K2fly Ltd (ASX: K2F) shares will be on watch this morning following a contract signing with Coeur Mining Inc. (Coeur).
Established in 1928, Coeur is a precious metals producer that is primarily focused on gold and silver. The company employs over 2,000 people and has wholly-owned projects across the North America region. Coeur is also listed on the New York Stock exchange under the code, NYSE: CDE.
At market close last Friday, the K2fly share price finished the day down 1.4% to 33 cents.
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What did K2fly announce?
The K2fly share price could be on the move today as investors digest the company's latest update.
According to this morning's release, K2fly advised it has entered into a resource inventory management Software-as-a-Service (SaaS) contract with Coeur.
Under the deal, K2fly will roll-out its RCubed software solution across Coeur's 5 operating sites.
The annual recurring revenue (ARR) is estimated to be around $115,000 running over a 5-year term. The total contract value (TCV) will be roughly $718,000, depending on exchange rate fluctuations. This brings the company's SaaS TCV to more than $8.7 million, an increase of 42% quarter-to-date (Q3 FY21).
The latest agreement solidifies the growing demand for K2fly's software solutions in the mining industry. In late January, international mining giant Alcoa signed a 5-year contract for K2fly's RCubed resource inventory solution.
Management commentary
K2fly chief commercial officer Nic Pollock welcomed the new deal, saying:
We are delighted to add another US-based, NYSE listed company and yet another gold producer to the growing list of companies using our governance and reporting software.
Additionally, it further validates that K2F's RCubed software solution is the leading solution in the mining technical assurance space globally for Resource and Reserve Governance and Reporting in all commodities and especially Gold, where we service five of the top ten global gold miners by market capitalisation.
About the K2fly share price
Over the past 12 months, the K2fly share price has accelerated to more than 65%, reflecting positive investor sentiment. The company's shares hit a 52-week low of 12.5 cents last March, before trekking higher. It's worth noting that last month its shares reached a multi-year high of 43 cents.
Based on current valuations, K2fly commands a market capitalisation of around $33 million.
