Verbrec Limited (ASX:VBC) provides engineering, asset management, infrastructure services and training to the energy, mining, infrastructure and defence industries in Australia, New Zealand, PNG and the Pacific Islands. The company has announced that its wholly-owned subsidiary StacksOn Operations Pty Ltd has entered into a Software Reseller Agreement with Datamine for Verbrec’s stockpile digital twin product StacksOn. The product was developed in-house by Verbrec and commercialised in 2021 and is currently utilised by BHP at its iron ore mines and ports in Western Australia. This new agreement is a significant opportunity to expand the use of the product by customer, commodity and geography through the reseller agreement. Brisbane-based Datamine is a sustainable mining software and technology company with 1,500 mining clients worldwide from its 27 offices across 20 countries. It is wholly owned by Toronto Stock Exchange-listed Constellation Software Inc. (market cap ~C$100b). The economics of the agreement have not been released but we believe licensing fees or revenue share arrangements are most likely, with Datamine securing a non-exclusive, worldwide right to distribute the Verbrec product either on a standalone basis or incorporated via an Application Programming Interface (API) into its suite of sustainable mining software applications. We estimate the annual revenue currently generated by StacksOn through its one commodity, one geography BHP relationship sits at ~$1.5m p.a. so the potential scaling and revenue upside is material. We retain our existing forecasts and at this stage ascribe no upside to the current StacksOn contribution which sits in engineering revenue. As such, our DCF valuation remains unchanged at $0.35/share. We believe the StacksOn product represents a “free carry” asset at the current share price and the upside could potentially be recognised in coming periods.