I would like to share the reasons I invest heavily in...

I would like to share the reasons I invest heavily in K2F.

Firstly, I would like to show a brief timeline of K2F since the company acquired RCubed, which in my opinion turned K2F into a completely different company:

• May 2019: bought RCubed.
• Jun 2019: signed Imerys
• Jul 2019: signed Glencore Canada
• Sep 2019: signed New Crest, CR $1mil at 16c
• Oct 2019: signed Nexa Resources
• Nov 2019: signed Rio Tinto
• Dec 2019: re-signed Tech Resources; signed West Gold
• Jan 2020: signed The National Trust of Australia; signed Gold Field
• Feb 2020: signed Proof of concept with South32 and Vale
• Mar 2020: re-signed with AngloGold Ashanti
• Apr 2020: signed Sibelco and Kinross
• May 2020: options exercised and underwritten
• Jun 2020: signed with South32
• Jul 2020: signed with Orano; MOU with Decipher
• Oct 2020: bought SATEVA
• Nov 2020: launched SATEVA, won SAP Endorsed App, signed with Roy Hill

As you can see, before Covid, K2F had been very busy, on track for 01 new client per month. I am sure that Covid has slowed the company down a bit. Hopefully it will catch up next year.

Something to notice of these contracts:

• Large companies
• Multi-year recurring
• Some have renewed their subscriptions
• Almost no churn.

It also demonstrates the strategy that Brian has emphasised repeatedly, which is "land-and-expand": focusing on big companies, then offering them more solutions, instead of chasing smaller companies.

As a result, the financial performance has been improving, as you can see in the charts below:






(ARR chart is from K2F's Q1 FY21 Quarterly Activities Report)

What really excites me is, after SATEVA, the Company now has more things to sell to current clients ("expand"). It also has more chances to sell to new clients ("land").

And after SAP Endorsed program, K2F now has access to more than 90 major miners in the world. Talk about standing on shoulders of a giant.

That is not to mention all the oil industry and Nick Pollock has mentioned, and other smaller resources companies that K2F can approach with lighter versions of its solutions.

After all of these, I still have a thought that maybe, in the future, K2F will be acquired. A risk with such possibility is that the Board is not acting in the best interest of shareholders, especially that of retail shareholders like me, and K2F will be sold to a low ball offer.

However, I have watched many presentations by Brian and Nick, and I believe that I can trust them with K2F. If K2F is ever for sale, I'm sure we will have a multi-bagger.