News
28 October 2024
Australian tech firm Connec is rapidly establishing itself as a cornerstone of the mining industry’s technology stack – gaining attention and winning contracts with some of world’s largest mining corporations for its groundbreaking innovation aiming to be a game changer for the mining and energy sectors.
Australian tech firm Connec is rapidly establishing itself as a cornerstone of the mining industry’s technology stack – gaining attention and winning contracts with some of world’s largest mining corporations for its groundbreaking innovation aiming to be a game changer for the mining and energy sectors.
Connec has developed a next-generation high-voltage cable coupler system, positioned at the forefront of two major megatrends in mining: electrification and big data. Their innovation is poised to disrupt a $125 billion market that has not seen notable change in 40 years.
In a landmark test at an Australian underground coal mine, Connec recently showcased its world-first-and-only coupler system capable of transmitting both power and data simultaneously at a speed 250x faster than incumbent solutions.
This breakthrough – observed by several major mining companies – could unlock a range of data-driven technologies for the industry, with the potential to significantly enhance profitability, safety and environmental sustainability.
“This is a watershed moment for Connec. Twelve years ago, we set out to build a superior coupler system that can transmit power in a safer and more efficient way. But adding data transmission capability changes the game for us because it has made our product a must-have in the sector.” – Kim Manley (Executive Chairman, Connec)
Reach Markets will soon be opening a wholesale capital raise for Connec. This is the only remaining allocation for their 2024 capital raise, with the majority taken up by existing investors.
Click here to request the offer documents or click here to attend a webcast we are running with Executive Chairman Kim Manley.
Unlocking Mining’s Tech Stack
For those who are unaware what a coupler is, it is essentially a device that allows for the connection of high-voltage power cables. It enables cables to connect to each-other or to large industrial equipment.
This technology plays a crucial role within the economy, with the global connector market valued at $125 billion – a market ripe for disruption as the degree for electrification increases.
Forty years ago, mining primarily relied on fossil fuels like diesel. However, advancements in battery and charging technology have led to a significant shift toward electrification. For instance, commercial battery-powered trucks and loaders have transformed hauling systems, with many heavy equipment manufacturers developing electric versions of their vehicles.
A recent key example is Fortescue’s landmark $4+ billion partnership with Liebherr, a deal expected to create one of the world’s largest zero emission mining fleets and exemplifying the structural shift toward electrification.
However, as the electrification of the industry is playing out, couplers are becoming the weak link in the chain from power generation to machinery. While other parts of the infrastructure have advanced considerably, couplers have remained largely unchanged for decades.
As mining infrastructure has advanced, outdated connectors hinder companies from fully benefiting from innovations in generation, cable, and machinery (source: Connec)
Now big data is entering the stage making matters even worse for the industry.
While many industries leverage business intelligence and machine learning for operational optimisation, mining has struggled to access these technologies due to challenges in transferring data from the “coalface” and equipment to surface computers.
Mining businesses want to accelerate technological use, increasing automation and moving employees out of dangerous environments by replacing them with cameras and sensors, but this has not been possible.
This is where Connec’s innovative solution enters the stage.
We have a webcast coming up this week with Connec, a mining technology firm that has captured the attention of major resources corporations for its groundbreaking innovations. Click here to book into the webcast.
Connec – Next Generation Couplers
Connec was originally founded to create a H/MVCS solution that does a better job for power transmission than the outdated incumbent systems.
Through 12 years of research and testing, the company managed to develop a product that is 50% lighter, 40% more efficient and significantly faster and easier to connect than traditional tech, heavily reducing mining downtown during maintenance.
Importantly, it is also made of polymer which, as opposed to the incumbent steel technology, is non-conductive and therefore less prone to fire, explosions and electrocution. These safety features are unique to Connec that alternatives cannot offer.
The Connec coupler significantly lowers the electrical impedance, enabling the use of longer cables. As a result, machines can operate with greater reach, substations and require less frequent movement and experience reduced downtime.
Connec’s competitor electrical impedance (left) vs Connec’s technology (right) (source: Connec)
These features could make a mining operation significantly safer and more profitable and therefore naturally attracted interest from several mining behemoths. When you consider a single machine produces output of tens of thousands of dollars per hour, every hour of operation (or downtime) has a meaningful economic impact to the mine operators.
More recently, Connec has been approached to also explore other features. These included luminous cabling, GPS tracking but most of all the ability to also serve as a connector for fibre optic data cables together with power cables. This development was a world first-and-only which is why the company invested heavily in a large and global patent portfolio to protect its moat.
Incumbent coupler system (left) vs Connec’s latest iteration (right) (source: Connec)
In front of representatives from four of the world’s largest mining companies, Connec’s technology was demonstrated under real-world conditions, achieving remarkable results.
