(Boursier.com) — Delta Drone International Limited announced on July 27, 2022 the signing of a contract with Assmang Proprietary Limited for drone mapping services.
This contract corresponds to a renewal over three years and represents a total value of 0.9 MAU$ (10.3 M ZAR) and annual recurring revenue (ARR) of 293,000 Australian dollars (3.45 MZAR).
The contract is subject to a right of Khumani to terminate the contract if Rocketmine Pty Ltd or an associated company does not convert to a 51% accredited B-BBEE entity within 21 months.
Assmang operates in South Africa under the B-BBEE framework which aims to facilitate broader participation of black people in the economy. The contract with Assmang states that within 21 months of commencement, Rocketmine Pty Ltd will constitute a 51% B-BBEE Accredited Entity, by which Khumani is to be billed, with Assmang’s consent. This contractual clause is a right of Assmang and may or may not be enforced. Currently, Rocketmine Pty Ltd is a 26% accredited B-BBEE entity.
Drone services will include survey mapping and blast inspections for Assmang Khumani iron ore mine.
Christopher Clark, CEO of Delta Drone International, said: “We are very pleased to have renewed our services for another 3 years with the Khumani mine, which is a leading player in the iron ore mining sector. This contract brings our recently reported ARR (annual recurring revenue) to an effective ARR of A$2 million at the end of July 2022.”
The Khumani Iron Ore Mine – formerly known as the Bruce, King and Mokaning Project, which refers to the farms on which the iron ore resources are located – is located about 30 km south of the town of Kathu and approximately 65 km north of the Beeshoek mine in the Northern Cape Province of South Africa. The mine has a capacity to extract 14 million tons of iron ore per year.
The Khumani iron ore mine is owned by Assmang Proprietary Ltd. Incorporated in 1935, Assmang Group employs 6,567 permanent staff and operates as three divisions, namely iron ore, manganese and chrome. Assmang is jointly controlled by Assore Limited and African Rainbow Minerals. Both shareholders are listed on the Johannesburg Stock Exchange JSE Limited.