How many Tier 1 miners can K2fly pickup by 2021?

My InsideMarket Private Fund does not own shares in K2fly at the time of publishing this post, nor do I accept any payment from any of the companies I cover. More on disclosure at end of post.

If you are a journalist, a deadline is not always your friend.

But for Software as a Service company K2fly [ASX:K2F] there is such a thing as a friendly deadline and it is helping drive new business to its door.

K2fly, operates in the mining sector and has 3 parts to its business:

1. Software as a Service in the form of proprietary products Infoscope (land management and compliance) and RCubed (mining reserves and resource reporting)

2. A re-seller of software from UK and USA developers

3. A consultancy business

The company has been listed on the ASX for three years and counts Fortescue Metals, Rio Tinto, and Glencore among its Tier-one clients.

Why is K2fly so excited about a deadline?

Recently the American Securities Exchange Commission announced new reporting regulations for mining companies.

Currently, Tier-one miners report resource and reserves, a crucial element in their stock price valuations, using spreadsheets created in the language and style of the individual company itself.

But the SEC brought in new regulations so that by 2021, all mining companies must report in a specific and comparable way.

This will provide investors a more rigorous, detailed, and therefor more useful information.

That sounds easy enough in theory.

This is where K2fly's RCubed SaaS comes in, converting the old spreadsheet data into an SEC-compliant form, as well as being easily comparable against other miners. Apple to Apple.

K2fly acquired the RCubed software, last May and prior to that, purchased the Infoscope land care software.

According to CEO Brian Miller "You wouldn't need to be a genius to realise that perhaps we would be looking to do something like that again in the future."

Having a base of existing SaaS clients makes acquiring an already developed and complementary SaaS solution, a great way to bolster your bottom line.

I spoke with Brian Miller recently about how the clock is ticking in the race to sweep up as many NYSE listed Tier-one companies as they can in 2020.

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