K2fly has flagged the December-quarter release of a new version of its core resource governance software, which is central to its aim of capturing a significant slice of the plus-$200 million addressable market it has identified for its products.
The ASX-listed company says the flagship cloud-based resource governance offering, based on the RCubed resource and reserve reporting software it acquired in 2019 and subsequently rolled out to about 20 large global miners, is expected to be the first of its products to be integrated with new major shareholder Maptek’s widely used 3D geological modelling, mine design and production planning software.
Privately-owned Maptek bought 13% of K2fly for A$4.1m earlier this year and its executive chairman, Peter Johnson, joined the K2fly board.
Maptek’s Vulcan geological modelling and mine design software is said to have more than 22,000 users worldwide.
“K2fly and Maptek are working together to connect Vulcan – supplying modelling input data – and the [K2fly] resource reporting solution [so that] data generated in Maptek Vulcan can be seamlessly uploaded to our solutions, avoiding the need to manually handle text files and strengthening the governance from Vulcan geological block models to the reporting process in K2fly resource reporting,” K2fly said in a market statement.
K2fly paid circa$0.5m upfront for RCubed and then combined the resource and reserve report generating software with the Infoscope enterprise land management product it bought in 2017 when it entered the mining software market.
Its new resource governance product will feature added model manager and mine reconciliation modules, creating “the world’s first and only commercial off-the-shelf [COTS) comprehensive resource reporting solution for public disclosures” by mining companies.
The software enables users to report data that is compliant with resource and reserve codes, and stock exchange regulations, across all of the world’s primary mining and finance jurisdictions.
Australian stockbroker Argonaut said in April this year K2fly’s signing of longer term, higher value contracts with existing clients during FY22 “continues to validate software that has a strong ESG bent and limited competition”.
Argonaut modelled K2fly’s cA$10m FY22 sales revenue climbing to $21.5m in FY24.
K2fly has a current market value of about A$36m.