31 July 2025
Quarterly report to 30 June 2025- Operational focus remains on provision of labour and accommodation services in Mozambique and broader African expansion
- Project announcements by key LNG operators Total Energies, Exxon Inc and ENI lead to significant increase in Tender opportunities in early-stage construction and labour training
- Futuro-Field Ready Joint Venture plans advanced
-
Post quarter end Share Purchase Plan ("SPP") initiated and Board changes announced
Mozambique LNG Sector - Poised for Restart
RBR Group Limited (ASX: RBR) ("RBR" or "the Company") is strategically positioned to benefit from the revitalisation of Northern Mozambique's multibillion-dollar LNG industry. With a long-established operational presence and a diversified services offering, RBR maintains direct exposure to the resumption of construction on the TotalEnergies and ExxonMobil-led LNG megaprojects in the Cabo Delgado province.
Significant developments were announced during the quarter in relation to Mozambique's two cornerstone LNG developments:
TotalEnergies' Mozambique LNG (Area 1)
A US$20 billion project with expected production capacity of ~13 Mtpa, backed by a consortium led by TotalEnergies.
Construction activities, halted since April 2021 due to regional insurgency are anticipated to resume as early as August 2025.
Key advancements include:
Enhanced security conditions with regional military support.
Reinstatement of a US$4.7 billion loan from the U.S. Export-Import Bank.
Early-stage contractor mobilisations led by major contractors.
Daily charter flights from Pemba to site.
ExxonMobil's Rovuma LNG (Area 4)
Targeting output of 18 Mtpa, Rovuma LNG is set to become Africa's largest LNG project.
Final Investment Decision is expected by late 2025 following completion of Front-End Engineering Design activities.
Analysts view TotalEnergies' project restart as a catalyst for the Area 4 development.
Including the operations of ENI and its successful offshore LNG project these mega projects involve a combined investment of up to US$57b.
RBR's Role and OfferingThe June quarter marked a pivotal turning point for Mozambique as momentum built around the long-anticipated restart of these world-class LNG projects. RBR is uniquely positioned to capitalise on this LNG revival through its integrated service offering which includes:
Training Services: Delivered via its Futuro Skills subsidiary and the Field Ready JV, with a focus on safety and workforce readiness, Futuro and Field Ready are rapidly combining courses material and integrating staff to be able to escalate training opportunities. The existing Exxon contracts with Field Ready will be operated under the new JV. This will be the platform for the Futuro Skills extensive syllabi and courses for "work readiness" as well as the country unique Virtual Reality("VR") HSE programme for courses already in Portuguese language. The first VR sets are scheduled to arrive in Mozambique in August.
Labour Hire: Deployment of trained Mozambican workers to contractors and infrastructure providers involved in the LNG value chain.
Camp Construction and Management: Through Projectos Dinamicos (PD), a JV with leading African partner Canvas & Tent, RBR has developed camps, including the fully owned Temane facility, to support workforce accommodation and training near key energy developments.
Whilst the company's revenue opportunities remained subdued over the quarter the focus remained on strengthening our service platform and continued development at the Shankara Camp &Village in Temane.
The Company maintains close relationships with and has held ongoing discussions with project contractors and partners to ensure readiness to mobilise.
Via our alliances both in training with Field Ready-Get Ready group and camp supply and construction via operating entity PD, the group aims to be the preferred partner in supporting workforce development and deployment requirements as project activities resume.
RBR Group's Executive Chairman, Ian Macpherson, commented
"Our strategic advantage lies in our in-country presence, compliance credentials and experience delivering scalable workforce and infrastructure solutions aligned with local content requirements. With the LNG sector's resurgence now clearly in motion, we are sharpening our focus on converting opportunities into contracts and ensuring we are well-capitalised and operationally prepared to meet the anticipated surge in demand."
Board ChangesPost quarter end the company announced the resignation of Non-executive Director Matt Worner and the appointment of Ms. Florence Drummond to the Board.
Ms. Drummond brings to the Board significant experience both in Australia and Internationally with particular relevance to the minerals sector in regional development, cross-cultural governance and ESG strategy.
