- Mining software developer K2fly (K2F) is trading strongly this afternoon following a positive update for the first quarter of the 2021 financial year
- The company said it raised $1.64 million worth of invoices over the September quarter, which is 15 per cent higher than the same quarter last year
- Altogether, K2fly went cashflow-positive by around $370,000 over the quarter — its second consecutive quarter of positive cashflow
- Supporting the positive quarterly numbers is the $300,000 contract signed in early July with nuclear fuel company Orano SA
- On top of this, K2fly said several other customers had signed proof-of-concept contracts with the company for its other services
- Investors seem impressed with today’s update, with K2fly shares up over eight per cent and worth 40 cents each in afternoon trade
Mining software developer K2fly (K2F) is trading strongly this afternoon following a positive update for the first quarter of the 2021 financial year.
The company told shareholders it raised $1.64 million worth of invoices over the September quarter, which is 15 per cent higher than the same quarter last year.
This meant the company went cashflow-positive by around $370,000 for the quarter, marking the second consecutive quarter of positive cashflow.
As such, K2fly had $3.1 million in the bank at the end of September, slightly up on the $2.9 million at the end of June. On top of this, however, the company had $880,000 in receivables, most of which are from top-tier clients.
The numbers look even better when compared to the September quarter of 2019 when K2fly went cashflow-negative by over $560,000.
Quarterly contract wins
Supporting the positive quarterly numbers is a $300,000 contract signed in early July with Orano SA — a France-based nuclear fuel company with uranium mining operations. Orano signed a five-year contract to make use of K2fly’s RCubed product.
Essentially, RCubed is reporting software designed to make compliance with government resource reporting regulations easier. Through the cloud-based software, companies can make quicker and more accurate reports to comply with local government codes, such as the JORC code in Australia.
K2fly said on top of the Orano deal, several customers signed up for proof-of-concept (POC) and scoping studies for other K2fly services over the quarter.
While these contracts are not necessarily material from a financial point of view, K2fly said they are important because they demonstrate the demand for its products and the company’s ability to expand its sales and offer additional products to existing clients.
In light of this, the company said it is confident it can sign on more new-name clients during 2020.
Either way, investors seem impressed with today’s report. Shares in K2fly are currently trading 8.22 per cent higher and worth 40 cents each at 1:57 pm AEDT. The company has a $36.55 million market cap.