K2fly Limited, expecting continued demand trendTeam Veye | 27 Jan 2021 ASX - K2F
K2fly Limited (ASX: K2F)
Alcoa Signs 5-year SaaS Resource Inventory contract with K2F
K2fly Limited (ASX: K2F) on 25 January 2021 announced that Alcoa USA Corp (Alcoa) had signed a 5-year SaaS contract, for its RCubed Resource Inventory solution, to roll out to 6 sites globally. Alcoa is one of the world’s largest bauxite miners with high quality reserves, including mines in Australia, Brazil, Guinea and Saudi Arabia. Alcoa owns and operates two mines in Western Australia and two in Brazil. Alcoa has earned global recognition for its comprehensive approach to sustainability and responsible mining practices.
(Chart source: TradingView)
- Alcoa USA Corp has signed a 5-year contract with K2F for its RCubed resource inventory solution across 6 global sites commencing in February 2021.
- Alcoa is a global industry leader in the production of bauxite, alumina, and aluminum with operating mines in Western Australia and Brazil
- (TCV) Total Contract Value* for this transaction is AUD $573,600.
Sateva Acquisition Progress
On 21 January 2021, K2fly Limited (K2fly or the Company) had announced that the SATEVA acquisition was exceeding expectations and ahead of its target. In less than three months since the acquisition was completed, K2fly had received over $850k of new purchase orders from major mining houses in the iron ore sector. This is compared to total revenue (SATEVA) of $1.4m in FY20.
The new automated ore blocker solution that had been trialed at a major iron ore producer in WA had performed extremely well and exceeded the customer’s expectations.
The SATEVA acquisition with its associated intellectual property of mine geology applications for mining companies around orebody knowledge and control were particularly relevant to the Company’s existing global client base. It well integrates with its existing mineral inventory solutions for deeper technical assurance. (Data Source – Company Reports)
Subsequent to Sateva Acquisition, a new automated ore blocker solution had performed extremely well during trials and exceeded the customer’s expectations. The results from this trial will be able to be shared with its global mining customers from February onwards. K2fly is in negotiation with two major mining companies and expected the list of clients to grow rapidly. The signing by Alcoa also further validates the Company’s position as a leader in the mining technical assurance space. This demand trend was expected to continue with further multi-year contractual negotiations in the pipeline. The stock has continued to protect its supports on both daily as well as monthly t/f. Long legged Doji formed at the lower end of the Bollinger and closing at the opening price with rejection to the downside indicates bulls getting stronger. The immediate bullish candle confirms the potential upside move well supported by RSI and MACD holding in the positive zone and the possible start of another wave up. Veye maintains a "Hold" on “K2fly Limited” at the current price of $0.345
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