Ms. Drummond has worked closely with the WA based, Grounded Group and its CEO Paul Natoli, a significant shareholder in RBR.
Revenue and Balance Sheet
As outlined; the focus of activities during the quarter was on progressing the Futuro-Field Ready JV; responding to tender opportunities and progressing the ongoing development of the accommodation and training facilities at Shankara, Temane.
Although operational activity across Mozambique remained subdued during the quarter the Company generated $95k in cashflows from Futuro Group's payroll and administration services, as well as rental income from existing tenancies at Shankara Village. Group cashflows were further enhanced with receipt of $233k as settlement of the protracted insurance claim arising from destruction of plant and equipment at the former Wentworth Camp project.
On the balance sheet, the asset base at Temane continues to strengthen with further investment into the expansion of accommodation and training infrastructure.
Post quarter end, the Company launched a Share Purchase Plan (SPP) to raise up to $650k to support project mobilisation efforts, further reduce existing convertible debt and to fund business expansion including planned commencement of camp accommodation service offerings in Australia.
The SPP remains open and has been extended to close on 11 August 2025. For more information, please contact:
Ian MacphersonExecutive Chairman info@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.
Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7BName of entity | ||
RBR Group Limited | ||
ABN | Quarter ended ("current quarter") | |
38 115 857 988 | 30 June 2025 |
Consolidated statement of cash flows | Current quarter $A'000 | Year to date (12 months) $A'000 | |
1. | Cash flows from operating activities | ||
1.1 | Receipts from customers | 95 | 1,380 |
1.2 | Payments for | ||
(a) research and development | - | - | |
(b) product manufacturing and operating costs | (6) | (83) | |
(c) advertising and marketing | - | - | |
(d) leased assets | (1) | (44) | |
(e) staff costs | (66) | (525) | |
(f) administration and corporate costs | (298) | (1,259) | |
1.3 | Dividends received (see note 3) | - | - |
1.4 | Interest received | - | 2 |
1.5 | Interest and other costs of finance paid | (40) | (173) |
1.6 | Income taxes paid | - | - |
1.7 | Government grants and tax incentives | - | - |
1.8 | Other | - | - |
1.9 | Net cash from / (used in) operating activities | (316) | (702) |
2. | Cash flows from investing activities | ||
2.1 | Payments to acquire or for: | ||
(a) entities | - | - | |
(b) businesses | - | - | |
(c) property, plant and equipment | (19) | (176) | |
(d) investments | - | - | |
(e) intellectual property | - | - | |
(f) other non-current assets | - | - | |
Consolidated statement of cash flows | Current quarter $A'000 | Year to date (12 months) $A'000 | |
2.2 | Proceeds from disposal of: | ||
(a) entities | - | - | |
(b) businesses | - | - | |
(c) property, plant and equipment | - | - | |
(d) investments | - | - | |
(e) intellectual property | - | - | |
(f) other non-current assets | - | - | |
2.3 | Cash flows from loans to other entities | - | - |
2.4 | Dividends received (see note 3) | - | - |
2.5 | Other (Insurance compensation received) | 233 | 233 |
2.6 | Net cash from / (used in) investing activities | 214 | 57 |
3. | Cash flows from financing activities | ||
3.1 | Proceeds from issues of equity securities (excluding convertible debt securities) | - | 1,298 |
3.2 | Proceeds from issue of convertible debt securities | - | - |
3.3 | Proceeds from exercise of options | - | - |
3.4 | Transaction costs related to issues of equity securities or convertible debt securities | - | (112) |
3.5 | Proceeds from borrowings | - | 18 |
3.6 | Repayment of borrowings | - | (375) |
3.7 | Transaction costs related to loans and borrowings | - | - |
3.8 | Dividends paid | - | - |
3.9 | Other (Convertible note repayment) | - | - |
3.10 | Net cash from / (used in) financing activities | - | 829 |
4. | Net increase / (decrease) in cash and cash equivalents for the period | ||
4.1 | Cash and cash equivalents at beginning of period | 538 | 243 |
4.2 | Net cash from / (used in) operating activities (item 1.9 above) | (316) | (702) |
4.3 | Net cash from / (used in) investing activities (item 2.6 above) | 214 | 57 |
4.4 | Net cash from / (used in) financing activities (item 3.10 above) | - | 829 |
