Ending the year on a high, Aussie ESG tech company K2Fly (ASX: K2F) has secured an order from London-based global miner Anglo American, which has a market cap of over $75 billion. Put in perspective, K2Fly’s market cap stands closer to about $30 million.
The Company will provide its Mineral Resource Governance Solution, Resource Disclosure, across all Anglo American commodities and operating regions. The three-year agreement will generate a total contract value of $1.44 million, annual recurring revenue of $375k and implementation fees of $315k.
CEO of K2Fly, Nic Pollock, shared, “This is our first major contract with Anglo American. We are pleased to collaborate with Anglo American to deliver our next-generation cloud-first Resource Governance platform.”
K2Fly’s Resource Disclosure, a Mineral Inventory Data & Reporting Software-as-a-Service (SaaS) Solution, is an off-the-shelf cloud-based service. It allows companies to adhere to all mine-to-mill reporting requirements for all stock exchanges, be it ASX, LSX or NYSE.
Miners already have plenty on their plates, with companies like Anglo American operational across multiple regions. Occasionally, these regions update or change their regulatory requirements, and that can be challenging to keep up with. That’s where K2Fly’s automated Resource Disclosure service comes in.
With the software, Anglo American will be able to capture raw resource and reserve data and report to multiple stock exchanges—all via one platform. The Resource Governance solution is based on the Company’s latest iteration, enabling mining customers to comply with rapidly changing ESG regulations, standards and disclosures.
This contract is a huge win for the Company that has been flooded with orders this year. K2Fly reported a TCV of $18.8 million in Q1 FY2023, 6% higher than Q4 FY2022 and 34% higher than Q1 FY2022.
Pollock added, “Anglo American joins a distinguished group of 18 global clients, including Rio Tinto, Newmont and South 32 that have moved to the world’s only commercial off-the-shelf solution for mineral resource governance and disclosure.”
Anglo American is a leading global mining company with a $76 billion market cap. It provides metals and minerals, from diamonds and platinum to copper and more. It is a responsible diamond and steelmaking coal producer that aims to become carbon neutral by 2040.
The two companies’ goals align in that K2Fly is the leading provider of Resource Governance solutions for ‘net positive impact’ in Environmental, Social and Governance (ESG) compliance, disclosure and technical assurance.
The Company focuses on mining companies and asset-intensive industries and helps manage the risk around clients’ social license to operate across different regions. It can get overwhelming because of the reporting and governance, reputation and disclosure demands.
Basically, K2Fly is like your in-house reputation management specialist, a must for mining companies always at risk for scrutiny.
Anglo American has had a rocky year, with production down 3%. Its Quellaveco copper ramp-up and strong diamond production were offset by ore grades in Chile and lower production from Kumba and platinum group metals (PGMs). Moreover, costs were up 16% thanks to rising inflation and a fall in production. For the next three years, the company plans on spending about $10 billion annually.
In K2Fly, it appears that Anglo American has found an affordable way to report its output outlook and progress to different shareholders.
Alinda is a Business Reporter for The Sentiment
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