RBR GROUP LIMITED ASX Release
29 April 2022
March 2022 Quarterly Report
Key Points
• Security maintained in Palma district and growing evidence of onshore LNG project restart in H2 2022.
• ENI FLNG Production vessel arrived offshore Mozambique and undergoing commissioning.
• Wentworth camp contract settlement confirmed on 10 February. Insurance claim negotiations continue.
• Operating entities Projectos Dinamicos Lda ("PD") and Futuro Group ("Futuro" or "FG") pursuing several contract opportunities outside of LNG and Cabo Delgado province.
• Operations and management restructure progressed both in Mozambique and Australia.
• Partial repayment and roll-over of Convertible Note facility post quarter end.
Labour and training specialist RBR Group Limited (ASX: RBR) presents its March 2022 Quarterly Report.
Wentworth Camp Project in Palma, Mozambique
As reported in the 31 December Half Year report the Group's Wentworth Camp, held via operating subsidiary PD remains relatively intact as security in northern Cabo Delgado has been restored and maintained. A large contingent of regional Rwandan and Southern African "SADC" military personnel remain in and around the townships of Palma and Mocimboa da Praia and access for the general population has recently opened up.
The Camp construction contract settlement of US$4.2m was agreed and received into the PD accounts on 10 February 2022. Notwithstanding several frustrating delays PD have in the past 10 days, been able to deploy personnel to inspect and assess the condition of the camp and associated infrastructure. As previously reported management discussions with the Company's insurance agents continues. Settlement remains subject to anumber of conditions including a formal assessment of damages to progress the existing claim and possible further claims.
RBR GROUP LIMITED
Delivering skilled labour to site, every day
ASX: RBR ABN 38 115 857 988
Level 2, 33 Colin Street, West Perth, WA 6005
PO Box 534, West Perth, WA 6872
T: +61 8 9214 7500
www.rbrgroup.com.au
ASX Release
Mozambique LNG - Update
Labour service contracts surrounding the major LNG projects in the far northern province of Cabo Delgado remain our Futuro Group focus.
The Company is encouraged by public press releases and Government announcements in recent months that have clearly shown renewed optimism as to the recommencement of activities surrounding the onshore Mozambique LNG operations in the near term.
Cargo movements, a prime indicator in these large projects, have increased significantly in and out of the region. EPCM contractors and their subcontractors are active in the freight and transportation market verifying pricing and capacity for a restart of activity in Northern Mozambique.
Meanwhile the ENI Offshore FLNG project in Cabo
Delgado waters is undergoing commissioning with appropriate surrounding infrastructure and support services being established.
As reported on Bloomberg* Mozambique's Finance Minister Max Tonela said, in an interview from Washington where he was attending International Monetary Fund and World Bank meetings in the week to 25 April, that "Total should resume it's US$20b project by the end of this year". Tonela also met with representatives of ExxonMobil who stated, he wasquoted as saying "ExxonMobil should be ready to make a final investment decision (FID) on its project once Total Energies lifts the current force majeure".
(*Mathew Hill & Jordan Yadoo, Bloomberg 25 April 2022)
Futuro Group Business Development - Mozambique
Until such time as the recommencement of the onshore LNG projects development is confirmed, other business opportunities of scale for the Group exist in several regions, such as the project works for Sasol (a South-African listed petroleum and chemicals company) in Inhambane province, and other prospects in Maputo, Inhambane and Nacala provinces.
The Group opened new offices in Vilanculos, Inhambane province in late 2021 and staff were redeployed to take full advantage of the opportunities emerging in the region with particular focus on the Sasol PSA expansion project. Management of Futuro Group operating subsidiary, Futuro Skills continue to build on alliances with local government departments to develop the local content policies and procedures for supply of unskilled and semi-skilled workers to the Project EPC's and sub-contractors.
Futuro Skills has responded to several requests for tender ("RFT") in training both in the capital Maputo and across the provinces.
RBR GROUP LIMITED
Delivering skilled labour to site, every day
ASX: RBR ABN 38 115 857 988
Level 2, 33 Colin Street, West Perth, WA 6005
PO Box 534, West Perth, WA 6872
T: +61 8 9214 7500
www.rbrgroup.com.au
ASX Release
Current activities of note include discussions with Mozambique government training organisation IFPELAC as to a possible alliance with SASOL for skills training and community workforce education to enable direct employment from the local communities to the Project together with continuing engagement with local representatives of several large corporate groups seeking services ranging from licensing and workforce permitting, payroll management and supply of semi-skilled workers.
With renewed demand for assistance in expediting Work Visas and Permits, Futuro Business Services has boosted its service capability via the employment of a 30-year experienced business advisor located in our Maputo head office. These services, although not material in dollar value are an integral part of early engagement efforts of Futuro Group with foreign corporates and their work force looking to enter the Country to access contract opportunities in the LNG and other construction projects.
