K2fly signs two new companies to RCubed resource governance solution
Kinross Gold has signed a 5 year contract with K2fly for its RCubed resource governance solution across its 8 operating mines and one project.
Perth-based software company K2fly (ASX: K2F) has signed a five-year Software-as-a-Service contract with Canada’s Kinross Gold Corporation for its RCubed resource governance solution across eight of Kinross’ operating mines and one development project.
The $1.1 million contract is the first to be driven from K2fly’s US office which opened in January to support the company’s growing regional customer base.
It follows yesterday’s confirmation of a three-year RCubed contract with Belgium-based material solutions company SCR-Sibelco NV across 60 of its global sites.
Top 10 clients
K2fly chief commercial officer Nic Pollock said the Kinross contract adds to the company’s existing line-up of Top 10 gold mining clients including Gold Fields Australia, Newmont Gold Corporation, Anglo Gold Ashanti (ASX: AGG) and Newcrest Mining (ASX: NCM).
“We now have five of the top 10 gold miners by ounces using RCubed to report their mineral inventories,” he said.
“What is especially pleasing is this is the first contract driven out of our US operation – that’s a very quick validation of [our] investment into the region.”
Contract values
K2fly’s total annual recurring revenue for its SaaS product suite now sits at $2.09m.
Total contract value for RCubed and the land management system Infoscope sits at more than $6m as more clients take up three and five-year contracts.
“This trend is expected to continue with further multi-year contractual negotiations still in the pipeline,” Mr Pollock said.
“These potential contracts are still in negotiation and the demand, particularly from NYSE-listed companies, continues to be strong.”
Cloud-based platform
RCubed is a secure, cloud-based platform which enables mineral resource and reserve governance, compliance and reporting.
It works to reduce overheads on the reporting process for key project people (including competent and qualified persons) by automating workflows from data capture to final sign-off, ensuring an integrated and transparent reporting cycle.
The application can accommodate changes to the different share market regulations that customers report under (including the Johannesburg, Australian, London and New York stock exchanges) and is designed to de-risk complex and risky internal processes.
It provides a systemised backup which would not be available with a manual process.
Data in RCubed is rendered via integrated dashboards and reports with filters and access control, and becomes the essential “single version of truth” throughout the reporting cycle for multi-listed, multi-commodity, tier one mining companies down to single commodity single-listed operations.
At mid-morning, shares in K2fly were steady at $0.230.