Hi Dalto, that is correct. The loan enabled blue ocean to...

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B0bthebuild3r

497 Posts.

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01/03/18

07:34

Post #: 31435771
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Originally posted by dalto24 ↑

When you say loan to Blue Ocean, are you indicating that RDG provided them with that loan?

I'm confused because I am at the understanding that Central Systems Pty Ltd, a subsidiary of Resource Development Group, was contract by Blue Ocean Enterprises to build their residential apartments.

Also, a small $260k loss is nothing really. More importantly, the cut on expenses is sensational!
For example, the following are drawn from half-yearly report and accounts (28/2/18).

Cost of Sales: ($2,858,048) in 2016 decreased to ($1,845,512) in 2017. Total savings of $1,012,536.

Employee Benefits Expense: ($2,185,715) in 2016 decreased to ($1,885,504) in 2017. Total savings of $300,211.

Other Expenses: ($1,349,428) in 2016 decreased to ($687,254) in 2017. Total savings of $662,174.

In those 3 lines the business has cut back expenses a staggering $1,974,921.

For a challenging time, RDG is holding up really well in my opinion. Reading around other companies have blown through millions of dollars just trying to keep their head above the water. We have a very competent management team. They have acknowledged bidding is very aggressive on contracts at present and refuse to put their precious $9m cash reserve in the line of fire. And why would they, when they know the industry is under a lot of pressure? I believe they are waiting for it to strengthen up. Which is good because this also reduces the need of a capital raising and further share dilution. This means by investing later they'll actually get more value for their money compared to if they just chucked it in anywhere now.

Great businesses aren't built overnight.

All I can say is, if people want out, I'll happily take your shares.

Slow and steady,
Dalto24

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Hi Dalto, that is correct. The loan enabled blue ocean to acquire the 24lots and was the development. The loan terms are in the report.
So, in general terms RDG funded the development of an extent.
I’m not too concerned with the loan just finding the date as this is referenced in the cash balance movement.

RDG Price at posting: 2.0¢ Sentiment: None Disclosure: Held
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