The Company’s current plan of operation is to continue and expand our logging operations and to refocus on mining activities after achieving sufficient cash flow from logging and timber sales.
The Company has spent considerable time and effort understanding and developing processes for our logging, processing and sale of finished products. The Company is now ready to deliver to the market place approximately 150 cubic meters of processed timber for sale to both the wholesale and retail markets. We anticipate that the average sales revenue for processed timber will be approximately $750.00 per cubic meter.
Within the next 6 months, the Company plans to (1) acquire and place additional processing equipment in our new Timber yard at Laloki, and (2) acquire additional logging equipment to be deployed as required in Rigo and Kubuna. We have placed deposits on various processing equipment, but we may need to finance the balance of the processing equipment and the additional logging machinery. Once the additional logging and processing equipment is placed, we believe that our capacity will increase to approximately 500 cubic meters per month. Moreover, the new processing equipment will allow us to customize our products to specific customer requirements and offer additional value added timber products, which should help the Company increase profit margins on its timber sales.
With current operations at Rigo and Kubuna, we are optimistic that we can sell an average quantity of 300 cubic meters of timber per month by March of 2017. To support this target, we plan to develop export markets for our finished timber products to avoid relying too heavily on sales to any one region, diversify our customer base and build a more stable sales market. In addition to Rigo and Kubuna, we are investigating additional areas in PNG for potential timber operations to support our projected volume for the next 3 years.
Once we have sustainable excess profits from our logging activities, we plan to renew our mining exploration efforts at Wau. That project needs considerable additional capital to commence any substantial revenue producing activities. At this time, the Company plans to self-fund the mining exploration at Wau with anticipated revenues from its timber operations rather than utilizing third party financing. We anticipate renewed exploration activities at Wau during our 2017 fiscal year.
During the six months ended March 31, 2017, we recognized $175,435 in revenue. We recognized $72,426 revenue during the six months ended March 31, 2016. The increase in revenue is attributable to the extraordinary income from the settlement of the Angel Jade litigation. We anticipate revenue will increase in the June Quarter as operations will start to be normalized. The Rainy Season has had an impact of Revenues during the March quarter. Processing was not continuous for this period as access to processing sites was not possible due to flooding. The weather has now improved to allow access. Our ability to generate income in the future will greatly depend on the success of our timber operations and mineral exploration activities.
On May 16, 2017, Kibush Capital Corporation (the “Company”) and entered into a joint venture agreement with Purari Development Trust for the purposes of commercializing the land controlled by Purari which is targeted for oil and gas exploration. Kibush will represent Purari’s commercial interest in the negotiate of any commercialization of the land, including oil and gas exploration and production. Kibush will also used best efforts to secure PNG governmental approval for the projects it negotiates on behalf of Purari. In exchange, Kibush will receive 30% of the total revenue generated for Purari based upon such commercialization efforts. The agreement is for a term of 3 years."
Has 23 years’ experience covers Mine Operations Manager and General Manager, Tolukuma Gold Mine Ltd., and Consulting Survey Project Manager at Lihir Gold Mine (Newcrest Mining Ltd). His qualifications are a Degree in Technology majoring in Surveying.
Mr Ken Unamba
Has a Science Degree majoring in Geology. His 22 years’ work experience covers Exploration Geologist for Tolukuma Gold Mine Ltd., Consulting Geologist for Harmony Gold SE Asia and Filmena Resources Corp Philippines. He was appointed to the then Mining Advisory Board in 2000 for five years as Technical Advisor.
Mr Leonard Kasa
Has a Degree in Engineering, majoring in Mining. He is currently consulting to OK Tedi Mining Ltd in that capacity. He has worked for the Department of Mining Port Moresby PNG, as the Senior Mining Engineer and was also a member of the Mining Advisory Board (MAB) PNG as Technical Advisor from 2000-2005.
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Proposed New additions to Board
Mr. John Duval
Has a B.Sc honours from the University of Witwaterstrand 1968. Worked for 17 years in the private sector for Rio Tinto, King Resources, JCI, Cullinan Minerals, on various minerals including tin, copper, uranium, and gold, extensively throughout South Afica, and Zimbabwe. In 1982 joined SWA/Namibia as chief economic geologist, and became Deputy Director of Mines in Namibia in 1986. Joined a South African parastatal organization STK where was involved in monitoring mining contracts and royalties. In 2000 the mineral economics unit of the South African Department of Minerals and Energy as Deputy Director: Industrial Minerals until end of 2006. For the next 2 years stayed on as mentor/trainer of mineral economics in the Department of Minerals and Energy..
Mr Marcel Dippenaar
Has a B.sc Honours from the University of Witwaterstrand 1989. From 1989 worked for Genmin/Gencor on projects in South Africa, Mozambique, Ivory Coast, Namibia as a project geologist on Gold and base metal exploration. From 1995 worked for Gencor/Billiton on projects in Indonesia, China, Namibia, Africa, Southern Europe, as senior geologist, chief geologist and project manager, on Gold and Base metal exploration. From 2003 worked for the Council of Geoscience in the Limpopo unit as an economic geologist. From 2005 has worked as consulting geologist primarily in south Africa.
Excerpts from recent 10K and 10Q filings on their plan of operations, logging revenue projection, and joint venture agreement with Purari Development Trust. Advisory board from http://www.kibushcapital.com/advisory-board