Camp construction and accommodation services provider PD has also focussed its attention on the significant opportunities flowing from the Sasol project Management of PD has been strengthened with the Director from our Investor partner being permanently transferred to PD and now responsible for market development and sales throughout Africa. The competitive advantage and strength of PD is that camps can be manufactured, transported and constructed by our one entity.
There are 3 separate projects of scale that PD are targeting:
1. Globetech 450 MW Gas Power Plant;
2. Sasol PSA Project; and
3. Existing corporate camp expansion.
All involve supply and construction of accommodation camp facilities, in total some 800-1200 beds, and possibly additional management services associated with operation of the camps.
Outside of Temane there are further large-scale projects that PD plan to target their services including, Balama Graphite Project owned by ASX listed Syrah Resources, Moma Heavy Sands development of Ireland based Kenmare Resources and the Thai Mozambique Logistics hub, linking Moatize/Chitima region and a new port facility on the Macuse River. The Thai Logistics company will start a US$3.2B construction project of a circa 700 km rail line and port terminal on the Moatize-Macuse for the export of 30M tons of coal and other minerals.
Operational and Management Structure
The Group continues to add skills to our service divisions following the review of its operating & management structures in our primary geographical locations of Africa and Australia.
In Australia, the Company has over the course of the past 6 to 8 weeks focussed its efforts on securing a strategic position in an industry sector currently challenged in both skill shortages and labour supply.
We are working towards completion of due diligence in May. Alternative skills training and labour supply opportunities that have passed preliminary review are on hold subject to completion of this due diligence process. The Company is committed to developing a robust local business focused in areas of high skills demand and current labour shortages.
RBR GROUP LIMITED
Delivering skilled labour to site, every day
ASX: RBR ABN 38 115 857 988
Level 2, 33 Colin Street, West Perth, WA 6005
PO Box 534, West Perth, WA 6872
T: +61 8 9214 7500
www.rbrgroup.com.au
ASX Release
Revenue and Balance Sheet
At Quarter end, RBR had consolidated cash of $6,175k, ($473k in Australia and $5,702k in Mozambique) in addition to a 50% interest in PD and (indirectly) the Wentworth Camp.
During the quarter the Company has formalised arrangements for the repatriation of monies from Mozambique to Australia; the funds being part proceeds from the Wentworth Camp contract settlement. Documentation for repatriation of the first tranche of US$105k was being finalised as at the date of this report.
Included in the cash flow report are payments to related parties of the entity and their associates of $100k for Director's fees and salaries plus supplier payments to related parties.
Subsequent to Quarter end, the Company has repaid $100k of the existing convertible note held by Deep 4 Energy and negotiated the further extension of the balance of the note facility of $300k to the end of the current financial year. Deep 4 Energy and its investors remain supportive of RBR Group and its business plans.
The RBR Board maintains its positive view as to the robustness of its existing business operations in Africa and the ability to identify and secure further investment in Australian-based labour services opportunities.
For more information, please contact:
Ian Macpherson
Executive Chairman +61 8 9214 7500info@rbrgroup.com.au
For the purpose of ASX Listing Rule 15.5, this announcement has been authorised for release by the Board.
The information in this announcement has been disclosed by RBR and is the responsibility of RBR.
RBR GROUP LIMITED
Delivering skilled labour to site, every day
ASX: RBR ABN 38 115 857 988
Level 2, 33 Colin Street, West Perth, WA 6005
PO Box 534, West Perth, WA 6872
T: +61 8 9214 7500
www.rbrgroup.com.au
Rule 4.7B
Appendix 4C
Quarterly cash flow report for entities subject to Listing Rule 4.7B
Name of entity
RBR Group Limited
ABN
38 115 857 988
Quarter ended ("current quarter")
31 March 2022
Consolidated statement of cash flows | Current quarter $A'000 | Year to date (9 months) $A'000 |
| 5,860 - (3) - (262) (105) (957) - - (60) (2) - 986 | 6,004 - (77) - (357) (396) (1,556) - - (181) (3) - 986 |
5,457 | 4,420 |
2.
Cash flows from investing activities
2.1
Payments to acquire or for:
ASX Listing Rules Appendix 4C (17/07/20)
(a) | entities | - | - |
(b) | businesses | - | - |
(c) | property, plant and equipment | (70) | (72) |
(d) | investments | - | - |
(e) | intellectual property | - | - |
(f) | other non-current assets | - | - |
Page 1 |
+ See chapter 19 of the ASX Listing Rules for defined terms.
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RBR Group Limited published this content on 02 May 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 May 2022 01:36:01 UTC.
