As a mining company, not complying with rules and regs can land you in deep waters, sometimes as deep as $150k and over. To avoid that, many companies bring on compliance managers; K2Fly (ASX: K2F) streamlines that. K2fly is a provider of Resource Governance solutions for a ‘net positive impact’ in Environmental, Social and Governance (ESG) compliance, disclosure and technical assurance. It focuses on the operations of mining and asset intensive industries through our platform-based SaaS cloud solutions.
What’s more, its solution has prompted mining company BHP to extend its existing 1-year contract for K2fly’s Ground Disturbance Solution covering its Western Australian Iron Ore (WAIO) operations in the Pilbara region of Western Australia, with a 3-year contract. The 3-year agreement with K2fly will generate an ARR (annual recurring revenue) of $664k and has a total contract value of $1.99 million.
CEO of K2fly, Nic Pollock, said, “Our Ground Disturbance solution is the only commercial off the shelf solution available in the market globally and speaks to how our customers are increasingly attributing value to the importance of proper resource governance on land and protecting their license to operate. We are delighted to extend our contract into a 3-year term with another global tier 1 client.”
The new agreement follows an initial 1-year contract signed in May 2022 and successful deployment of K2fly’s solution at BHP’s WAIO operations. The first contract was set to bring in an ARR of $620k and contract value of $2.12 million.
Western Australia Iron Ore (WAIO) consists of four processing hubs and five mines that are interconnected by an extensive rail network spanning over 1,000 kilometers. These facilities are located in the Pilbara region of northern Western Australia. WAIO is a major contributor to the global iron ore production, generating more than 245 million tons of iron ore each year. This puts it among the top five iron ore producers worldwide.
BHP employs K2fly’s Ground Disturbance solution to keep its mining operations safe from regulators’ eagle watch. The Ground Disturbance solution offers a comprehensive approvals and tracking system that enables users to manage their ground disturbance works. This solution provides real-time operational updates to help individuals and organizations keep track of their clearance limits, obligations, and any breaches.
Just last week, K2fly also signed on French mining company Eramet SA for its Resource Disclosure solution. The 3-year agreement with K2fly will generate an ARR (inclusive of hosting) of $152k and TCV of about $564k.
Despite its popularity among some of the biggest names in the mining industry, K2fly’s financials paint a different picture. In H1 FY23, its loss increased by 16% on H1 FY22 to nearly $2 million, and its cash reserves fell from over $8 million as of H2 FY22 to $5 million.
Alinda is a Business Reporter for The Sentiment
Latest posts by Alinda Gupta (see all)
- Ovanti’s iSentric signs contracts worth $14.4m with Malaysian commercial bank - June 27, 2024
- Baby Bunting fights back from retail downturn with 5-year strategy, includes Gen-Z focus and self-funded growth - June 27, 2024
- CLEO meets with US FDA to develop strategy for ovarian cancer test launch - June 26, 2024
Leave a Comment
You must be logged in to post a comment.