Consolidated statement of cash flows | Current quarter $A'000 | Year to date (12 months) $A'000 | |
4.5 | Effect of movement in exchange rates on cash held | (6) | 3 |
4.6 | Cash and cash equivalents at end of period | 430 | 430 |
5. | Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts | Current quarter $A'000 | Previous quarter $A'000 |
5.1 | Bank balances | 168 | 323 |
5.2 | Call deposits | - | - |
5.3 | Bank overdrafts | - | - |
5.4 | Other (Africa Subsidiaries) | 262 | 215 |
5.5 | Cash and cash equivalents at end of quarter (should equal item 4.6 above) | 430 | 538 |
6. | Payments to related parties of the entity and their associates | Current quarter $A'000 |
6.1 | Aggregate amount of payments to related parties and their associates included in item 1 | 6 |
6.2 | Aggregate amount of payments to related parties and their associates included in item 2 | - |
Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments. Payment of director fees of $6K | ||
7. | Financing facilities Note: the term "facility' includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. | Total facility amount at quarter end $A'000 | Amount drawn at quarter end $A'000 |
7.1 | Loan facilities | - | - |
7.2 | Credit standby arrangements | - | - |
7.3 | Other (Convertible Notes) | 1,550 | 1,550 |
7.4 | Total financing facilities | 1,550 | 1,550 |
7.5 | Unused financing facilities available at quarter end | - | |
7.6 | Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well. | ||
Tranche 1 of Convertible Notes has a value of $550,000 is unsecured with an interest rate of 11% pa. On 1 July 2025, $100,000 was repaid, with the remaining balance agreed to be rolled over and repaid during the September quarter. Tranche 2 of Convertible Notes has a value of $1,000,000 is unsecured with an interest rate of 10% pa. Maturity on 21 September 2026. | |||
8. | Estimated cash available for future operating activities | $A'000 |
8.1 | Net cash from / (used in) operating activities (item 1.9) | (316) |
8.2 | Cash and cash equivalents at quarter end (item 4.6) | 430 |
8.3 | Unused finance facilities available at quarter end (item 7.5) | - |
8.4 | Total available funding (item 8.2 + item 8.3) | 430 |
8.5 | Estimated quarters of funding available (item 8.4 divided by item 8.1) | 1.36 |
Note: if the entity has reported positive net operating cash flows in item 1.9, answer item 8.5 as "N/A". Otherwise, a figure for the estimated quarters of funding available must be included in item 8.5. | ||
8.6 | If item 8.5 is less than 2 quarters, please provide answers to the following questions: | |
8.6.1 Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not? | ||
Answer: Company anticipates a significant lift in contract opportunities and hence cashflow over the coming Quarters based on increased activity in Mozambique and targeted Australian source revenues. | ||
8.6.2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful? | ||
Answer: The Company has undertaken a Share Purchase Plan to raise up to $650,000, with CPS Securities providing a reasonable endeavours commitment to place any shortfall up to the target amount. As at quarter end, the Offer remains open. | ||
8.6.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis? | |
Answer: Yes, the Company expects to be able to continue its operations and to meet its business objectives based on its response to items 1 and 2 above. | |
Note: where item 8.5 is less than 2 quarters, all of questions 8.6.1, 8.6.2 and 8.6.3 above must be answered. |
This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.
This statement gives a true and fair view of the matters disclosed.
Date: 31 July 2025
Authorised by: By the Board
Notes
This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity's activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.
If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report.
Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.
If this report has been authorised for release to the market by your board of directors, you can insert here: "By the board". If it has been authorised for release to the market by a committee of your board of directors, you can insert here: "By the [name of board committee - eg Audit and Risk Committee]". If it has been authorised for release to the market by a disclosure committee, you can insert here: "By the Disclosure Committee".
If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council's Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.