K2fly CEO Nic Pollock says the ESG reporting software company sees “considerable potential to win further work” with BHP after adding the mining major to its tier-1 client list in the June quarter and growing its overall revenue-in-hand to nearly A$18 million in the period. The total is 80% up on six months ago.
Pollock said K2fly hit new quarterly invoicing ($3.8 million), annual recurring revenue ($6m) and total contract value ($17.8m) milestones in the latest quarter, which also saw it record $1.7m of positive net operating cash flow. This cut its annual net operating cash flow deficit to just over $1m at year end and “sets a pathway for the business to achieve a net positive operating cash position on an annualised basis”.
BHP signed a $2.12m one-year contract to roll out K2fly’s ground disturbance reporting product at its Western Australia iron ore operations. K2fly also extended supply of its heritage management tool to Rio Tinto and won a contract to provide Grupo Mexico subsidiary Asarco with its tailings monitoring product.
“We are extremely proud to now count BHP as another one of the global tier 1 customers to the K2fly list having signed our first contract in the quarter. This shows strong relevance of our solutions to tier 1 miners and beyond,” Pollock said.
“We remain bullish on the thematic that integrating ESG solutions into their businesses is no longer a choice but a necessity being driven by investors, community expectations and regulators.”
K2fly finished the 12 months to June 30, 2022, with cash receipts of A$12.6m, up 77% on the previous year.
Australia-based mining software leader Maptek became K2fly’s major shareholder in April this year when it took A$4.05m of an equity placement that raised $6.2m at 18c. K2fly, which has been acquisitive in the past three years, finished FY22 debt free and with $8.3m in the bank.
K2fly’s share price rose 15% Thursday to 19c, capitalising the company at $32m. It has risen nearly 36% in the past month.