“At a speed of 1GB/second our solution proved to be 250x the speed of incumbent stand alone solutions. We are now the world’s only company that can offer a combined power/data solution at a bandwidth that unlocks technologies that are common in most industries but, believe it or not, have been inaccessible to the $1 trillion mining sector so far.” (Kim Manley, Executive Chairman Connec)
Join us for a Live Investor Briefing where Kim will discuss why he believes Connec’s technology far surpasses incumbent solutions, delivering significant safety improvements and cost reductions for the mining industry. Click here to book your spot.
Connec’s growth – immediate sales plus upside through partnerships
Connec is now seeing a rapid acceleration of its project pipeline which includes potential projects for a total of up to $250m+. First orders have been received from some of the largest mining companies in the world.
The company is executing a two-tier growth strategy tackling two fronts at once, as it looks to expand both geographically and across other sectors like tunnelling and port related projects.
Their bottom up strategy involves selling directly to operators in the mining and tunnelling space through an experienced internal sales force. This strategy is already bearing fruit, with their total addressable market growing by 5x with new doors opening in North America and the company forecasting to be cash flow positive in 2025.
Additional upside comes from the second ‘top down’ approach, targeting partnerships with global OEMs (original equipment manufacturers) and/or cable suppliers. This is where the blue sky is for Connec, who believe that a successful partnership could multiply their revenue forecasts to over $100 million within the next 5 years. There are already several candidates who are already working closely with the business and were closely involved In their landmark test at one of Australia’s largest underground coal mines.
Importantly, these strategies are carried out by a team that was recently joined by Murray Woolcock, an infrastructure veteran who made his name with LendLease and Apollo Global Management’s infrastructure division. Woolcock’s mandate is to use his global network and find partners that can help boost Connec’s growth beyond just sales which could also position it for a trade sale exit to a strategic partner.
“The great thing about our partnership strategy is that it is not just an opportunity to significantly accelerate our growth but it also puts Connec in front of companies that one day might be interested in acquiring the business. For some of these multinationals, the cross selling potential of Connec is enormous which makes it more valuable in their hands than stand-alone.” – Murray Woolcock (Director, Connec)
The team also includes members who were behind the $1.7 billion sale of a longwall and continuous miner manufacturer to Komatsu, and are very influential in terms of what connectors they use, making Komatsu a potentially prime candidate for a partner. Having said this, the team is already talking to other globally operating parties.
Join Connec Executive Chairman Kim Manley for a live investor briefing where he will discuss their partnership pathway and exit strategy. Click here to book your spot.
Getting the mining industry future-ready
At the end of the day, it comes back to the three main goals of mining companies: keep people safe, maximise profitability through productivity and reduce environmental footprint.
The latter is not just an ESG tick box anymore. Australia’s mining industry accounts for around 10% of the country’s total energy consumption, and numerous Australian mining companies have pledged to achieve net zero scope 1 and 2 emission by 2050 – including Fortescue with an industry leading approach to achieve net zero by 2030.
But even regulatory pressures aside, operators have plenty of profit and safety incentives to adopt Connec’s solution which solves the ‘weak link in the chain’ of power and data infrastructure, opening them up to modern technologies.
Connec’s original product was already delivering on a number of these goals, but the high powered data transmission is rapidly becoming a must-have for any mining company that wants to access modern data technologies.
“Mining companies want to get their employees away from dangerous environments and into the office to optimise their processes. High-speed data transmission is the key to this. The future of mining is a business intelligence team on the surface monitoring a system that is fed by thousands of sensors underground for a highly effective operation with minimum staff at risk.” – Kim Manley (Executive Chairman, Connec)
Connec has now brought game-changing technology to the mining industry in its next-generation coupler system, seamlessly integrating high-voltage power transmission with advanced data transfer capabilities together with world leading and patented additional features.
Connec facilitates real life solutions that reduce electrical impedance, enable luminous cabling, asset management GPS tracking, and more, it’s engineered to meet the demands of modern mining operations—unlocking electrification and big data, and it is already turning heads among major mining corporations globally.
The Connec team believes that the future for their business has never looked brighter as they target the rapid acceleration of their pipeline and see immense blue sky potential.
We expect there to be significant demand for this offer that will open this week, so click here to be on the shortlist to receive offer documents. You can also join our live investor briefing with Chairman Kim Manley. Click here to book your spot.
Reach Markets Pty Ltd provide Corporate Advisory Services to Connec Ltd and will receive fees for its role in managing this offer based on the uptake by investors.
Past performance is not a reliable indicator of future performance.
