The K2fly (ASX:K2F) share price is soaring today. Here's why

The K2Fly Ltd (ASX: K2F) share price is climbing higher today after announcing a new 5-year contract with international mining giant, Alcoa.

Two fists connect in a surge of power, indicating strong share price growth or new partnerships for ASC mining and resource companies

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The K2Fly Ltd (ASX: K2F) share price is climbing higher today after the company announced it has signed a new contract with Alcoa USA Corp (Alcoa).

At the time of writing, the K2fly share price is up 4.6% to an intraday high of 34 cents.

Why is the K2fly share price higher?

In today's release, K2fly advised that international mining giant Alcoa has entered into a 5-year contact for its RCubed Resource Inventory solution. The agreement will see the Software-as-a-Service (SaaS) offering rolled-out across Alcoa's 6 international sites from the beginning of February.

Alcoa is based in Pittsburgh, Pennsylvania and specialises in the production of bauxite, alumina, and aluminium. With 7 active mines in Australia, Brazil, Guinea and Saudi Arabia, the company says it's one of the world's largest bauxite producers.

K2fly said that the contract's total value is estimated at around $573,600, depending on exchange rate fluctuations. No other details were given about the terms of the deal or if any support services are included.

What is RCubed Resource Inventory?

Tailored to mining companies, RCubed is a cloud-based platform that accurately reports mineral resources and reserves. This ensures good governance, compliance and reporting among regulators, shareholders, and potential investors.

The SaaS platform can cater to single or multiple commodities, and automates workflow from data capture. In-turn, the software solution reduces time, team overhead costs and gives transparency for data validation and audit trails.

Management commentary

K2fly chief commercial officer Nic Pollock, welcomed the deal, saying:

We are delighted to be working with Alcoa as another NYSE listed user of our governance and reporting software and also an important operator in Western Australia.

K2fly noted that the new contract "validated its position as a market leader" in the mining technical assurance space. The company also advised that other multi-year agreements are currently in negotiations and it will update the market as information becomes available.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Man standing on rock next to turquoise salt lagoon.
Share Gainers

Here are the top 10 ASX 200 shares today

The ASX 200 finally had a green session this hump day.

Read more »

gaming asx share price rise represented by slot machine paying jackpot
Broker Notes

What does Macquarie expect from Aristocrat Leisure shares when it reports on 14 May?

Here's what the broker is expecting from this gaming technology company next week.

Read more »

Man pointing at a blue rising share price graph.
Share Gainers

Guess which ASX 300 stock just rocketed 17%!

Investors are sending the ASX 300 stock soaring higher on Wednesday. But why?

Read more »

Broker written in white with a man drawing a yellow underline.
Broker Notes

Top brokers name 3 ASX shares to buy today

Here's what brokers are recommending as buys this week.

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Aurizon, JB Hi-FI, Nuix, and Platinum shares are tumbling today

These shares are falling on hump day. But why?

Read more »

A young woman wearing overalls and a yellow t-shirt kicks one leg in the air showing excitement over the latest ASX 200 shares to hit 52-week highs
Share Gainers

Why Firefly, Kelsian, NAB, and Zip shares are roaring higher today

These shares are having a good time on hump day. Let's find out why.

Read more »

A man and woman sit at a desk staring intently at a laptop screen with papers next to them.
Opinions

Where I'd invest $5,000 in ASX 300 shares right now

These stocks look like excellent investments today.

Read more »

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Broker Notes

Goldman Sachs says these ASX 200 stocks are strong buys

The broker is feeling very bullish about these stocks. But why?

Read more »