added flow of new clients includes several top-tier miners with NYSE-listed Nexa Resources signing a one-year contract for RCubed in October 2019, to be used across 12 sites including five polymetallic mines in Brazil and Peru.
The software company also added another of the world’s largest miners Rio Tinto (ASX: RIO) to its books in November 2019 with Rio stating that it plans to implement RCubed across 20 sites as part of a five-year deal.
Performing with RCubed
According to K2fly, the RCubed platform “dramatically reduces overheads” accrued as part of the reporting process that all miners must follow in their operations.
The platform also provides key back-up functions aimed at reducing sunk costs and improving efficiency.
“Gold Fields share the same values as K2fly in striving for sustainable mining,” said K2fly’s chief commercial officer Nic Pollock.
“For them to join the growing list of customers taking up the RCubed Resource Governance solution is a real validation of the importance of this solution to all miners,” he added.
In addition to its RCubed mineral resource governance platform, K2fly also sells a natural resource package called Infoscope.
K2fly claims its Infoscope system helps companies maintain their “social licence” to operate on land, via a single spatially integrated information management tool.
Its features are focused on land access and compliance across multiple industries while delivering effective stakeholder, tenement, cultural heritage, native title and environmental management functions including a “full life-cycle ground disturbance process”, the company said.
Earlier this month, K2fly and The National Trust of Australia assigned rights to an Aboriginal community with its Infoscope solution being used to manage ongoing native title applications and land rights issues.
Today’s news boosted K2fly shares by 10% up to $0.275 in morning trade.