K2fly Ltd (ASX:K2F) is confident that, barring any further unexpected jolts during the COVID-19 pandemic, it will be cash positive by the end of the 2020 financial year and beyond.
The company enjoyed a 92% increase on invoices in the March quarter compared to last year (A$1/61 million versus A$0.84 million) and, total invoicing for this financial year is almost A$4.73 million – which already exceeds the previous full years (FY19) invoicing of A$4.15 million.
While the company has been impacted by the timing of cash receipts from its customers with invoices raised in the quarter, it had around A$1.26 million in receivables at March 31, 2020, and has received more than A$450,000 from clients since the end of the quarter.
Quarter four is typically the largest invoicing quarter and provided implemented cost reduction measures around COVID-19 are effective, K2F expects this trend to continue.
Contract wins[hhmc]
In the March quarter, the company announced major contract wins and sales:
- Gold Fields Limited (NYSE:GFI) Australia signed a five-year deal to deploy the RCubed Resource Governance solution software for all global operations;
- South32 Ltd (ASX:S32) and Vale SA (NYSE:VALE) signed contracts for the delivery of a solution analysis (proof of concept) to support and inform a potential global deployment of RCubed;
- Newmont Corporation (NYSE:NEM) signed a three-year deal to deploy RCubed globally; and
- AngloGold Ashanti Limited (ASX:AGG) extended its contract, signing a new three-year deal for RCubed.
Quarter four contracts[hhmc]
Since the end of the quarter the company has had two more significant SaaS wins:
- SCR-Sibelco N.V. signed a three-year deal for the use of the RCubed solution across 60 of its sites globally; and
- Kinross Gold Corporation (NYSE:KGC) signed a five-year deal to deploy RCubed to eight operating mines globally.
The companys software is used on over 460 sites in 45 commodities and 54 countries
North American opportunities[hhmc]
In January K2fly engaged a sales team in Denver, Colorado, which proved elemental to winning the contracts with Newmont and Kinross Gold.
In addition, the company and its existing clients featured prominently at this years PDAC conference in Canada with several sales leads from that event being pursued.
K2Fly also reports continued interest from NYSE-listed companies due to US Securities and Exchange Commission regulation changes which come into effect in January 2021.
RCubed driven by regulatory requireRead More – Source
[contf]
[contfnew]
Proactiveinvestors
[contfnewc]
[contfnewc]
