GCS Hire
18 June 2015
Update on PacMoz, Rubicon's Mozambican subsidiary
RUBICON RESOURCES LIMITED
(ABN 38 115 857 988)
ASX: RBR
Directors
Ian Macpherson - Executive Chairman Richard Carcenac - Executive Director Ian Buchhorn - Non-Executive Director
Senior Management
Andrew Ford - Chief Operating Officer
Sam Middlemas - Company Secretary
Capital Structure Issued Shares: 248.3M Issued Options: 11M Performance Shares: 60M
Market Cap at 18 June 2015: $4.0M
Website: www.rubiconresources.com.au
For further information, please contact:
Ian Macpherson
Executive Chairman
Richard Carcenac
Chief Executive Officer
Tel: 61 8 9214 7500
Fax: 61 8 9214 7575
Email: [email protected]
Highlights
PacMoz is a profitable and self-funding entity that offers a broad suite of business support services including company registrations, permits and licences, HR (immigration/visas, recruitment, labour contracts and payroll), legal and financial services.
Fee structures have been benchmarked and revised upwards since the acquisition to align (while remaining competitive) with PacMoz's local competitors. This will significantly bolster PacMoz's financial performance.
Strong and growing customer base of local and international clients, as attached.
Established offices in the capital Maputo, the major regional centres of Beira and Nacala, and a fourth to open in Pemba in coming months. Pemba is the focal point for the development of Mozambique's LNG industry in the north of the country.
Rubicon's strategy remains: the further growth of its sustainable cash flow business base; establishing itself as a leading service provider to the resources, construction and oil & gas sectors; and leveraging our position with a watching brief on mineral resource opportunities. Rubicon in Mozambique will differentiate itself from the competition by addressing the challenges of local content.
Rubicon will maintain its core focus on the resources sector and plans to use any cash flow from the PacMoz activities to rebuild its capital base and use PacMoz's expertise and experience in Mozambique to seek advanced resource project opportunities.
With its suite of business support services, PacMoz is the foundation upon which the next three business units will be built. These comprise a medical centre, a training facility and an accommodation camp (aligned to deliver our strategy) to service Mozambique's rapidly expanding mining and natural gas industry, and service their local administration requirements into the future.
Recognition of PacMoz's capabilities in Mozambique is rapidly growing, especially amongst international companies looking to establish themselves in-country as the resources and oil & gas- driven activities accelerate.
Rubicon and PacMoz are in the advanced stages of signing service agreements in Mozambique with other significant international companies, which will be the subject of further ASX announcements in the coming weeks.
Services provided:
Some key clients in Mozambique:
Their clients
HR - Contracts, payroll, immigration;
Financial - accounting, management reporting;
Corporate - project consulting, registrations, licences, permits, admin, secretarial;
Legal - wide range of support.
About PacMoz's Key Clients:
LBH Mozambique has been operating in-country for over 25 years with offices in all the major Mozambican ports, and provides port agency services, bulk logistics management, customs clearance and project management.
Drum Commodities, a UK company which is a 'Collateral Manager' offering a range of services that are
'risk mitigants' for each transaction. Their principal customers are the Trade & Commodity Finance teams of international banks who finance imports and exports of commodities in Africa and the Middle East. They also work for corporates and trade houses involved in commodity flows. They have operations in
30 countries, and their new Mozambique subsidiary already has 15 operations in place.
SB2 Logistics, Lda, is an Authorised Service Contractor for UPS, the largest package delivery company in the world.
Mozmotion, an international railway engineering and logistics contractor currently involved in the refurbishment of several companies' railway wagons operating in northern areas of Mozambique.
ALE, founded in 1983, is now one of the world's leading international heavy transport and installation contractors with a global network of operating centres and a large fleet of heavy cranes, specialist transport and installation equipment. They operate all over Mozambique.