To summarise the main points:
Finance -Management have indicated that finance may be finalised in 1Q 2019;"Subject to the agreement of all stakeholders, it is expected that debtfinancing approval could be achieved during the first quarter of 2019".
EcoGraf - Thereare two points here, (1) Discussions are underway with potential partners for EcoGraf processing facilities;"Kibaranis in discussion with a number of potential partners within the battery supplychain in regard to coinvestment and looks forward to updating the market at theappropriate time.", (2) Updated feasibility due by EOY;"The GR Engineering report is expected to be completed bythe end of 2018."
Expenses - Whilst expenses are notparticularly high, management once again failed to meet their own forecastedbudget for the quarter. Estimated cash outflows for the quarter was $850,000,Actual cash outflows for the quarter was $1,161,000. They were over budgetby more than $310,000.
ATO query - This is not a concern of mine as Kibaran is advised by Ernst & Young and specialist R&D experts. However, I understand that some shareholders may be uncomfortable with the ATO's query given the sum of money involved and our current cash balance. Management briefly addressed this in the quarterly: "Kibaranhas previously received Australian and Overseas Advance Findings confirming theeligibility of its programs and is presently engaging with the ATO to addressthe query and remains confident of its position."
I concur with @unicrumba that their needs to be salary cuts and reductions. We need to look at reducing non-essential staff and reducing the salaries of remaining employees, particularly those on large (six-figure) salaries.
I share the frustration of @benspurgin on the stubbornness of the Tanzanian Government to proactively engage with foreign mining companies and resolve the regulatory issues that are adversely affecting the financing of new mining projects. The Tanzanian Government has publicly stated their support for foreign investment in their mining industry and their desire to see mining revenue account for 10% of the country's GDP by 2025 (it currently accounts for less than 5%), yet they continue to impede new investment by their failure to address the issues created by the mining legislation changes and the supporting regulations in a timely manner.
