Technology company, K2fly Limited (ASX: K2F), focussed on serving the asset intensive industries announced on 18 December 2019, that Westgold Resources Limited (ASX: WGX) has signed a long term contract to utilise the existing Infoscope software and partner with K2fly to develop additional enhancements of the software with a view to integrating Westgoldâs tenement and titlesâ management applications.
The contract, subject to normal commercial termination and default clauses, now includes royalties, contracts, permits, licensing, environmental and stakeholder management to provide a consolidated management tool.
Westgold Resources is well-known as one of the largest regional consolidations within the gold sector, operating three (3) gold production hubs in Murchison Region of Western Australia. The Group is managing more than 350 titles and a complex set of resources including mineral deposits; road and infrastructure networks; licenses, permits, service contracts and stakeholder engagements.
K2flyâs Business Segments
Infoscope, an Enterprise Land Management, Natural Resource Governance and Stakeholder Relations solution for the Energy and Resources market offers a high level of efficiency and a smarter way for small and large enterprises to manage land and maintain their social license to operate through the delivery of governance, risk and compliance. It engages the stakeholders with Spatial Intelligence and is integrated with SAP HANA & Esriâs ArcGIS.
K2fly Total Contract Value (TCV) from the SaaS business segment has continued to be on an uptrend over the last few months, increasing sharply from AUD 1.275 million in Q1 FY20 to AUD 3.504 million in Q2 FY20, depicting a significant uptick of 174% in the quarter-to-date as the contract terms extend.
As of the date of the announcement, the Annual Recurring Revenue (ARR) has risen by around 29% to AUD 1.453 million, maintaining the dynamic business momentum. The company is expecting the trend to continue as many multi-year contracts and major new software developments are in the pipeline. While the potential contracts are still in negotiation, K2flly will inform the market as they materialise in due course.
Nic Pollock, K2fly CEO
Stock Performance: K2flyâs market capitalisation stands at around AUD 20.09 million with ~ 82.01 million shares outstanding. On 19 December 2019, the K2F stock was trading at AUD 0.0242 with approximately 85k shares traded at AEDT 01:41 PM. Besides, K2F has delivered positive returns to its shareholders, including 88.46% Year-to-date, 36.11% in the last six months and 28.95% in the last three months.
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