MineHub posts loss, raises C$1.5m

Staff reporter

Canada’s MineHub Technologies has raised C$1.5 million via a private placement at a 32c issue price.

It raised $1m in June from a non-brokered private placement at 20c and also announced that month it had received a $1m “capital contribution” from Japan’s Sumitomo Corporation aimed at “accelerating their joint goal of digitisation of the metal concentrates market by promoting the adoption of the MineHub platform and its concentrates application as the emerging industry standard for the settlement of concentrates transactions”.

Toronto Venture exchange-listed MineHub said this month it was seeing an acceleration of user growth and revenue after posting a $1.5m net loss for its second quarter, ended July 31, on quarterly revenue of $375,071, which compared with $19,826 in the same period a year ago. It also recognised $690,807 of income from the Sumitomo agreement.

MineHub said the Q2 year-on-year revenue growth was primarily driven by the addition of software-as-a-service (SaaS) revenue from Waybridge customers and “project-related revenue from the roll-out of the MineHub platform and enterprise applications into the operations of a prominent global mining company and business network”.

It acquired Waybridge for $2.5m earlier this year.

The Q2 net loss compared with $2.2m at the same time in 2022, with higher sales said to be closing the gap on higher costs ($2.6m versus $2.2m yoy).

“With a growing network of over 100 companies currently using the platform, including market leaders such as Codelco, Southwire and Sumitomo Corporation, MineHub is rapidly advancing towards being the premier digital solution and the global leader in commodities supply chain management,” CEO Andrea Aranguren said.

“We continue to benefit from increasing commercial traction and rapid adoption from large corporate customers.

“The virality effect of our hub-and-spoke model is exceeding our expectations, and we look forward to announcing new customer agreements in the near future.

“We are well on track to achieve and even surpass our revenue targets for the year.

“This [latest] financing will continue to fund the company’s growth, and we are fortunate to benefit from the support of key shareholders expected to participate in this financing who understand both the immediate and long-term upside potential of the company and will help get us nearer to profitability.”

Vancouver-based Haywood Securities analyst Gianluca Tucci said earlier this month MineHub had a first mover advantage in digitising the metals and mining supply chain.

“With the world moving towards complete process digitisation, MineHub is moving in to capitalise on the paper-and-spreadsheet oriented commodities industry,” Tucci wrote in a note.

“The company presents the ability to perform as a low-friction SaaS tool in specific project areas such as order collaboration, ESG reporting and assay exchange. With already a growing, global footprint, MineHub is an early mover in a mining industry ripe for digitisation who this far in 2023 has secured notable contracts with tier one players.

“MineHub is targeting a sector of vast potential, currently equating to about $1.5 billion in aggregate revenue directly from SaaS fees.

“Given the company’s global footprint in some of the largest industrial markets, they can capitalise on trade finance and logistic supply-chains.

“MineHub’s digital platform allows them to filter an aggregate $13 trillion market through global market segments. While it charges SaaS fee for supply-chain management, it charges 10-20 bps per loan value in trade finance, and 0.025% tracking fees for logistics services.

“All in all, a $7.5 billion addressable market ready for the picking.”


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