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K2fly increases Q1 FY21 invoices by 15% to $1.64 million

Last updated: 03:33 09 Oct 2020 BST, First published: 03:07 09 Oct 2020 BST

K2fly Ltd -
K2fly delivers governance and compliance, stakeholder engagement and permits and obligations services for clients

K2fly Ltd (ASX:K2F) has raised invoices totalling $1.64 million in the first quarter of FY21, marking a 15% improvement over the equivalent quarter of the previous financial year.

As of September 30, the cash available was $3.1 million and in addition, there was $880,000 in receivables from tier-1 clients.

These numbers reflect that during Q1 FY21, K2F’s current operations achieved net positive cashflows of around $370,000, which flows on from being cash flow positive in the previous quarter by $700,000.

Also, based on a comparison of the corresponding first quarter in FY19, in which K2F had negative operating cash flows of ($565,000), this is an increase of 167%.

Shares increase

Shares have been as much as 10% higher to 40 cents intra-day, approaching the 40.5 cents new 9-year high set early last month.

Software solutions

In July K2F signed a contract with Orano SA, formerly known as Areva SA.

Orano is a multinational nuclear fuel cycle company with uranium mining operations and K2F signed a five-year contract to implement the RCubed resource governance solution with a total contract value of more than A$300,000.

Several major K2F customers have signed for Proof of Concept (POC) and scoping studies on additional K2fly SaaS offerings.

Imerys is conducting a paid POC study to implement the land management solution across their 200+ sites globally.

In addition, other Australian-based mining customers are conducting feasibility studies on K2F heritage solutions considering recent indigenous heritage site issues.

Teck Resources in Canada, along with two other global mining companies, have started paid POCs on a new K2F reconciliation solution.

The Keeping Place Project

K2F is also finalising a paid second phase development plan for The Keeping Place Project, which will enhance current capabilities by including advanced mapping functionality and a mobile application.

Whilst the contract amounts for the POC are not material, the POCs are significant in that they demonstrate the demand for K2F products and K2F’s ability to expand its sales and offer additional products to existing clients.

K2F is confident that there will be more new name client announcements in 2020.

Tailings management and governance solution

K2fly is also continuing to progress a new Tailings Management and Governance Solution (Tailings Management Solution) with its partner SAP and Decipher, which is part of Wesfarmers Group.

A total of 15 detailed interviews and presentations have been conducted with senior executives of global tier 1 and 2 miners with a view to defining the Tailings Management Solution.

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