The K2Fly Ltd (ASX: K2F) share price is climbing higher today after announcing a new 5-year contract with international mining giant, Alcoa.
The post The K2fly (ASX:K2F) share price is soaring today. Here’s why appeared first on The Motley Fool Australia. –
At the time of writing, the K2fly share price is up 4.6% to an intraday high of 34 cents.
Why is the K2fly share price higher?
In today’s release, K2fly advised that international mining giant Alcoa has entered into a 5-year contact for its RCubed Resource Inventory solution. The agreement will see the Software-as-a-Service (SaaS) offering rolled-out across Alcoa’s 6 international sites from the beginning of February.
Alcoa is based in Pittsburgh, Pennsylvania and specialises in the production of bauxite, alumina, and aluminium. With 7 active mines in Australia, Brazil, Guinea and Saudi Arabia, the company says it’s one of the world’s largest bauxite producers.
K2fly said that the contract’s total value is estimated at around $573,600, depending on exchange rate fluctuations. No other details were given about the terms of the deal or if any support services are included.
What is RCubed Resource Inventory?
Tailored to mining companies, RCubed is a cloud-based platform that accurately reports mineral resources and reserves. This ensures good governance, compliance and reporting among regulators, shareholders, and potential investors.
The SaaS platform can cater to single or multiple commodities, and automates workflow from data capture. In-turn, the software solution reduces time, team overhead costs and gives transparency for data validation and audit trails.
K2fly chief commercial officer Nic Pollock, welcomed the deal, saying:
We are delighted to be working with Alcoa as another NYSE listed user of our governance and reporting software and also an important operator in Western Australia.
K2fly noted that the new contract “validated its position as a market leader” in the mining technical assurance space. The company also advised that other multi-year agreements are currently in negotiations and it will update the market as information becomes available.
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.